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Erasmus says the 24 September issue of Farmer’s Weekly takes a look at an increase in the Health Promotion Levy (HPL), or sugar tax. Several organisations are calling for this tax on beverages that contain sugar, to be increased. Erasmus adds that sugar tax currently stands at 11% of the price and these organisations want it to be increased to 20%.

She explains that this is possible now because the moratorium that is in place on increasing the HPL will expire later this year.

However, the sugar industry is strongly opposing any increases and has pointed out the negative impact that sugar taxes has had on the sugar production industry. Erasmus says that the industry quotes a report that was published by the National Economic Development and Labour Council (Nedlac) which has shown that sugar tax has cost the sugarcane sector 9 000 jobs – which is only in the primary sector. Furthermore, overall across the value chain, 16 000 jobs have been lost in the industry due to the levy.

Another article takes a look at cannabis production in South Africa. Erasmus says that the draft master plan was represented to Parliament by the Department of Agriculture, Land Reform, and Rural Development and according to this master plan, developing a commercial industry for cannabis production could possibly create between 10 000 and 25 000 jobs. The department expects that the commercial industry could be worth about R28 billion a year.

Erasmus, however, says that the Fair Trade Independent Cannabis Association indicated that although they support a lot of what is said within this master plan, with their members and everyone else hoping to enter this industry, the big stumbling block remains a lack of appropriate legislation, as well as the very high entry barriers that this causes for anyone hoping to get established as a cannabis producer in South Africa.

In addition, another story looks at the Animal Feed Manufacturers Association’s (AFMA) latest annual general meeting. The chairperson of the organisation, Wouter de Wet, explains in the chairperson’s report how high commodity prices, the Covid-19 pandemic, and bird flu have emerged as really serious challenges for the feed industry in the past year.

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