The RV price in respect of cane delivered in April 2013, was declared at R3 048.07 per ton. The price was R29.87 per ton lower than the April 2013 price (cane delivered in March 2013). The main contributors to the decline in price were the increased sugar production (2.364m tons vs. 2.324m tons), the lower No.11 world market price (US17.47c/lb. vs. US17.88c/lb.) and a reduced sugar: RV ratio (94.15% vs.94.49%). The higher crop and sugar production estimate and the consequent higher export availability, has increased the industry’s exposure to the declining world market price. Indications are that the industry could achieve an average export price below US18.00c/lb. compared with the average of US25.62c/lb. in 2012/13. The expected weaker R/$ exchange rate could cushion some the negative impact of the lower world market price.
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