The January 2017 RV price for the 2016/17 season, in respect of cane delivered in December 2016, was declared at R4 875.57 per ton. This represents a decrease of R35.92 per ton compared with the previous price (December 2016 for cane delivered in November 2016). This decrease is due mainly to another sharp drop (-0.58%) in the Sugar:RV Ratio (90.48% vs. 91.07%), which alone accounted for R30 of the price drop. Both sugar production and the LMDE declined by 7 240 tons, resulting in a marginally negative impact on the price of just over R1. The balance of the price drop of R35 is accounted for by change in the weighted average sugar price, which was brought about by the changed volumes of local market sugar sales at old and new notional prices.
We lead, protect, communicate and serve the interests of cane growers.