| 187. | The provisions of clause 188 apply to all mills, including sugar beet mills and, in that clause, the expression “mill” includes a sugar beet mill. |
[Clause 187 substituted by Notice No. 3770 of GG54123, dated 13 February 2026]
| 188. | In each year, if the sum of a mill’s sales on the local market and its local market carry over stocks is a greater quantity of refined sugar or brown sugar than the quantity allocated to it as its local market allocation in terms of clause 179, that mill will pay to the South African Sugar Association an amount for redistribution amongst those mills which, during that year, sell on the local market quantities of refined sugar or brown sugar, respectively including their local market carry over stocks, which are less than their allocated local market allocations, according to the following provisions— |
[Words preceding Clause 188(a) substituted by Notice No. 3770 of GG54123, dated 13 February 2026]
| (a) | During April of each year, the South African Sugar Association shall provisionally estimate each mill’s local market quotas for refined sugar and brown sugar, respectively, and during the year shall continuously revise such estimates until the allocations are finally determined at the end of the year. References in this clause to a local market allocation shall be construed as such allocation from time to time so estimated, until finally determined. |
| (b) | The quarters referred to in this clause are sugar marketing quarters as determined by the South African Sugar Association in respect of each year, the last days of which need not co-incide with the last days of the calendar quarters concerned. |
| (c) | In respect of each quarter ending on the last day of June, September, December and March, each mill (“an over-performing mill”) which sells on the local market more refined sugar or brown sugar (“the excess quantity”) than the pro rata share that its local market allocation bears to the aggregate quantity of all such sugar sold in the quarter concerned by all mills on the local market, shall pay an amount calculated in terms of clause 188(d) to the South African Sugar Association, for redistribution as hereinafter provided. |
| (d) | The amount payable in respect of each quarter to the South African Sugar Association by an over-performing mill will be equal to the excess quantity sold by that mill during that quarter multiplied by the difference between the weighted average of the notional local market price (determined by the South African Sugar Association in terms of Chapter 6 applicable during that quarter) and the export price used by the South African Sugar Association to calculate the price per ton of recoverable value for the last month of that quarter, less (except in the case of a sugar beet mill) the financial levy imposed by the South African Sugar Association in terms of this Chapter applicable thereto, and less a manufacturing allowance determined according to rules laid down by the South African Sugar Association: Provided that— |
| (i) | the amounts payable for redistribution in respect of the quarters ending on the last days of September, December and March will include a recalculation of the previous quarter or quarters (as the case may be) from the beginning of the year on a cumulative basis; |
| (ii) | unless otherwise determined by the South African Sugar Association, the manufacturing allowance will not be deducted from the amounts payable for redistribution in respect of the quarter ending on the last day of June and the manufacturing allowance for that quarter will then be taken into account as a deduction in the recalculation of the amounts payable for redistribution in the calculation made at the end of the September quarter; |
| (iii) | any amount deducted in terms of the proviso set out in 188(e)i from the amounts payable to under-performing mills, will be credited in calculation of the amounts payable by over-performing mills for redistribution in respect of the quarter concerned, pro rata in relation to the amounts payable by them, respectively, and those credits will be reversed in the recalculation at the end of the next quarter; |
| (iv) | the calculations to be made at the end of the June, September and December quarters will each be based on the South African Sugar Association’s latest estimate at that time of the respective mills’ local market allocations for the year concerned and the final calculation to be made at the end of the March quarter will be based on the actual local market allocations for that year. |
| (e) | The amounts payable by over-performing mills to the South African Sugar Association in terms of the foregoing provisions shall then be redistributed by the South African Sugar Association to those mills (“under-performing mills”), respectively, which, during the quarter concerned, will have sold on the local market less refined sugar or brown sugar, respectively, than the pro rata shares that their local market allocations bear to the aggregate quantity of all such sugar sold by all mills on the local market during that quarter; which redistribution, subject to paragraph 188(f), shall be made pro rata in relation to the respective shortfalls of the mills concerned: Provided that, if, at the end of a quarter, an under-performing mill has not realised in full its previous year’s carry-over stocks of sugar— |
| (i) | an amount calculated by multiplying the difference between the weighted average of the notional local market price (determined by the South African Sugar Association in terms of Chapter 6 applicable during that quarter) and the export price used by the South African Sugar Association to calculate the price per ton of recoverable value for the last month of that quarter, less (except in the case of a sugar beet mill) the financial levy imposed by the South African Sugar Association in terms of this Chapter applicable thereto, and less a manufacturing allowance determined according to rules laid down by the South African Sugar Association; by the tons unrealised carry-over stocks will be deducted in calculating the amount to be redistributed to that mill in respect of that quarter; |
| (ii) | the debit in respect of the amount so deducted will be reversed in the recalculation of the amount to be redistributed at the end of the next quarter. |
| (f) | If, in any quarter, a sugar beet mill is an under-performing mill, the South African Sugar Association shall adjust the pro rata shares of the amount to be redistributed in terms of paragraph 188(e) by adding back to the amount to be redistributed any financial levy that will have been deducted from the amount payable by each over-performing mill. |
| (g) | An amount payable by an over-performing mill for redistribution in terms of the foregoing provisions shall be paid within thirty days of the last day of the quarter concerned, except for an amount in respect of the final quarter which shall be payable upon the date on which, in terms of this agreement, each mill is deemed to have sold into the local market carry-over stocks of local market refined sugar, local market brown sugar and local market molasses. |
| (h) | In respect of each quarter, the amounts to be redistributed in terms of the foregoing provisions will be payable on the next day after the amounts payable by over-performing mills are due in terms of paragraph 188(g) and shall be paid by the South African Sugar Association whether or not it shall have received the amounts payable by over-performing mills. If the South African Sugar Association suffers any loss in consequence of a default by an over-performing mill, that loss will be borne as an industry obligation. |
| (i) | All calculations necessary to give effect to the foregoing provisions shall be undertaken by the South African Sugar Association. |
[Clause 188(a) to (i) substituted by Notice No. 3770 of GG54123, dated 13 February 2026]
| 189. | The proceeds of final molasses referred to in clause 166(e), before the deduction of rebates, shall be subject to a financial redistribution amongst mills based on the molasses production of the respective mills, which redistribution shall be undertaken by the South African Sugar Association at the end of each year in accordance with rules laid down by the South African Sugar Association. |
[Clause 189 substituted by Notice No. 3770 of GG54123, dated 13 February 2026]
