Delta Corporation has blasted local sugar companies for delivering terrible quality products that fail international standards. The beverage giant told lawmakers that major suppliers like Starafricacorporation, Hippo Valley and Triangle Limited cannot produce sugar good enough for making drinks. Finance boss Alex Makamure explained to Parliament that their sugar fails to meet global quality tests used worldwide. The company needs special grades of sugar that local producers just cannot deliver consistently. Delta operates under Coca Cola rules that demand extremely high purity levels for their beverages.
Local sugar mills have repeatedly failed to supply enough quality product for Delta's needs. The government had to allow the company to import sugar from overseas markets to fill the gaps. Local suppliers charge around $900 per ton for their substandard sugar compared to $800 per ton for imported varieties. Delta faces massive taxes on imports including a 30 percent surtax that makes foreign sugar much more expensive. The company paid over $20 million in sugar taxes during their last financial year.
Sugar shortages hit Delta hardest during summer months when local mills shut down operations. The company struggles to get firm supply commitments from Gold Star and Tongaat Hulett for yearly requirements. Local producers often miss quality targets and delivery schedules during peak demand periods. These supply problems have caused serious disruptions to Delta's beverage production lines. The company wants lawmakers to address the pricing and quality issues affecting their operations.
Local sugar mills have repeatedly failed to supply enough quality product for Delta's needs. The government had to allow the company to import sugar from overseas markets to fill the gaps. Local suppliers charge around $900 per ton for their substandard sugar compared to $800 per ton for imported varieties. Delta faces massive taxes on imports including a 30 percent surtax that makes foreign sugar much more expensive. The company paid over $20 million in sugar taxes during their last financial year.
Sugar shortages hit Delta hardest during summer months when local mills shut down operations. The company struggles to get firm supply commitments from Gold Star and Tongaat Hulett for yearly requirements. Local producers often miss quality targets and delivery schedules during peak demand periods. These supply problems have caused serious disruptions to Delta's beverage production lines. The company wants lawmakers to address the pricing and quality issues affecting their operations.
