In existing ethanol factories across Southern Africa, the optimisation of bagasse flow is of critical importance to optimum performance of ethanol factories. One of the key strategies in optimisation is the addition of a re-circulation system to the current bagasse conveying system, which feeds a 120 ton/hr steam generating boiler. The focus of this paper is to propose the use of a mechanical diverting chute, which will integrate into the upgraded bagasse conveying system. The chute will enable automated variable flow control of bagasse, through the existing Distributed Control System (DCS), between the re-circulation conveyors and discharge to ground for stock piling. The variation in flow will be controlled by monitoring the feed rate of sugar cane, measured by a belt scale, to the crushing mills. The purpose of this upgraded system is to reduce the required operating hours of a front-end loader, which currently performs the re-circulating function, but also allows surplus bagasse to be stock piled for future use in the factory outside of the crushing season.