The Kenya Sugar Board's December 2024 newsletter provides a detailed assessment of the sugar industry's performance, focusing on production, pricing, trade, and global market trends. Below is a concise summary of the highlights
1. Local Sugar Market
Production and Sales
- Sugarcane Milled: Declined by 19% to 637,276 MT in December 2024, from 784,759 MT in November.
- Sugar Production:
- Made: Dropped by 15% to 59,857 MT in December, from 70,044 MT in November 2024.
- Bagged: Decreased by 18% to 57,152 MT, from 69,895 MT in November 2024.
- Year-to-Date (January-December 2024):
- Sugarcane Milled: Increased by 70% to 9,334,533 MT, from 5,483,900 MT in 2023.
- Sugar Production: Rose by 72% to 815,454 MT, from 472,773 MT in 2023.
- Sugar Sales: Increased by 3% to 67,598 MT in December, from 65,413 MT in November 2024.
- Closing Stocks: Dropped to 10,605 MT in December, from 17,630 MT in November.
Pricing Trends
- Ex-Factory Prices: Increased by 3% to Ksh 6,233 per 50kg bag in December, from Ksh 6,046 in November.
- Wholesale Prices: Rose by 4% to Ksh 6,568 per 50kg bag, from Ksh 6,334 in November.
- Retail Prices: Averaged Ksh 149 per kilo in December, up from Ksh 146 in November.
By-Products
- Molasses Production: Declined by 8% to 27,875 MT in December, from 30,399 MT in November.
- Molasses Prices: Averaged Ksh 5,775 per tonne, down from Ksh 5,893 in November.
- Molasses Exports: Increased to 1,762 MT in December, from 1,290 MT in November.
- FOB Value: Declined to Ksh 12,057 per tonne, from Ksh 12,921 in November.
2. Foreign Trade
Sugar Imports
- Total Imports: Rose by 9% to 14,163 MT in December, up from 13,022 MT in November.
- Breakdown: 1,896 MT Table Sugar and 12,267 MT White Refined Sugar.
- CIF Values:
- White Refined Sugar: Averaged Ksh 88,259/tonne.
- Mill White/Brown Sugar: Averaged Ksh 92,721/tonne.
3. Global Sugar Market
- ISA Daily Raw Sugar Price: Declined to USD 19.23 cents/lb in December, from USD 20.44 cents/lb in November
December 2024 witnessed a significant decline in sugarcane milling and production, reflecting seasonal adjustments. However, sugar sales and imports saw marginal increases, contributing to supply stability. Prices across all levels—ex-factory, wholesale, and retail—continued to rise steadily, mirroring market dynamics. Global sugar prices also softened, offering a mixed outlook for Kenya's sugar trade in the coming year.