The Kenya Sugar Board's February 2025 newsletter provides insights into the sugar industry, focusing on production, pricing, trade, and global market trends. Below is a summary of the key highlights:
1. Sugarcane Milled and Sugar Production
- Sugarcane Milled: Decreased slightly to 816,632 MT, down from 827,482 MT in January 2025.
- Sugar Production:
- Made: Increased by 5% to 76,758 MT, up from 73,019 MT in January 2025.
- Bagged: Increased by 5% to 76,663 MT, up from 73,201 MT in January 2025.
- Cane-to-Sugar Ratio (TC/TS): Improved to 10.64, up from 11.33 in January 2025.
- Sugar Sales: Declined by 11% to 66,151 MT, down from 74,000 MT in January 2025.
- Closing Stocks: Increased to 20,413 MT, up from 9,653 MT in January 2025.
2. Molasses Production, Sales, and Stocks
- Molasses Production: Increased by 7% to 32,457 MT, up from 30,204 MT in January 2025.
- Molasses Sales: Dropped by 4% to 31,130 MT, down from 32,328 MT in January 2025.
3. Local Sugar Market
Sugarcane Pricing
- The 4th Interim Sugarcane Pricing Committee met on 7th February 2025 and approved an increase in the minimum sugarcane price from Ksh 5,000 per tonne to Ksh 5,300 per tonne, based on a sugarcane payment formula.
- The new price took effect on 10th February 2025, and millers have adhered to the recommended price.
Sugar Prices
- Ex-Factory Price: Decreased by 0.7% to Ksh 6,525 per 50kg bag, down from Ksh 6,569 in January 2025.
- Wholesale Price: Declined by 6% to Ksh 6,712 per 50kg bag, down from Ksh 7,177 in January 2025.
- Retail Price: Averaged Ksh 156 per kilo, down from Ksh 157 per kilo in January 2025.
4. Foreign Trade
Sugar Imports
- Total Imports: Dropped significantly to 8,565 MT, down from 32,517 MT in January 2025.
- Breakdown:
- Mill White/Brown Sugar: 2,715 MT
- White Refined Sugar: 5,850 MT
- Breakdown:
- CIF Values:
- White Refined Sugar: Ksh 85,939/tonne
- Mill White/Brown Sugar: Ksh 96,508/tonne
Molasses Exports
- Total Exports: Increased by 33% to 1,472 MT, up from 1,110 MT in January 2025.
- Destinations: 88% of molasses exports went to Uganda and Tanzania.
- FOB Value: Dropped to Ksh 10,737 per tonne, down from Ksh 11,531 per tonne in January 2025.
5. Global Sugar Market
- ISA Daily Raw Sugar Price: Increased to USD 19.14 cents/lb, up from USD 18.00 cents/lb in January 2025.
February 2025 saw a decline in sugarcane milling but an increase in sugar production due to improved efficiency. Sugar sales declined, leading to higher closing stocks. The increase in the minimum sugarcane price was a key industry development, with millers adjusting accordingly. Local sugar prices fell slightly, while imports dropped sharply, reducing external supply. Meanwhile, global sugar prices rose, indicating potential future cost pressures for imports. The newsletter highlights can be dowloaded under Resources -> Monthly Newsletters.