By Beatrice Awuor, Kenya Sugar Board
The Kenya sugar industry has the potential to produce over 1.45 million metric tonnes of sugar at full capacity, which would meet domestic demand and potentially generate a surplus for export, particularly to the COMESA region. However, domestic sugar production has been fluctuating and has consistently fallen below requirements. Recent government interventions have driven unprecedented growth: the country produced 832,185 MT of sugar in 2024, the highest since independence. Nonetheless, the industry still utilizes less than 70% of its installed processing capacity. The performance of the industry has been constrained by several challenges, among which is the high cost of sugar production. The cost of producing sugar in Kenya is relatively high; one study conducted in 2020 cited the cost to be $1,250 per tonne, significantly higher than the global average of $500 per tonne.
The Sugar Act 2024 aims to revitalize and develop a vibrant sugar industry. It is expected to economically empower all stakeholders in the value chain, unlocking the industry’s potential and leading to highly competitive, sustainable, and thriving production. The Kenya Sugar Board, millers, farmers, and KESRETI have the role of demonstrating a comprehensive approach to lowering sugar production costs and creating a sustainable and profitable sugar industry.
FARMERS
Sugarcane farmers play a crucial role in reducing the cost of sugar production. The cost of raw sugarcane is a major contributing factor to the high cost of production. Farmers are expected to ensure a sustainable and adequate supply of quality sugarcane by increasing productivity and yields. This, in turn, secures favorable returns to farmers and enables them to invest more in quality farm inputs. The average sugarcane yield in Kenya is around 60.52 tonnes per hectare—far below its capacity of between 90–150 tonnes per hectare. Here are the key areas of focus to increase farmers’ yields and lower the cost of production:
Land preparation: Farmers should ensure proper land preparation, including clearing, ploughing, harrowing, and furrowing to guarantee good root penetration and organic matter incorporation. All these should be done with consideration to the status of the land such as topography, vegetation cover, and soil type.
Seed cane selection: Farmers should select early-maturing, high-yielding, and disease-resistant varieties based on regional suitability. It is advisable to obtain treated seed cane from mills to boost output.
Crop management: Farmers should manage crops by carrying out soil testing, conducting pest and disease surveillance, and implementing climate-smart weed management strategies. They should strive to replenish soil nutrients through fertilizer application and incorporate organic matter to improve yields and reduce reliance on expensive external inputs. They should also integrate a combination of biological, cultural, and chemical control methods for pests and diseases.
Harvesting and transportation: Farmers should ensure proper and timely harvesting at the optimal maturity stage to maximize sucrose content. During harvesting, sugarcane should be cut very close to the ground, leaving a stub for regrowth. The harvested cane should be delivered to the miller within the first 48 hours to reduce losses.
Technology and research: Farmers should adopt climate-resilient sugarcane varieties and implement climate-smart farming practices like minimum tillage to help mitigate the impacts of climate change and reduce associated costs. They should also participate in research and training programs offered by millers, KESRETI, KSB, and county governments to equip themselves with the latest knowledge and skills to improve their yields.
Farm diversification & intercropping: Farmers should diversify by intercropping sugarcane with suitable food crops that are beneficial to both the soil and the sugarcane plant. This will diversify farmers’ revenue base and enhance food security in the farming community while improving crop yields.
Election of farmers’ representatives: Farmers should exercise their power by electing persons who will effectively represent them and advocate for their needs, especially at the board level. The representatives will participate in decision-making processes related to the sugar industry, including formulation and implementation of industry policies. They will act as intermediaries between growers and the government and provide advisory support that can contribute to lowering the cost of developing sugarcane.
MILLERS
Sugar millers play a crucial role in reducing the cost of sugar production, both at cane development and at the factory levels. Cane development is a major issue in the industry and has greatly contributed to the high cost of production. Millers should work with farmers and properly invest in cane development to address issues like cane poaching, which leads to poor loan recovery from contracted farmers and disrupts cane availability. In the recent past, some millers had to establish cane buying centers in areas that breached the catchment regions, creating conflicts. On the other hand, most of the sugar mills operate below their installed capacities, with a national average of 56% due to factors that include scarcity of sugarcane, low efficiency, insufficient maintenance, and inappropriate processing technology. With the leasing of state-owned mills, this is expected to drastically improve. Here are the specific roles of millers in lowering the cost of sugar production:
Contracted farmer services: Millers should provide timely and adequate farm inputs, including quality seed cane, fertilizers, pesticides, and mechanized and manual farm services. The inputs and services provided by millers should be at a realistic cost and timely. Millers should also offer extension services to farmers. Importantly, harvesting and transportation arrangements should not compromise the quality of sugarcane and the farm conditions. Proper contracting of farmers and investment in cane development will greatly reduce the cost of sugarcane production, transport costs, and minimize postharvest losses.
Cane development and management: The recently leased mills have nucleus estates that can act as a stable source of cane supply and allow for testing and implementation of new technologies. Millers should develop their respective nucleus estates to ensure a consistent and reliable supply of quality cane and reduce the risk of cane shortages and price fluctuations. Millers are to focus on efficient land preparation, use of quality seed cane, optimization of fertilizer application, and implementation of effective pest and disease management strategies. They should also consider the utilization of technology for monitoring and data-driven decision-making.
Efficient harvesting & transportation: Millers should optimize the entire process from cane harvesting to milling and distribution to minimize postharvest losses. Millers can utilize their transport fleets or contract reliable transporters and establish efficient transportation routes. Harvesting timelines should be appropriate to prevent harvesting in wet fields in the lowlands, which destroys the cane stools and reduces proper ratooning of the crop. Millers should ensure that they only harvest and receive mature cane; premature harvesting has always led to reduced cane yields, low sugar recovery, and decreased juice quality.
Factory efficiency: Millers can reduce production costs by improving the efficiency of their milling processes, minimizing downtime, and ensuring optimal extraction and recovery rates. They should invest in energy-efficient equipment and technology and explore alternative energy sources like bagasse to significantly lower energy costs. Implementing vigorous and regular preventive maintenance programs during the off-seasons can minimize breakdowns and reduce costly repairs.
Diversification and value addition: Millers are expected to explore ways to utilize bagasse, molasses, and filter cake for other revenue-generating activities like pulp and paper production, animal feed, biofuel, and even antibiotics. Filter cake, rich in phosphorus, can be used as a fertilizer to reduce reliance on external inputs.
KENYA SUGAR BOARD
The Kenya Sugar Board plays a crucial role in reducing sugar production costs by regulating, promoting, and developing the sugar industry through the implementation of the Sugar Act, 2024. KSB acts as a central body for overseeing and guiding the sugar industry, aiming to improve its efficiency, sustainability, and overall cost-effectiveness. Here are the main roles of KSB in reducing the cost of sugar production:
Regulation and licensing: The board is tasked with licensing sugar producers, processors, and distributors, ensuring compliance with regulations and industry standards to streamline operations and prevent unfair practices that could raise costs.
GIS contracting of farmers: Contract farming is being advanced through a central database and GIS mapping of sugarcane fields to facilitate smart and transparent contracting. Currently, cane development does not match mill-rated capacity. The GIS contracting initiative is part of broader efforts to revitalize the sugar sector and address issues like strained farmer-miller relationships, cane poaching, and overexpansion of mill capacity, among others.
Enhance road networks: KSB has a role in improving the road network in sugarcane growing areas. These are the roads linking the sugar zones for the delivery of sugarcane to the mills, sugar and co-products to the markets, and inputs to the industry. In the majority of the regions, the road network, bridges, and culverts are inadequate in terms of coverage, design, and maintenance. Most of these roads are impassable, especially during heavy rains. The Sugar Development Levy (SDL) is expected to develop the road network. Specifically, the levy will be used to improve these feeder roads as well as to support the overall development of the sugar industry's infrastructure. This will lower transportation costs, which has been a major problem in the industry. It will also enhance the delivery of mechanized services, impacting production costs.
Promote a favourable business environment: KSB has the mandate to promote a favourable business environment for a sustainable supply of quality and affordable sugar and related products. It is expected to halt illegal sugar imports, monitor operations, enforce quality standards, and promote fair competition. Implementation of import restrictions influences local prices, production levels, and the overall stability of the industry. Illegal sugar imports significantly disrupt the industry by lowering the price of locally produced sugar, impacting profitability. The influx of cheap sugar often sabotages locally produced sugar, leading to financial losses for millers and potentially driving farmers out of sugarcane farming. KSB should also advocate for favourable feed-in tariffs for cogenerated power and a low taxation regime for ethanol.
Quality-based cane payment system implementation: QBCPS is expected to remarkably impact the cost of sugar production in Kenya by ensuring a sustainable, high-quality cane supply that secures favorable returns to farmers and ensures high sucrose recovery. This system will pay farmers based on the sucrose content rather than just the weight, encouraging better farming practices and reducing postharvest losses. QBCPS is expected to ensure integrity in cane weighing, quality determination, and payment of farmers. QBCPS will also help regulate the setting up of sugarcane buying centers.
Stakeholder education & sensitization: KSB should provide information and capacity building to both millers and farmers to increase their potential. The board should create awareness about the importance of sustainable practices that can help reduce the cost of sugar production. Currently, KSB uses the following platforms and materials to provide advisory services, including extension services, technology dissemination and adoption, and creation of awareness among farmers and millers:
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Field days
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Sugar Innovation Symposium
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Agricultural shows
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Centers of excellence
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QBCPS sensitization forums
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Miwa Bora mobile app
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Recently published Growers’ Guides
Farm inputs: The high cost of inputs translates to a high cost of production. It is the mandate of KSB to facilitate equitable access to resources for the industry. This includes advocating for policies that benefit sugarcane farmers and promoting access to quality and affordable farm inputs, such as subsidized fertilizer, to boost yields and lower production costs. The board should work together with millers and KESRETI to ensure the availability of ample certified seed cane, which has been a major problem in the industry. The quantities of seed cane produced by KESRETI and the millers are inadequate, leading to the use of poor-quality seed cane, including that from ratoon crops and cane tops.
Research and development: KSB conducts and commissions research to identify areas for improvement in the sugar industry. It also oversees and supports research conducted by KESRETI for higher-yielding, disease-resistant, climate-resilient cane varieties. KESRETI is expected to conduct in-depth research in areas such as varietal development, bio-fertilizers, biotechnology, farm mechanization and transportation, sugar processing technology, and utilization of co-products.
CONCLUSION
It is the mandate of respective stakeholders to undertake their roles and implement relevant mechanisms to lower the cost of sugar production in order to meet regional and global average production costs. Through the implementation of the Sugar Act, 2024, it is possible to begin exporting sugar by 2026, as has been predicted.