We are privileged to release the May 2024 edition of the Sugar Industry Newsletter, brought to you by the Agriculture and Food Authority – Sugar Directorate. This issue presents a detailed comparative analysis of the sugar industry's performance from January to May 2023 and 2024, shedding light on key trends and shifts across various segments.
Key Highlights:
1. Local Sugar Market:
- Ex-factory Sugar Prices: Notable rise to Ksh 5,925 per 50 kg bag from Ksh 5,738.
- Wholesale Prices: Mild increase to Ksh 6,285 per 50kg bag, demonstrating a slight upward trend in market demand.
- Retail Prices: Decrease to Ksh 159 per kilo, reflecting changes in consumer purchasing patterns.
2. Foreign Trade:
- Sugar Imports: A decrease to 21,118 MT, indicating a reduction in overseas sugar sourcing.
- CIF Value: Mombasa landed values for White Refined Sugar averaged Kshs 94,766/tonne, showing fluctuations in import costs.
3. World Sugar Market:
- The global outlook on sugar remains a pivotal focus, guiding strategic decisions within the industry.
Production and Sales Analysis:
- Sugarcane milled decreased to 679,308 MT, with sugar production also dropping by 5.2% to 56,246 MT.
- Sugar sales saw a significant reduction of 22%, while molasses production fell by 15%.
- Despite reduced production, total closing stocks slightly increased, hinting at accumulation due to slower market movement.
Pricing Dynamics:
- Molasses saw a price increase to Ksh 5,955 per tonne.
- The average sugar cane price decreased to Ksh 5,100 per tonne, reflecting the broader economic conditions affecting crop value.
This newsletter is an essential resource for everyone in the industry, from producers to policymakers. Whether you are navigating daily operations or planning strategic investments, understanding these trends is crucial.
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