The Agriculture and Food Authority – Sugar Directorate's monthly newsletter for June 2024 provides a detailed analysis of the sugar industry's performance from January to June of both 2023 and 2024, focusing on local sugar production, pricing dynamics, trade, and the global sugar market. Here is an elaborate summary of the June 2024 insights:
1. Local Sugar Market
Production and Sales
- Sugarcane Milled: Total sugarcane milled in June 2024 rose significantly to 887,602 metric tons, up from 679,303 metric tons in May 2024.
- Sugar Production: Sugar production saw a substantial increase of 35% to 75,685 metric tons in June, up from 56,246 metric tons in May.
- Bagged Sugar: Corresponding to raw sugar production, bagged sugar also increased by 34% to 75,500 metric tons in June from 56,271 metric tons in May.
- Sugar Sales: Sales in June increased by 8% to 61,660 metric tons from 57,030 metric tons in May, driven by increased production and market demand.
Pricing Trends
- Ex-Factory Prices: The weighted ex-factory sugar price decreased to Ksh 5,641 per 50 kg bag in June from Ksh 5,925 in May.
- Wholesale Prices: Wholesale prices decreased to an average of Ksh 6,017 per 50kg bag, a 4% drop from Ksh 6,285 in May and slightly lower than the Ksh 6,231 recorded in April.
- Retail Prices: Retail sugar prices averaged Ksh 151 per kilo in June, down from Ksh 159 in May and Ksh 165 in April.
2. Foreign Trade
- Sugar Imports: Sugar imports in June totaled 27,804 metric tons, marking a significant increase of 32% from 21,118 metric tons imported in May 2024.
3. By-Products
- Molasses Production: Molasses production rose by 27% to 34,172 metric tons in June from 26,937 metric tons in May.
- Molasses Pricing: The price of molasses ranged between Ksh 3,966 and Ksh 7,500 per tonne in June, with the mean price settling at Ksh 5,497 per tonne, slightly lower than the Ksh 5,955 per tonne in May.
4. Raw Material Costs
- Sugarcane Pricing: The Sugarcane Pricing Committee set the sugarcane price at Ksh 5,125 per tonne in June, a slight revision upwards from Ksh 5,100 in May.
5. Global Sugar Market
The CIF (Cost, Insurance, and Freight) Mombasa landed values for imported White Refined Sugar in April were noted at Kshs 93,159 per tonne, contrasting with Kshs 83,909 per tonne for Mill White/Brown sugar, highlighting the pricing dynamics in the international market, which affect local trading conditions.
This summary captures the key developments and trends within the sugar industry as presented in the June 2024 newsletter, illustrating both improvements and challenges in production, pricing, and trade.