The Agriculture and Food Authority – Sugar Directorate’s August 2024 newsletter provides a detailed analysis of the sugar industry’s performance for the period between January and August, comparing key metrics with the same period in 2023. It includes a comprehensive overview of local production, pricing trends, trade statistics, by-products, and the global sugar market. Here’s an elaborate summary of the August 2024 report:
1. Local Sugar Market
Production and Sales
- Sugarcane Milled: In August 2024, total sugarcane milled dropped by 14% to 800,286 metric tons from 926,379 metric tons in July 2024, and 887,602 metric tons in June 2024.
- Sugar Production: Correspondingly, sugar production also decreased by 13%, with 73,409 metric tons produced in August 2024, down from 84,042 metric tons in July 2024.
- Bagged Sugar: Bagged sugar production in August also fell by 12%, reaching 73,386 metric tons, compared to 83,849 metric tons in July 2024.
- Cane-to-Sugar Ratio (TC/TS): Despite the decline in production, the industry saw an improvement in the cane-to-sugar ratio, which reached 10.90 in August, up from 11.02 in July 2024.
- Year-to-Date Performance: Total sugar production from January to August 2024 was 541,681 metric tons, a significant 52% increase from the 357,359 metric tons produced during the same period in 2023.
- Sugar Sales: Sugar sales in August 2024 increased slightly by 1% to 84,037 metric tons, up from 83,121 metric tons in July. The growth is attributed to improved sugar stocks and positive market demand.
- Closing Stocks: At the end of August 2024, the total closing stock of sugar held by factories was 24,376 metric tons, down from 34,754 metric tons in July.
2. By-Products
- Molasses Production: Molasses production saw a decrease of 18% in August 2024, dropping to 30,267 metric tons from 36,831 metric tons in July.
- Molasses Prices: The price of molasses ranged between Ksh 4,000 and Ksh 7,500 per tonne, with a mean price of Ksh 5,324 per tonne in August, slightly down from Ksh 5,457 per tonne in July 2024.
3. Pricing Trends
Sugarcane Prices
- Sugarcane Pricing: The price of sugarcane was initially set at Ksh 4,950 per tonne on August 7, and then revised to Ksh 5,000 per tonne on August 22, reflecting a drop from the Ksh 5,125 per tonne price set in both June and July 2024. These prices are determined by the Sugarcane Pricing Committee based on a standard sugarcane payment formula.
Ex-Factory, Wholesale, and Retail Prices
- Ex-Factory Prices: The weighted ex-factory sugar price in August 2024 dropped to Ksh 5,075 per 50 kg bag, down from Ksh 5,325 per 50 kg bag in July, and Ksh 5,641 in June 2024.
- Wholesale Prices: Wholesale prices averaged Ksh 5,424 per 50 kg bag in August 2024, a 2% decline from Ksh 5,545 in July.
- Retail Prices: Retail sugar prices also dropped, averaging Ksh 141 per kilo in August, compared to Ksh 142 in July and Ksh 151 in June.
4. Foreign Trade
Sugar Imports
- Total Imports: In August 2024, sugar imports totaled 18,733 metric tons, a decline from 27,620 metric tons imported in July 2024.
- Breakdown of Imports: Mill White/Brown sugar accounted for 911 metric tons, while White Refined sugar totaled 17,822 metric tons in August 2024.
5. Global Sugar Market
CIF Values
- CIF (Cost, Insurance, and Freight) Prices: In August 2024, the CIF Mombasa landed values for imported White Refined Sugar averaged Ksh 85,346 per tonne, while Mill White/Brown sugar averaged Ksh 81,645 per tonne.
The August 2024 newsletter indicates a decline in sugarcane milling, production, and imports compared to previous months, but the overall year-to-date production figures show a strong 52% growth compared to the same period in 2023. Prices for sugarcane, molasses, and sugar continued to fluctuate, with general decreases in ex-factory, wholesale, and retail sugar prices. The report provides an important snapshot of the industry’s performance amid shifting local and global market conditions.