According to Kulea, brown sugar prices across the East African Community (EAC) region showed a sense of calm this week, with both Nairobi and Mombasa experiencing price stability. Juba offered the most competitive pricing, with brown sugar at USD 690 per ton, the lowest in the region, while Nairobi registered the highest price at USD 779 per ton.
In terms of import parities, Mombasa had a negative import parity of USD -838 for VHP sugar from the World Market due to restricted importation. The high landing costs make imports less competitive than local production in Kenya, further supporting the local market's competitiveness.
In regional news, South Africa’s Sugar Association (SASA) highlighted progress in the Sugarcane Value Chain Master Plan to 2030, which aims to diversify and sustain the sugar industry beyond traditional sugar production. Notably, 21% of sugarcane land is now owned by black farmers, marking significant progress in the industry’s inclusivity. The plan is crucial for South Africa, which produces around two million tons of sugar annually, exporting 500,000 tons.
In Kenya, sugarcane farmers in the Nyando Sugar Belt proposed a two-year delay for the Quality-Based Cane Payment System (QBCPS) to allow for adequate preparation. This sucrose-based payment model is expected to enhance farmer profits by basing payments on cane quality rather than quantity. However, concerns over funding and infrastructure are slowing its implementation. The Kenya National Sugarcane Federation has urged the government to invest in high-yield, sucrose-rich cane varieties, though the recent withdrawal of KShs 600 million allocated for this purpose has raised concerns.
Port activities this week included several refined sugar shipments to Dar es Salaam, Mogadishu, and Berbera, with the vessel CS Sarafina still moored in Dar es Salaam, set to discharge 11,425 tons before sailing to Mombasa to offload the remaining 18,575 tons.
Overall, the stable brown sugar prices across the EAC region reflect the positive impacts of stable currencies and robust local sugar production. This stability not only benefits consumers with consistent pricing but also strengthens regional economies by encouraging local production and reducing reliance on imports. As these factors continue to align, the EAC’s sugar market may experience further resilience, fostering sustainability and growth within the industry.
Compiled by Victor Agut of AFA - Sugar Directorate