Source: The Star
Writer: Hilton Otenyo
In this article, Hilton Otenyo discusses the rising concerns of sugar factories in Kenya potentially running out of sugarcane due to rampant cane poaching. The problem is being aggravated by both licensed and unlicensed millers competing for the raw material in an already constrained environment. This practice, known as cane poaching, involves millers unlawfully sourcing cane contracted to other mills, thereby disrupting supply agreements and undermining long-term investments made by legitimate sugar factories.
The article highlights how poaching threatens to destabilize the sugar industry, especially at a time when the sector is struggling to regain stability after years of challenges. Factory owners argue that the poaching is reducing the amount of cane available to mills, leaving factories vulnerable to closures or drastic reductions in production. The ripple effects could be devastating, not only to the industry but also to the thousands of farmers and workers who depend on it for their livelihoods.
Industry stakeholders have called on the government to intervene, advocating for stricter regulation of cane harvesting and transportation to curb poaching activities. There is also a call for millers to be more transparent and cooperative, as unchecked competition is proving destructive rather than beneficial. In addition to regulatory action, there are appeals for a review of current licensing processes to ensure that only legitimate operators can access the market fairly.
At the heart of the issue, the article brings to light the struggle between the need for healthy competition and the protection of long-standing contractual relationships that are key to sustaining the sugar industry. With millers warning of potential shutdowns if poaching continues unchecked, the industry faces an uncertain future unless urgent action is taken.
Opinion: Could stricter enforcement of regulations and more coordinated industry efforts reduce the cane poaching crisis and ensure that legitimate millers and farmers are protected? While competition is essential in any sector, this unchecked form is proving harmful to the sustainability of Kenya's sugar industry. In the short term, government intervention to curb poaching might stabilize supply chains and restore confidence among stakeholders, but long-term solutions, such as cooperative agreements between millers and a revised licensing process, are needed to prevent future disruptions.
Sourced by Rosemary Wambui of AFA - Sugar Directorate