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PRODUCTION:  An improved payment regime and good rains lifted sugarcane deliveries to a four-year high as farmers trooped back to cash in on cane production.

Sugarcane deliveries jumped 44 per cent in the first seven months of the year compared to the same period last year despite Covid-19 fears.

Government data shows that farmers delivered 3.9 million tonnes of cane to milling factories up from 2.71 million tonnes delivered in the same period last year.

“There was an improvement in payment regime that attracted more farmers into the business, coupled with high prices seen last year,” said Ken Omondi, a Muhoroni-based sugar sector analyst.

Last time factories received a higher volume in the first five months was in 2016, when farmers delivered 3.16 million tonnes.

“The privatisation move by the State spurred investment in cane production while payment of the arrears by the government also infused funds into cane maintenance,” he said.

Sugar millers also attributed the rise to increased rainfall which gave timely boost to factories that were during a similar period last year struggling with low cane deliveries due to low rainfall.

Omondi, however, said this year’s sugar prices have reduced due to increased supply as more people troop back to the field to farm.

Sugar millers are also investing in nucleus estates, where they farm and manage their own sugarcane for crushing. This has contributed to the increase in production.

Millers like West Kenya are also engaging in contract farming, helping to diversify production from individual farmers who had started pulling out due to poor prices. 

Sugar output has also jumped by more than 40 per cent helping to ease pressure on sugar prices following three years of massive deficits.

Downwad trend

Sugar prices are now on downwad trend with a kilo going for Sh100 to Sh110 in some outlets compared to Sh230 last year.

“Good rains have sustained productivity since late last year hence deliveries have been starting the beginning of the year todate,” the Receiver manager at Muhoroni Sugar Francis Ooko said in an earlier interview.

Government crushers are, however, struggling with lack of financing and old machinery that has slowed down sugar processing capacity.

The woes in the sugar sector have forced farmers in western Kenya into poverty with some choosing to venture in maize and horticulture due to non-payment.