Sugar millers in price wars as cane shortage bites
By Kepher Otieno, May 10, 2023Sugarcane farmers in Western Kenya have been urged to embark on aggressive cane growing to boost the current production shortfalls in the factories.
Currently, most of the millers including private run sugar factories operate below their installed optimal capacities due to shortage of cane. While some of the millers are supposed to mill up to 3,000 tonnes of cane per day, some aren’t able to hit the target, as they are milling either half or less.
Kenya Sugar Millers Association, (Kesma) officials have decried the shortage, admitting that they were facing cane crisis due to erratic supplies. Francis Ooko, Kesma vice-chairman said the affected State-run factories are forced to mill and accumulate cane for even three days a week.
“We have to accumulate cane for three days a week, or two days at times so as to sustain our milling operations daily,’’ he disclosed.
Better income
But in a bid, to ensure that the factories aren’t shut due to an acute shortage of raw material, Kesma officials asked farmers to grow more cane. “It is of interest to us that farmers who have abandoned growing the crop resume active cane farming to earn better income,’’ said Ooko.
The Kesma official who also doubles up as Muhoroni Sugar Factory Managing director said millers were now offering farmers better pay. Some millers are paying cane farmers as high as Sh5,400 per tonne up from the initial Sh4,300 offered by the State-owned millers. Not so long ago, the industry players reviewed cane prices upwards and private millers are now paying more than the State-owned millers.
Factories such as Western Kenya Sugar, Mumias and Butali have hiked the buying prices of sugarcane from farmers. For instance, Mumias Sugarcane prices is now being procured at Sh5,250 up from Sh4,584 per tonne due to the competition for raw materials.
The prices have been running for two months now. Western Kenya Sugar said it had raised its prices to Sh 5200 per a tonne of sugarcane. Butali sugar factory also increased its prices per tonne of sugarcane to Sh 5,200, Sukari Industry to Sh5250while Sony Sugar factory at Sh4800.
Butali, Mumias and West Kenya are in the same zone and are thus competing to win the raw materials from farmers hence the new prices. Sony Sugar, Trans Mara sugar factory and Sukari industries in Ndhiwa have also indicated the move to increase prices amid cane shortage.