Mumias Sugar to release high-yield cane in a bid to end shortage

A farmer sorts out sugarcane at a farm. Mumias Sugar Company is set to release high-yield cane varieties as a step towards reducing the annual sugar shortage. PHOTO | TONNY OMONDI | NATION MEDIA

What you need to know:

  • The firm recently received an additional bailout of Sh1.16 billion from The Treasury for the restructuring plans to turn around its fortunes of crushing 6,500 tonnes of cane per day.
  • The miller has in the past been engaged in vicious battles with rivals operating in the region over alleged cane poaching from farmers contracted by Mumias Sugar.
  • The miller is also purchasing fertiliser and distributing it to farmers at subsidised prices for planting and top dressing.

Mumias Sugar Company is set to release high-yield cane varieties as a step towards reducing the annual sugar shortage.

The development is part of the miller’s strategy to ensure a steady supply of cane within its catchment so as to sustain normal milling operations.

The firm recently received an additional bailout of Sh1.16 billion from The Treasury for the restructuring plans to turn around its fortunes of crushing 6,500 tonnes of cane per day.

Mumias Sugar CEO Errol Johnston said sugar production level is currently at 400 tonnes per day, below target.

“Our sugar is on a very high demand in the current market,” said Mr Johnston. “We are preparing for the rehabilitation of the factory and we will do it as soon as it is convenient, depending on the operational dynamics.”

Mr Johnston said cane supply is expected to improve following efforts being made by the miller to implement a cane development plan.
“We are in negotiation with financiers for affordable credit facilities towards cane development,” he said.

DISTRIBUTING FERTILISER AT SUBSIDISED PRICES

The miller has in the past been engaged in vicious battles with rivals operating in the region over alleged cane poaching from farmers contracted by Mumias Sugar, triggering shortages which affect normal crushing.

In a statement, Mr Johnston said measures had been taken to address the issue of shortage by ensuring a steady supply for crushing.

“We have an accelerated a cane development plan that will lead to a steady increase in cane supply and a monthly payment plan that ensures a smooth process,” said Mr Johnston.

The varieties include CO945, CO421, CO617, EAK 7335, N14 and the early maturing KEN 83-737.

He said the miller was purchasing fertiliser and distributing it to farmers at subsidised prices for planting and top dressing.