Cane growers who can’t afford sugar

The sugar industry in Kenya has had its fair share of challenges. Dwindling production, sugarcane shortage and poor returns over the years have slowly been killing a sector that once sweetened the lives of many a farmer.

Kenya has over 250,000 small scale cane growers who supply 80 per cent of factories with the balance coming in from large scale growers and nucleus plantations, according to the latest statistics from sugar directorate.

The sugar status report released by the regulator last month indicates that area under sugarcane and yields have been declining over the years and this is attributed to farmers shifting to other enterprises thanks to late harvesting and payments among a multiplicity of woes that they have had to contend with over the years.

“Due to low and delayed payments by sugar millers, the area under cane has been declining over the years,” says the report seen by Smart Company.

Director general of the Agriculture Food Authority (AFA) Alfred Busolo says there are measures to ensure farmers are paid on time and that the minimum price to be paid to growers is now the prerogative of the authority.

“After we realised the challenges that farmers are facing, we established a sugar pricing committee four months ago that is now charged with the mandate of setting the minimum price paid to farmers,’ said Mr Busolo.

As a result of shrinking acreage, the quantities of cane supplied to millers have significantly reduced. A census conducted by the directorate indicates that there will be a deficit of 1.4 million tonnes of cane in the industry for the 2016/2017 fiscal year.

The ripple effect of the dwindling production has been rampant poverty that has plagued regions that have been relying on sugar as their major economic mainstay.

Many parents depend on the crop to pay school fees for their children and meet other domestic needs. But with the falling fortunes of the once important crop, their hopes to provide their young ones with a good future is dwindling.

Mr Martin Wakhu, a cane farmer in Mumias region says though the crop remains their major cash earner, the value they are getting from it is no longer worth the effort due to high cost of production and delayed payments.

“Honestly speaking, sugarcane is not a crop that I would want to grow, but I have to because there is no alternative,” said Mr Wakhu told Smart Company.

Costly inputs

Mr Wakhu, who supplies Mumias, says the cost of inputs from the miller is too high.

“Personally, I do not have funds to buy fertiliser or the seeds to use on my farm and as such, I have to rely on the miller,” he said.
The irony is that these farmers who soil their hands to produce sugar, are unable to even afford the end product of their raw material.
“I grow cane to produce sugar, but interestingly, at times I cannot afford to purchase even a kilogramme of sugar for my family,” said the farmer.
Mumias Sugar Company currently owes farmers in excess of Sh600,000 in arrears. This makes it hard for growers as they require these funds to invest in the next crop.
Kenya has a total of 13 milling plants but only 11 are currently operational. Five are State-owned while the rest are private entities.
Mumias is the country’s largest miller by production size but recent financial and management problems have reduced it to a pale shadow of its former self.
The report indicates that Mumias had projected cane availability of 917,141 tonnes between July and June 2016. However, between July and October, the miller has only managed to crush 91,260 tonnes. Add to poaching and counter-poaching, the future does not look promising for both millers and consumers.
Other millers too are faced with production constraints with most performing below their installed capacities. This has hampered output, creating shortage of sugar in the market leading to a rise in the price of the commodity.
This year, Kenya won another extension on safeguards that restrict cheap imports from the Common Market for Eastern and Southern Africa (Comesa). But even after numerous safety net extensions, there is nothing much to write home about regarding envisaged reforms in the sector.

Kenya produces about 600,000 tonnes of sugar a year, compared with annual consumption of 800,000 tonnes. The deficit is covered by strictly controlled imports.
Experts have blamed the high cost of production for the problems facing Kenya’s sugar industry.
Poorly funded government factories have ageing machinery that is prone to breaking down. Kenya produces a tonne of sugar at $800 compared to countries such as Egypt at $500.
The sugar factories that are projected to face cane supply deficits include Chemelil Sugar Factory (125,674 MT), Mumias Sugar Factory (1,322,858 MT), Kibos Sugar Mills (787,550 MT), Sukari Industries (630,576 MT) and Transmara Sugar Factory (300,005

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