Inefficiency choking sugar millers

Inefficiency among millers has been blamed for the sharp fall in production leading to shortages of sugar.

A performance report on production of sugar millers indicates that almost half of the factories registered a negative growth in May compared to the same time last year.

The volumes dropped to 4,000 tonnes against the required 8,000 tonnes to meet local demand. This has forced the regulator to issue a licence for importation of 5,000 tonnes to bridge the deficit.

Poor development of sugarcane by the various factories is not helping matters either with poaching being rife in some zones.

A penalty imposed on factories for late harvesting will add to the woes of the already struggling State-owned millers.

Agriculture Fisheries and Food Authority (AFFA) Director General Alfred Busolo said some millers are not doing enough in developing sugarcane and factory maintenance to increase their production.

“Lack of timely maintenance and late harvesting of sugarcane are some of the inefficiencies that have made millers not to meet their installed capacities,” said Mr Busolo.

Private firms posted better results.

The report indicates that in terms of individual factory performance, government-owned millers generally dropped their sugar production while private firms posted better results.

Nzoia registered a decline of 38 per cent, Chemelil 16 per cent, Muhoroni 10 per cent, Transmara 15 per cent and Sukari seven per cent.

At Nzoia, low production is attributed to delayed factory maintenance — which was carried out over the October to December 2015 period — low sucrose in sugarcane and delay in clearing over-mature crop as well as industrial unrest in May 2016.

Low sugar output at Chemelil and Muhoroni sugar mills was attributed to poor factory conditions due to the lack of maintenance. The situation is aggravated by the prevailing sugarcane shortage in the Nyando zone.

Transmara posted lower performance in 2015/16 period due to prolonged factory shutdown for expansion which was done in September to November 2015. 

Sukari Industries, which registered a drop of seven per cent in sugar output, is said to have been affected by sugarcane shortage. The company has no nucleus estate and Mr Busolo said the miller needs to embark on “aggressive” raw material development to enhance productivity.

To tame late harvesting, AFFA said cane growers will be paid monthly for delays in harvesting their crop in a move that will put more pressure on the loss-making millers.

The agriculture regulator said factories would be expected to pay a monthly interest penalty, equivalent to the prevailing bank lending rate, on the value of the crop after 24 months.

The average maturity period of sugarcane in Kenya is 18 months and the interest payment will put a further strain on the struggling millers to pay farmers for crop delivered.

Mr Busolo said that the contract will state the minimum price of the money that millers will be required to pay their farmers. The move will however save growers from price fluctuation that has been taking its toll on their production capacity.

Delays in harvesting have subjected farmers to losses, forcing some to reduce area under the crop.

Kenya is a sugar-deficit country and mainly relies on imports from the Common Market for Eastern and Southern Africa (Comesa) to bridge the gap.