sugar; profit

Decrease in Zambia’s sugar production anticipated

Zambia Sugar Plc contributes roughly 92.5% to the total sugar production in Zambia, according to the Global Agriculture Information Network (Gain).

In 2016, the sugar sector contributed roughly 3% to Zambia’s gross domestic product (GDP) and 6% to the country’s total national exports.

SUGAR PRODUCTION

It is estimated that Zambia’s sugarcane crop will decrease by 3% to 3 250 745 tons in the 2016/’17 marketing season due to drought conditions.

According to the report, sugar production will decrease by 6% to 388 406 tons in the 2016/’17 marketing year due to smaller amounts of sugarcane delivered for processing at mills, as well as the lower quality of sugarcane crushed during the season.

The Zambian sugar industry experienced a significant growth of roughly 85% between 2001 and 2017. This is based on two new companies, Kalungwishi Kasama established in 2001 and Kafue Sugar in 2006.

SUGAR CONSUMPTION

According to the Gain report, it is estimated that domestic consumption will increase by 5% to 209 000 tons in the 2016/’17 marketing year. This is based on increased demand for their products.


Zambia also increased the production and quality of bottler grade sugar after investments in a sugar refinery by Zambia Sugar Plc.

EXPORTS

It is estimated that in exports will increase by 6% to 209 280 tons during the 2016/’17 season from the previous years’ 197 000 tons.

An increase in regional exports is expected after low supply due to drought conditions in South Africa and Swaziland, who are main competitors in the region.  Zambia’s sugar is mostly exported to the European Union and Africa.

Read the full report here: The supply and demand for sugar in Zambia_GAIN_2017

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