Abacus Wealth Management

Mumias Sugar Increases Yield to Meet Customer Demand

Mumias Sugar Company Ltd (MSC)  is getting rid of its old sprouts in favour of high yield sugarcane which will be used to boost production and improve its market penetration.

According to MSC’s CEO, Peter Kebati, yields will improve thanks to favourable weather conditions and the company’s new initiative.

The miller currently produces 60% of the country’s preferred sweetener. This represents 420,000 tonnes of sugar out of the 720,000 annual demand from Kenyan consumers. The remaining stock is supplied by other local refiners or imported by COMESA countries like Swaziland, Zambia and Malawi.

Kenya’s biggest sugar producer now seeks to control more of the country’s market share by increasing its output. It currently costs Kenya twice as much the COMESA countries to produce a tonne of sugar. MSC reports that farmers who use the new sprouts will experience a faster sugarcane maturity rate resulting in higher yields throughout the season. The Kenya Sugar Board reports that a competitive environment may lower the cost of sugar for consumers.

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