{"id":21085,"date":"2024-08-22T09:54:27","date_gmt":"2024-08-22T09:54:27","guid":{"rendered":"https:\/\/www.selinawamucii.com\/news\/?p=21085"},"modified":"2024-08-22T11:33:24","modified_gmt":"2024-08-22T11:33:24","slug":"sugar-price-reprieve-in-kenya-after-supplies-rebound","status":"publish","type":"post","link":"https:\/\/www.selinawamucii.com\/news\/2024\/08\/22\/sugar-price-reprieve-in-kenya-after-supplies-rebound\/","title":{"rendered":"Sugar price reprieve in Kenya after supplies rebound"},"content":{"rendered":"\n<p>Kenya\u2019s sweeteners industry is back in the picture following glut supplies, with consequential sugar price decrement.<\/p>\n\n\n\n<p>As of August 9, the farm-gate&nbsp;<a href=\"https:\/\/www.selinawamucii.com\/insights\/prices\/kenya\/sugarcane\/\"><u>price of sugarcane&nbsp;<\/u><\/a>had dropped to KSH 4,950 ($38.22) a tonne, triggering farmers&#8217; frustration.&nbsp;<\/p>\n\n\n\n<p>This marks a -3.4% price decline from May\u2019s &nbsp;KSH 5,125 ($39.58), down from<a href=\"https:\/\/allafrica.com\/stories\/202403080024.html\"><u>&nbsp;KSH 6,050<\/u><\/a>&nbsp;($46.72) a tonne before March 2024.<\/p>\n\n\n\n<p>Wholesale prices of sugar, now at KSH 5,128 ($39.60) per 50 kg, are almost half those of August 2023 at KSH 9,500 ($73.36) a kg. This according to the Agriculture and Food Authority (AFA).&nbsp;<\/p>\n\n\n\n<p>Beforehand, retail sugar, which sells in mainly 2 kg packets, had ameliorated to the KSH 225-250 ($1.74-1.93) range in July. In contrast, the May 2024 price of brown sugar had notched up to KSH 365 ($2.82) a &nbsp;kg.&nbsp;<\/p>\n\n\n\n<p>Now consumers await the price to drop further to the norm of between&nbsp;<a href=\"https:\/\/www.statista.com\/statistics\/1169933\/average-retail-price-of-sugar-in-kenya\/\"><u>KSH 138.05<\/u><\/a>&nbsp;and KSH 170 ($1.07-1.31) a kg.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-sugar-price-relief-follows-impressive-production-rally\"><strong>Sugar&nbsp;Price Relief Follows Impressive Production Rally<\/strong><\/h3>\n\n\n\n<p>The<a href=\"https:\/\/www.selinawamucii.com\/insights\/prices\/kenya\/sugar\/\"><u> price<\/u><\/a>&nbsp;cooling follows uptick milling, after a bumper cane harvest that could reach at least 730,000 tonnes.<\/p>\n\n\n\n<p>According to AFA, in the half-year period ending August 2024, total production hit&nbsp;<a href=\"https:\/\/www.foodbusinessafrica.com\/kenya-sees-surge-in-domestic-sugar-production-plummeting-prices\/\"><u>485,802 tonnes.<\/u><\/a>&nbsp;<\/p>\n\n\n\n<p>The production momentum peaked in June at 75,500 tonnes and July at 84,500 tonnes of milled sugar.<\/p>\n\n\n\n<p>All 17 major sugar factories in the Western region, the Rift Valley and at the Coast were at full capacity. In the half-year, these factories produced from minimum 16,610 tonnes at the South Nyanza (Sony) mills to 97,260 tonnes maximum at the West Kenya Sugar mills.&nbsp;<\/p>\n\n\n\n<p>After this supply rally, &nbsp;Kenya is contemplating stopping imports from the Common Market of East and Southern Africa (COMESA) and&nbsp;<a href=\"#google_vignette\"><u>resume exports<\/u><\/a>.&nbsp;<\/p>\n\n\n\n<p>Ample rainfall and adherence to a premature harvest ban has aided small-scale producers, who supply&nbsp;<a href=\"https:\/\/www.scirp.org\/journal\/paperinformation?paperid=96541\"><u>80%<\/u><\/a>&nbsp;of domestic sugarcane recover productivity.<\/p>\n\n\n\n<p>So, as consumers in Kenya settle down to a sugar price normalization, things are looking up for a recently dormant sector. The following statistics add more insights on both pricing history, consumption and production data.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-kenya-sugar-statistics\"><strong>Kenya Sugar Statistics<\/strong><strong><\/strong><\/h2>\n\n\n\n<p>Kenya expects to revamp its sugar glory after a July 2023 harvesting ban by the Agriculture and Food Authority (AFA). The ban has significantly reduced premature harvests and seen sugar production from sugarcane touch an USDA estimate of<a href=\"https:\/\/apps.fas.usda.gov\/newgainapi\/api\/Report\/DownloadReportByFileName?fileName=Sugar%20Annual_Nairobi_Kenya_KE2024-0002.pdf\"><u>&nbsp;750,000 tonnes<\/u><\/a>&nbsp;(2024-25 season). Sugarcane production will also recover to&nbsp;<a href=\"https:\/\/apps.fas.usda.gov\/newgainapi\/api\/Report\/DownloadReportByFileName?fileName=Sugar%20Annual_Nairobi_Kenya_KE2024-0002.pdf\"><u>10.4 million tonnes<\/u><\/a>, after a low of 9.03 million tonnes in the 2023-24 USDA\u2019s estimate. &nbsp;All sugarcane goes into sugar production in Kenya, a fraction of which for direct consumption and the rest for product utilization.&nbsp;<\/p>\n\n\n\n<p><strong>How much sugar does Kenya import annually<\/strong>?&nbsp;<\/p>\n\n\n\n<p>In 2022, Kenya imported more than half the proportion of the sugar it exported. While exports raked in&nbsp;<a href=\"https:\/\/oec.world\/en\/profile\/bilateral-product\/raw-sugar\/reporter\/ken\"><u>$568,000<\/u><\/a>, imports cost $269,000, the 36<sup>th<\/sup>&nbsp;highest in the world for 2022. The main import sources are India, Mauritius, Thailand, Egypt and Uganda. &nbsp;<\/p>\n\n\n\n<p><strong>How have Kenya\u2019s sugar prices been changing at retail over recent years<\/strong>?&nbsp;<\/p>\n\n\n\n<p>Supermarket prices of sugar have been rising and falling between 2015 and 2022. The period\u2019s lowest retail price average was 2015\u2019s\u00a0<a href=\"https:\/\/www.statista.com\/statistics\/1169933\/average-retail-price-of-sugar-in-kenya\/\"><u>KSH 109.24<\/u><\/a>\u00a0($0.84) a kg while the peak was 2022\u2019s KSH 138.05 ($1.07). Volatile years where the price changed sharply included 2017 at KSH 137.82 ($1.07) a kg versus 2016\u2019s KSH 18.21 ($0.91). \u00a0The period\u2019s other volatile year was 2019 at\u00a0<a href=\"https:\/\/www.statista.com\/statistics\/1169933\/average-retail-price-of-sugar-in-kenya\/\"><u>KSH 116.21<\/u><\/a>($0.90) versus 2018\u2019s KSH 132.62 ($1.02).\u00a0<\/p>\n\n\n\n<p><strong>How do Kenya\u2019s sugar prices compare internationally<\/strong>?&nbsp;<\/p>\n\n\n\n<p>In April 2024, Kenya\u2019s sugar price averaged<a href=\"https:\/\/www.globalproductprices.com\/rankings\/sugar_prices\/\"><u>&nbsp;$1.28<\/u><\/a>&nbsp;a kg, the 56<sup>th<\/sup>&nbsp;highest worldwide. Comparatively, Uganda ($1.40), Nigeria ($1.40) and South Africa ($1.85), and 7 other African countries had more expensive prices than Kenya\u2019s.&nbsp;<\/p>\n\n\n\n<p><strong>How much sugar does Kenya consume annually<\/strong>?&nbsp;<\/p>\n\n\n\n<p>According to AFA, Kenyans consume 1.1 million tonnes of sugar, 950,000 tonnes (86.4%) of which is for home use. The 2022 consumption rate was&nbsp;<a href=\"https:\/\/worldpopulationreview.com\/country-rankings\/sugar-consumption-by-country\"><u>1.224 million tonnes<\/u><\/a>, or 22.65 kg per person per year.&nbsp;<\/p>\n\n\n\n<p><strong>How many sugar mills does Kenya operate<\/strong>?&nbsp;<\/p>\n\n\n\n<p>Kenya had 17 operational sugar mills in 2024, 13 of which private and the rest public. Data shows that public mills use more cane (<a href=\"https:\/\/apps.fas.usda.gov\/newgainapi\/api\/Report\/DownloadReportByFileName?fileName=Sugar%20Annual_Nairobi_Kenya_KE2024-0002.pdf\"><u>ratio of 18:1<\/u><\/a>) than private ones (ratio of 10:1) to produce the same sugar amount.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kenya\u2019s sweeteners industry is back in the picture following glut supplies, with consequential sugar price decrement. As of August 9, the farm-gate&nbsp;price of sugarcane&nbsp;had dropped to KSH 4,950 ($38.22) a tonne, triggering farmers&#8217; frustration.&nbsp; This marks a -3.4% price decline from May\u2019s &nbsp;KSH 5,125 ($39.58), down from&nbsp;KSH 6,050&nbsp;($46.72) a tonne before March 2024. Wholesale prices&#8230;<\/p>\n","protected":false},"author":3,"featured_media":20328,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v16.3 (Yoast SEO v20.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sugar price reprieve in Kenya after supplies rebound - Selina Wamucii | Food &amp; Agriculture News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.selinawamucii.com\/news\/2024\/08\/22\/sugar-price-reprieve-in-kenya-after-supplies-rebound\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sugar price reprieve in Kenya after supplies rebound - Selina Wamucii | Food &amp; Agriculture News\" \/>\n<meta property=\"og:description\" content=\"Kenya\u2019s sweeteners industry is back in the picture following glut supplies, with consequential sugar price decrement. 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