Mozambican sugar industry expected to produce 382,000 tonnes of sugar this year

12 October 2009

Maputo, Mozambique, 12 Oct – Mozambique’s sugar industry expects to produce 3.2 million tonnes of sugar cane, 382,000 tonnes of sugar and 99,000 tonnes of molasses, according o the most recent estimates from the Centre for Promotion of Agriculture (Cepagri).

“If these projections are correct, the 2009 sugar campaign will see a rise of 52 percent, 53 percent and 28 percent in production of cane, sugar and molasses, respectively, in an area 29 percent larger than the area harvested in 2008,” according to a Cepagri report cited by Mozambican newspaper Notícias.

The report added that, with expected production for 2009, Mozambique is in a strong position to meet the needs of the domestic market and to generate considerable surpluses for export.

Meanwhile, sugar exports brought in revenues of US$13.7 million in the second half of the year, as a result of exporting 26,000 tonnes of brown sugar to the preferential markets of the European Union, as part of the complementary quotas that are additionally requested by the refineries.

According to the Cepagri report, a rise in exports is expected this year as a result of projected rises in sugar production, without increasing domestic demand.

The document said that Mozambique may export 200,000 tonnes of sugar this year, which will be sent to the European Union where there are two options available, namely the Economic Partnership Agreements (EPAs) and as part of the Anything but Arms initiative.

However, with the new sugar regime coming into effect in the EU, the expected price for sugar under both the EPA and the EBA initiatives is US$336 per tonne.

“If this is the actual price, export revenues will total US$67 million, which means that event with record exports revenues could fall due to a price drop in the EU as part of the new sugar regime,” the report said (macauhub)