Kenya : Heavy sugar cane milling losses a concern

Sugar millers could be losing a fortune in payments to farmers for low quality cane due to operational inefficiencies. And with the current payment system based on the tonnage of cane delivered, the huge hauls of cane that find their way to the factories each day could largely be comprised of "empty husks" that add no value to the manufacturing of sugar.

According to the Economic Survey for 2007, although sugar cane production increased, the production of sugar declined from 488.000 tonnes in 2005 to 475,000 tonnes in 2006, the amount of sugar obtained decreased, an indication that the amount of extracted sucrose was minimal.

The industry's research outfit, Kenya Sugar Research Foundation (Kesref) warns that millers could be suffering loses as little sugar is extracted from the huge loads of cane delivered due to inefficiencies in the production system, beginning from the point of harvest.

"In our view, the greatest contributor to the delivery of poor quality cane to the factories is the period of harvesting and delivery of cane to the factories. The sucrose content of cane increases gradually to reach its peak at the crop's physiological maturity. Beyond physiological maturity, sucrose content declines as the fibre content increases," said Kesref director Dr. George Okwach.

The foundation noted that many factories do not cut and crush sugar cane when the crop is at its physiological maturity. In regions where a lot of sugarcane is grown and the factory capacity is low, there have been tendencies for late cutting and crushing of cane from the farms. "Sometimes the delay can be as long as 30 months for a crop that matured in 18 months. Such cane has clearly lost its value in terms of sugar production, irrespective of whether the variety was good or poor in terms of sucrose content," said Okwach.

Apart from the impaired harvest programmes, Kesref revealed that millers have also fuelled the problem by clinging to their "preferred varieties," irrespective of the newly-introduced and better yielding cultivars. "Farmers are more under the control of millers than they are under Kesref. When a miller contracts a farmer, they provide all inputs, including seed cane and hence choice of varieties, fertilisers, and other operational costs. Milling factories have their pet varieties which their respective agriculture departments push for, sometimes disregarding Kesref recommendations," he said.

The cane quality debate has in the recent past triggered standoffs between millers and growers, prompting a response from the industry regulator Kenya Sugar Board (KSB) that now seeks a new system in which farmers would be paid for their deliveries based on the sucrose content.

According to plans for the new payment system, special laboratories would be put up at milling factories and cane extracts tested for sucrose before payments are made to growers. "Tenders have already been placed for the special test units and the pilot phase would be starting soon in all the factories in line with a strategic plan to stir efficiency," KSB chairman Saulo Busolo said.

Business Daily