Bloomberg News

Uganda Sugar Output Climbs 20% in Four Months on More Plantings

June 20, 2011

June 20 (Bloomberg) -- Uganda’s three biggest sugar producers boosted output by 20 percent in the first four months of this year as plantings increased, the Uganda Sugar Cane Technologists Association said.

Output from January through April climbed to 123,935.1 metric tons from 102,894 tons a year earlier, Wilberforce Mubiru, the Kampala-based agency’s secretariat manager, said in an e-mailed response to questions on June 17. The increase may mean the three companies’ production target of 345,570 tons this year is “achievable,” Mubiru said.

Kakira Sugar Works, the largest grower, Kinyara Sugar Works Ltd. and Sugar Corp. of Uganda Ltd. produced 292,052 tons of the sweetener last year. Contributions by two small producers may push total national output to 350,500 tons from 297,016 tons last year, the agency said.

Kakira, owned by Madhvani Group, which says it is the biggest private investor in Ugandan industries, may boost output by 9.3 percent to 165,190 tons, the agency said on April 5. The company’s production plant is expected to work more efficiently after repairs on damaged sections and cane supply from independent farmers are projected to increase, the company said in January

Kinyara, the second-biggest producer, may increase output by 40 percent to 126,380 tons, the association said. Kinyara is 51 percent-owned by Rai Group, a Kenya-based agro-forest company.

Output at Sugar Corp., jointly owned by the Ugandan state and Mumbai-based Mehta Group, may climb 7.5 percent to 54,000 tons, the association said.

The three producers plan to invest a combined $197 million in boosting their capacity as well as generating electricity from cane fiber and producing ethanol, the association said on April 5.

Uganda consumed 346,000 tons and imported 13,000 tons of sugar last year of which 67,590 tons were re-exported, according to the agency.

--Editors: Paul Richardson, Alastair Reed.

To contact the reporter on this story: Fred Ojambo in Kampala via Nairobi at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.


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