Sugar exports to go up 21 percent
The rise in sugar exports is attributed to an increase in sugar production.
ZIMBABWE’S sugar production is expected to rebound from the past drought, with forecasts estimating that exports will increase by 21 percent to 145 000 tonnes in the 2018/2019 marketing year from 120 000 tonnes in 2017/18.
The rise in exports has been attributed to an increase in sugar production and large available stocks.
“The 2017/18 marketing year exports were revised downwards to 120 000 tonnes based on the lower than expected sugar production and updated industry data,” the 2018 Sugar Annual Global Agricultural Information Network Report said.
The main export destinations for Zimbabwean sugar are the United States, the European Union, Botswana, South Africa and Kenya in East Africa.
Zimbabwe exported about 17 443 tonnes of raw sugar to the United States to fulfill its 2017/18 marketing year Tariff Rate Quota (TRQ).
“The United States allows duty free access for Zimbabwean sugar under the Tariff Rate Quota programme. The total TRQ and re-allocations offered to Zimbabwe average about 12 000 to 14 000 tonnes annually. Zimbabwe usually fully utilises its sugar quota as the United States market remains attractive compared to other markets such as the EU,” the report said.
Zimbabwe is expected to fully utilise its allocated TRQ in the 2018/19 marketing year.
“Zimbabwe exports to the EU have decreased since 2017 due to unfavourable prices and low returns compared to other export markets such as East Africa. The EU changed its domestic sugar policy in 2017 and removed restrictions for domestic sugar beet production.
“This change is expected to result in an increase in sugar supply and decreases in sugar prices in the EU. This is also expected to result in a decrease in EU imports from other countries over time,” the report added.
Expectations are that sugar production in Zimbabwe will increase by 17 percent to 460 000 tonnes in the 2018/19 marketing year from 393 000 tonnes in the 2017/2018 marketing year.
“This is due to an increase in the quantity of sugar cane delivered to the mills and better quality sugar cane for crushing, resulting in good factory recoveries. The 2017/18 marketing year sugar production was revised downwards to 393 000 tonnes based on lower than expected quantity of sugar cane delivered to the mills and poor sugarcane quality.”