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    At least 3 kg of food grown in Mozambique’s fields is lost due to inefficient processing, transportation, and storage-World Bank

    A change to hotter conditions is a looming challenge in the agricultural sector in the Southern African region

    AfDB commits $10 billion to fight food insecurity

    AfDB commits $10 billion to fight food insecurity

    Natafim SA expands drip-line manufacturing plant

    Natafim SA expands drip-line manufacturing plant

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Farming in South Africa; Six Things That Need Urgent Attention in 2023

    Farming in South Africa; Six Things That Need Urgent Attention in 2023

    Macfrut 2023,Turkey to participate in International Blueberry Days

    Macfrut 2023,Turkey to participate in International Blueberry Days

  • Africa
    AfDB commits $10 billion to fight food insecurity

    AfDB commits $10 billion to fight food insecurity

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Africa’s new agriculture pledge on the cards

    Africa’s new agriculture pledge on the cards

    Agricultural machinery: High demand on the world market

    Agricultural machinery: High demand on the world market

    EIMA International 2022, a Global Event Returns

    EIMA International 2022, a Global Event Returns

    2026 declared World Year of Pastoralism

    2026 declared World Year of Pastoralism

  • Company
    Norway pledges to build resilience of small aquaculture farmers in East and Southern Africa

    Norway pledges to build resilience of small aquaculture farmers in East and Southern Africa

    Tropical Cyclone Ana: WFP ready to provide food and logistics support for rescue and relief operations

    Tropical Cyclone Ana: WFP ready to provide food and logistics support for rescue and relief operations

    Mozambique authorities seek to combat biodiversity devastation by clamping on illicit fishing

    Mozambique authorities seek to combat biodiversity devastation by clamping on illicit fishing

    World Bank, UN launch programme to help Mozambique improve forestry management

    World Bank, UN launch programme to help Mozambique improve forestry management

    Basis of the Nampula economy calls for a re-orientation of efforts towards the most profitable cash crops, Says Nyusi

    Basis of the Nampula economy calls for a re-orientation of efforts towards the most profitable cash crops, Says Nyusi

    Sporadic rains worry Zambezi farmers

    UN announces US$1.2mln animal health programme for Mozambique

  • International
    Macfrut 2023,Turkey to participate in International Blueberry Days

    Macfrut 2023,Turkey to participate in International Blueberry Days

    First Special Agriculture Industrial Zone launched in Mozambique

    EIMA 2022: Unlocking the growth potential of Africa’s Agribusiness

    Agricultural machinery: High demand on the world market

    Agricultural machinery: High demand on the world market

    Italian industry Growing Turnover despite the Economic Situation

    Italian industry Growing Turnover despite the Economic Situation

    EIMA International 2022, a Global Event Returns

    EIMA International 2022, a Global Event Returns

    African women playing a critical role in local economic development

    Lusophone countries benefit from Africa Investment Forum

  • Markets
    It is through collective efforts and pursuit of mutual agreements and regional approaches and strategies that SADC can fully address national and intercountry investments on agriculture

    It is through collective efforts and pursuit of mutual agreements and regional approaches and strategies that SADC can fully address national and intercountry investments on agriculture

    Africa’s local ownership drive must balance foreign investment

    President Nyusi reminds investors of the agricultural opportunities available in Mocuba District

    Russia-Ukraine war poses upsides risks on African agriculture: Economist

    Russia-Ukraine war poses upsides risks on African agriculture: Economist

    Mozambique Fisheries on high vigilance following outbreak of fish disease in Malawi

    Mozambique Fisheries on high vigilance following outbreak of fish disease in Malawi

    Govt’s initiative to boost cotton and cashew income

    Govt’s initiative to boost cotton and cashew income

    Maize planter calibration to improve your profitability

    Maize planter calibration to improve your profitability

  • Equipment
    IMPROVING WATER QUALITY TO ENSURE SUCCESS OF BROILER BUSINESS

    IMPROVING WATER QUALITY TO ENSURE SUCCESS OF BROILER BUSINESS

    AWARD targets to improve African smallholders’ livelihoods

    AWARD targets to improve African smallholders’ livelihoods

    Agricultural machinery: High demand on the world market

    Agricultural machinery: High demand on the world market

    African women playing a critical role in local economic development

    Lusophone countries benefit from Africa Investment Forum

    President Nyusi excited about the prospects the new vegetable oil factory brings

    President Nyusi excited about the prospects the new vegetable oil factory brings

    Russian company to make a humanitarian fertilisers shipment to Africa

    Russian company to make a humanitarian fertilisers shipment to Africa

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  • News
    • All
    • Crops
    • Diary
    • Fresh Produce
    • Game & Wildlife
    • Livestock
    At least 3 kg of food grown in Mozambique’s fields is lost due to inefficient processing, transportation, and storage-World Bank

    A change to hotter conditions is a looming challenge in the agricultural sector in the Southern African region

    AfDB commits $10 billion to fight food insecurity

    AfDB commits $10 billion to fight food insecurity

    Natafim SA expands drip-line manufacturing plant

    Natafim SA expands drip-line manufacturing plant

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Farming in South Africa; Six Things That Need Urgent Attention in 2023

    Farming in South Africa; Six Things That Need Urgent Attention in 2023

    Macfrut 2023,Turkey to participate in International Blueberry Days

    Macfrut 2023,Turkey to participate in International Blueberry Days

  • Africa
    AfDB commits $10 billion to fight food insecurity

    AfDB commits $10 billion to fight food insecurity

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Africa’s new agriculture pledge on the cards

    Africa’s new agriculture pledge on the cards

    Agricultural machinery: High demand on the world market

    Agricultural machinery: High demand on the world market

    EIMA International 2022, a Global Event Returns

    EIMA International 2022, a Global Event Returns

    2026 declared World Year of Pastoralism

    2026 declared World Year of Pastoralism

  • Company
    Norway pledges to build resilience of small aquaculture farmers in East and Southern Africa

    Norway pledges to build resilience of small aquaculture farmers in East and Southern Africa

    Tropical Cyclone Ana: WFP ready to provide food and logistics support for rescue and relief operations

    Tropical Cyclone Ana: WFP ready to provide food and logistics support for rescue and relief operations

    Mozambique authorities seek to combat biodiversity devastation by clamping on illicit fishing

    Mozambique authorities seek to combat biodiversity devastation by clamping on illicit fishing

    World Bank, UN launch programme to help Mozambique improve forestry management

    World Bank, UN launch programme to help Mozambique improve forestry management

    Basis of the Nampula economy calls for a re-orientation of efforts towards the most profitable cash crops, Says Nyusi

    Basis of the Nampula economy calls for a re-orientation of efforts towards the most profitable cash crops, Says Nyusi

    Sporadic rains worry Zambezi farmers

    UN announces US$1.2mln animal health programme for Mozambique

  • International
    Macfrut 2023,Turkey to participate in International Blueberry Days

    Macfrut 2023,Turkey to participate in International Blueberry Days

    First Special Agriculture Industrial Zone launched in Mozambique

    EIMA 2022: Unlocking the growth potential of Africa’s Agribusiness

    Agricultural machinery: High demand on the world market

    Agricultural machinery: High demand on the world market

    Italian industry Growing Turnover despite the Economic Situation

    Italian industry Growing Turnover despite the Economic Situation

    EIMA International 2022, a Global Event Returns

    EIMA International 2022, a Global Event Returns

    African women playing a critical role in local economic development

    Lusophone countries benefit from Africa Investment Forum

  • Markets
    It is through collective efforts and pursuit of mutual agreements and regional approaches and strategies that SADC can fully address national and intercountry investments on agriculture

    It is through collective efforts and pursuit of mutual agreements and regional approaches and strategies that SADC can fully address national and intercountry investments on agriculture

    Africa’s local ownership drive must balance foreign investment

    President Nyusi reminds investors of the agricultural opportunities available in Mocuba District

    Russia-Ukraine war poses upsides risks on African agriculture: Economist

    Russia-Ukraine war poses upsides risks on African agriculture: Economist

    Mozambique Fisheries on high vigilance following outbreak of fish disease in Malawi

    Mozambique Fisheries on high vigilance following outbreak of fish disease in Malawi

    Govt’s initiative to boost cotton and cashew income

    Govt’s initiative to boost cotton and cashew income

    Maize planter calibration to improve your profitability

    Maize planter calibration to improve your profitability

  • Equipment
    IMPROVING WATER QUALITY TO ENSURE SUCCESS OF BROILER BUSINESS

    IMPROVING WATER QUALITY TO ENSURE SUCCESS OF BROILER BUSINESS

    AWARD targets to improve African smallholders’ livelihoods

    AWARD targets to improve African smallholders’ livelihoods

    Agricultural machinery: High demand on the world market

    Agricultural machinery: High demand on the world market

    African women playing a critical role in local economic development

    Lusophone countries benefit from Africa Investment Forum

    President Nyusi excited about the prospects the new vegetable oil factory brings

    President Nyusi excited about the prospects the new vegetable oil factory brings

    Russian company to make a humanitarian fertilisers shipment to Africa

    Russian company to make a humanitarian fertilisers shipment to Africa

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Sugar Industry: A successful business in a skewed market

Ian by Ian
January 30, 2019
in Africa, Markets, News
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Sugar Industry: A successful business in a skewed market
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Punished during the Mozambican civil war (1977-1992), with almost all the destroyed factories and abandoned cane fields, the sugar industry has recently repositioned itself in terms of gross domestic product (GDP) contribution of the agricultural sector.

After the major setback in the so-called “16-year war”, the turnover of the sugar industry in Mozambique reached record levels, thanks to government assistance and a series of foreign direct investments that catapulted the sector.

Between 2011 and 2015, the turnover of this industry corresponded to an average of nine per cent of agriculture’s GDP.

Despite this effort, the support of the government is increasingly essential for the national sugar industry, given the distorted world market, which opens the door to unfair competition in the sector.

In view of the distortion on the international sugar market, the KPMG report issued in 2016 stated that without maintaining the current levels of additional intervention of the Executive, “domestic sugar mills would be unable to compete with each other and in international markets, of the Marromeu and Mafambisse sugar mills”.

KPMG noted that this scenario would ultimately lead to a decrease in production levels, resulting in socio-economic losses.

Most sugar-producing countries have incentive-state mechanisms and subsidies on production and the expulsion of surpluses (via export subsidy).

“Unprotected markets against the effects of the elimination of surpluses are vulnerable to disruptions of domestic sugar industries,” the report says of the positive contribution of the sugar industry in Mozambique, which the government should continue to stimulate for its sustainability and competitiveness on the international market as it prepares for future market normalization.

A withdrawal of compensatory measures may affect the positive results already achieved by players in the sector, such as a decrease in production levels.

At least two sugar mills (Tongaat Hulett-Açucareira de Moçambique and Tereos-Companhia do Sena) will not maintain their operations, as they are more susceptible to considerable losses.

In terms of socio-economic impacts, if the government opts for the withdrawal of incentives, it foresees job losses (almost 17,000 people fell into unemployment), less income and investments in social areas may decrease by 65 per cent.

SUGAR IMPORTATION REGIME IN SADC

While some current opinion supports the elimination of incentive mechanisms and subsidies to the Mozambican sugar industry, Southern African Development Community (SADC) countries have been strengthening measures to protect their industry.

South Africa maintains a price-based regime with tariffs based on the difference between the world price and a reference price. The reign of eSwatini (Swaziland), on the other hand, maintains a regime based on the reference price in dollars, with tariffs based on the difference between the world price and a reference price.

Tanzania maintains import controls by restricting imports to deficit levels and applies a duty of 100 per cent or $460 per tonne.

Zimbabwe applies a rate of 10 per cent and over $100 per metric tonne. Imports are furthermore restricted by means of an import licensing agreement.

Malawi restricts imports through import control measures and also charges a 25 per cent import duty on world market imports. Angola, a country with a significant sugar deficit of around 80 per cent, still limits imports through import control measures and also charges an import tax of 20 per cent, plus a two per cent import tax on sugar

 

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