Sweet taste of success down South

The company’s net profits from the sugar operations increased by almost $60.6 last year from $36 million in 2007.

This is expected to rise slightly to about $65 million this year.

Swaziland is another test case for massive sugar production in the sub-region.

Sugar growing is the country’s mainstay, accounting for more than 53 per cent of the total agricultural output.

More than 16,000 people are employed directly by the industry.

With an annual refined sugar production of about 300,000 tonnes a year, Swaziland continues to be one of the lowest cost producing countries in the world.

This predisposes it to investment that in turn facilitates its expansion programme.

High production in the mountainous country allows it to sell both on the prescribed and the open markets.

Half of its production is sold in local and regional markets.

Overall, the sugar industry in Southern Africa has grown steadily since 2004 because of high demand and handsome returns from exports.

Statistics from the Southern Africa Development Community show a rise in annual refined sugar production of about 5.2 per cent in the past five years, at a tonnage of about 12.8 million.

This represents a total export turnover of about $28 billion.

Other major producers of sugar are Malawi, Namibia and Angola.

The after-effects of the global recession and falling demand for sugar because of stockpiling on the world market is likely to affect production.

But experts forecast dwindling supplies and higher prices this year to cushion the sub-region’s sugar industry.