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Friday, 06 October 2017

Zambia: sugar production set to fall by 6% in 2016/17

In Zambia, the 2016/17 crop year will end with a 6% drop in sugar production. According to the forecasts of the US Department of Agriculture (USDA), Zambia will produce about 388,405 tonnes of sugar compared to 411,279 tonnes last year. This slight contraction in volume is due to a deterioration in the quality of sugar cane, as well as a reduction in the quantity of sugar cane transported to refineries, due to energy restrictions which have impacted on irrigation, and to the drought which affected the growing season. Zambia’s sugar industry is dominated by Zambia Sugar PLC, a subsidiary of Illovo Sugar, a South African company that produces around 92.5% of the country’s sugar production. The country exports about half of its production, mainly to other countries in Africa and to the European Union. In 2016, the sugar sub-sector accounted for about 3% of Zambian GDP and 6% of exports, according to the USDA.

Source: Agence Ecofin