adminThe year 2014 is promising to be a good year for sugar production in Zimbabwe. According to Business Monitor International forecast regarding the sugar sector of the country, sugar production is predicted to rise 13,5 percent by the year 2017 from last year’s level.
This estimated rise in terms of volume will produce 544 700 tonnes.
The key drivers of production growth forecast are an overall improvement in sugar cane yields, greater efficiency of mills and long-term access to export markets.
“Zimbabwean sugar production recorded a significant 29 percent increase in 2012 /13 due to better cane yields and more efficient sugar mills.
The efficiencies were largely a function of significant re-investment that has gone into mill refurbishment in recent years” said BMI.
The analytical organisation predicts that over the longer term there is likely to be moderate potential for the country’s sugar industry.
In as much as there is a positive forecast from the group sugar production is still below its potential.
The analytical organisation predicts that over the longer term there is likely to be moderate potential for the country’s sugar industry.
In as much as there is a positive forecast from the group sugar production is still below its potential “Although we forecast a domestic sugar market surplus, the sector remains below potential, and our forecasts are relatively subdued” said BMI. In terms of a global outlook sugar production is forecasted to drop therefore the global price in the long run will be expected to rise.
USDA estimates global sugar production in 2013 /14 at 175 million tonnes, down by one million from last year due to sharply lower production in India and Russia.
With abundant supplies continuing to weigh on the market, the current low prices are expected to stimulate global consumption and trade. — Agencies
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