Africa Sugar Digest, Vol. III, No 2, 9 February 2012

Contents:

• Angola: Japanese Marubeni to build sugar and ethanol plant
• Ethiopia: Indian Karaturi to build sugar factory
• Tanzania: Kilombero abandons sugar cane project
• South Africa: Tongaat lobbies for biofuel policy
• Egypt: Nile Sugar to increase capacity in 2013
• Algeria: Cevital 2012 exports at 1 million tonnes
• Sudan: Kenana Sugar to raise ethanol production in 2011/12
• South Africa: 2011/12 production forecasted at 1.82 million tonnes
• Zambia: Government funding available to Luena Farm
• Dubai: Al Khaleej Refinery to buy Indian sugar

Angola: Japanese Marubeni to build sugar and ethanol plant

Marubeni Corp. announced on Feb. 7 it will build a USD 650 million sugar and ethanol factory in Angola. The plant will be located in the southern Cunene province and will have an annual production of 400,000 tonnes of sugar and 40 million litres of ethanol. It will use sugar cane as raw material. The factory is expected to start operations by the end of 2015.

In related news, Angola Press said that the Refriango Group is launching a sugar project in Condé Commune in the Kwanza-Sul Province, with an investment of USD 82.3 million. The news agency quoted a source in the Sócio Agro-indústrial da Zâmbia-9 Amboim (Prosai), who added that the project will work on 10,000 hectares and create 2,500 jobs. Refriango Group’s core business is soft-drinks.

Ethiopia: Indian Karaturi to build sugar factory

Karuturi Agro Products from India is planning a sugar project in Ethiopia’s Gambella Regional state. The company has proposed a sugar factory with a daily crushing capacity of 7,000 tonnes of cane and a plantation of 15,000 hectares of Karuturi land. Seed cane has already been cultivated on 80 h. Field and factory operations are expected to generate some 5,000 jobs, including seasonal. It was reported the company operates on 100,000 h in Gambella that were leased in 2009.

Ethiopia plans to increase sugar production to 1.3 million tonnes from the current 300,000 tonnes per year. There are currently three sugar factories in operation. Yearly domestic consumption is estimated at 400,000 tonnes. Neighbouring South Sudan, Kenya, Djibouti and Somalia also rely on sugar imports, which may be also targeted by the company.

Tanzania: Kilombero abandons sugar cane project

Ongoing land conflicts, reported The Daily News on 23 January, have led to the collapse of a deal  between the government and Kilombero Sugar Company (a subsidiary of Illovo Sugar) for sugar cane production in Luipa farms in Kilombero District, Morogoro Region. The paper said that Kilombero Sugar had for the last ten years been trying to start the project but villagers launched court cases demanding compensation before releasing their lands. it was estimated that the lands in question would have sustained the production of some 240,000 tonnes of sugar per year.

South Africa: Tongaat lobbies for biofuel policy

Tongaat Hulett said the agricultural sector is frustrated by the slow pace of consolidating a policy framework for electricity co-generation and biofuel production, which would have a positive impact on several crops, including sugar cane. It added that small-scale cane farmers would have a better chance of succeeding if such policy allows them to enter the energy sector. Tongaat Hulett would like to see the sugar industry moving into the biofuels sector, and said that the industry could use some 600,000 -1 million tonnes of sugar to increase ethanol production by an equivalent to 5 percent of the domestic fuel consumption.

South Africa’s Biofuels Industrial Strategy calls for a 2 percent replacement of biofuels, equivalent to some 400 million litres per year. Crops identified in this scenario are sugar cane and sugar beet for ethanol, and sunflower, canola and soya beans for biodiesel.

Other organisations said that South Africa is lagging behind countries like Swaziland and Malawi where, through electricity cogeneration, agriculture has strong links with the energy sector. The sugar industry in these two countries is dominated by South African companies: Illovo Sugar and Tongaat Hulett.

Egypt: Nile Sugar to increase capacity in 2013

Nile Sugar in Egypt has plans to increase its crushing capacity by over 40 percent next year in response to the strong sugar demand in the country. Currently the factory processes 7,000 tonnes of beet sugar per day and refines Egyptian beet sugar during the crushing season (February to June). It refines imported raw sugar, mostly from Brazil, in the rest of the year. Nile Sugar is located in Nubariyah, some 50 km from the port of Alexandria, and sells all of its production in the country. Egypt produces around 2 million tonnes of sugar a year, and imports about one million tonnes.

Algeria: Cevital 2012 exports at 1 million tonnes

Algerian Cevital, the biggest sugar refiner in North Africa, expects to more than double sugar exports this year to one million tonnes. By the end of this year, the company is planning to increase its refining capacity to 2.6 million tonnes a year, up from 2 million. It added that has plans to open a refinery in Iraq.

Sudan: Kenana Sugar to raise ethanol production in 2011/12

Kenana Sugar Co. said it expects to produce 55 million litres of ethanol at its White Nile Sugar Plant in 2011/12, a level below the plant’s capacity of 60 million, but up from the 40 million produced in the 2010/11 season.

South Africa: 2011/12 production forecasted at 1.82 million tonnes

The South African Sugar Association (SASA) estimates that South Africa’s 2011/12 sugar production will reach 1.82 million tonnes, down from the readjusted projection of 1.855 million, released in November 2011. The new estimate is a 4.7 per cent lower than the 1.909 million tonnes achieved in the previous year, which was already a 15-year low due to drought.

Zambia: Government funding available to Luena Farm

Government has allocated 40 billion Zambian kwachas (USD 7.8 million) for water and power generation infrastructure in the Luena Farm Bloc in Kawambwa, Luapula Province. These investments will precede full-scale farming. A government official said the area should not abandon plans to transform Luena into a sugar cane plantation.

Dubai: Al Khaleej Refinery to buy Indian sugar

An Internet report said that the world’s largest refinery, Al Khaleej Sugar based in Dubai, has acquired 80,000 tonnes of Indian sugar, volume that may rise to 100,000 tonnes. Al Khaleej’s daily processing capacity is listed at 6,000 tonnes and the refinery expects to buy 2 million tonnes of raw sugar in 2012, with some 80-85 per cent of it sourced from Brazil. It is reported that the Indian sugar was a USD 20/ tonne less expensive than Brazilian sugar.
 
                                                                                                                                                                                                   

Africa Sugar Digest is produced thanks to the IUF Global Sugar project in East and Southern Africa. It appears as news becomes available. Contributions are welcome. The IUF African sugar project is supported by the Social Justice Fund of the Canadian Auto Workers (SJF-CAW), with contribution from the Canadian International Development Agency (CIDA) through the Labour International Development Program of the Canadian Labour Congress (LIDP-CLC).
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Africa Sugar Digest, Vol III, No 2, February 2012 – click to download –

 

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