It’s 13 per cent improvement from 2023. Sales however decrease by 3.7 per cent
Mbabane – Despite an improved 13 per cent revenue in the 2023/24 financial year, the Eswatini Sugar Association (ESA) sales dropped by 3.7 per cent.
At a media briefing, Chief Executive Officer (CEO) Banele Nyamane informed the media that their 2023/24 performance has shown moderate improvement over the previous year’s disappointing results. Sales decreased by 3.7 per cent (2023: 605 556 tonnes) and, despite poor yields and the quality of sugar challenges, revenue was up by 13 per cent (2023: E6,44 billion). This, he attributed mainly to high world market sugar price supported by a favourable foreign exchange rate.
The ESA, having generated E7.4 billion revenue, distributed E6.5 billion to members and E4.1 billion to growers. They accumulated US$98 million and 36 million Euros from the US and Europe exports.
“Despite a tough year, we successfully navigated our challenges and are pleased with our results,” he said.
In his brief summary detailed in the ESA’s Integrated Annual Report 2023/24, Nyamane mentioned that the sugar industry has undeniably experienced some rough patches over the past several years, with turbulent weather patterns, soaring input costs and a surge in pests and diseases causing a domino effect on subsequent years coupled with quality and logistical challenges this past year.
“Yet we have proven our ability to adapt to shifting operating conditions and have demonstrated resilience in the face of headwinds. Recovery expected despite the relative success of the sugar industry, other sectors of the Eswatini economy did not fare as well, however, exposing our employees to additional socio-economic pressure that may impact ESA. Fortunately, political stability in the country has been restored following the disruptions of the previous year, and we are confident that our past efforts have laid a foundation for successful collaboration with the new government.”
He added that their quest for new markets was ongoing and while the lack of available sugar, quality issues, and logistical constraints have somewhat thwarted their efforts, they were determined to continue in the upcoming season. Although they remain optimistic of a recovery in the coming year, recent data, he said, does underscore the persistent negative impact of climate change. This, he said, necessitates that as an industry they find ways to reshape their operations to adapt to these changes.
“On a positive note, the depreciation of the rand against the dollar worked in our favour, a trend that we hope will continue. The projected further weakening of the currency amid uncertainties surrounding the South African politics may also prove to be advantageous for our revenues on export sales. Furthermore, the price of fertiliser, primarily sourced from Russia and Ukraine, has begun to stabilise as importing countries adapt to ensure uninterrupted operations, somewhat stabilising the cost of growing cane,” he said.
However, he added that they did encounter significant challenges of increased pests and disease, compounded by late harvesting in 2022, which resulted in a rather poor crop. Even with an increase in area harvested, they experienced a 7 per cent reduction in cane harvested. This resulted in sugar produced also dropping by 6 per cent from 625 361 tons last year to 590 367 tonnes produced this year.
“We also battled with the quality of our final product and were unable to meet our sales targets. Nevertheless, I remain optimistic that all possible causes of quality issues have been identified and will be resolved during the coming season. Overall, despite the shortfall in tonnage of sugar produced and the rise in customer complaints, mainly due to quality and logistical challenges at the ports, I am satisfied with our performance.”
The CEO also divulged that measures taken against the negative effects of climate change in as far as growing sugarcane was concerned include research in exploring other types of cane which can take few months to grow but mentioned that it was a long and delicate process which can take up to nearly seven years. Other undertaken efforts included training of growers and added resources to help farm associations.
The CEO also thanked the US embassy for assisting facilitate a growing sugar market with the United States of America and indicated that in the past financial year, the exported the highest volume of 26 000 tonnes to that country.
