ESTHER MSETEKA, Mazabuka
ZAMBIA Sugar Plc will continue to devise new ways to create market for the products despite pressure on margins from declining prices on exports to the region, associated with the present sugar surplus on the world market and the European Union (EU).
Company managing director Rebecca Katowa said the organisation in Mazabuka saw the prices in the EU and world market declining due to global surplus in the international market and the surplus is impacting on the regional market.
“…So [due the market challenge in the EU], we are redirecting sugar from the EU market that is facing decline margin into the regional market,” Ms Katowa said during a shareholders’ open day on Wednesday.
She, however, said the company’s domestic sales accounted for 41 percent of the 424,024 metric tonnes produced while exports into the regional and European Union (EU) markets was 34 and 25 percent respectively.
Ms Katowa said the conditions for domestic market sales are expected to remain favourable with strong year-on-year growth while demand in the region is expected to increase as opportunities in these markets are exploited.
The company recorded an increase in sugar production to over 420,000 metric tonnes in the 2014/15 season compared to 393,000 processed in 2013/14.
She attributed the growth in production to enhanced factory reliability and the weak local unit which did help improve the company’s export realisation.
“Obviously, the weak Kwacha did improve our export realisation, although it also impacted on the cost of input, but there was a balance on the realisation side while sugar production was driven by excellent operations, effective, favourable and economic fundamentals,” Ms Katowa said.