Illovo’s Tanzanian Unit Sugar Output Rises 15% With Normal Rains

Kilombero Sugar Co., Tanzania’s largest producer of the sweetener, increased production by 15 percent this year as rains returned to normal and helped maximize cane yields, Managing Director Don Carter-Brown said.

Output climbed to 129,737 metric tons in the current 2012-2013 crop cycle that began in June from 113,100 tons the previous season, Carter-Brown said yesterday in an e-mailed response to questions.

“We had quite of lot of in-season rain which affected production,” in 2011-2012, he said. “This past season was more normal.”

Sugar production in Tanzania, which rose 14 percent to 299,708 tons this season, lags demand. The country has an annual sugar consumption of 500,000 tons and it imports the deficit primarily from Brazil, Thailand, India and South Africa, according to the state-run Sugar Board of Tanzania. Production is forecast to rise to an annual 420,000 tons by 2015 to meet domestic demand.

Kilombero, a unit of South Africa’s Illovo Sugar Ltd. (ILV), expects output will be little changed next year, Carter-Brown said. Tanzania’s government owns 25 percent of Kilombero, while ED & F Man Holdings Ltd., a closely-held agricultural commodities trader based in London, has 20 percent.

To contact the reporter on this story: Sara Jerving in Nairobi at sjerving@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

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