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Uganda’s Sugar Output Seen Climbing a Third Year on More Cane

Feb. 3 (Bloomberg) -- Sugar output by Uganda’s three top producers may climb for a third successive year in 2014 after crushing capacity expanded and cane growers increased acreage.

Combined production by the three plants may climb to 375,000 metric tons, from 356,660 tons last year, Wilberforce Mubiru, the secretariat manager for the Kampala-based Uganda Sugar Manufacturers’ Association, said today by e-mail in response to questions.

The association represents Kakira Sugar Works (1985) Ltd., owned by the Madhvani Group, the nation’s biggest producer of the sweetener; Mauritius-based Rai Group’s Kinyara Sugar Ltd.; and Sugar Corp. of Uganda Ltd., wholly owned by the Mumbai-based Mehta Group.

“More land has been opened up for cane cultivation,” Mubiru said. “Companies have expanded on their cane crushing capacities.”

Companies that are not members of the association, including GM Sugar Ltd., Mayuge Sugar Ltd., and Sugar & Allied Industries Ltd., may boost output to 50,000 tons from 18,000 tons last year, Mubiru said.

Uganda imports sugar mainly from India and Brazil, while exporting to neighboring Kenya and South Sudan, according to the association. Uganda imports the sweetener for both household and industrial use. The nation brings in between 40,000 and 70,000 tons annually, while annual consumption is about 300,000 tons, according to the association.

To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net

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