Uganda's sugar output seen up 10.8 pct in 2010

KAMPALA :Uganda's 2010 sugar production is forecast to rise by more than 10 percent in 2010 from last year, boosted by a rise in cane supply and increased milling capacity, an industry report said.

East Africa's third-largest economy is expected to produce some 318,000 tonnes of sugar this year, 10.8 percent up on the 287,000 tonnes in 2009, said the Uganda Sugar Cane Technologists Association's (USCTA) 2009 industry report, released late on Thursday.

"Two of the biggest producers, Kakira and Kinyara have vastly increased (their) milling capacity and outgrowers have also indicated they will increase their cane supplies this year," said USCTA chairman, Richard Orr, in the report seen by Reuters on Friday.

Uganda's sugar output in 2009 was 20 percent up on the previous year. Sugar production has more than doubled in the past 10 years, the USCTA said.

Uganda was the world's 43rd-largest sugar producer in the world in 2007, according to the latest United Nations data.

Sugar in Mauritius, the leading sugar exporter from the African, Caribbean and Pacific bloc to the European Union, rose 3.3 percent to 467,234 tonnes last year from the previous year.

Uganda consumed a total of 325,000 tonnes of sugar last year. Consumption is expected to jump to 700,000 tonnes by 2030, the USCTA report said. Other demand estimates range as high as 800,000 tonnes per year.

The USCTA also said the volume of cane purchased by millers from outgrower farmers had quadrupled over the last nine years. During that period, earnings generated by millers increased to 80 billion shillings from 9 billion shillings.

Uganda's Madhvani Group plans to invest $100 million in a new sugar plantation and manufacturing plant to help address supply shortfalls.

source: reuters