Eswatini ranked 5th lowest cost producer worldwide

MBABANE - Globally, Eswatini is ranked the fifth lowest cost producer of sugar in the world.

According to the RES Corporation integrated report, around 110 countries produce sugar, with sugar cane accounting for nearly 80 per cent of global sugar production and sugar beet, 20 per cent.

According to the report, the top ten producing blocs (India, Brazil, Thailand, China, the US, Mexico, Russia, Pakistan, the EU and Australia) cumulatively account for nearly 70 per cent of global output. Global production in 2020/21 (October/September) is estimated at 180 million tonnes with consumption at about 185 million tonnes.

After several years of surpluses, the world sugar market is experiencing a modest deficit of more than four million tonnes.

Production

The market is characterised by some quite pronounced cycles, particularly regarding production.

RES Corporation Managing Director (MD) Nick Jackson said SACU was the most profitable market for their as most of its volumes were sold to South Africa, Botswana and Namibia.

He said the South African Sugar cane Value Chain Master Plan had caused significant uncertainty in the region as SA tried to protect its domestic sugar industry against imports.

The report revealed that 453 140 tonnes were sold into the SACU market by the Eswatini sugar industry.

“RES, as a low cost producer, is extremely competitive and has higher yields than the SA producers,” said the MD.

Jackson said SACU was the home

market for RES, which the company had a legal right to sell into. He said they would continue to monitor and influence developments so that we retain their market share.

Premium

“RES exported sugar to Southern Europe rather than the world market due to the premium obtained,” he said.

The MD said the SACU market continued to offer the best price prospects. However, the recently signed South African Sugar cane Value Chain Master Plan could have negative implications for Eswatini sales volumes and prices in that market which will have to be monitored carefully.