Price drop hits Swazi sugar producers

MBABANE – A drop in the price of sugar sold to Swaziland’s biggest customer, the European Union (EU), was responsible for a R138- million profit loss for the Royal Swaziland Sugar Corporation (RSSC). The company runs the country’s largest sugar mills and processes sugar supplied by smallholder farmers. Sugar is both Swaziland’s top export and leading agricultural export, transported in raw state by both road and rail. “Total comprehensive income amounted to R234.2m, compared to R371.8m in the prior year. The decline in profitability was inf luenced by a decline in sugar prices in the EU market, partially offset by positive impact of an increase in sugar production of 37 953 tonnes,” read the company’s financial report released this week. The Swaziland Sugar Association (SSA) admits that the country’s sugar industry depends on EU business, but is seeking new markets in SADC and East Africa initially. Price competitiveness can be managed if ways can be found to lower production and transportation costs, the SSA says.