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sugar industry eswatini

The Sugar Industry Eswatini 2022

Charles Chinya | Eswatini (formerly Swaziland) | 28 February 2022

The Sugar Industry Eswatini 2019

Natalie Bryden | Eswatini (formerly Swaziland) | 14 October 2019

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Report Coverage

This report focuses on the sugar industry in Eswatini and includes information on the state and size of the industry, the major players, developments, corporate actions, regulation and other influencing factors. There are profiles of four companies including Royal Eswatini Sugar Corporation, listed on the stock exchange and part-owned by South African RCL Foods, Ubombo Sugar, which majority owned by Illovo Sugar, locally-owned Tambankulu Estates and Crookes Plantations, part of the South African Crookes Brothers group.

The Sugar Industry in Eswatini

Eswatini is Africa’s fourth largest sugar producer and the 25th largest producer worldwide. Sugar is its main export commodity and accounts for over half of the country’s agricultural output. Sugarcane is grown under irrigation in the lowveld of the country on 57,000 hectares of land. The industry is highly regulated, and the Eswatini Sugar Association, an umbrella body of all growers and millers of sugarcane, markets and sells all sugar and molasses produced in the country.

Production

Sugarcane production in Eswatini is forecast to increase marginally in the current year, while sugar production will increase based on more sugar cane delivered to the sugar mills, better quality of sugar cane and a better sugar recovery rate. Sugar manufacturers are attempting to reduce production costs and improve efficiencies and financial performance, and factory recoveries are set improve.

Innovation

Sugar companies are diversifying into new products such as biodegradable plastics, growing new crops and the production of rum, gin and vodka. Industry players are considering pursuing opportunities to supply ethanol to oil companies for fuel blending. The high cost and unreliable supply of electricity is forcing sugar companies to build their own renewable solar energy plants, while Eswatini’s vulnerability to drought has seen companies set up water storage facilities and recycle waste water. Given the growing trend of using artificial sweeteners, it is expected that Eswatini manufacturers may increase production of these products.

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The Sugar Industry Eswatini 2022

Full Report

R 9 500.00(ZAR) estimated $507.31 (USD)*

Industry Overview

R 6 650.00(ZAR) estimated $ 355.12 (USD)*

Historical Reports

The Sugar Industry Eswatini 2019-10-14

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY PROFILE 1
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 6
3.2. Geographic Position 7
3.3. Size of the Industry 9
3.4. Key Success Factors and Pain Points 10
4. LOCAL 11
4.1. Key Trends 14
4.2. Notable Players 16
4.3. Trade 18
4.4. Corporate Actions 21
4.5. Regulations 21
4.6. Enterprise Development and Social Economic Development 22
5. AFRICA 24
6. INTERNATIONAL 27
7. INFLUENCING FACTORS 31
7.1. Environmental Issues 31
7.2. Input Costs 33
7.3. Renewable Energy 33
7.4. COVID-19 34
7.5. Economic Environment 34
7.6. Labour 35
7.7. Technology, Research and Development (R&D) and Innovation 37
7.8. Disease and Pests 37
7.9. Political Risks 38
7.10. Forced Evictions 38
7.11. Poverty 38
7.12. 7.12. HIV/AIDS 39
7.13. Cyclicality 39
7.14. Infrastructure 39
7.15. Food Safety 40
7.16. Government Support 40
8. COMPETITIVE ENVIRONMENT 41
8.1. Competition 41
8.2. Barriers to Entry 41
9. SWOT ANALYSIS 42
10. OUTLOOK 43
11. INDUSTRY ASSOCIATIONS 43
12. REFERENCES 44
12.1. Publications 44
12.2. Websites 44
APPENDIX 1 46
Summary of Notable Players 46
COMPANY PROFILES 47
Crookes Plantations Ltd 47
Royal Eswatini Sugar Corporation Ltd (The) 49
Tambankulu Estates Ltd 52
Ubombo Sugar Ltd 54
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Report Coverage

This report focuses on the manufacture of sugar in Eswatini, and includes information on the state and size of the industry and the factors that influence it. There are profiles of four companies including the Royal Swaziland Sugar Corporation, which produces two-thirds of sugar in the country and a significant quantity of ethanol, Ubombo Sugar which the second largest industry player, Crookes Plantations and Tambankulu Estates.

Manufacture of Sugar in Eswatini

Eswatini is a major sugar producer on the continent. Sugar is the country’s main export commodity, and Eswatini is the 4th largest sugar producer in Africa and the 25th largest producer in the world. Sugar production accounts for over half of Eswatini‘s agricultural output and contributes about US$285m to the country’s gross domestic product. The industry employs more than 20,000 workers.

Growth Prospects

The area planted to sugar cane is forecast to increase by 8% to 70,000 hectares in 2019/20 with forecasts of good rainfall, increased available irrigation water, improvements in cane yields, and growth in the area planted. Sugar production is forecast to increase by 10% to 800,000 tons in 2019/20 based on an increase in sugar cane delivered to the sugar mills, better quality of sugar cane, and improved sugar mill efficiencies.

Trade Headwinds

There has been a decline in exports to the EU, one of Eswatini’s main export markets, due to low sugar prices in the EU and changes in the EU’s sugar policies which include the removal of restrictions for domestic sugar beet production and ending preferential access for sugar imports from least developing countries. Cheap imports into the Southern African Customs Union have also affected its exports in the region.

Read More..
The Sugar Industry Eswatini 2019

Full Report

R 1 900.00(ZAR) estimated $101.46 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.02 (USD)*

Historical Reports

The Sugar Industry Eswatini 2022-02-28

R 9 500.00(ZAR) estimated $507.31 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 2
3.1. Industry Value Chain 4
3.2. Geographic Position 5
4. SIZE OF THE INDUSTRY 6
5. STATE OF THE INDUSTRY 7
5.1. Local 7
5.1.1. Corporate Actions 13
5.1.2. Regulations 13
5.1.3. Enterprise Development and Social Economic Development 14
5.2. Continental 15
5.3. International 16
6. INFLUENCING FACTORS 18
6.1. Finance 18
6.2. Cost 18
6.3. Global Pricing Pressure 18
6.4. Climate Change and Drought 19
6.5. Cyclicality 20
6.6. Infrastructure 20
6.7. Diseases and Pests 20
6.8. Renewable Energy 20
6.9. Corruption and Forced Evictions 22
6.10. Poverty 23
6.11. Government Initiatives 23
6.12. IFAD Projects 24
6.13. Health Concerns 24
6.14. Food Safety 25
6.15. HIV/AIDS 25
6.16. Technology, Research and Development (R&D) and Innovation 26
6.17. Political Risks 26
6.18. Labour 27
7. COMPETITION 28
7.1. Barriers to Entry 28
8. SWOT ANALYSIS 28
9. OUTLOOK 29
10. INDUSTRY ASSOCIATIONS 30
11. REFERENCES 30
11.1. Publications 30
11.2. Websites 31
APPENDIX 1 33
Summary of Notable Players 33
COMPANY PROFILES 34
CROOKES PLANTATIONS LTD 34
ROYAL SWAZILAND SUGAR CORPORATION LTD 36
TAMBANKULU ESTATES LTD 40
UBOMBO SUGAR LTD 42