Ethiopia imports raw sugar after rains cut production
August 20, 2007 (ADDIS ABABA) — Ethiopia has received the first batch of a 36,000 tonne raw sugar purchase agreed earlier this year to meet a shortfall in domestic production caused by freak rains, the state-run sugar body said on Monday.
Musa Mohammed Zeinu, director of Ethiopian Sugar Support Enterprise said the sugar was bought from British-based Tate & Lyle .
The first batch of 14,000 tonnes was purchased at $331 per tonne. A second shipment of 22,000 tonnes bought at $339 per tonne will arrive at a later date with the raw sugar for August/June (2007/08) shipment, he said.
Musa said the Wonji and Finchaa sugar estates had performed below target.
“Because of freak rains and flooding which clogged sugar cane fields with water, production of Wonji estate in 2006/07 was less by 20,000 tonnes, while production of Finchaa failed by 17,000 tonnes,” he told Reuters in an interview.
Musa said Ethiopia’s three existing sugar estates, whose total annual production is around 260,000 tonnes, are currently undergoing expansion to meet the growing demand of sugar consumption in the country.
Due to rapid urbanisation, the demand for sugar had increased dramatically, he said adding that new roads connecting farming areas with markets helped farmers fetch better prices for their produce.
Some peasant farmers, who had used salt and honey as a sweetener for coffee now preferred sugar, he said.
“As a result, Ethiopia’s annual sugar consumption, which was around 190,000 tonnes few years ago, has now jumped to 300,000 tonnes outstripping production,” he said.
Musa said, realising the growing local demand for sugar, the government has initiated a new sugar estate known as Tendaho, whose annual production is expected to reach 600,000 tonnes by 2007/08.
Dams built at the $660 million Tendaho project, in the Awash valley, are now being filled with water, fields are being planted with sugar cane and irrigation facilities completed, to begin production by the end of 2007/08, he said.
“After the completion of Tendaho project, Ethiopia will be in a position to meet local demand and also become a sugar exporting country,” he added.
The country plans to boost its annual production to 1.0 million tonnes by 2011.
(Reuters)