|
|
|
|
| Business |
| Sucoma hunts for better markets |
|
by
Ayam Maeresa, 07 August 2003
-
18:34:50
|
After reaping a modest K1 billion profit last season, the Sugar Corporation of Malawi (Sucoma) is increasing pace in the hunt for better export markets to escape the gruelling effects of economic slow-down at home.
Sucoma chairman Don MacLeod told shareholders on Wednesday at an annual general meeting in Blantyre the group continues to develop export opportunities in the Common Market for Eastern and Southern Africa (Comesa) and Southern African Development Community (Sadc).
He said the group, which owns two sugar mills at Dwangwa and Nchalo in the Central and Southern Regions respectively and is a company of the Illovo Sugar Group of South Africa with 75.98 percent shares, is doing its best to utilise market openings in Europe and the US.
Last season the group exported about 50,000 tonnes of sugar into both markets and sold over 76,000 tonnes in the African and Indian Ocean trade.
“Export opportunities continue to be developed, with significant tonnages being sold into the Comesa and Sadc regions,” said MacLeod.
He increased export sales and reduced costs enabled gains for the group to grow by half from K651.5 million the previous season.
MacLeod said the weather was good for the crop, pushing up sugar output to 250, 000 tonnes—a little short of targets because of economic downturn largely caused by high interest rates of above 45 percent and lack of donor aid for the past two years.
“Locally, markets generally remained stagnant for most of the year as the economy continued to feel the downside effects of famine and suspension of (donor) financial support programme,” he said.
MacLeod said the group was keenly following the push for global agricultural reforms by other poor countries seeking equal market access in Europe and the US—where Malawi has almost unlimited access—that donors say will hurt the country’s agricultural industry in a big way.
Trade exports say the country should seek compensation for lost markets if the dreaded reforms are effected because it is possibly the only one among 48 least developed countries to hit hardest.
The group will pay a further dividend of seven tambala per share to make it 77 tambala this year.
|
| |
|
|
|
|
|
