radio wrote:From the BDQuote:But the biggest shadow brooding over the sugar industry in Kenya is the impending removal of the so called Comesa safeguards, namely, the temporary arrangement the government negotiated with the trading bloc to insulate the local industry from imports.
Now and again, we are reminded that our local industry risks being swept way by Comesa imports the moment the safeguards are lifted.
That-if the millers don’t put their houses in order-if the factories don’t reduce production costs drastically- the industry will die come 2014 when the safeguards are lifted.
@Njunge and others, what say you about the above?
the number 1 threat for mumias sugar specifically,is the declining cane supply.Comesa imports come in second.My reasoning is this,the company has diversified into other products to act as a buffer when the safeguards are removed. Electricity co-generation,ethanol production directly and indirectly rely on sugarcane as the raw material.If the raw materials suppy is cut,all the three including sugar milling will be affected.Comesa imports are a force to reckon,but dwindling sugarcane supplies is the time bomb they are sitting on.
A successful man is not he who gets the best, it is he who makes the best from what he gets.