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VituVingiSana
#81 Posted : Monday, August 16, 2010 2:16:57 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,210
Location: Nairobi
Mwafrika31 wrote:
Spend.thrift wrote:
@Mwafrika I concur with you on your "public policy viewpoint". I have never understood why a Kenyan walks into a supermarket and throws a tray of "Proudly South African" eggs onto his/her trolley.

However, you can do only so much to protect inefficient industries. How can sugar made in Brazil and transported over the seas end up being cheaper "and cleaner" than the same made in Mumias just a 6hour truck journey away?


This is called import dumping. The result of oversubsidized excess agricultural production to keep prices artificially high and force open new markets.
Sugar trading (among other imports) is a complicated matter... There can be subsidies right from the start (EU/US) to export subsidies (Kenya tried this at one time... & we ended up with Goldenberg)...

Egypt dumps as well... their 'oil' is subsidised coz they produce oil... also import wheat then mill it & export to COMESA as 'Egypt Origin'...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
slykat
#82 Posted : Monday, August 16, 2010 2:31:15 PM
Rank: Member


Joined: 2/20/2007
Posts: 359
VituVingiSana wrote:
Mwafrika31 wrote:
Spend.thrift wrote:
@Mwafrika I concur with you on your "public policy viewpoint". I have never understood why a Kenyan walks into a supermarket and throws a tray of "Proudly South African" eggs onto his/her trolley.

However, you can do only so much to protect inefficient industries. How can sugar made in Brazil and transported over the seas end up being cheaper "and cleaner" than the same made in Mumias just a 6hour truck journey away?


This is called import dumping. The result of oversubsidized excess agricultural production to keep prices artificially high and force open new markets.
Sugar trading (among other imports) is a complicated matter... There can be subsidies right from the start (EU/US) to export subsidies (Kenya tried this at one time... & we ended up with Goldenberg)...

Egypt dumps as well... their 'oil' is subsidised coz they produce oil... also import wheat then mill it & export to COMESA as 'Egypt Origin'...


True that VVS... The EU is "primarily" concerned with the movement of sugar and bananas... much more than about people and capital! And that is where all the contentious issues are. By the way, is there any African country that has ever managed to export bananas or sugar into the EU despite all the free trade double-speak?
VituVingiSana
#83 Posted : Monday, August 16, 2010 2:40:13 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,210
Location: Nairobi
@slykat - Yes... Zambia Sugar & Mumias do export to Europe...

BTW, Mauritius were uber-smart (low corruption, better governance)... They would take over export quotas from those countries that did not fulfil the requirements...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
slykat
#84 Posted : Monday, August 16, 2010 2:50:24 PM
Rank: Member


Joined: 2/20/2007
Posts: 359
VituVingiSana wrote:
@slykat - Yes... Zambia Sugar & Mumias do export to Europe...

BTW, Mauritius were uber-smart (low corruption, better governance)... They would take over export quotas from those countries that did not fulfil the requirements...


Zambia under EBA arrangements? But Mumias ... so Kenya has a sugar quota? It must be unrefined brown sugar, Yes Mauritius too ...yet we import the same sugar back as refined costing much more, for industry..why doesnt Mumias refine or do they? what of bananas from africa, any?
VituVingiSana
#85 Posted : Monday, August 16, 2010 2:56:18 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,210
Location: Nairobi
slykat wrote:
VituVingiSana wrote:
@slykat - Yes... Zambia Sugar & Mumias do export to Europe...

BTW, Mauritius were uber-smart (low corruption, better governance)... They would take over export quotas from those countries that did not fulfil the requirements...


Zambia under EBA arrangements? But Mumias ... so Kenya has a sugar quota? It must be unrefined brown sugar ...
Yes coz Kenya does not produce 'white' sugar... lakini I prefer the Demerara/Brown sugar anyway!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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