Cde Monomotapa wrote:the deal wrote:At some point GoK will have to throw this company and all those farmers in Western Kenya under the bus...growing sugar in Western Kenya is not viable...Kenya can not risk losing the COMESA market because of one inefficient sector...between there is KISCOL now...I cant wait for their sugar to hit the market..MSC is bound to loose market share for sure...!
Thus, in the event of a possible extension of the safe-gaurds, and other
loopholes being sealed, then KISCOL will fill in more of the already existing national sugar deficit (that COMESA imports remedy). Better local environment for all. Sounds good to me.
1. Current deficit of 200K is currently being filled by COMESA imports.
2. When the COMESA safeguards/protections expire...COMESA countries can export sugar to Kenya ad lib...beyond the current 200K limit which means they can even bring in 700K tons if they want too. Good news for the consumer...Sugar is very expense in Kenya at the moment...COMESA countries can still make a kill even if they sale at half the price of the current retail prices in Kenya.
3. If you are an investor in this thing you better pray those safeguards are extended because if they're not...you are in trouble! More like tunaomba serikali itu saaidye...

...I hope my kiswahili is correct...I can bet there is 50% chance of those safe guards not being extended.
By the way what loopholes are you talking about?
KISCOL will survived...their farm is 90% irrigation...production costs are most likely more than half of Mumias.