VituVingiSana wrote:poundfoolish wrote:Now that its on a roll. We need to know when to exit... then later come back ofcause. because next year it will be discussions about COMESA all over again.
How quick and seriously they take up on TARDA will be a major factor. Then there is the matter of the quick maturing variety cane with a short maturity span.
They also need to work on their internal inefficiencies.
The GoK could also help by indicating that it knows the other COMESA countries only import Brazilian sugar and repackage it.
On another note. I discovered that a tonne of jaggery, a byproduct of sugarcane sells at 3 times the price of similar size of sugarcane.
1) So which fool will buy when you exit? And why would they be foolish enough to buy when you are selling?
2) GoK should allow Kenyans to import sugar from Brazil & re-package & re-sell to other COMESA countries with sugar deficits!
3) Until Kenyan firms become efficient, they will be leeches on the Kenyan sugar consumer.
4) Jaggery is processed from sugarcane. Please give us additional information e.g. cost of processing [from harvested sugarcane to delivery to a supermarket]. All agricultural products that need processing sell at a premium to the 'raw material' including coffee you drink vs ripe coffee beans OR Tea you drink vs Tea Leaves OR chocolate you eat vs Cocoa Beans in the Pods.
I am not planning to sell to a fool. It is just my exit target(cutting on risks, this is Kenya). I am planning to sell to wealthier investors who are seeing the opportunities in TARDA. Infact right now i'm thinking of where to buy land in Coast, If they decide to do large scale farming. mimi ndani.
I will jump in again when the trajectory is picking. But you can be assured, ceteris paribus, they will be making money even this next financial year. The hole Qidero left is the problem. once it is filled. MSC will be making Billion profit.
Sorry, i ment molasses not jaggery.. Molasses the by product fetches more than the sugarcane itself.. which tells you the amount of inefficiency at these firms.
some villagers would sell their cane to 'those guys' other than millers.. but ofcause they middlemen would never tell how much they sold to final buyers.
If the millers continue with the inefficiency, I shall also start supplying directly to these other fellows.