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SLUGGISH MUMIAS?
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mufasa
#41 Posted : Friday, May 24, 2013 12:19:22 PM
Rank: Member

Joined: 4/15/2008
Posts: 238
Njung'e wrote:
Production for next financial year will drop to less than half the capacity due to lack of cane.I see this one trading lower than Paka this time next year.


While i do respect @Njung'e, I dont think prices can go below paka. Firstly, last year parliament approved the privatization of five sugar companies, and a Ksh. 40billion debt write off. I believe this should encourage farmers to plant more as they should expect to be paid, hence more yield in the coming days.
The war in Somalia has also helped curb illegal sugar being imported into the country. Now only licensed dealers will be able to import in a regulated manner by KSB.

There is also talk of fast maturing canes.

And ofcourse the "COMESA safeguards" which FOR NOW are going upto March 2014.

I think it would be wise for a farmer to invest in sugar cane right now and given the infrastructure improvement in Western Kenya even cane delivery to the factories will be swift and less costly.

As for me, I would bet big in Mumias. All we need is good management, which is currently lacking
Do it today! Tomorrow is promise to no-one.
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mlennyma
#42 Posted : Friday, May 24, 2013 12:23:34 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Keep off companies which have dwindling income and need cash to finance alternative income avenues,it takes too long to reap the benefits.
"Don't let the fear of losing be greater than the excitement of winning."
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hisah
#43 Posted : Friday, May 24, 2013 12:52:18 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
muganda wrote:
@hisah on that note, I've been struggling last few days to get any quote on Bloomberg, keep getting this error...
http://www.bloomberg.com/quote/MSUG:KN

Any heads up?

Seems like KE stuff has been moved to the professional section. Subscription...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Wendz
#44 Posted : Friday, May 24, 2013 1:14:06 PM
Rank: Elder

Joined: 6/19/2008
Posts: 4,268
mufasa wrote:
Njung'e wrote:
Production for next financial year will drop to less than half the capacity due to lack of cane.I see this one trading lower than Paka this time next year.


While i do respect @Njung'e, I dont think prices can go below paka. Firstly, last year parliament approved the privatization of five sugar companies, and a Ksh. 40billion debt write off. I believe this should encourage farmers to plant more as they should expect to be paid, hence more yield in the coming days.
The war in Somalia has also helped curb illegal sugar being imported into the country. Now only licensed dealers will be able to import in a regulated manner by KSB.

There is also talk of fast maturing canes.

And ofcourse the "COMESA safeguards" which FOR NOW are going upto March 2014.

I think it would be wise for a farmer to invest in sugar cane right now and given the infrastructure improvement in Western Kenya even cane delivery to the factories will be swift and less costly.

As for me, I would bet big in Mumias. All we need is good management, which is currently lacking


Wouldnt the increase in more cane crashers increase competition and hence the price of cane? I bet the other problem faced by mumias is the segmented lands owned by families hence, they can't mechanise, no mass production hence advantage of economies of scale....

There is Kwale Sugar coming up in Coast Region too. Part of shareholders are the Mauritius sugar which is known for its efficiency in production, advanced technology etc... comesa safeguards are expiring(sooner or later) - as it is, if you import sugar from Malawi, it will still compete with Mumias including all the transport costs and other related shipment costs..... how will Mumias stay afloat given the competition it is staring at?
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VituVingiSana
#45 Posted : Friday, May 24, 2013 1:24:04 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
If @Njunge says stay out of Mumias... I am staying out of mumias
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Njung'e
#46 Posted : Friday, May 24, 2013 1:37:29 PM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@VVS,
Do not follow me blindlysmile .......But honestly,i'll only consider coming back if and when they acquire Nzoia.That is the only saviour.....The "online management" and a hopeless board aren't helping matters either

@Mufasa,
Never say never......It ain't looking good and at 4.45 while Paka is at 2.70....well.Let's compare notes this time round next year.
Nothing great was ever achieved without enthusiasm.
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youcan'tstopusnow
#47 Posted : Friday, May 24, 2013 2:04:25 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
mufasa wrote:
Njung'e wrote:
Production for next financial year will drop to less than half the capacity due to lack of cane.I see this one trading lower than Paka this time next year.


While i do respect @Njung'e, I dont think prices can go below paka. Firstly, last year parliament approved the privatization of five sugar companies, and a Ksh. 40billion debt write off. I believe this should encourage farmers to plant more as they should expect to be paid, hence more yield in the coming days.

"Meanwhile, MPs threw out a Motion seeking the write off liabilities of the Nyayo Tea Zones as well as those of sugar and
cotton factories. Five State-owned sugar factories owe the government Sh40 billion."
http://www.businessdaily.../-/icox5fz/-/index.html
GOD BLESS YOUR LIFE
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mawinder
#48 Posted : Friday, May 24, 2013 2:06:45 PM
Rank: Elder

Joined: 4/30/2008
Posts: 6,029
Njung'e wrote:
@VVS,
Do not follow me blindlysmile .......But honestly,i'll only consider coming back if and when they acquire Nzoia.That is the only saviour.....The "online management" and a hopeless board aren't helping matters either

@Mufasa,
Never say never......It ain't looking good and at 4.45 while Paka is at 2.70....well.Let's compare notes this time round next year.

I think it will be difficult for Mumias to acquire Nzoia due to historical injustices by Mumia and his people to the Bukusus and anyway the privatisation of Nzoia may be competitive and any other miller may buy Nzoia.
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VituVingiSana
#49 Posted : Friday, May 24, 2013 4:01:23 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
mawinder wrote:
Njung'e wrote:
@VVS,
Do not follow me blindlysmile .......But honestly,i'll only consider coming back if and when they acquire Nzoia.That is the only saviour.....The "online management" and a hopeless board aren't helping matters either

@Mufasa,
Never say never......It ain't looking good and at 4.45 while Paka is at 2.70....well.Let's compare notes this time round next year.

I think it will be difficult for Mumias to acquire Nzoia due to historical injustices by Mumia and his people to the Bukusus and anyway the privatisation of Nzoia may be competitive and any other miller may buy Nzoia.
Mumias [the sugar company] has little to do with Mumia the colonial stooge.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Realtreaty
#50 Posted : Friday, May 24, 2013 10:03:46 PM
Rank: Elder

Joined: 8/16/2011
Posts: 2,388
smile Would mumias partner with Dalamere creameries in Milk processing s it wanted to enter into this industry? Is there any possibility and what could be the outcome. Milk + Sugar = sweetmilk!
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