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Rank: Veteran Joined: 4/23/2014 Posts: 931
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HaMaina wrote:Wakanyugi wrote:Thank you all for the detailed input. This has been an important learning for me. My takeaways from this:
1. It is not about the farmers, they are just a convenient handle on which to hang political and other grievances. After all Kenya has a Sugar shortfall and we have to buy it from somewhere, donge? Why not Uganda? Oh, because Ugandans have no sugar to sell, they will simply repack Brazilian sugar and sell it to us. So? Good for them. We just need sugar right? Or am I missing something here?
2. It is time our politicians stepped up to the plate. What Kenya needs now is leaders who get things done, not just hecklers who specialize in spewing hot air. Thinking is not optional.
I thought Uganda had a surplus supply? Short Reading http://www.monitor.co.ug...l/-/h5roma/-/index.html
“You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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Rank: Veteran Joined: 4/23/2014 Posts: 931
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I think someone shot himself in the foot. http://nairobinews.co.ke...ppose-uganda-sugar-deal/“You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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We have a KPL football club which we run as a "community club". Under the new Sports Act people with political interests are banned from leadership positions. We decided to circumvent this and create a council of elders to oversee the club and placed in 5 politicians.
During elections one guy came with loads of money. We elected him coz of his cash. In fact he pumped in 12M of his own cash but the club ended up broke and cant pay players salaries. We insulted the guy and kicked him out.
Now we dont even go to the stadiums to support the club. The politicians are nowhere to be seen. We are crying mismanagement. Poor us.
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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@Hamaina, I will reiterate that Uganda, alongside all other African countries with the exception of Mauritius and to a small extent,Malawi, is a net importer. The thing that stabilizes and therefore makes them look like they have surplus is, weather (Good weather) and a low per capita sugar intake of 9kgs. On a bad year, like in 2011/2012 ,they were so hard hit that the price of sugar in Kampala rose to equivalent of Kshs 320 per Kg. What resulted was massive uncontrolled importation and since their taxation regime is much lower than ours,some of that sugar found it's way back into Kenya (or never left Kenya). Wouldn't opening up help in anticipating shortage and therefore cushioning the region from within? Maybe i am missing something. Nothing great was ever achieved without enthusiasm.
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Rank: Veteran Joined: 7/3/2007 Posts: 1,635
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Njung'e wrote:@Hamaina,
I will reiterate that Uganda, alongside all other African countries with the exception of Mauritius and to a small extent,Malawi, is a net importer. The thing that stabilizes and therefore makes them look like they have surplus is, weather (Good weather) and a low per capita sugar intake of 9kgs. On a bad year, like in 2011/2012 ,they were so hard hit that the price of sugar in Kampala rose to equivalent of Kshs 320 per Kg. What resulted was massive uncontrolled importation and since their taxation regime is much lower than ours,some of that sugar found it's way back into Kenya (or never left Kenya). Wouldn't opening up help in anticipating shortage and therefore cushioning the region from within? Maybe i am missing something. Actually this is where creating a single market for Sugar (and later for other things) would make plenty of sense. Prices would stabilize and the expanded opportunity would encourage our factories to become efficient. One off handouts may offer good photo opportunities but will not save the likes of Mumias. "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Wakanyugi wrote:Njung'e wrote:@Hamaina,
I will reiterate that Uganda, alongside all other African countries with the exception of Mauritius and to a small extent,Malawi, is a net importer. The thing that stabilizes and therefore makes them look like they have surplus is, weather (Good weather) and a low per capita sugar intake of 9kgs. On a bad year, like in 2011/2012 ,they were so hard hit that the price of sugar in Kampala rose to equivalent of Kshs 320 per Kg. What resulted was massive uncontrolled importation and since their taxation regime is much lower than ours,some of that sugar found it's way back into Kenya (or never left Kenya). Wouldn't opening up help in anticipating shortage and therefore cushioning the region from within? Maybe i am missing something. Actually this is where creating a single market for Sugar (and later for other things) would make plenty of sense. Prices would stabilize and the expanded opportunity would encourage our factories to become efficient. One off handouts may offer good photo opportunities but will not save the likes of Mumias. When you say kenya will be getting CHEAP SUGAR from Uganda ,then what will happen to the market demand reaction to expensive sugar produced by local sugar miller's since the cost of production is high resulting to expensive sugar?? Of course people will go for cheap sugar and that's when THE FINAL NAIL OF CRUCIFIXION OF LOCAL MILLER'S WILL HAPPEN . I feel bad for people in mumias bus
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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enyands wrote:Wakanyugi wrote:Njung'e wrote:@Hamaina,
I will reiterate that Uganda, alongside all other African countries with the exception of Mauritius and to a small extent,Malawi, is a net importer. The thing that stabilizes and therefore makes them look like they have surplus is, weather (Good weather) and a low per capita sugar intake of 9kgs. On a bad year, like in 2011/2012 ,they were so hard hit that the price of sugar in Kampala rose to equivalent of Kshs 320 per Kg. What resulted was massive uncontrolled importation and since their taxation regime is much lower than ours,some of that sugar found it's way back into Kenya (or never left Kenya). Wouldn't opening up help in anticipating shortage and therefore cushioning the region from within? Maybe i am missing something. Actually this is where creating a single market for Sugar (and later for other things) would make plenty of sense. Prices would stabilize and the expanded opportunity would encourage our factories to become efficient. One off handouts may offer good photo opportunities but will not save the likes of Mumias. When you say kenya will be getting CHEAP SUGAR from Uganda ,then what will happen to the market demand reaction to expensive sugar produced by local sugar miller's since the cost of production is high resulting to expensive sugar?? Of course people will go for cheap sugar and that's when THE FINAL NAIL OF CRUCIFIXION OF LOCAL MILLER'S WILL HAPPEN . I feel bad for people in mumias bus the world is an open market where you either become competitive or die. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 1/3/2007 Posts: 18,353 Location: Nairobi
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Njung'e wrote:@Hamaina,
I will reiterate that Uganda, alongside all other African countries with the exception of Mauritius and to a small extent,Malawi, is a net importer. The thing that stabilizes and therefore makes them look like they have surplus is, weather (Good weather) and a low per capita sugar intake of 9kgs. On a bad year, like in 2011/2012 ,they were so hard hit that the price of sugar in Kampala rose to equivalent of Kshs 320 per Kg. What resulted was massive uncontrolled importation and since their taxation regime is much lower than ours,some of that sugar found it's way back into Kenya (or never left Kenya). Wouldn't opening up help in anticipating shortage and therefore cushioning the region from within? Maybe i am missing something. Well, what's wrong with that? Weather - Countries with favorable weather for specific crops is what those countries produce those crops. Brazil and coffee. Kenya and tea. Canada and wheat. Consumption per capita - That's not a bad thing. It's a personal choice. I try to limit my consumption of sugar for health reasons regardless of the price [I don't consume more when prices are lower] or production per capita. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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VituVingiSana wrote:[quote=Njung'e]@Hamaina,
Well, what's wrong with that?
Weather - Countries with favorable weather for specific crops is what those countries produce those crops. Brazil and coffee. Kenya and tea. Canada and wheat.
Consumption per capita - That's not a bad thing. It's a personal choice. I try to limit my consumption of sugar for health reasons regardless of the price [I don't consume more when prices are lower] or production per capita.
Maybe i was not clear enough. I meant to say that the UG sugar belt has erratic weather unlike the Kenyan one and therefore, their annual sugar production is very unpredictable.One year they have plenty,the next,they are importing. Sugar intake per capita is more a component of affordability by households than a preference. That's why average intake in US is higher than in Kenya and lowest in poorer countries such as Mozambique. I hope i am clearer now. Nothing great was ever achieved without enthusiasm.
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Rank: Elder Joined: 12/7/2012 Posts: 11,935
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Thanks jaduong & all for the wonderful insights into this industry. Enyewe politics & greed is our impediment to development!!! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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