Mumias bets on high yielding cane variety

By Otieno Owino

Mumias Sugar Company plans to introduce high maturing cane varieties to shore up production and avoid setbacks in processing, as witnessed in the last financial year.

Speaking at the company’s Annual General Meeting at Tom Mboya Labour College, Company Chairman John Bosse said that the company had experienced a 15 per cent drop in cane processing.

“A total of 1,917,340 tonnes of sugarcane were processed compared to 2,245,281 tonnes, which were processed last year,” he said.

He attributed this change in processed cane to a drop in supply of raw materials occasioned by decline in cane availability caused by dry spells experienced in the year.

The company’s Managing Director, Peter Kebati, said the firm would invest more in cane production, including giving farmers fertiliser applicable to sugarcane grown.

He said the company posted a slight increase in post-tax profits during the review period. “Profit after tax for the year grew by four per cent to Sh2 billion despite pressure from cost of production, establishment and delivery of cane costs,” said Kebati.

Earnings per share grew by five per cent, up from Sh1.26 to Sh1.32. Bosse said the sugar miller has invested in power generation, but acknowledged that despite the production target was not met; the plant still posted good results.

The plant raised Sh435 million, compared to Sh353 million recorded last year. This financial year also saw the commissioning of two projects by the country’s leading sugar miller, as they ventured into water bottling and ethanol distillery.

“We have to consolidate what we have in the company before we can move to another scale,” explained Kebati.