Reports Bob Ndira-Uradi In Awendo Town.
The recent commissioning of the two newly established white sugar processing mills in Southern Nyanza is expected to improve the economy of the region, especially the money circulation and creation of job opportunities for the youths.
The two new sugar Mills include the Sukari Industries, which Is located near Oria Market in Kanyikela Location, Ndhiwa Constituency within the Homa-Bay County. The new Mill, which is situated right on the common borderline between the two administrative of Ndhiwa and Uriri districts and the second Mill, the Trans-Mara Sugar Company, which is located about twenty kilometers south east of Awendo have already gone into full blast producing double refined sugar.
The two Mills will supplement the production of sugar at the long established and Awendo-based Son Sugar Company Limited. The two new mills are expected to improve the economy of the greater Southern Nyanza region as well as in the neighboring Trans-Mara district in the South Rift.
The establishments of the two new Mills now bring the total number of sugar processing factories in the region, which is only thirty miles in radius into three, with the good prospect of creating employment opportunities to close to ten thousands strong labor force. The new multi-billion shillings ventures are lo expected to improve the money circulation in the two regions.
Previously, he Awendo-based SonySugar had contracted close to 27,000 out-grower cane famers in several districts, which include Kuria West, Kuria East,Migori,Ndhiwa, Homa-Bay, Gucha, Rongo, Awendo, Uriri and Trans-Mara. It had similar number of non-contracted making its harvesting programmes nightmarish with persistent claims and accusation of laxity and massive corruption.
Other allegations included delayed payment of cane bills, which took too long for the farmer to get their money after the delivery of their crops. These complaints and many other lapses almost paralyzed the production of sugar at SonySugar, which atone times almost went burst forcing the government to pump into to it more finances for its survival.
The arrival of the two new mills has rejuvenated the operations at the SonySugar and tremendously improved its efficiency in sugar production and in handling its contracted farmers. The SonySugar which has hitherto never experienced the kind of the cut-throat competition in business it is now facing is struggling to remain afloat in cane crushing business, though its cane growing zone has been reduced drastically by the presence of the two new plants.
SonySugar, however, is advantaged due to its close to 5,000 hectares nucleus estates, whereas its two competitors have nothing of the sort, but depended entirely o he small scale contracted and non-contracted cane out-growers for the supplies of row materials. This has made the going for the two ventures rather difficult at the beginning, but industry’s players maintain that these are just “the teething problems.”The competition has all of sudden caused the tremendously improvement of payment to the cane growers.
SonySugar recently increased its cane prices for 3,500 per ton to 4,500 per ton, but still levying charges on transport and harvesting on the farmer whereas the Sugari Industry Limited is paying out top price of Shs.5,095 per ton with no deduction for transportation an harvesting costs.
What is obvious I that the to new mills are going eat deep on flesh of SonySugar on its cane growing zones as many farmer seemed to be changing their allegiance too fast with the aim of enjoying the new prize cane prices and business in general. Another likely scenario is for the three mills may soon run out of mature cane supplies for their mills unless they take radical steps in assisting more farmers to grow more cane fields. Alternatively, the government through the Ministry of Agriculture and harmonize the operations of the three mills with newly defined cane growing zones for each mills.
The three mills, however, have the capacity of contributing significantly toward the government declared policy on poverty eradication an improvement of quality of life among the communities living with the cane growing zones. It is therefore up to the government to move with speed to instill sanity and disciplined in cane harvesting system that which is devoid of the near violence competition recently witnessed around Awendoi town.
Ends