IN MIGORI COUNTY.
Forwarded by Leo Odea Omolo
BY: BOB AWITI OTANGE – MIGORI COUNTY
It is a reprieve for cane farmers in Migori County as it demand for matured cane has increased due to stiff competition by the giant Sony Sugar Co. Ltd located in Rongo District and recently commissioned Sukari Sugar Co. Ltd located at riverbank of Kuja bordering Ndhiwa and Uriri District.
For along time Sony sugar Co. Ltd has enjoyed the monopoly from farmers being the sole vendor of sugar. From time again farmers have highlighted their predicaments on the poor services offered by Sony Sugar Co. management, including failure to harvest contracted canes in time as stipulated in the farmers contract document, failure to pay the cane proceeds in time once the raw materials have been delivered to the factory for crushing, poor customer care services etc.
With the advent of Sukari Sugar Co, Ltd which is now geared towards full operation, it is highly likely that, Cane farmers in Migori County will have a relief as they will have alternative factory to deliver their raw materials in case Sony Sugar Co. has repudiated terms and conditions stipulated in the contract document.
This is now making Sony Sugar Management to panic as they have sense stiff competition between the two (2) will put them out of business.
In view of the above, MD of Sony Sugar Co. is seeking redress from Sugar cane arbitration Tribunal board to bar Sukari Sugar Co. from purchasing raw material from farmers in Migori County.
This kind act is quite unethical and unprofessional as both factories are operating under the same market conditions. if any thing Sukari Sugar Co. is only striving for a market share which Sony Sugar Co. has build for the last thirty (30) years or so. Using Sony Sugar’s retained earnings to finances cost of seminars to improve customer care, give slightly higher rate above market rate per ton of sugar cane, and giving prompt payments for proceed for sugar on their due dates would be enough to put Sukari Sugar Co. out of business. Furthermore it is farmers prerogative to decide on the healthy rate per ton and decide on which factory to transaction with.
Therefore Sony Sugar MD should stop snivelling on perfect market competition dictated by market forces and instead improve on quick service delivery to cane farmers as a means toward motivating them to stick to their factory Sony Sugar Co. Ltd.