Sugar refiner seeks intervention over raw sugar prices, trading conditions

SUGAR refiner Starafrica Corporation Private Limited, is seeking Government intervention in resolving concerns over pricing of raw sugar as well as trading terms to ensure sustainable business.

Goldstar Sugars

This follows the recent closure of its Goldstar Sugars Harare branch last week in protest over the increase in raw sugar costs by its suppliers, which it feels will be a huge burden to its operations. In a statement on Friday accompanying the third quarter financial results for the period ended 31 December 2022, Starafrica Corporation said post the reporting period, the sole supplier of raw sugar increased its prices significantly, resulting in the company’s products being uncompetitive.

“The company has engaged the supplier and the Ministry of Industry and Commerce with a view to agreeing to a price, as well as trading conditions that are viable and sustainable,” company secretary, Mr Aldo Musemburi, said.
“It’s hoped that the Government will continue with its efforts to sustain price stability and achieve economic growth. The company will continue to tighten its cost-mitigation measures to improve the productivity and operating profitability of both the refinery and the sugar specialties unit.”

In performance terms during the period under review, the company said production volumes from Goldstar Sugars were 0,4 percent lower than those attained during the prior year’s comparative period. This has been attributed to load shedding, which resulted in the shortage of power and steam.
“Power and steam supply constraints were the main causes of the marginally reduced throughput, as they negatively impacted plant uptime,” said Mr Musemburi.

“Consequently, the reduced production led to a 0,2 percent decrease in sales volumes, compared to the prior year.”
To mitigate power constraints, the company said it has installed an 11kVA dedicated electricity line and procured a 1 000kVA generator and electrical cables.
Meanwhile, sugar producers have assured the market that there were enough stocks of raw sugar in the country to satisfy the needs of the local market up to the next milling season, which is set to commence in April 2023.

There is, however, continued engagements between the value chain partners in the sugar industry to resolve issues relating to sugar pricing and trading terms.
“The partners are committed to resolving the issues within the shortest possible time and resume refining operations for the benefits of the industry and sugar consumers,” reads a joint statement earlier issued by Starafrica Corporation and the Zimbabwe Sugar Sales Pvt Ltd. –chronicles