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ISO 9001: 2008 Certified

ADAPT IT SMART SUMMIT DURBAN. KENYA SUGAR INDUSTRY PROFILE Presented by Francis K. Ingara Engineering Department KENYA SUGAR BOARD. ISO 9001: 2008 Certified. OUTLINE. Kenyan Sugar Industry – at a glance Industry Performance New Projects Milestones Challenges

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ISO 9001: 2008 Certified

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  1. ADAPT IT SMART SUMMIT DURBAN KENYA SUGAR INDUSTRY PROFILE Presented by Francis K. Ingara Engineering Department KENYA SUGAR BOARD ISO 9001: 2008 Certified

  2. OUTLINE • Kenyan Sugar Industry – at a glance • Industry Performance • New Projects • Milestones • Challenges • Required interventions

  3. KENYAN SUGAR INDUSTRY (At a Glance) Number of growers >250,000 Number of mills 11 Average capacity (TCD) 3,000 Area under cane (Ha) 213,710

  4. KENYAN SUGAR INDUSTRY (At a Glance) Cane yield (t/ha) 51.67 Cane Delivered (MT) 5,822,633 TC/TS 10.23 Sugar Produced(MT) 493,937

  5. FACTORY CAPACITIESInstalled, Current & Proposed Capacities • Move table here

  6. JAGGERY OPERATORS • Lubao Jaggery • Shajanand Ltd. • Homalime Co. • Farm Industries Ltd • Over 300 informal including mobile jaggeries. • Total cane crushed: 1.45 Million tonnes

  7. KENYAN SUGAR INDUSTRY (At a Glance)

  8. AREA UNDER CANE: OUTGROWER VS NUCLEUS graph

  9. SUGAR CANE SUPPLY • 90% of cane supply to the factories is from contracted cane farmers, while 10% is from the respective factory the nucleus estates. • The area under cane has gradually risen over the past 10 years by 74% to reach 213,710 Ha in 2012.

  10. AVERAGE YIELD TREND

  11. CANE YIELD • The cane yields have been declining owing to continuous land use. The high cane demand has also led to occasional harvest of younger cane, reducing the yield. • To mitigate this, we are currently undertaking research on soil management in the various agro-ecological zones, aimed at improving soil fertility. • We have also embarked on a cane development program that will ensure adequate cane supply to all factories

  12. SUGAR PRODUCED

  13. PRODUCTION & CONSUMPTION TRENDS

  14. TOTAL PRODUCTION, CONSUMPTION AND IMPORT

  15. MILESTONES

  16. MILESTONES 1. Co-generation • The industry has potential to generate up to 190 MW of electricity from this source, which is currently under-exploited. • Currently, only Mumias Sugar Company produces electricity for commercial use, having installed modern power generation equipment at a feed in tariff of 10 US cents per mw. • The rest of the factories produce at a lower scale for consumption by the respective factories.

  17. MILESTONES 2. Ethanol Production • The National Bio-fuel Policy has been developed, which allows for 10% blending of ethanol with petrol. • Mumias has already developed an ethanol plant, currently being commissioned.

  18. National Bio-ethanol Potential

  19. CHALLENGES

  20. CHALLENGES FACING THE INDUSTRY • High cost of production Cost of Sugar Production in COMESA and Selected EAC countries

  21. CHALLENGES FACING THE INDUSTRY • High Cost of Inputs • Punitive taxation regime • Diminishing land sizes • Reliance on rain-fed cane production • Inadequate capital for operations, factory rehabilitation, maintenance of infrastructure, modernization and expansion

  22. CHALLENGES FACING THE INDUSTRY • Weak Research and Extension linkages • Cane Fires • Challenging regulatory framework with slow pace of amendment of laws and gazettement of regulations

  23. CHALLENGES FACING THE INDUSTRY • Changing farmer attitudes to view sugarcane production as a business • Motivation of farmers to produce higher quality cane • Reduced levels of factory efficiencies

  24. REQUIRED INTERVENTIONS

  25. Improved Productivity • Introduction of cane quality monitoring processes • Introduction of quality based cane purchase system to motivate farmers to deliver higher sucrose tonnages opposed to higher cane tonnages • Improved factory performance management and reporting for easy benchmarking

  26. Pilot Cane Testing Project at Nzoia Sugar • The project scope includes the construction and equiping of a laboratory with cane sampling and testing equipment, installation of a cane payment IMS for capturing data from the weighbridge, cane testing laboratory and compilation of growers cane proceeds on the basis of the current legal cane payment fomula. • Installation was through a turn-key project in which Bosch and Adapt IT were responsible for all project delivery activities.

  27. Pilot Cane Testing Project at Nzoia Sugar

  28. Pilot Cane Testing Project at Nzoia Sugar

  29. Pilot Cane Testing Project at Nzoia Sugar

  30. Pilot Cane Testing Project at Nzoia Sugar • Project installation delivered successfully last December to KSB • Kenya Sugar Research Foundation is currently undertaking trials on the economic feasibility of changing the countries cane payment system from that based on weight to one based on quality. • To date over 1170 samples have been tested in the research phase of the project.

  31. THANK YOU

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