Mumias Sugar board chairman Kennedy Ngumbau attributed the loss to a mix of acute cane shortage which saw cane prices rise steeply during the period. [Photo:businessdailyafrica.com]
Mumias Sugar Company has reported a 42 percent widening of its full-year result despite ongoing efforts to restore the sugar miller.
In the period ended June 30, Mumias saw its net loss grow to Sh6.77 billion from Sh4.75 billion a year earlier.
In a statement, Mumias Sugar board chairman Kennedy Ngumbau attributed the loss to a mix of acute cane shortage which saw cane prices rise steeply during the period.
This saw sugar production drop by 67 percent from 407,008 tons from 1.2 million tons in 2016.
“The major challenge faced by the company throughout the year was the acute shortage of sugarcane experienced in the region coupled with a 28 percent increase in cane price. Total cane crashed was 407,008 tons ….leading to suboptimal factory capacity utilization,” Mr. Ngumbau said.
Sugarcane production has been largely affected by severe drought at the start of the year with millers also raising concerns over cases of cane poaching.