We believe strong production potential for Tanzania, Zimbabwe and South Africa will encourage consumption growth locally. Moreover, subdued global prices will boost sugar demand from importers (Egypt, Saudi Arabia, Tunisia and Morocco).
We forecast production in Tanzania, Zimbabwe and South Africa to grow by an average of 32.5% by 2016/17.
For Zimbabwe and South Africa, we see local consumption taking a larger share of production over the coming years, with demand representing 60.0% this is expected to reach 78.0% and 95.3% respectively by 2016/17.
These two countries will remain the major exporters in the region, which leaves more room for domestic consumption to grow in the medium term. For Tanzania, we believe the ramp up of investment in production will help cover a larger part of the country's sugar needs, but still leave the country slightly dependent on imports.
We believe importers such as Egypt, Saudi Arabia, Tunisia and Morocco will see their share of global imports rise in the coming years, as demand will be boosted in the short term by subdued sugar prices.
Countries in the Middle East and North Africa will increase their share of global imports from 24.7% in 2002/03 to 34.7% in 2013/14 according to the USDA. This will be supported by low global sugar prices in the context of uncertainty over the political situation and unrest over hardship of economic conditions (including food price inflation).
The strategy for these countries will be to run high stocks in anticipation of recovering growth and a recovery in the sugar demand outlook.
At Sugar Stocks LTD we pride ourselves on our company values and ethics; we work diligently to ensure that our values and ethics are never compromised. We value Clients We value our work force and as such we will build a work force based on merit, integrity, transparency and inclusiveness We aspire to be a learning organization and we encourage ideas, innovation, excellence, enterprise and teamwork in employee We behave responsibly and ensure that all of our activities are environmentally friendly Business Goal & Objectives: We are proposing the acquisition of 400,000 acres (1620 km¬≤) of suitable land for the agriculture of Sugarcane and Sugar beet: Sugar Stocks LTD intends to divide the land for the purposes of agriculture with 100,000 acres (405 km¬≤) being dedicated to sugar beet and 300,000 acres (1215 km¬≤) being dedicated to sugarcane. Sugar Stocks aim to produce in the region of 54,600 MT of sugar per annum from sugar beet. Sugar Stocks aim to produce in the region of 229,680 MT of sugar per annum from sugarcane.