Times Of Swaziland: ONGOING QUEST FOR NEW MARKETS

ONGOING QUEST FOR NEW MARKETS
================================================================================
Nhlanganiso Mkhonta on 10/07/2024 07:19:00


MBABANE – ESA Chief Executive Officer (CEO) Banele Nyamane says their quest
for new markets is ongoing.
In his message in the integrated report, Nyamane said while the lack of
available sugar, quality issues and logistical constraints have somewhat
thwarted their efforts, they were determined to continue in the upcoming season.
He said although they remained optimistic about a recovery in the coming year,
recent data does underscore the persistent negative impact of climate change. He
said this necessitates that as an industry they find ways to reshape their
operations to adapt to these changes.
Nyamane said on a positive note, the depreciation of the Rand against that the
Dollar worked in their favour, a trend that they hope will continue. He said the
projected further weakening of the currency amid uncertainties surrounding South
African politics may also prove to be advantageous for their revenues on export
sales.
Operations
The CEO added that, the price of fertiliser, primarily sourced from Russia and
Ukraine, has begun to stabilise as importing countries adapt to ensure
uninterrupted operations, somewhat stabilising the cost of growing cane. Nyamane
mentioned that they did encounter significant challenges of increased pests and
disease, compounded by late harvesting in 2022, which resulted in a rather poor
crop. Even with an increase in area harvested, we experienced a 7 per cent
reduction in cane harvested.
Targets
He said this resulted in sugar prodution also dropping by 6 per cent from 625
361 tonnes last year to 590 367 tonnes produced this year. “We also battled
with the quality of our final product and were unable to meet our sales targets.
Nevertheless, I remain optimistic that all possible causes of quality issues
have been identified and will be resolved during the coming season,” said the
CEO. He added that overall, despite the shortfall in tonnage of sugar produced
and the rise in customer complaints, mainly due to quality and logistical
challenges at the ports, he was satisfied with their performance.
Looking ahead to 2024/2025, Nyamane said they have prioritised agronomic
advancements to adapt to the effects of climate change, and the optimisation of
their logistic chains. He added that technological developments such as drone
surveillance and satellite imaging hold tremendous promise for enhancing our
operations. “We anticipate that the AfCFTA will unlock lucrative markets,
bolstered by industry investments that will leverage our position in the medium
to long-term,” he said.Nyamane mentioned that addressing product quality and
securing market access is imperative if the industry is to enhance its
performance, while sustained investment in infrastructure and strategies to
mitigate climate change are crucial for long-term sustainability.