LOCAL sugar producers should ride on the growing demand for sugar in Malaysia to reap big earnings through exports, ZimTrade has said.
Zimbabwe's sugar industry is one of the country's largest agricultural bases with higher prospects for growth in exports.
According to recent data from the United Nations COMTRADE database on international trade, Zimbabwean sugar exports and confectionery stood at around US$17,14 million in 2021.
The country's main sugar markets are South Africa, Botswana, Namibia, Zambia, Mozambique, Kenya, and Malawi.
However, ZimTrade has said that there are higher prospects for more export gains if local sugar producers expand their business footprint to international markets, including Malaysia.
"As an emerging economy and a major player in Asia's food market, Malaysia can provide a lucrative market for Zimbabwean sugar producers looking for new sources of revenue," said the country's trade development and promotion agency.
"As a result, understanding how to access the Malaysian sugar market is key for Zimbabwean exporters.
"Sugary foods are a huge part of the national diet, consumed daily by Malaysians who combine sugars with other food items or simply use them as a sweetener.
Unfortunately, Malaysian manufacturers do not produce enough sugar to meet the country's current demand."
In its April 2023 newsletter, ZimTrade shared some key market intelligence facts that local producers need to take note of if they are to break into the Malaysia market.
"Malaysian raw sugar imports are entirely duty-free and refined sugar imports are also duty-free but capped annually at 100 000 tons to support refiners," said the agency.
Estimates already indicate that in 2021 alone, Malaysia imported US$674 million in raw sugar, becoming the 11th largest importer of raw sugar in the world.
"These factors make this an ideal time for Zimbabwean exporters targeting the Malaysian market," said ZimTrade.
Meanwhile, giant sugar producer Tongaat Hulett has confirmed that the country has enough sugar stocks for the local market.
This gives the nation an opportunity to export excess to generate much-needed foreign currency. - @SikhulekelaniM1
Source: Chronicle
Source: Chronicle
May 05, 2023
