b)
Output Sales and Industry Revenues
The
output of Swaziland’s sugar factories, refined sugar, VHP raw sugar, and
straight raw sugar, is sold in a number of different markets. The local market,
which includes all of the SACU area, takes refined and VHP sugar. So does the
regional market, which includes some of the other countries of southern Africa.
Straight raw sugar is exported under quotas to the EU and to the US and without
any constraints to the world market. In Table
15, a breakdown of 2005/2006 sales by type of product and by market is
provided, indicating prices and the respective revenues obtained. In Annex I-04, information covering the
past three (3) years is shown.
|
Table 15:
Swaziland Sugar and Molasses Sales, 2005 |
||||||||
|
|
|
|
|
Volume |
Price |
Exch R. |
Price |
Revenue |
|
Market |
MTtq |
FC/MT |
E/FC |
E/MT |
E1000 |
|||
|
REFINED SUGAR |
||||||||
|
SACU |
R |
196,850 |
2,589 |
1.00 |
2,589 |
509,645 |
||
|
Regional |
$ |
1,011 |
217.45 |
6.05 |
1,316 |
1,330 |
||
|
TOTAL, REF. |
197,861 |
|
|
|
510,975 |
|||
|
VHP SUGAR |
||||||||
|
SACU |
$ |
114,460 |
420.35 |
6.05 |
2,544 |
291,186 |
||
|
Regional |
$ |
93,605 |
194.31 |
6.05 |
1,176 |
110,079 |
||
|
UK Special |
₤ |
1,000 |
355.26 |
11.46 |
4,071 |
4,071 |
||
|
TOTAL, VHP |
209,065 |
|
|
|
405,337 |
|||
|
RAW SUGAR |
||||||||
|
EU / ACP |
€ |
119,878 |
474.09 |
7.85 |
3,720 |
445,946 |
||
|
EU / SPS |
€ |
36,670 |
437.90 |
7.85 |
3,436 |
125,998 |
||
|
USA |
|
$ |
15,687 |
356.24 |
6.05 |
2,156 |
33,821 |
|
|
World |
$ |
27,513 |
143.42 |
6.05 |
868 |
23,881 |
||
|
TOTAL, RAW |
199,748 |
|
|
|
629,647 |
|||
|
ALL TYPES OF SUGAR |
||||||||
|
TOTAL, ALL |
606,674 |
(at an av. of |
19.10 |
USc/lb) |
1,545,959 |
|||
|
MOLASSES |
||||||||
|
SACU |
R |
204,698 |
188.00 |
1.00 |
188.00 |
38,483 |
||
Source: Swaziland Sugar Association
The proceeds are distributed among the factors of production,
after the marketing and general expenses have been covered. Sharing between
growers and millers is based on a 0.681/0.319 ratio. The ratio is re-negotiated
periodically, with the high fraction accruing to the growers.
The
cane growers’ share of the proceeds is divided by the amount of sucrose
delivered to the mill, which results in a value in E/t, the cane growers’
“sucrose price”. On the basis of it, they are paid for their cane deliveries on
a weekly basis. At the beginning of the crop, the sucrose price is based on an
estimate of both sucrose production and revenues from sugar sales. As the real
figures become apparent, the “price” is continuously revised, until after the
end of the crop, its final level and the corresponding balance payment are
realised. The procedure is displayed in Table 16, where the sucrose price, however, is not at the final 2005/06
value yet, which turned out to be E 1,381.09 per ton.
Table 16: Distribution of Proceeds from Sugar Sales, 2005
|
Sales Revenue from Sugar |
E1,000 |
1,546,143 |
|
|
Constant Sales Rev. from
Molasses |
E1,000 |
38,483 |
|
|
Total Sales Revenue |
E1,000 |
1,584,626 |
|
|
Total Marketing & Gen.
Expenditures |
E1,000 |
273,070 |
|
|
Net Distributable Proceeds |
E1,000 |
1,311,555 |
|
|
|
Growers' Share of Proceeds |
Fraction |
0.681 |
|
Amount to Growers |
E1,000 |
893,169 |
|
|
Sucrose as produced in the
field, t |
T |
686,425 |
|
|
Growers’ Return on
Sucrose, E/t |
E/t |
1,301.19 |
|
|
Amount to Millers |
E1,000 |
418,386 |
|
|
Sugar produced telquel |
T |
597,563 |
|
|
Sugar prod., expressed as
96º |
T |
641,935 |
|
|
Millers’ Return on 96º
Sugar |
E/t |
651.76 |
|
Source:
Swaziland Sugar Association