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Mozambique Sugar Production Shows Sustained Increase

09 August 2013
USDA Foreign Agricultural Service

MOZAMBIQUE - Since 2000, sugar production in Mozambique showed a sustained increase as economic and political stability attracted new investments in the industry. Post forecasts that this trend will continue the 2013/14 MY (from May 2013 to April 2014) and that sugarcane production will increase to almost 3.8 million tons based on an increase in hectares planted.

The sugarcane area is expected to increase by about five per cent to 48,000 hectares in the 2013/14 MY. In the 2012/13 MY, the sugarcane area harvested increased by 8 per cent to 45,917 hectares, from the 42,700 hectares harvested in the 2011/12 MY.

Sugar production in Mozambique is expected to increase by almost 12 per cent to a record 445,500 MT (460,575 MTRV) in the 2013/14, due to an increase in sugarcane production. For the 2012/13 season, Mozambique’s sugar production was estimated at 396,719 MT (410,604 MTRV), two per cent higher than the previous season.

Mozambique’s sugar exports are expected to reach 275,000 tons in the 2013/14 MY, on increase of local sugar production. Mozambique exported a record of 243,583 tons of sugar in the 2012/13 MY. This represent an increase of more than 100 per cent from the 107,989 tons exported in the 2010/11 MY.

Due to the Economic Partnership Agreements (EPA) with the European Union (EU) that was introduced in 2009, Mozambique exports all its sugar to the EU market. EPA allows for preferential access to the EU market for Mozambique sugar.

The United States also allows preferential access for Mozambique sugar under its Tariff Rate Quota. However, due to higher income realization, Mozambique exported only to the EU in the 2011/12 MY and 2012/13 MY. Post expects Mozambique will again only service the EU market in the 2013/14 MY.

Further Reading

You can view the USDA GAIN: Mozambique Sugar Annual Report August 2013 by clicking here.

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