Markets

The sugar industry sells into four main markets namely: the EU, the US, Southern African Customs Union (SACU) and the regional/world market.

EU : Sales to the EU benefit from preferential market access under the terms of the EU Market Access Regulation which permits duty-free quota-free access.  This would be succeeded by the Economic Partnership Agreements between the EU and ACP States (including Eswatini).  Sugar sales to the EU amount to about 300 000 tons per annum, with 22 000 tons sold as direct consumption (bagged) sugar.

US : Sales into the US were benefiting from the Tariff Rate Quota (TRQ), which allowed access on preferential terms for a limited volume, and amount to about 16 000 tons per annum.

SACU : Sales into the SACU market are mainly through local-based entities (including pre-packers, industrial users and manufacturers).  SSA currently provides a value-added rebate for value adding industries located within Eswatini.

Region/World : Sales into the world and regional market are largely representative of residual sales, where excess sugar is sold, as this market is characterized by generally low prices.  It therefore attracts sugar that cannot be sold into other more lucrative markets or in periods where regional or world sugar prices have spiked.

Five-Year Sugar Sales to Different Markets: 2012/13– 2016/17

[easy_chart chart_id=’951′]

 

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