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Buying Sugar from SSA SSA is responsible for all sale and marketing of sugar produced in Swaziland. The sugar sales are handled by the Commercial Department of SSA, through the decisions made by the Marketing Executive Committee (MEC) of the sugar industry. Information on application for a sugar allocation can be obtained from the Customer Relations Officer and the Commercial Director, who are responsible for sales to the domestic and export markets, respectively. Through the Swazi Economic Empowerment initiative of the industry, a portion of the sugar sold to the regional market is reserved for local traders. This process is meant to assist the traders develop the skills and sophistication required for the export market. Due to limited sugar available for allocation, as most of the production is already allocated to existing customers, there is limited scope for new allocations. The industry is continuously looking at striking the appropriate balance between improving the scale economies for existing customers and introducing new customers into the system.
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 ACP-EU Protocol on Sugar (SP) and the Complementary Quantity (CQ). Sugar sales to the EU amount to about 150 000 tons per annum, with 120 000 tons sold under the SP.
US: Sales into the US benefit from the Tariff Rate Quota (TRQ), which allows access on preferential terms. The sales to the US amount to about 16 000 tons per annum. SACU: Sales into the SACU market include sugar destined for the local market. SACU sales are approximately one-half of the total SSA sales.
Sales into the world and regional market are largely representative of residual sales, where the excess sugar is sold. This market is characterised by generally low prices.
| Period | SACU Market | Regional Market | EU Market | USA | World Market | Total Sales | | 2005/06 | 316,455 | 138,256 | 152,201 | 27,756 | 1,999 | 636,667 | | 2006/07 | 318,202 | 121,771 | 153,251 | 19,813 | 25,000 | 638,037 | | 2007/08 | 307,232 | 90,352 | 188,220 | 15,935 | 25,000 | 626,739 | | 2008/09 | 319,716 | 99,554 | 182,897 | 16,123 | --- | 618,290 | | 2009/10 | 325,000 | 27,260 | 276,317 | --- | --- | 628,577 | 2010/11* Asterisk (*) means forecast | 333,125 | 6,348 | 278,686 | 15,700 | --- | 633,859 |
For sales to the SACU market (including Swaziland), applications should be sent to the Customer Relations Officer, who shall duly forward such applications to the Allocations Committee. Sugar sales to the external markets (outside SACU) should be directed to the SSA's Commercial Director. Their contacts are provided below:
Postal:
Commercial Director Swaziland Sugar Association P.O.Box 445 MBABANE Swaziland, H100 Email:
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Marketing ManagerSwaziland Sugar AssociationP.O.Box 445MBABANESwaziland, H100 Email:
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Customer & Public Relations Officer P.O.Box 445 MBABANE Swaziland, H100 Email:
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Physical:
Cnr Msakato & Dzeliwe Streets, Mbabane, H100. Nkhotfotjeni Building, 3rd Floor
Contact numbers: Tel. +268 24042646 Fax: +268 24045005 It is advisable that, for expediency. email requests are copied to the Commercial Department Secretary at email
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