Kenana Sugar Company, the world’s largest producer of white sugar, has plans to increase production.

SUDAN is not only self-sufficient in sugar, but is the only sugar exporter in the Arab world. This is due to the Kenana Sugar Company, whose 100,000-acre plantation makes it the world’s largest producer of white sugar.

Continuous upgrading and expansion of Kenana’s sophisticated irrigation system has boosted annual production to more than 400,000 tons, enough for substantial export to other African markets and to Europe, in addition to supplying the fast growing domestic market.

A public-private partnership between the Sudanese government and mainly Arab investors, the Kenana refinery is one of five sugar factories in Sudan. The other four, run by the Sudanese Sugar Company (see panel, right), are state owned.

The government wants to increase the export volume of what has been called “green gold” and is calling for more investment in the industry. Overall production has risen steadily over the past 15 years, from 290,000 tons in 1990 to more than one million tons today. With sufficient investment, some analysts believe Sudan could increase its production to five million tons annually.

Important new projects are on the way, including two more in White Nile State, and two to be irrigated from the Blue Nile.

OSMAN ABDALLA ELNAZIR Managing Director of Kenana Sugar Company

Meanwhile, the Kenana factory has been planning out its own future up to 2014. Osman Abdalla Elnazir, Kenana’s Managing Director, says further expansion and diversification lie ahead.

“We intend to enhance production, because demand for sugar in this country is increasing by at least 30 percent per year, especially now the food industries are expanding; their requirements have multiplied.”

Production from Kenana’s own fields is being supplemented by refining imported raw sugar. “Instead of 400,000 tons of sugar, we will be producing 600,000 tons,” Mr. Elnazir predicts.

Kenana is also diversifying into animal feed and dairy products, and like many large-scale sugar producers around the world, will be producing bio-fuel, specifically ethanol.

Kenana also runs a training operation, the Kenana Engineering and Technical Services (KETS), that provides effective consulting and engineering services to the agro industrial sector, with the emphasis on the sugar industry.

Sugar Focus on efficiency and costs

MAJOR investment has led to a dramatic boost in production levels at the four sugar refineries run by the Sudanese Sugar Company (SCC) over the last 10 years.

MAHDI BASHIR MOHAMED ALI General Manager of the Sudanese Sugar Company Ltd.

“Our current rate of production is near capacity at around 230,000 tons of sugar,” says Mahdi Bashir Mohamed Ali, SSC’s General Manager. “We are busy with the expansion of some of our fields, and building two more factories. We have a good market all around us. The whole region imports sugar.”

SSC’s plans for development lie in diversification, mainly into production of by-products like bio-fuels, such as ethanol and bagasse. One of SSC’s factories already produces 19MW of power from bio-fuels, and another two will start doing so in the coming months.

“We do not think there is a big margin to make more sugar out of the existing facilities. We are doing more work on efficiency and cost effectiveness, and the utilization of by-products,” says Mr. Ali.

Production of ethanol is a big project for SSC, which aims to export most of it to Europe and the Middle East. Potential markets and customers are being studied at the moment.

Bagasse will be used as fuel for the refining of imported raw sugar to supplement the local production.

Privatization of the company appears to have been put on hold. “The government has been thinking of looking for an investor to join us, but with production levels so high, it does not seem a priority at the moment.”