{"id":681209,"date":"2026-01-14T00:00:00","date_gmt":"2026-01-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=681209"},"modified":"2026-01-14T03:46:14","modified_gmt":"2026-01-14T03:46:14","slug":"record-sugarcane-yields-mask-a-brewing-financial-challenge-for-local-refiners","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/01\/14\/record-sugarcane-yields-mask-a-brewing-financial-challenge-for-local-refiners\/","title":{"rendered":"Record sugarcane yields mask a brewing financial challenge for local refiners"},"content":{"rendered":"

We may be close to self-sufficient when it comes to sugar production, but manufacturers <\/strong>say they\u2019re bleeding cash. <\/strong>As the sugarcane harvest kicks off in Upper Egypt, a sharp divide has emerged between the narrative heralding the strategic success of boosting domestic supply \u2014 longtime readers will remember the sugar crises of years past \u2014 and the difficult financial reality facing the country\u2019s refiners as they work overtime to ensure supply targets are met.<\/p>\n

Annual sugar production stands at nearly 3 mn tons<\/strong>, with consumption only marginally outpacing this at roughly 3.2 mn tons. To secure this supply, the Madbouly government hiked the procurement price of sugarcane to EGP 2.5k per ton and allocated EGP 25 bn to pay farmers promptly, in addition to logistics support, Managing Director of the Sugar and Integrated Industries Company Salah Fathi tells EnterpriseAM. The state is hoping to procure 7 mn tons of sugarcane this season \u2014 about 1 mn tons more than it aimed to buy during last year\u2019s harvest, Supply Minister Sherif Farouk has said. <\/p>\n

The catch? Local refiners are being squeezed by the higher price they\u2019re paying farms. <\/strong>While the state\u2019s decision to hike farmer payouts secures the harvest and protects farmers, it has locked producers into a high-cost structure that leaves them losing between EGP 3k-4k per ton, one industry source claims.<\/p>\n

You\u2019re going to see this issue in the headlines for weeks to come: Manufacturers are <\/strong>lobbying the Madbouly government to extend a ban on the import of raw sugar <\/strong>(it\u2019s set to expire next month) and are asking officials to extend a low-interest financing initiative for farmers. Farmers are warning officials that even a record harvest won\u2019t make them competitive against lower global prices, the source tells us.<\/p>\n

Why it matters:<\/strong> If the import ban expires in February, cheap global raw sugar could flood the market just as Egypt\u2019s domestic harvest hits its peak. Producers argue they can\u2019t compete with lower global prices while being forced to buy local cane at a premium and sell to the Supply Ministry at \u201ccompetitive\u201d (read: capped) prices. Without an extension of the ban or a low-interest financing initiative that the sector is calling for, the economics just don\u2019t work. <\/p>\n

It\u2019s good news for consumers with a sweet tooth<\/strong>, as retail prices have stabilized between EGP 26 and EGP 30 per kg \u2014 nearly half of what they were this time last year. With local stocks high, there is zero risk of a shortage heading into Ramadan. <\/p>\n

Extending the ban on sugar imports shouldn\u2019t lead to price hikes<\/strong>, as prices have remained stable and are down y-o-y, thanks to local producers being able to meet demand, Chambers of Commerce General Foodstuffs Division member Hazem El Monoufi tells EnterpriseAM.<\/p>\n

(** Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n","protected":false},"excerpt":{"rendered":"

The gap between domestic demand for sugar and local supply is slowly disappearing<\/p>\n","protected":false},"author":1,"featured_media":681210,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7181],"tags":[97,317,72,564,777],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-681209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agriculture","tag-agriculture","tag-commodities","tag-enterpriseam","tag-food","tag-supply-ministry","wpautop","entry"],"acf":{"mongo_id":"9e25f5fd-ac12-4a92-a3a2-f12604142332","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/1\/440.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt is closer than ever to achieving sugar self-sufficiency and local refiners are paying the price","related_issue":[681201],"teaser":"The gap between domestic demand for sugar and local supply is slowly disappearing"},"yoast_head":"\nRecord sugarcane yields mask a brewing financial challenge for local refiners - 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The House Agriculture Committee had been pushing for the government to\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":634747,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/01\/23\/uaes-al-ghurair-to-invest-usd-1-bn-in-sugar-agriculture-project\/","url_meta":{"origin":681209,"position":1},"title":"UAE\u2019s Al Ghurair to invest USD 1 bn in sugar agriculture project","author":"enterpriseam admin","date":"23 January 2018","format":false,"excerpt":"INVESTMENT WATCH- UAE\u2019s Al Ghurair Group will invest USD 1 bn in a massive sugar cultivation and processing project, which some are already calling the largest foreign direct investment in Egypt since the EGP float. The project will see the company develop 181k feddans of reclaimed desert land west of\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":669237,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/07\/30\/a-usd-400-mn-bioethanol-plant\/","url_meta":{"origin":681209,"position":2},"title":"A USD 400 mn bioethanol plant?","author":"enterpriseam admin","date":"30 July 2025","format":false,"excerpt":"The factory will process sugarcane waste into 1.2 mn tons of bioethanol annually","rel":"","context":"In "Investment Watch"","block_context":{"text":"Investment Watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/7\/1868.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":599904,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/01\/14\/govt-plans-to-step-up-reliance-on-beets-for-sugar-production\/","url_meta":{"origin":681209,"position":3},"title":"Gov\u2019t plans to step up reliance on beets for sugar production","author":"enterpriseam admin","date":"14 January 2019","format":false,"excerpt":"The government is planning to increase its reliance on beets instead of water-intensive sugarcane for commercial sugar production, Egyptian Sugar and Integrated Industries Co. CEO Mohamed Abdel Rehim tells Al Mal. Transforming sugar factories to accommodate this new change in direction could cost up to EGP 3 bn, Abdel Rahim\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":652259,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/01\/04\/edfu-and-kom-ombo-sugar-plant-to-resume-operations-today\/","url_meta":{"origin":681209,"position":4},"title":"Edfu and Kom Ombo sugar plant to resume operations today","author":"enterpriseam admin","date":"4 January 2017","format":false,"excerpt":"The Edfu and Kom Ombo sugar plants will restart production today after the cabinet approved increasing the price paid for sugarcane inputs to EGP 620 per tonne from EGP 450, Al Shorouk reported. The two factories had put operations on hold for seven days as farmers refused to deliver sugarcane,\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":647655,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/05\/16\/egypts-raw-sugar-production-expected-to-increase-by-7-y-o-y-in-2017-18\/","url_meta":{"origin":681209,"position":5},"title":"Egypt\u2019s raw sugar production expected to increase by 7% y-o-y in 2017-18","author":"enterpriseam admin","date":"16 May 2017","format":false,"excerpt":"Egypt\u2019s production of raw sugar is expected to grow 7% y-o-y to 2.42 mn tonnes in marketing year 2017-18, according to US Department of Agriculture\u2019s Foreign Agricultural Services\u2019 Global Agricultural Information Network 2017 report. The increase is driven by the a wider area under cultivation with sugarcane and beets. The\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/681209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=681209"}],"version-history":[{"count":1,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/681209\/revisions"}],"predecessor-version":[{"id":681245,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/681209\/revisions\/681245"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/681201"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/681210"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=681209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=681209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=681209"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=681209"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=681209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}