Mumias sugar to move to court to stop cane poaching

Mumias sugar company is now threatening to move to court to force other millers to stop cane poaching.

Operations at the factory remain grounded due to lack of cane.

Addressing members of the press at the factory Monday morning, the chairman of the board Dan Ameyo cried foul demanding for a level playing field.

He said that the company is currently not operating for the simple reason of lack of cane this is despite of the company investing heavily in farmers in the area to at least yield good productions.

“Nzoia and Mumias sugar companies both invest heavily in developing farmers cane with the expectation of crushing the cane, though as for now we have other millers who come around flashing cash to our farmers,” said Ameyo

He further said that as a company they are not afraid of competition but all they want is a level playing field, where it has become a worrying trend since the millers are reaping cane they did not invest in.

Ameyo said that as Mumias sugar company they will be seeking legal address to sort out the matter.

“We are reviewing the legal environment that exists in the area and very soon we shall meet in the corridors of justice.”

On his part the managing director of the company Errol Johnstone said that the company has registered a 37% loss despite investing heavily to farmers.

“When Mumias sugar was headed free operations in the area, last year we recovered 70% though this year we have only recovered 63% which shows 37% of cane we [planted last year hasn’t come to us making us lose 750, 000 tonnes.” Said Johnstones.

He has also refuted claims made by Mumias east member of parliament Benjamin Washiali that the company has not been able to register any improvement despite receiving funds from the national government.

“This year we have made 11″ more sugar and 35 % more alcohol despite our deep trouble. I agree production is below 45% where it should not be but we are addressing this, and we may be forced to reduce our staff among other measures,” said Johnstone.

And as a move to curb cane poaching, the company has announced a move to do way with all debts the farmers owe the company commonly known as DR’s.

The Company has also called on the national government to hasten the disbursement of funds it had promised to fast truck the recovery process.