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Home Eastern Africa

Mauritius Seeks Revival of Its Sugar Industry through China Trade Agreement

by SAT Reporter
August 17, 2024
in Eastern Africa, Mauritius
0
Mauritius Seeks Revival of Its Sugar Industry through China Trade Agreement

Mauritius, the idyllic island often celebrated for its paradisiacal beauty, holds another moniker less familiar to the global audience: the Sweet Island. This title is a nod to the island’s longstanding relationship with sugar cane, its most significant agricultural crop. Historically, sugar cane cultivation has not only shaped the landscape of Mauritius but also defined its economic trajectory.

At the time of Mauritius’s independence in the 1960s, an astonishing 90 percent of its arable land was dedicated to sugar cane. The sugar industry, once the bedrock of the Mauritian economy, contributed nearly one-third of the country’s gross domestic product (GDP) and constituted over 90 percent of its total exports. However, this picture of prosperity has been marred by challenges in recent decades, particularly following the abolition of guaranteed prices under the European Union (EU) Sugar Protocol in 2009, a move that left Mauritian sugar vulnerable to the vicissitudes of the global market.

Today, amidst the evolving global economic landscape, Mauritius is seeking to rejuvenate its sugar industry through strategic international partnerships, notably with China. The Free Trade Agreement (FTA) between China and Mauritius, which came into force in January 2021, has emerged as a beacon of hope for the island nation. As the first FTA that China has established with an African country, this agreement has created a valuable avenue for Mauritian sugar, with export volumes to China surpassing 13,000 tonnes in its inaugural year.

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Devesh Dukhira, Chief Executive Officer of the Mauritius Sugar Syndicate (MSS), has underscored the enduring importance of the sugar industry to the local economy. “Maintaining the sustainability of the sugar cane industry is crucial for Mauritius,” Dukhira asserts. Despite the industry’s diminished role compared to its historical significance, sugar continues to account for approximately 15 percent of the country’s total exports. Beyond its economic contributions, the sugar industry plays a vital role in environmental stewardship, helping to prevent soil erosion and preserve the island’s fragile lagoons.

Nevertheless, the sugar industry in Mauritius has been beset by substantial challenges, including the high costs and logistical difficulties associated with exporting to distant markets such as Europe and Asia. The volatility of global sugar prices has only exacerbated these issues, leading to an increase in land abandonment as farmers, disillusioned by uncertain returns, opt to leave their fields fallow.

The China-Mauritius FTA has provided a much-needed lifeline, offering preferential access to the Chinese market, where Mauritian sugar is being marketed not merely as a commodity, but as a high-value, additive-free product. According to Dukhira, the marketing strategy is to “complement rather than replace” the sugar produced in China, with a focus on niche segments such as high-end retail supermarkets, catering, and specialised industrial uses like bakeries. The differentiating factor of Mauritian sugar lies in its natural intensity of aroma and taste, as well as its richness in antioxidants and minerals.

Gunness Bhuruth, a generational sugar cane farmer, acknowledges the challenges yet remains optimistic about the potential offered by the Chinese market. “As a small island, the quantity of our sugar production is limited. So we have to be able to differentiate ourselves from global suppliers. We have to focus on the quality of our sugar,” he states.

This emphasis on quality was on full display at the China Food and Drinks Fair in Shenzhen in October 2023, where Mauritian special sugars were showcased in a dedicated booth provided by COFCO (China Oil and Foodstuffs Corporation), the state-owned enterprise responsible for marketing Mauritian sugar in China. The collaboration with COFCO, which also produces sugar, underscores the strategic approach Mauritius is taking to secure a long-term position in China’s burgeoning market.

Gregory Bathfield, CEO of Alteo Milling, the largest sugar factory in Mauritius, is hopeful for the future. “We are hopeful that all the benefits can be materialised in the next few years. It would be a great achievement and bring more remuneration to all the stakeholders,” he remarks.

As Mauritius continues to navigate the complexities of the global sugar market, the China-Mauritius FTA represents a critical step towards revitalising an industry that has been integral to the island’s identity. By focusing on quality and leveraging strategic partnerships, Mauritius is not just preserving its legacy as the Sweet Island, but also crafting a future where its sugar industry can thrive once more on the global stage.

Tags: Agricultural TradeChina-Mauritius FTACOFCOEconomic Developmentglobal tradeHigh-Value ExportsMauritiusSpecial SugarsSugar Industry
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