SISAL MARKET Development of Sisal exports in the

Transcript:SISAL MARKET Development of Sisal exports in the:
SISAL MARKET Development of Sisal exports in the past two years • KENYA 2017: abt. 20.140 tons 2018: abt. 22.810 tons • TANZANIA 2017: abt. 25.070 tons 2018: abt. 23.450 tons • MADAGASCAR 2017: abt. 6.250 2018: abt. 5.890 • BRAZIL 2017: abt. 23.200 tons 2018: abt. 29.500 tons Based on the above figures the development in exports of Sisal fibres appear to be quite stable for East Africa and Madagascar. For Brazil there is a notable increase in volume which however must be seen in relation to a larger time frame. • BRAZIL - within the year 2018, the prices for Brazil fiber have fallen by about 20%. With the low price level Brazil has regained competition which had it’s positive impact on export activities from August to end of the year. The price gap between Brazilian and African Sisal has become larger again and is currently USD 500 per ton. Historically, this price gap has always been a minimum of USD 500 to USD 600 per ton. The low level of Brazilian Sisal has made it more attractive to customers, especially in the Chinese market. For the past two years Brazil has re-planted again Sisal. It has been reported that about 10.000 hectares have meantime been re-planted in the Sertao and Coite regions. These plants will however become mature in a few years only. • EAST AFRICA – re-planting of Sisal is done in all Sisal producing (and exporting) countries in East Africa – also on Madagascar. However there is governmental restrictions (giving preference to food crops) in Kenya and Tanzania that hamper the extension of Sisal plantations. Thus in both countries an increase of production can only be achieved by increasing productivity. These restrictions do not exist in Mozambique and the producers in this country have intensified their investments in new Sisal plantations. Soils in the region of Nampula are rich and all over the Nampula region larger areas have not been farmed for decades. There is various factors that have impact on production and exported volume of Sisal - factors that are (to name just a few): • weather conditions • production costs (labour/energy etc.) • investments in re-planting and new plantations • market trends / developments by the industry • exchange rates of currencies involved in the trade of Sisal fibres Weather conditions certainly have become one of the most important factors to influence the