Tuesday, July 15, 2014

Soda companies suffer from shortage of sugar

Ethiopian soda companies, East Africa Bottling SC and Moha Soft Drinks, are facing a problem due to scarcity of sugar in the country.
Since they were not provided the needed amount of sugar from their supplier, the Ethiopian Sugar Corporation is causing interruption of their products. The Ethiopian sugar factory claims there is a solution for this.
Related to the difficulty of access to sugar, many companies’ production has been disrupted, including Moha Soft Drinks Pepsi bottler in Ethiopia. The sugar that was provided by the corporation has stopped since June 28.
According to the data obtained from the company, this scarcity worsened the problem, causing seven factories in Addis and regional cities to stop functioning..
 The data shows that Moha used to provide up to 75,000-crates daily but after the sugar supply was interrupted, the company’s earnings have been harmed. The annual demand for sugar by Moha is 300,000 quintals.

It is not only the company but the government that is losing money.
This shortage problem has been notified to the responsible government officials. The sugar quota, which is provided to the factories, was caused by technical problems that declined the sugar production.
The director-general of the Ethiopian Sugar Corporation, Shiferaw Jarso told The Reporter that due to the shortage of the sugar, the sugar that was supposed to be provided for the factories was distributed to the society.
He also adds that the problem is temporary and proposes a solution, Tendho sugar factory starts its production soon, the problem will be solved.
Since this provision is not interrupted for the society, customers would not face the same problems as the factories. According to Shiferaw this problem will be solved for the companies within ten days.
According to sources, since this is harming the companies, they requested that a letter of credit should be opened for them so they can import from abroad.  Since the corporation has not revealed the exact date of when this situation would be reversed, some companies complained that using alternative solution might become difficult.