ABN – Africa’s second biggest sugar producer expects its output to remain low in the coming months as a result of continuing dry weather.
Illovo Sugar Ltd.’s output dropped by 10% and its net income fell by 82% in the six months to September as South Africa suffered its worst drought in 23 years.
Managing director Gavin Dalgleish told Bloomberg “there’s a higher probability of below-average rainfall than there is of above-normal rainfall” in the first three months of 2016.
He added: “We are expecting a recovery on our sugar production in the year ahead, but it’s the extent to which we can recover that will be impacted.”
Illovo’s South African sugar crops are particularly susceptible to dry weather as their hilly planting areas prevent them from being irrigated.
The drought has caused farmers across the country to slaughter animals, delay planting crops and seek help from the government.