1. NZOIA SUGAR COMPANY LTD

2. 1st Quarter (1st July to 30th Sept 2016) Factory Capacity Utilization
FACTORY MEASURES
Measure
Indicator
1st Quarter (1st July to 30th Sept 2016)
2nd Quarter
(1st Oct to 31st Dec 2016)
Target
Actual
Variance
Cane Milled
Tones of cane milled
217,500
194,482.8
(23,017.2)
200,053.7
(17,446.3)
Sugar Made
Tones
21,969.7
17,568
(4,401.7)
17,040
(4,929.7)
Recovery (Ratio)
TC/TS
9.90
11.07
(1.17)
11.74
(1.84)
Factory Capacity Utilization %
86.0
77.25
(8.75)
78.87
(7.13)
FTE
88.0
80.21
(7.79)
86.82
(1.18)

3. Cumulative (1st July to 31st Dec 2016) Factory Capacity Utilization
FACTORY MEASURES
Measure
Indicator
Cumulative (1st July to 31st Dec 2016)
Target
Actual
Variance
Cane Milled
Tones of cane milled
435,000
394,536.50
(40,463.50)
Sugar Made
Tones
43,939
34,608.00
(9,331.40)
Recovery (Ratio)
TC/TS
9.90
11.40
(1.50)
Factory Capacity Utilization %
86.0
77.60
(8.4)
FTE
88.0
83.52
(4.48)

4. FACTORY MEASURES - Key challenges
Lack of adequate cane for milling
Milling of cane with low pol. i.e against a target of for six months period ended 31st December 2016.
Poor performance by mud filters
Boiler 3 Tube leaks
Old pumps in the process house

5. FACTORY MEASURES- Way forward
Taken corrective measures on the Boiler 3 tube leakages and expects a steady run on this boiler for some time and also initiated the process of rehabilitation to improve its inherent poor design. This will be accomplished during the next annual maintenance.
Initiated procurement process for supply of mixed juice and mud filter, rehabilitation of two vacuum mud filters to restore performance of this station and improve efficiency.
Developed action plan on pump replacement and key equipment restoration across the process house to eliminate pump leaks, restore recoveries and related efficiencies.

6. 1st Quarter (1st July to 30th Sept 2016)
FIELD LEVEL MEASURES
Measure
Indicator
1st Quarter (1st July to 30th Sept 2016)
2nd Quarter
(1st Oct to 31st Dec 2016)
Target
Actual
Variance
Area under cane (N/E)
Surface (Ha
3,400
3,124
(276)
Area under cane (OG)
21,600
21,376
(224)
21,057
(543)
Total Area under cane ( OG+N/E)
25,000
24,776
24,181
(819)

7. 1st Quarter (1st July to 30th Sept 2016)
FIELD LEVEL MEASURES
Measure
Indicator
1st Quarter (1st July to 30th Sept 2016)
2nd Quarter
(1st Oct to 31st Dec 2016)
Target
Actual
Variance
Plant/ Ratoon (N/E)
Ratio
30:70
23:77
Plant/ Ratoon (OG)
5:95
6:94
Plant/ Ratoon ( OG+N/E)
9:91
8:92

8. 1st Quarter (1st July to 30th Sept 2016)
FIELD LEVEL MEASURES
Measure
Indicator
1st Quarter (1st July to 30th Sept 2016)
2nd Quarter
(1st Oct to 31st Dec 2016)
Target
Actual
Variance
Yield (N/E)
TCH 79
67.89
(11.11)
61.90
(17.10)
Yield (OG) 55
54.67
(0.33)
53.88
(1.12)
Overall Yield ( OG+N/E) 59
55.76
(3.24)
55.37
(3.63)

9. CANE VARIETY COMPOSITION
FIELD LEVEL MEASURES
CANE VARIETY COMPOSITION
Old Variety
CO421
57.74
73%
CO945
15.26
New Varieties
N14
19.60
27%
KEN83-737
5.63
D84-84
0.96
KEN82-472
0.47
CO1148
0.09

10. 1st Quarter (1st July to 30th Sept 2016)
FIELD LEVEL MEASURES
Measure
Indicator
1st Quarter (1st July to 30th Sept 2016)
2nd Quarter
(1st Oct to 31st Dec 2016)
Target
Actual
Variance
Harvesting Age (OG)
Mean age (months ) 18 16
(2)
Harvesting Age (N/E) 20 2
Average Harvesting Age (OG+ N/E) 19
(1) 17

11. 1st Quarter (1st July to 30th Sept 2016)
FIELD LEVEL MEASURES
Measure
Indicator
1st Quarter (1st July to 30th Sept 2016)
2nd Quarter
(1st Oct to 31st Dec 2016)
Target
Actual
Variance
Feeder Roads Maintenance
Kms
147 80
(67) 99
(19)
GRADING, GRAVELLING & COMPACTING

12. FIELD LEVEL MEASURES- Key challenges
There was a decline in area under cane in due to some cane going out of cycle
The overall cane yield was lower due to dry spell, low mean age at harvest and harvesting of poor lowland fields to open space for planting
Cane poaching.

13. FIELD LEVEL MEASURES- Way forward
Procure fertilizer and herbicides on timely basis for application to N/E and OG
Plant more cane and improve yields.
Regulator to formulate and enforce laws that will ensure fair playground by all millers to militate against poaching.

14. 1st Quarter (1st July to 30th Sept 2016)
SOCIO - ECONOMIC
Measure
Indicator
1st Quarter (1st July to 30th Sept 2016)
2nd Quarter
(1st Oct to 31st Dec 2016)
Recommended by AFFA
Actual
Variance
Price of cane per Tone (Kes)
Compliance
3,554 -
Oct 3,800
Nov. – 3,800
Dec. – 4,200
Oct. – 3,800

15. 1st Quarter (1st July to 30th Sept 2016)
SOCIO - ECONOMIC
Measure
Indicator
1st Quarter (1st July to 30th Sept 2016)
2nd Quarter
(1st Oct to 31st Dec 2016)
Target
Actual
Variance
Farm Enterprise Diversification
Ratio of cane to other crops
2:1
N/A

16. COST OF PRODUCTION Measure Indicator Cumulative Target Actual Variance
(1st July to 31st Dec 2016)
Target
Actual
Variance
Cost of Sugar Production
Kes /Ton
78,282
89,160
(10,878)
MGT A/CS

17. End of Presentation