Morocco's Cosumar eyes sugar assets abroad

By Lamine Ghanmi

CASABLANCA (Reuters) - Moroccan sugar producer Cosumar, which posted an 89.6 percent net-profit increase last year, is looking to acquire sugar assets in Brazil and Africa, its chief executive officer said on Tuesday.

Cosumar, 55-percent owned by Moroccan conglomerate ONA, had acquired four underperforming state sugar refineries and is investing 3.5 billion dirhams over five years to expand domestic cane and beet growing and boost industry competitiveness, Mohamed Fikrat told reporters and market analysts during a results presentation.

The five-year programme aims to improve sugar yields to take domestic production to as much as 700,000 tonnes from 450,000 per year currently as well as upgrading its refiner capabilities.

Better irrigation, farming techniques and refining technology should allow Morocco to produce 55 percent of the sugar it consumes in coming years from 45 percent currently.

The North African kingdom imports between 650,000 and 700,000 tonnes of sugar per year, representing 55 percent of its national requirement.

The incentive to become more self-sufficient in sugar has grown after world market prices soared because the Moroccan government subsidises imported sugar to cut retail prices to levels affordable for its population.

Local demand is growing at 20,000 tonnes per year and the company is focusing on improving productivity and competitiveness to meet rising domestic market needs, he added.

Beet provides three quarters of the sugar grown in Morocco. Imported raw sugar, mostly Brazilian cane sugar, is imported and refined at Cosumar's Casablanca refinery.