NOCO and Nzoia reach agreement over cane poaching

Written by Rosemary Wachiye 2011-09-20 19:16:00 Read 239 Times

Trailers with cane at the NZoia Sugar Company weigh bridge machine. [Photo/West Fm File] At last the two warring sister companies Nzoia Sugar Company and Nzoia Out growers Company (NOCO) have reached an agreement and settled the row between them over the recent cases of cane poaching. At a press conference held at Nzoia Sugar Company premises, the Managing Director of Nzoia Sugar Company, Mr. Saul Wasilwa stated that they held a meeting with officials from both companies together with representatives of farmers and reached an agreement that all the cane harvesting and sell will be done in consent of both parties. This follows a growing dispute between NOCO and Nzoia Sugar Company after claims that NOCO was selling cane to other millers other than Nzoia Sugar Company which has contracted the cane farmers. “Nzoia Sugar Company is the only company allowed to get cane from the farmers since it has invested in the development of the cane right from its planting upto harvesting and therefore selling the cane to other millers is poaching and it has to stop,” said Mr. Wasilwa. “We have agreed with NOCO that there will be no selling of cane to other millers without consultation with us,” said Mr. Lawrence Sifuna the chairman, Nzoia Sugar Company. Mr. Sifuna also admitted that Nzoia Sugar Company has not been remitting levy to NOCO Company for some time now, because he claims that the NOCO Company is still under a guarantor and not under the shareholders who are cane farmers.  “As soon as NOCO gets registered under the shareholders then we will pay the levy,” said Mr. Sifuna. About the complains from farmers about the low pay by Nzoia Sugar Company and yet since the maintenance closure the company has been selling cane to other millers at a high rate and yet still pay the farmers the same amount, the director Ms. Rosalinda Simiyu stated that the company had to pay farmers a sustainable fee. “it’s all because we care about the farmers’ well-fare we cannot pay them more right now because of the rise in sugar prices and then when the price goes down we again reduce their pay we have to maintain what we pay them and it’s for their own good,” said Ms. Rosalinda Simiyu. “We are committed to our farmers and that is why even as we have closed for maintenance we still have to ensure that they are sustained by selling their cane to other millers and it also curbs wastage of cane,” said Ms. Rosalinda Simiyu. This however comes amidst reports that the bad blood between NOCO and Nzoia Sugar Company has erupted into a war of words between the latter and giant sugar miller Mumias Sugar Company over cane poaching claims.