Sugar Market War : Dangote Sugar , Flour Mills dismiss BUA Foods’ allegations

…Say allegations tantamount to de-marketing  and contravene  anti-competition rules

Dangote Sugar Refinery Plc  and Flour Mills Nigeria Plc have reacted to the accusations by BUA Foods Plc  that the  two major competitors  intend to suspend  sale of sugar to   create  artificial scarcity.

Recall that, BUA Foods Plc published a disclosure stating that the company has distanced itself from every arrangement to create artificial scarcity of sugar in the country through the decision of two major sugar producers to suspend sales.

Reaction to the allegation  Dangote Sugar  stated that BUA Foods Plc had encouraged online media, through a statement, to publish articles alleging that Dangote Sugar has suspended the sale of Sugar in a bid to create artificial scarcity, force prices to artificially go up, profiteer even more and blackmail the government to review the denial of allocations to another competitor due to compliance issues just as Flour Mills said there is no iota of truth in the allegation BUA Foods.

Dangote Sugar Refinery has responded, refuting these allegations and calling them false, stating that such allegations have the tendency to mislead the market and give undue competitive edge to BUA Foods Plc.

The notice also read, “We have been inundated with calls from our customers that Dangote Sugar and Flour Mills have both suspended sales of Sugar, seeking to know if BUA will follow suit. We would like to reassure our customers that BUA is not joining the suspension of sales of sugar”.

According to the statement filed with the Nigerian Exchange Limited (NGX), the company expressed the belief that the allegations by BUA Foods Plc is not only worrisome but appears to conflict with the anti-competition rules.

It said, “Last year, just before the commencement of the Ramadan (the Islamic holy month of fasting), BUA made similar false allegations against the Company that it was engaged in ‘price-fixing’ and not honestly pursuing the Backward Integration Project”.

Hence, the company says it is refuting the false allegations and has also made formal complaints to the Anti-Competition Commission and awaits actions by the commission to address the situation.

Dangote Sugar said its sugar supply will continue to meet the market’s demand and has also made the necessary supply chain and logistics investments/arrangements to ensure there are no risks to its ability to meet the current market demands.

 Said the company : “Dangote Sugar Refinery Plc. remains the highest sugar supplier in the market today, with over 1.44m MT installed capacity at our Apapa Refinery and we are the only company producing sugar from own grown sugarcane under the Nigeria Sugar Master Plan (NSMP) at the Numan operations in Yola, Adamawa State. We remain committed to fair play and good governance and would continue to supply Sugar to the market without interruptions”.

 In similar vein Flour Mills Nigeria Plc , while refuting BUA Foods’s allegations  reassured its customers and consumers across the country that  it  currently has no outstanding compliance issues with the National Sugar Development Council (NSDC), as confirmed by the council’s latest raw sugar allocation for 2022.

It also disclosed that the company has been awarded as the best performing Backward Integration Programme (BIP).

Speaking on the  publications regarding the allegation to suspend the sale of sugar,  Flour Mills  said  the assertion by BUA Foods is incorrect and “capable of creating a false impression in the market, which is contrary to the interest of consumers”.

Assuring stakeholders and consumers, Flour Mills Nigeria maintained that the Golden Penny Sugar is still available, affordable, and accessible in the market.

It further assured Nigerians of its intention to continue investment expansions in backward integration and the sustainable development of the critical aspects of the food value chain, including Grains, Starch, Feeds and Proteins, Oils and Fats, and Sugar.

In addition to this, the disclosure stated that as a demonstration of the company’s commitment to the success of the National Sugar Master Plan, it will continue to uphold the tenets of the National Sugar Master Plan and expand our investments for the sustainable development of the Sugar industry.

Said   Flour Mills : “With a total landmass of over 21,000 hectares, including a world-class sugar refinery, we have continued to expand our operations at Sunti Golden Sugar Estate including an additional 300 million USD in Nasarawa state and a commitment to investing another 70 billion over the next three years to develop the upland area of the Sunti Sugar Estate”.

“This will further cement our commitment to Nigeria’s vision of self-sufficiency in sugar production and complement the Federal Government’s commitment to economic diversification, food security, and the transition to a more sustainable economy.”