Sorghum Stock Levels
Due to the efforts of Afro-Kai, our seed and
commodity brokers, to popularize the growing of Epuripur sorghum by
small-scale farmers, the guaranteed market and guaranteed farm price of UGX
300 per kg for sorghum; and exceptional growing conditions during the 2
growing seasons in 2006, a record harvest of over 12,000 tonnes of
Epuripur sorghum was realized, far in excess of the brewery’s requirements
(currently about 3,600 tonnes per annum).
This situation has been exacerbated by the impact of the non-malt beer excise
increase from 20% to 30% ad valorem in July 2006, which
resulted in an increase in the retail selling price of UGX 100 to UGX 200 per
bottle of non-malt beer (between 10% and 20%), causing a slight down-turn in
sales of Eagle Lager and
Eagle Extra. |
