Molasses market in Madagascar

Earlier Report Observations

From 2018 to 2020, the molasses market volume in Madagascar remained stable at around 35 000 t per year. During this period, the sugar sector faced structural challenges, including high production costs and reliance on sugar imports, which may have influenced molasses output as a by-product. In 2019, discussions with UNIDO aimed at building smaller sugar mills in several regions to boost local production and reduce import dependency.

A sharp contraction occurred in 2021, with market volume dropping to 12 847 t, followed by a further slight decline to 12 207 t in 2022. This coincided with persistently low domestic sugar production, as highlighted in industry reports. The inauguration of new mini-sugar plants in Antanamifafy and Mahatalaky in 2022, each with a capacity to process 60 tons of cane per day, aimed at increasing local brown sugar output and likely supported a modest recovery in molasses volume to 13 198 t in 2023. Additionally, rising import sugar prices and state procurement interventions to stabilize consumer prices in 2023 affected the overall market environment.

For 2024, plans were made to establish six additional sugar units across regions like Vatomandry and Morondava with the goal of achieving sugar self-sufficiency, which could subsequently affect molasses output. Ongoing sugar imports to cover domestic shortfalls and broader economic reforms, such as the new mining code, also shaped the market context.

Production molasses in Madagascar

In kind, 2017-2020, t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

In 2019, Madagascar's molasses production showed minimal change from the previous year. By 2020, output reached 35,000 tonnes. Over the period from 2017 to 2020, production grew by 6.1%, which translates to an average annual increase of 2.0%. The highest production level was recorded in 2018 at 35,000 tonnes, marking a 6.1% increase that year. In contrast, 2019 saw the smallest change with essentially no growth.

Annual dynamics of production in Madagascar in kind, 2017-2020, t

Exports molasses from Madagascar

Exports in kind, kg

Annual dynamics of product's exports from Madagascar in kind, 2017-2020, kg

From 2017 to 2020, Madagascar's molasses exports were entirely concentrated on Italy, which accounted for 100.0% of total shipments in volume terms.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Madagascar in kind, 2017-2020

Exports in value, $ US

Annual dynamics of product's exports from Madagascar in value, 2017-2020, $ US

During the 2017-2020 period, Italy dominated Madagascar's molasses exports in value terms, capturing 100.0% of the total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Madagascar in value, 2017-2020

Imports molasses to Madagascar

Imports in kind, kg

Madagascar's molasses imports declined for the second consecutive year in 2020, dropping to 44,410 kilograms. This represented a 23.4% decrease compared to 2019. Over the four-year span from 2017 to 2020, imports fell by 27.6%, with an average annual decline of 10.2%. The peak import volume occurred in 2018 at 65,474 kilograms, which was a 6.8% increase that year.

Annual dynamics of product's imports to Madagascar in kind, 2017-2020, kg

Between 2017 and 2020, Vietnam, Paraguay, and France were the leading suppliers of molasses to Madagascar in volume terms. Vietnam accounted for 52.4% of imports, Paraguay for 15.6%, and France for 12.8%. Together, these three countries represented 80.7% of Madagascar's total molasses imports by volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Madagascar in kind, 2017-2020

Imports in value, $ US

Following two years of growth, Madagascar's molasses imports in value terms declined in 2020 to $22,213 US dollars, a sharp 39.9% drop from 2019. From 2017 to 2020, import values decreased by 21%, averaging a 7.5% annual decline. The highest import value was recorded in 2019 at $36,971 US dollars, which reflected an 18.8% increase that year.

Annual dynamics of product's imports to Madagascar in value, 2017-2020, $ US

From 2017 to 2020, Vietnam, Paraguay, and France were the main sources of Madagascar's molasses imports in value terms. Vietnam held a 60.2% share, Paraguay 18.0%, and France 8.2%. Collectively, these three countries accounted for 86.5% of the total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Madagascar in value, 2017-2020