Listed sugar producer Hippo Valley Estates says Zimbabwe’s sugar output is likely to increase going forward.
Said chairman Dan Marokane:
“Total industry sugar production for the forthcoming 2021/22 production season is forecast to increase on the back of projected improvements in yields, cane quality and milling e ciencies.
“Efforts to maximize sugar production through yield improvement initiatives on both company-owned and private
farmer owned cane fields are ongoing, with special focus on strategic partnerships to rehabilitate all derelict and low yielding private farmer land to above the breakeven yield of 70 tons/hectare.”
For the third quarter performance to December 31, 2020 Hippo Valley’s share of total industry sugar sales volume of 356 000 tons (from 333 000 tons in 2019) for the nine months period under review was 50 percent (2019: 48 percent).
Total industry sugar sales into the
domestic market for the nine months ended December 31, 2020 at
259 000 tons (compared to 266 000 tonsin 2019), were 3 percent below prior year due to “deliberate measures taken by the industry during the first quarter of the financial year to minimize speculative trade and illegal exports to neighbouring countries on account of then existing currency and pricing distortions,” reported the chairman.
He added:
“The measures were successful, as sugar has since been readily available on the formal market, including during the peak demand festive season.
“Following the return to the multi-currency regime, the company is trading in both local and foreign currencies on the domestic market.
“Industry export sales recorded a 45 percent growth to 97 000 tons (compared to 67 000 tons in 2019) for the nine months, despite a temporary suspension of sugar imports by the Kenyan Government in June 2020.”
Meanwhile, notwithstanding financing constraints holding back the implementation of the US$40 million Project Kilimanjaro, Hippo Valley Estates Limited says it has begun clearing vast tracts of land where extensive sugar cane crop will be planted.
The project is expected to develop virgin land into sugar cane plantations at Triangle and Hippo Valley estates in Chiredzi as part of the firm’s drive to increase aggregate sugar output while also empowering indigenous outgrower farmers who will be allocated plots on the nearly 3 300 hectares being developed on a cost recovery basis.
“Work on the 4 000 hectares cane development project (Project Kilimanjaro) being undertaken by the company in partnership with Triangle Limited, Government and local banks, has seen a total of 2 700 hectares of virgin land being bush cleared and ripped, and 562 hectares planted to sugarcane in the prior year.
“As previously reported, project works were slowed down on account of delays in obtaining the requisite funding from financial institutions, and lack of clarity on land tenure,” said Marokane.
“Whilst new funding structures for completion of the project are being finalized, some 76 hectares and 700 hectares were put to maize and sorghum respectively, in partnership with Government, as part of efforts to improve food security in the country.
“An additional 902 hectares of maize was planted on company fallow cane land as a break crop, resulting in the double benefit of maximising land use, and further improving food security,” said Marokane.