The Sunday News
Sharon Chimenya, Masvingo Correspondent
THE increase in the water levels in Masvingo’s major dams that irrigate the Lowveld is set to benefit sugarcane farmers for the next three seasons.
As at last week Monday 7 February the Tugwi Mukosi dam had recorded 103,8 percent, Mutirikwi was at 98,2 percent and Manjirenji dam was at 88 percent.
In a trading update for the third quarter ended 31 December 2021 released by the Hippo Valley Estates Limited said the normal water supply will stimulate the sugarcane growth.
“The industry’s major water supply dams are once again reaching maximum capacity ensuring adequate irrigation water cover for at least three seasons at normal water duty.
This provides the necessary assurance to stimulate both vertical and horizontal sugarcane growth by existing and new players to the industry which will in turn maximise existing milling capacity and improve the nations costs competitiveness in the region and globally.”
According to the report the sugar sales into the local market were 10 percent above the previous year owing to the local demand and improved supply.
“Hippo Valley’s share of total industry sugar sales volume of 317 155 tonnes for the nine months to 31 December 2021 was 53,59 percent. The total industry sugar sales into the domestic market for the same period, at 285 548 tonnes, were 10 percent above same period in prior year on the back of strong local demand and improved supply.
Following the industry’s reduced COMESA quota allocation for the year into Kenya, export sales volumes reduced by 68 percent to 31 607 tonnes. The volumes originally targeted at the Kenyan market were redirected to the local market to satisfy the strong local demand,” read part of the report.
The company is making efforts to develop other regional markets to reduce Kenya market concentration risk.
Meanwhile, the company is co-managing some underperforming private farms and is committed to resolving contentious contractual matters between millers and private farmers.
“In addition to the long-established input support and technical assistance programs to private farmers, the recently launched framework whereby Tongaat Hulett Zimbabwe is co-managing certain underperforming private farms is ongoing and is expected to yield positive results in the ensuing harvesting season. The company recognizes the importance of private farmers in the growth of the industry and is committed to amicably resolving contractual matters between the millers and the private farmers.”
