The Sunday News
Rutendo Nyeve, Business Reporter
LISTED leading sugar producer Tongaat Hulett Hippo Valley Estates has projected a positive outlook for the sector that will see improved operating efficiencies and cost competitiveness.
The company has further revealed that they are positioned well in safeguarding the health of the local population from some of the sugar imported which is not Vitamin A fortified as required by law.
This follows a number of developmental projects undertaken by the government and the company that have inspired the positive outlook of the sector.
Project Kilimanjalo, Tugwi-Mukosi and Mtirikwi dams are some of the projects that are set to accelerate opportunities for horizontal expansion of new sugarcane projects.
Numerous beneficiaries who are part of the economic empowerment and social transformation process spearheaded by government are also set to inspire the growth of the sugar producing industry.
In a statement last Wednesday, Tongaat Hulett Board Chairman, Mr Canaan Dube explained these and other initiatives undertaken by both the government and the company that will inspire the acceleration of the sector.
Mr Canaan Dube
“Hippo Valley Estates Limited, in partnership with sister company Triangle Limited, Government and banks continue to progress the cane expansion project, Project Kilimanjaro. Government has since allocated 700 hectares of the developed sections of the 4 000 hectares Kilimanjaro Project to 41 new beneficiaries as part of the economic empowerment and social transformation process.
Harvesting of the 562 hectares, fully planted, is in progress with some very good yields being realised, whilst the balance of 138 hectares is currently being planted to complete the Empowerment Block,” said Mr Dube.
Regarding Tugwi-Mukosi and Mutirikwi Dams, the board chairperson said the industry is set to accelerate opportunities for horizontal expansion with new sugarcane projects, feeding off this robust water system, mainly for the benefit of new farmers who are keen to supply the cane to the mills.
He said the industry is also working closely with the Zimbabwe National Water Authority to enhance the industry water conveyancing infrastructure, to cope with the increasing farming and irrigation activities in the Lowveld.
Covid-19
Mr Dube said although local demand for sugar remains strong as the industry recovers from the impacts of Covid-19, the sugar industry is engaging authorities to ensure an even competitive playing field against cheap imports of sugar originating from surplus producers who enjoy duty protection in their host countries.
“Significant improvements in yields on existing farms are expected in coming years at the back of continued technical support being extended to the farmers by the Company and the Zimbabwe Sugarcane Experiment and Research Station in replant programmes, introduction of new varieties, focus on best farming practices and mechanisation.
The resultant increase in cane supply to the mills should improve operating efficiencies and cost competitiveness.
“This is also in an attempt to safeguard the health of the local population as some of the sugar imported is not Vitamin A fortified, as required by law.
The substantial off-crop maintenance programme has been successfully completed and the mills have started the new season well with focus being on increasing production and capitalising on efficiencies,” said Mr Dube.
