RYAN CHIGOCHE
Zimbabwe’s sugar exports plunged 68% in the nine months to December 31, 2022 owing to the COMESA quota and strong demand in the local market, Business Times can report.
Exports in the reviewed period stood at 31 607 tonnes compared to 97 620 tonnes reported in the prior comparative period.
In a trading for the quarter to December 31, Hippo Valley Estates said export sales volumes were reduced following the industry’s reduced COMESA quota allocation for the year into Kenya.
“The volumes originally targeted at the Kenyan market were redirected to the local market to satisfy the strong local demand. Efforts are underway to develop other regional markets to reduce Kenya market concentration risk. The country’s annual export quota to the United States of America remains secure and fully satisfied,” it said.
The domestic sugar sales, Hippo Valley said, increased by 10% in the reported period to 286 000 tonnes against 259 000 tonnes recorded in the same period in 2020.
Price realisations on the local market, in both local and foreign currency, remained firm during this period.
Meanwhile, for the 9 months ending 31 December 2021, Hippo Valley, who had a 54% share of total sugar volume sales in the period against 50% in 2020, reported a positive performance in their operations.
Cane deliveries from private farmers were 30% above the same period in prior year due to a 21% growth in yields and a 9% increase in area harvested, benefiting from prior year carryover cane.
As total cane milled remained stable, sugar production for the season under review increased by 2% from prior season due to an improved factory performance, following a successful prior off crop maintenance programme.
However, cane deliveries from the company’s plantations were 14% below the same period in prior year as the area due for harvest was reduced by 3% also a 11% drop in cane yields.
Having successfully concluded the past milling season in mid-December 2021, on the outlook the company is focused on a robust plant maintenance programme during the off crop season.
Hippo Valley is optimistic that water supply would cover three seasons.
