RYAN CHIGOCHE
Tongaat Hulett is edging closer to securing the balance of the 99 year leases for the land it occupies with the Zimbabwe government attorneys now reviewing the crucial document at the behest of the sugar processor, the company has said.
Government has so far issued three lease blocks in respect of Hippo Valley North, out of the eight lease blocks as at June 30, 2022.
Tongaat Hulett owns cane fields in Hippo Valley and Triangle which stretches over 25 000 hectares and has requested government to effect some changes on the lease document, in consultation with the Lands, Agriculture, Fisheries, Water and Rural Development minister Anxious Masuka.
“The Minister has assured the company that the balance of leases will be signed once the review of the 99-year lease document has been completed. The company is appreciative of the continued support it is getting from government on this matter,” Tongaat Hulett said.
The development comes a year after government renewed Tongaat Huletts’ sugar milling licence by another 20 years.
In a trading update for the quarter to June 30, 2022, Hippo Valley plantations cane deliveries stood at 347 178 tonnes, which were 22% higher than the same period last year, owing to a combination of increased harvesting targets in accordance with total crop estimates, a more efficient cane haulage system, and greater mill uptime.
Private farmers delivered 235 264 tonnes, which was 13% lower than the previous year due to rainfall in April 2022, which delayed harvesting.
While cane deliveries were greater than the previous year, sugar output was 4% lower than the same period the previous year, owing mostly to inferior cane quality due to the region’s protracted rainy weather.
The company said it will continue to pursue the Kilimanjaro project, in collaboration with the government and banks.
The government has since awarded 41 new recipients access to 700 acres of the developed Project Kilimanjaro, a cane development project.
Tongaat Hulett has also secured US$5.2m from a local bank to develop the 1168 ha Pezulu project.
There are several other banks showing interest pouring in cash for the project.
Tongaat Hulett, however, bemoaned the influx of cheap sugar imports.
“Although local demand for sugar remains strong as 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. 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,” Tongaat Hulett said.
Tongaat Hulett said the sugar industry’s sales into the domestic market was 84 228 tons, in the quarter to June 30reflecting an 8% decrease from 91 645 tons achieved in the prior comparable period due to the high cost of sugar and the reduced purchasing power of consumers.
