Zim sugar exports plummet 66%

LIVINGSTONE MARUFU

Zimbabwe’s sugar exports plummeted 66% in the quarter to June 30,2021 to 10 873 tonnes from 32 080 tonnes in the prior comparative period on the back of import restrictions  and strong local demand.

Total industry sugar sales into the domestic market  rose 31%  to 86 843 tonnes  from 66 492 tonnes during the comparative period.

“Sugar industry export sales for the quarter reduced by 66% to 10 873 tonnes from 32 080 tonnes during the same period in 2020 as sales were maximised in the local market,” Hippo Valley Estates Limited said in its trading update for the quarter to June 30,2021.

“The Kenya market, a key regional deficit market, continues to be characterised by periodic temporary import restrictions which the industry closely monitors and responds to by supplying other deficit markets.”

However, price realisations on the export markets were 9% higher than the same period  in prior year, it said.

Cane deliveries from the company’s plantations and private farmers were above the same period in prior year having benefited from prior year carryover cane and an earlier start to the harvesting season which began on  April  20 compared to  May 5 in 2020.

Consequently, sugar production for the quarter under review increased from same period prior year with a satisfactory factory performance, following a successful crop maintenance programme.

Hippo Valley’s contribution to the total industry sugar sales volume was  98 718 tonnes, which was 52.1%.

Expansion works on the 4 000 hectares cane development project , the Project Kilimanjaro, remained suspended due to delays in concluding funding arrangements with  financial institutions pending further clarity on land tenure, both of which are being progressed, the company said.

The project, which is being undertaken by the company in partnership with government and local banks, has seen a total of 2 700 hectares of virgin land being cleared and ripped and 562 hectares planted to sugarcane in prior years.

The recently launched partnership framework whereby Vippo Valley is co-managing certain underperforming out grower farms is gathering momentum and is expected to yield positive results in the ensuing harvesting season, the company said.

The company is also providing  financial and technical assistance to a number of new sugarcane out grower development projects.

In the recently concluded cropping season, the company  delivered some 7 000 tons of maize.

The company produced 1 216 tonnes  of seed maize in partnership with the country’s major seed house, Seed Co.

It is also awaiting the  finalisation of the 99-year lease relating to Hippo Valley North (23 979 hectares). Freehold title on Hippo Valley South (16 433 hectares) is being maintained.

The government has since assured the company that the administrative processes are nearing completion, paving the way for the issuance of the 99 Year Lease.