Hippo Valley Estates has extended the milling season while implementing a revised cane delivery plan to catch up some of the lost milling capacity.
The initiative being done in conjunction with Triangle Mill is also expected to maximise sugar production and minimise the amount of cane carried over to the following season.
Hippo chief executive officer Mr Aiden Mhere however, indicated that despite these mitigations, the industry’s forecast sugar production for the 2023/24 season of 409 301 tonnes (2022/23: 396 682 tonnes) is unlikely to be achieved due to initial delays in the delivery of private farmers’ cane. There were also logistical challenges emanating from changes to the cane supply agreements, as well as intermittent mill break downs due to non-availability of certain spares.
“Although sugar production is expected to be below the prior season production, the industry will produce adequate stocks to meet the balance of the domestic market requirements in full, as well as its export commitments.
“Preparations for an effective off crop maintenance shutdown are progressing according to plan to ensure an efficient and reliable milling campaign in the 2024/25 season,” said Mr Mhere in an update for the half year to September 30, 2023.
He also indicated the commercial issues relating to the cane supply agreements for the current season were finalised well after the season started, with farmers choosing either a cane purchase agreement or a cane milling agreement.
“Due to volatilities and market risks in the economy, the parties will be re-engaging ahead of the coming season to review the cane supply agreements to ensure equitable outcomes for both parties.
“Government has further engaged interested stakeholders to make the necessary inputs to the Sugar Bill to pave the way for the repeal of the outdated Sugar Production Control Act of 1973, and the enactment of the new Sugar Act. These measures will help to resolve long standing legacy issues for the mutual benefit of all parties,” said Mr Mhere.
Meanwhile, Hippo, in partnership with Triangle Limited (jointly known as Tongaat Hulett Zimbabwe or THZ) continues to work with the Government and various financial institutions to progress the implementation of Project Kilimanjaro, a 4 000-hectare new sugarcane development.
Already, the first 700 hectares (called the Project Kilimanjaro Empowerment Block and benefiting 41 new farmers) has been planted with cane, of which approximately 594 hectares is earmarked for harvesting this milling season.
Indications are that the Government has already identified 116 new beneficiary farmers who have been allocated sugarcane plots on the balance of the 3 300 hectares of the greater Project Kilimanjaro.
Modalities for funding the completion of the project are being determined through the auspices of a joint steering committee comprising Government and THZ.
“The company remains focused on improving both cane yields and quality on its own plantations, whilst providing support to private farmers to improve their productivity.
“The co-management framework, whereby the Company farms land on behalf of willing farmers, continues to deliver positive results, with improved yields being realised for the benefit of the farmers,” said Mr Mhere.
He added that Hippo and Triangle Limited will continue to support other cane development projects (including the Pezulu Project in Western Triangle of close to 1 000 hectares and benefitting 28 new farmers).
These projects are intended to increase cane supply and maximise the existing installed sugar milling capacity within the industry, which is currently only 66 percent utilised.
Herald
