Chronicle Editor
Oliver Kazunga, Senior Business Reporter
GOVERNMENT has set aside and allocated 700 hectares of land under the Kilimanjaro sugarcane project to new farmers in the Lowveld as part of the ongoing empowerment initiatives.
The new cane project is being developed on a 4 000-ha piece of land by Hippo Valley and its sister company, Triangle Limited.
In a trading update for the third quarter ended December 31, 2021, the company said it recognises the importance of private farmers in the growth of the industry and was committed to amicably resolving contentious contractual matters between the millers and the private farmers.
“A total of 700ha of the Kilimanjaro project has been set aside and allocated to new farmers by Government as part of the on-going empowerment initiatives by Triangle Limited and Hippo Valley Estates Limited,” it said.
“Farmers have already benefited from the proceeds of the 562 hectares planted to sugarcane in prior years at the back of impressive yields achieved in the past season.”
During the same period last year, cane deliveries from private farmers were up by 30 percent to 768 804 tonnes compared to 592 722 tonnes in 2020.
This was due to a 21 percent growth in yields and a nine percent increase in area harvested, benefiting from prior year carryover cane.
“Completion of Kilimanjaro and other projects will significantly increase sugar production to meet increasing local demand at the back of a growing population and recovery of the beverages industry, with surplus for export,” said the company.
“In addition to the long-established input support and technical assistance programmes to private farmers, the recently launched framework whereby Tongaat Hulett Zimbabwe is co-managing certain underperforming private farms is ongoing and is expected to yield positive results in the ensuing harvesting season.
The company recognises the importance of private farmers in the growth of the industry and is committed to amicably resolving contentious contractual matters between the millers and the private farmers,” said Hippo Valley.
The agro-industry concern said the 2021/22 sugar milling season closed in mid-December with no cane carried over to the next season.
“Cane deliveries from the firm’s plantations (miller-cum-planter) were 14 percent below the same period in prior year due to a combination of a three percent reduction in area that was available for harvest and a 11 percent drop in cane yields, due to insistent cloud cover during the past rainfall season, which constrained cane growth during the peak growing period,” it said.
While private farmer yields were an estimated 20 percent below those on the company’s plantations, Hippo said the positive trajectory from prior years was commendable.
Total cane milled remained stable, sugar production for the season under review increased by two percent from prior season due to an improved factory performance, following a successful prior off crop maintenance programme.
During the period under review, Hippo Valley produced 209 239 tonnes while during the corresponding period in 2020, a total of 204 384 tonnes.
– @KazungaOliver
Online Reporter