admin
Elton Manguwo
ZIMBABWE Stock Exchange (ZSE) listed agricultural concern, Hippo Valley Estates has recorded a nine percent surge in sugarcane production driven by contributions from private farmers.
Production figures rose from 475 729 tonnes recorded in the first quarter ended June 30, 2023 to 519 086 tonnes posted in the corresponding period this year.
In a statement, company chairman Mr Canaan Dube indicated that private farmers increased their sugarcane deliveries to the company by 18 percent to 221 902 from 186 806 last year signalling improved volumes for the company.
“The performance of private farmers has improved compared to the previous year. Previously, the farmers’ performance was adversely affected by delays in the finalisation of supply agreements between the farmers and the company,” he said.
Earlier sugarcane deliveries during the recorded period allowed the company to better manage its supply chain and processing capacity, leading to improved overall performance from the private farmers.
“By resolving the supply agreement issues that had caused delays in the past, the company has enabled private farmers to deliver their cane more consistently and efficiently, resulting in better productivity and output from the private farmers,” said Mr Dube.
Hippo Valley Estates leveraged its agronomic knowledge and resources to uplift the productivity of the previously underperforming private farmers.
In turn, the improved yields from these farmers contributed to a stronger overall supply of sugar cane for the company’s processing facilities.
“The improved yields translate to higher incomes and economic opportunities for the participating farmers and this has the potential to catalyse broader socio-economic development within rural farming communities,” said Mr Dube.
Recently, the sugarcane processing giant took proactive steps to support 1 000 independent farmers with both inputs and technical assistance as a strategic initiative aimed at driving growth for both the farmers’ operations as well as the company’s revenue streams.
Empowering the 1 000 farmers to increase their sugar cane output will contribute to growth in the overall supply of cane delivered to Hippo Valley Estates’ processing facilities.
“Our ability to source a larger volume of sugar cane from the private farmers’ network during the first quarter serves as a positive indicator of the company’s efforts to support and integrate these private producers,” said Mr Dube.
The company is committed to ensuring adequate sugar stockpiles to meet all of its critical sales requirements for the full year, even before the start of the next sugar production season.
“By proactively managing our sugar stocks in this manner, we are able to avoid potential shortages or supply chain disruptions that could impact our ability to serve both the domestic and export markets,” said Mr Dube.
Online Reporter