Raw sugar price up 33 percent

Zimbabwe. Estates that grow sugarcane in the country include multinationals Triangle, Hippo Valley, Mkwasine as well as Chapiwa, a resettlement scheme where the farmers have about 10 hectares each and Mpapa, a group of farmers with about 35 hectares each. Commercial Sugar Cane Association of Zimbabwe secretary-general Darlington Chiwa said this year’s price was viable.
“When we deliver raw sugar to the market farmers we always want to go back to the field and with US$700 we will be able to recoup production costs,” he said.
“Farmers will also be able to prepare for the 2012/13 cropping season,” he added.
Chiwa said farmers had negotiated the price, which was determined by global sugar prices trends.
“The price is reviewed quarterly and if there is an increase farmers will get their bonus,” he said.
“For now farmers are being paid US$700 until the next review. We hope the price will continue on the upward trend on the international market,” he said.
Harvesting of sugarcane started in April and is expected to run until December. Sugarcane production in the 2012/13 season is estimated at 3,5 million tonnes, 17 percent more than the 3 million tonnes of 2011/12 season. Zimbabwe exports at least 40 percent of its raw sugar onto the international market. Sugar is the third foreign currency earner after tobacco and cotton.
Zimbabwe is expecting to harvest 372 000 metric tonnes this year, representing an 11 percent increase from last year’s 335 000 tonnes. — New Ziana.

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