Sugar cane production increases

Business Reporter
NEW sugar cane farmers in the Lowveld increased their deliveries by 12 percent in the six-month period to 30 September 2013 compared to the same period last year. In a statement accompanying Hippo Valley’s financial results, the increased production was because of farmers responding positively to the rehabilitation initiatives embarked on in 2011.

“The private farmers collectively delivered 650 945 tonnes of cane over the six-month period to 30 September 2013, a 12 percent increase from 581 460 tonnes in 2012, inclusive of cane deliveries from Green Fuel amounting to 134 386 tonnes.”

The company’s sugar production for the period to 30 September amounted to 178 946 tonnes, a 11,2 percent increase from 160 910 tonnes for the same period last year. Total deliveries to the mill increased by 4,4 percent.

The industry is expecting an increase in cane production if there is adequate rainfall.

Said the company, “Industry production estimates for the 2013/2014 are between 460 000 tonnes and 478 000 tonnes of sugar, up from the 2012/2013 season’s 475 000 tonnes.”

The sugar industry directly employs about 24 000 people, mostly by indigenous farmers who received plots under the land reform programme.

The sector is at a recovery and expansion phase that is important for the development of indigenous farmers, said the agro-industrial giant.

The company said there is sufficient milling capacity to double current cane production.

It said as part of its on-going strategy to economically empower communities around its operations, it has embarked on a socio-economic upliftment drive to create value for relevant entrepreneurs, by developing sustainable new business enterprises and out-sourced services within its value chain, with particular focus on employment creation for the youth.