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Edgar Vhera
Agriculture Specialist Writer
THE sugar industry has recorded a 19 percent surge in output from 371 million kilogrammes in 2023 to 440 million last year, Zimbabwe Stock Exchange (ZSE) listed sugar manufacturer, Hippo Valley Estates Limited has revealed.
Hippo Valley Estates Limited chairman, Mr Canaan Dube disclosed this in a recent trading update for the third quarter ended December 31 in 2024.
The update showed that total industry sugar production rose from 370 600 tonnes in 2023 to 439 542 tonnes last year, while that for the company grew 13 percent from 194 684 to 219 112 tonnes in the same period.
“The harvesting season closed with good performances following an 18 percent increase in cane deliveries from the company’s plantations driven by a seven percent improvement in yields and a more consistent rate of delivery of sugar cane.
“Private farmers recorded a seven percent drop in cane deliveries despite a four percent increase in yield,” he said.
Mr Dube said the crushing period ended with increased sugar production, supported by improved mill uptime after a successful off crop maintenance programme prior to commencement of the 2024/25 season.
The total cane hectarage declined by two percent from 22 873 in 2023 to 22 319 due to a combination of both company and private farmer drops of four and one percent respectively.
The company said local sales received a boost following the repeal of Statutory Instrument (SI) 80 of 2024, which triggered high demand for the Huletts ‘Sunsweet’ brand.
Local sugar sales increased 22 percent from 227 855 tonnes in 2023 to 279 112 tonnes in 2024. The company’s deliberate prioritisation of local market demand over low margin export market resulted in export sales dropping 53 percent from 67 527 tonnes in 2023 to 32 003 tonnes last year.
“The company has adequate sugar stocks to satisfy firstly the local market and critical export markets.
“Unfortunately, unfortified sugar brands illegally imported are still visible in the local market and relevant authorities have been alerted,” he said.
Following the good agricultural and milling operational performances in the 2024/25 season, Hippo Valley is banking on continuous improvements supported by adequate water cover for the ensuing year with Mkwasine water challenges managed through water rationing.
In the outlook, a successful off crop campaign that is currently progressing well, will guarantee good mill recoveries and efficient cane deliveries.
The upholding of the reinstated duty on imported sugar as well as cost savings achieved through project ‘Zambuko’ will boost the company’s business operations.
To assist local production firms, the Government this year issued a directive to impound illegal imports, with sugar among the identified 19 goods.
Statutory Instrument 7 of 2025 [Chapter 23:02] Customs and Excise (Designated Deemed Smuggled Goods) Regulations, read: “It is hereby notified that the Minister of Finance, Economic Development and Investment Promotion has, in terms of section 235, as read with section 8 of section 223A of the Customs and Excise Act [Chapter 23.02], made the following regulations: — (1) These regulations may be cited as the Customs and Excise (Designated Deemed Smuggled Goods) Regulations, 2025. (2) These regulations shall be deemed to take effect from the 28th November, 2024.
“2. Subject to section 3, the Minister of Finance, Economic Development and Investment Promotion hereby designates the goods of a commercial nature listed in the Schedule below for the purpose of section 223A of the Act.”
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube said all those found in contravention of the regulations will be liable to payment of the duty and applicable penalties.
Online Reporter