Tongaat Hullet unveils US$45m deal

200 newly resettled sugarcane farmers in the Lowveld.
Under the deal that will be implemented in phases over the next three years, Tongaat Hullet that owns Hippo Valley and Triangle estates and sugar mills, will assist farmers with tillage services, fertilisers and replanting of their cane crop.
This is part of efforts to increase sugar cane production in the area.
According to sources close to the deal, Tongaat Hullet is also expected to move into the rehabilitation of canals and overnight water storage facilities feeding into new farmers’ fields.
The company would then recoup its money from the farmers after delivery of their crop for milling until the loans are fully serviced.
Commercial Sugar Cane Farmers Association of Zimbabwe chairman, Mr Admore Hwarare, recently confirmed the deal by Tongaat Hullet saying some of the newly resettled cane farmers had already started benefiting from the facility.
Mr Hwarare said the deal was a major stepping stone for new farmers and would go a long way in enhancing their farming operations.
“It is a good deal offered to us by Tongaat Hullet and some of our members have already started to benefit from the facility where the company (Tongaat Hullet) will provide tillage services for new farmers and then plant a new cane crop that will also be provided with free fertilisers on a loan basis that will be recouped at the end of the milling season.”
“Tongaat Hullet has already released the first batch of about US$3,5 million and some farmers have already started to benefit.
“We welcome the deal for it will greatly enhance our farming operations,” said Mr Hwarare.
“The sugarcane farmers’ association boss added that under the deal,beneficiaries will get tillage and inputs from Tongaat Hullet for an area measuring one to five hectares, a development he stressed was welcome as most new farmers were even struggling to carryout farming operations on a single hectare.
Mr Hwarare said the deal, which would be rolled out over a three year period.
He said the deal would result in a sharp increase in sugar production as most sugarcane plots were lying idle and heavily under-utilised due to lack of funding.
New farmers who benefited from the Government’s land reform programme have been struggling to carry out farming operations in the capital intensive sugarcane farming sector forcing most of the farmers to leave their plots idle.