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Sugar producer, Hippo Valley Estates Limited says the local sugar industry has been negatively affected by the lifting of all restrictions on the importation of basic grocery items including sugar.
In a statement of financial results for the year ended 31 March 2023, Hippo Valley said the suspension of duty has resulted in sugar from stable economies being dumped onto the local market. The company said:
<blockquote>
With the recently introduced Statutory Instrument 80 of 2023 allowing duty-free importation of several commodities including sugar, the sugar industry faces huge pressure to compete against imports coming from competitors operating in stable and subsidized environments.
Additionally, the ongoing rolling power outages are set to compound recovery challenges across the economy.
The company continues to monitor and navigate these complexities and implement appropriate value preservation measures.
</blockquote>
In May last year, and again this year, the Government suspended import duty on 11 products, namely sugar, maize meal, rice, milk, flour, salt, cooking oil, petroleum jelly, toothpaste, bath soap, and washing soap.
Finance and Economic Development Minister, Mthuli Ncube, said the move was necessitated by unjustified price increases by suppliers.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Duty-free Sugar Imports Pile Pressure On Local Sugar Industry

Hippo Valley Estates Limited, a subsidiary of Tongaat Hulett, has announced the resignation of Finance Director Owen Hopelife Manasah with effect from 31 March 2022. He had been with the company for 10 years.
The agriculture and agro-processing firm also announced three new appointments to the Board of Directors with effect from 1 April 2022. The company said in a public notice:
<blockquote>
The Board wishes to advise shareholders of the following appointments to the Board with effect from 1 April 2022
<h2>Tapera Masarakufa</h2>
Tapera has been appointed as the new Finance Director of the Company. He is a seasoned Finance Executive with over 15 years of experience in the FMCG, manufacturing and agricultural sectors in Southern Africa.
Tapera is a Chartered Accountant who qualified with KPMG at the back of BACC (UZ) and BCompt (University of SA) Hons Degrees respectively, and currently Finance Executive and Executive Director of Triangle Limited.
He possesses the necessary academic and professional qualifications, technical competencies and personal attributes required to ensure his successful and seamless transition into this important role.
In addition, Tapera has considerable experience and knowledge of the sugar industry that is further buttressed by many years spent in senior financial management roles with Delta Corporation and Unilever Central Africa.
<h2>Duduzile Kereditse Shinya</h2>
Duduzile has extensive business and financial experience gained from working and directorship positions, in several companies including Schweppes Holdings Africa Limited and the Old Mutual Group.
She is currently the Acting Chief Executive Officer of the Zimbabwe Investment and Development Agency.
She also has experience as a member of Audit Committees of companies listed on the Zimbabwe Stock Exchange including Innscor Africa Limited where she is currently a director.
She is the current President of the Institute of Chartered Accountants and a member of the Public Accountants’ and Auditors’ Board (PAAB) Accounting Standards Committee.
Duduzile has been appointed as an independent Non-Executive Director and brings to the Board technical skills in finance and strategy, as well as relevant business and operational experience.
<h2>Nyasha Jill Jacqueline Mutsai</h2>
Nyasha is a human capital professional who has consulting, FMCG and financial services sector experience in the generalist human capital domain, as well as comprehensive specialist experience in remuneration and benefits at both end-market and regional levels.
She is currently the Chief Human Capital Officer at CBZ Holdings, Zimbabwe and has demonstrated thought leadership in the field of human capital.
Her experience took her through various roles within British American Tobacco that covered responsibilities across 26 markets in Europe and Africa.
Nyasha has been appointed as an independent Non-Executive Director and brings to the Board the much-needed strategic human capital management, transformation and diversity.
</blockquote>
<h4>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h4>

Hippo Valley Estates Announces Changes To Board Of Directors

Sugarcane farmers in the Lowveld are pushing Tongaat Hulett Zimbabwe to reduce milling charges which they consider punitive.
Under the division of proceeds (DOP) ratio, Tongaat Hulett, which operates mills in Triangle and Hippo Valley, is charging 23% of the total value of sugarcane milled.
Farmers say the charge is too high, making it difficult for them to sustain their operations.
An executive with the Commercial Sugarcane Farmers Association of Zimbabwe(CSFAZ), Daniel Tsingo, told Business Times that farmers want the milling charges to be reduced from the current 23% to at most 15% for them to make decent profits. Said Tsingo:
<blockquote>
DOP is the model currently being used to share proceeds between farmers and millers in Zimbabwe.
Farmers are not happy with the current ratio as they are not realising a fair return on their investment.
The milling charges should be somewhere between 5% to 15%, not the current 23%, which is punitive.
</blockquote>
However, Tongaat Hulett Zimbabwe’s corporate Affairs Executive Ushe Chinhuru said Zimbabwean farmers are getting the highest percentage to other countries in the region. He said:
<blockquote>
As of now, negotiations are being carried out through the ministry of Industry and Commerce so that we can find a suitable ratio for all parties.
The 5% to 15% that the farmers are requesting is not enough to cover the milling costs. 
Actually, in Zimbabwe, the farmers are getting the highest percentage to other countries in the region.
In South Africa, for example, farmers are getting 66% of the proceeds.
</blockquote>
Millers say they pay a premium to access uninterrupted electricity from power utility ZESA Holdings, which they mainly use for irrigation.
They also say that even though they have a power agreement with ZESA, they are still subjected to load shedding, which impacts crop productivity.
Millers generate some of their electricity using bagasse but it is not adequate to cover all irrigation processes which in turn affects crop yields.
To compensate for the low production of electricity, millers use coal as an alternative but the cost is very high.
As such, they consider that the 23% milling charge they take from the sugarcane farmers is justified.
<h4>More: <a href="https://businesstimes.co.zw/farmers-embroiled-in-dispute-with-tongaat-hulett/">Business Times</a></h4>

Farmers Push Tongaat Hulett To Reduce Milling Charges

Sugar production has dipped 12% according to the financial results of one of the country’s largest sugar plants, Hippo Valley, The Herald reports.
According to the publication:
<blockquote>According to the firm’s quarterly trading update, sugar produced during the nine months ended December 31, last year amounted to 211 267 tonnes, which was 12 percent below the 238 965 tonnes produced during the same period in the prior year.
The decline came as cane harvested from both the company and private farmers went down. Cane harvested from the company farms went down 5 percent to 1 010 571 tonnes from comparable prior year figures of 1 068 164 tonnes.</blockquote>
In a statement accompanying the financial results, the company said they were facing logistical challenges in the supply of imported critical inputs, spares and services. They also said demand for sugar had dipped as well.
More: <a href="https://www.herald.co.zw/sugar-production-dips-12-percent/">The Herald </a>

Sugar Production Plummets At Hippo Valley

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