HomeBusiness DigestSugar shortage looms

Sugar shortage looms

HIPPO Valley Estates Ltd (Hippo) says because cane yields have declined by 10% Zimbabwe will face reduced sugar production for the current year.

The company this

week said its Mkwasine Estate was issued with a fresh Section 8 Order on July 23 which was followed up by a Section 7 Order, making production very difficult.

Thousands of commercial farmers countrywide have been issued with Section 7s and 8s and are undecided on whether to continue farming when such cases occur.

This has resulted in production declining in virtually all sectors of the country’s agricultural sector.

“Appropriate legal action is being taken,” Hippo said. “Hippo Valley Estates remains listed under Section 5. Representations are ongoing with the relevant authorities to secure a de-listing of both properties.”

The company said the dispute between some commercial cane farmers and some A2 cane farmers on the ownership of cane delivered during the 2003 milling season was still to be resolved by the High Court.

“All proceeds received to-date in respect of the disputed cane for the 2003 crop, amounting to $4,34 billion, have been paid over to the High Court in accordance with the provisions of the interpleader proceedings,” Hippo said.

It said due to lower rates of evaporation occasioned by lower mean temperatures and shorter periods of sunshine, cane yield had declined by 10% compared with budget.

“This will inevitably result in reduced sugar production for the current year,” Hippo said. – Staff Writer.

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