Harare – Sugar producer, Hippo Valley Estates Limited (Hippo) says the Tugwi-Mukosi dam has provided security of irrigation water for the next two years at optimum crop requirements.
Hippo said irrigation water at Tugwi-Mukosi is expected to increase sugar production in the coming farming seasons.
“Total industry sugar production for 2018/19 is expected to be between 450 000 tons and 460 000 tons compared to 392 000 tons achieved in 2017/18, increasing to over 500 000 tons in 2019/20.
“With adequate water, the industry will accelerate current e‑orts to maximize sugar production through yield improvement initiatives and new sugarcane development projects on some 4 000 ha in partnership with private farmers, targeting full utilization of installed industry milling capacity of 640 000 tons sugar by 2020/21,” said Hippo.
The Company said additional sugar production will support higher export volumes into high premium regional deficit markets with specific focus on East Africa.
It said with the annual inflation rate for October 2018 reported at 20.85 percent amidst the acute shortage of foreign currency, the business environment will remain challenging in the short to medium term.
Hippo said the economy turnaround is reliant on the successful implementation of the Transitional Stabilisation Programme coupled with good governance.
“Expectations of a positive turnaround will depend largely on the successful implementation of the Government’s Transitional Stabilisation Programme Reforms Agenda (October 2018 - December 2020) and commitment to good governance in both the public and private sectors.”
In addition, the Company said whilst uncertainties relating to the security of land tenure persisted in the reporting period, agreement has now been reached with Government providing the Company with assurance of the security of its assets in the country.
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