Hippo’s export sales volumes increase by 27pc
Hippo Valley Estates Limited, a subsidiary of Tongaat Hullet Company, had its export sales volume grow by 27 percent to 40,246 tonnes in the third quarter ended December 31, 2022 against 31,607 tonnes in the prior year.
The company highlighted in its trading update that there was an improved allocation of the United Stated Tariff Rates Quota which contributed to higher export prices and efforts are underway to expand the regional export market base so as to reduce the market concentration risk.
“The third quarter, also witnessed an increase in the proportion of foreign currency transactions in the country and a constraint in the availability of the Zimbabwean Dollar” reads part of the trading update.
During the period under review, total cane harvests from the company and private farmers grew by 4 percent.
“The increase was driven by a 6 percent improvement in yields to 97.98 tonnes per hectare resulting from improved control of yellow sugarcane aphid infestations through aerial spraying” said the company.
As part of its sustainable socio-economic development Hippo Valley and Triangle limited (a sister company) in partnership with the government, planted 603 hectares of wheat at Mwenezana Estates as part of the efforts to alleviate food shortages in Masvingo Province.
“A rigorous training programme is currently running where farmer supervisors are taken through sugarcane crop production courses and the company is working closely with the government to operationalise the memorandum of understanding with respect to progress on the Kilimanjaro project as part of socio-economic development”, said Hippo Valley.
Going onwards the company’s sugar production for the upcoming 2023/24 season is forecast to be marginally above levels achieved this season.
On a setback, Hippo said that in November 2021 one of the company’s production lines suffered a breakdown that resulted in the early closure of the affected production line but repairs have since been realized to ensure the line will be functional in the upcoming season.-ebsuinessweekly
