ZIMBABWE’s sugar cane sector faces mounting pressure from irrigation bottlenecks, rising input costs and unreliable transport, threatening the viability of growers despite government policy in pushing for expanded planting over the next marketing year.
In November 2025, the government unveiled a strategic plan aimed at increasing the area under sugar cane cultivation. However, industry observers warn that without corresponding investment in irrigation infrastructure, stable electricity supply and an efficient bulk transport system, the sector’s underlying economics will remain under pressure.
In its latest report, Foreign Agricultural Service Pretoria (FAS) said despite some optimism with sugarcane growth the domestic sugar market remains saturated.
“Water conveyance systems for irrigation are constrained in some existing sugar cane-growing regions, as well as in areas earmarked for expansion. In addition, growers are faced with rising production costs for key inputs, including agro-chemicals, seedcane and electricity.”
FAS Pretoria is an agency of the US Department of Agriculture which covers agricultural market reporting, trade policy and commodity analysis for southern Africa, including Zimbabwe.
According to the report some producers are remote from mills and previously used rail freight to transport their cane, however, the rail operations have reportedly been unreliable causing delays and losses.
“Some growers are located nearly 70 kilometres from processing facilities and previously relied on rail transport to move their cane to the mills, but rail service has reportedly underperformed,” FAS Pretoria said.
“As a result, growers now move more of their cane by trucks which increases overall transport costs and erodes profits, threatening the long‑term sustainability of their operations.”
However, despite these pinch points, FAS is projecting some growth in MY2026-27 compared to prior year.
“FAS Pretoria forecasts that MY2026-27 production will increase by four percent from MY2025/26 based on improved availability of water for irrigation and expanded area under sugar cane production,” the agency said.
Although electricity supply is reported to be more consistent compared to the previous season due to some large-scale growers paying a premium for electricity, production will not much exceed MY2024-25 levels because of electricity outages in some production regions during hot and dry periods.
The agency also anticipated a growth in the country’s domestic sugar consumption in marketing year 2026-27 by 6% compared with MY2025/26.
The expected increase is attributed to steady local retail prices, a modest reduction in the sugar levy on cordials, sufficient sugar availability and a drop in the annual inflation rate.
“Domestic consumption of sugar in Zimbabwe is constrained by high unemployment and elevated rural poverty rates,” FAS said.
According to FAS Pretoria domestic sugar prices typically exceed export prices, therefore, with MY2026-27 total sugar exports (raw and refined) will decline by 39% and imports by 14% due to available domestic supply.
“FAS Pretoria forecasts MY2026-27 total sugar exports (raw and refined) will decline by 39%, as the industry prioritises supplying the domestic market amid a continued downwards trend in imports,” the agency said.-newsday
