eBusiness Weekly
Oliver Kazunga
OVER 3 000 hectares of land that is part of the 4 000ha Kilimanjaro Sugarcane project at Hippo Valley Estates, remain undeveloped pending finalisation of tenure issues by the Government.
The US$40 million Kilimanjaro Sugarcane project expected to empower indigenous out grower farmers through the allocation of individual plots on the nearly 3 300ha was launched by President Mnangagwa in 2019.
Hippo Valley Estates Limited, in partnership with its sister company- Triangle Limited, the Government and banks continue to progress the cane expansion project, Project Kilimanjaro.
“Development on the remaining 3 300ha (of which 1931ha are fully bush cleared, land preparations and other infrastructure substantially progressed) remain on hold pending resolution of tenure issues relating to this block, which are being progressed with Government, further to which appropriate funding mechanisms will be put in place,” said Hippo Valley in its annual report for the year ended March 31, 2022.
The Government has pledged to grant the sugar-growing and processing company a 99-year lease on the Hippo Valley Estates.
“As at June 30, 2022, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development had initiated the process for the issuance of 99-year leases with three lease blocks (out of a total of eight lease blocks) issued in respect of Hippo Valley North.
“In consultation with the Ministry, the company has requested certain changes to be effected on the lease documents, a process now being undertaken by Government Attorneys.
“The Minister has assured the company that the balance of leases will be signed once the review of the 99-year lease document has been completed,” said Hippo Valley.
The Government has since allocated 700ha of the developed sections of the 4 000ha Kilimanjaro Project to 41 new beneficiaries as part of the economic empowerment and social transformation process.
“Harvesting of the 562 ha fully planted is in progress with a yield of 121 tonnes cane per hectare having been realised to date, whilst the balance of 138ha is currently being planted to complete the Empowerment Block.”
To further contribute to socio-economic transformation and facilitate inclusion of more local farmers in the sugar value chain, Hippo Valley and Triangle Limited, are actively assisting new farmers who have been allocated virgin land with clear water rights.
In areas close to the mills, the new farmers are also being assisted with technical and commercial feasibility studies, mobilisation of funding and where required actual development of the land to sugarcane on a full cost recovery basis.
“Good progress has been made with respect to the development of 1 168ha of Pezulu Project with one local bank having availed US$5,2 million (about 50 percent of the total development cost) with other banks indicating a willingness to fund the balance.
“Following recommendations from the Ministry of Industry and Commerce, a Tribunal constituting of three arbitrators was set up to determine commercial issues relating to the sugar milling agreement for the 2022/23 milling season.
“The arbitration is at an advanced stage, with anticipation of concluding the process within the current milling season,” said the company.
On inputs and extension support to private farmers, Hippo Valley said the process was ongoing and the company continues to implement various vertical and horizontal sugarcane growth programmes.
“A partnership framework whereby Tongaat Hulett Zimbabwe is co-managing certain underperforming out-grower farms is progressing satisfactorily.
“To date, 61 farmers have volunteered to partner with the Company in the co-management arrangement.
“Under the co-management framework some 593ha have been ploughed out and replanted to new roots,” it said.
In the outlook, Hippo Valley said with Tugwi-Mukosi and Mutirikwi dams close to full capacity, the industry is set to accelerate opportunities for horizontal expansion with new sugarcane projects, feeding on the robust water system, mainly for the benefit of new farmers who are keen to supply the cane to the mills.
However, it said water supply to the Mkwasine out-growers was presently constrained on account of challenges on the Siya-Manjirenji system, and work was already underway to attend to the issue.
“The industry is also working closely with the Zimbabwe National Water Authority to enhance the industry water conveyancing infrastructure, to cope with the increasing farming and irrigation activities in the Lowveld.
“Significant improvements in yields on existing farms are expected in coming years at the back of continued technical support being extended to the farmers by the company and the Zimbabwe Sugarcane Experiment and Research Station (ZSAES) in replant programmes, introduction of new varieties, focus on best farming practices and mechanisation.
“The resultant increase in cane supply to the mills should improve operating efficiencies and cost competitiveness,” it
said.
The current crop is projected to yield more than the prior season following improved irrigation regimes, repairs to pumping installations and proactive initiatives to contain the yellow sugar cane aphid discovered in the region.
In the year under review, cane deliveries from Hippo Valley’s plantations (miller-cum-planter) decreased by 14 percent to 897 334 tonnes from 1, 043 million tonnes in 2021.
“This was mainly due to lower yields that emanated from a combination of yellow sugarcane aphid infestations and water logging of soils induced by incessant rains received between December 2020 and March 2021 that adversely impacted crop development.
“In addition to this, early start-up of the milling season in April 2021 resulted in crushing of younger cane occasioned by a strategic decision to reposition the milling season so as to maximise growing and milling efficiencies in future seasons,” it
said.
