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Hippo Valley Estates sugar production in the 2014/ 15 season is expected to be around the same levels as the past year at 239 338 tonnes, chief executive Sydney Mtsambiwa said.In a trading update at the AGM, Mr Mtsambiwa said the goods rains have revived the industry’s expectations of restoring sugar production to installed capacity of around 640 000 tonnes by 2017-18.

“The underlying driver remains the availability of irrigating water but the February rains had brought sufficient supplies for the remainder of the season.”

The replanting programme  has resumed and is now back on track and is gaining momentum with  sugar production expected to progressively increase over the next four  years.

He said the liquidity crisis remains a major drag on operations but there were good prospects the environment would return to normal.
Sales were currently in line with expectations.

Mr Mtsambiwa said trading conditions had improved following regulatory interventions.

Government introduced a 10 percent duty on sugar imports and $100 for every tonne brought in.

“The amount of imports, which adversely affected our topline last year, have come down. We have also maintained competitive price levels.”

He also noted there had been a modest offtake of the domestic market

while discussions are ongoing with a more focused approach on Team Zimbabwe.

Mr Mtsambiwa said starafrica was now drawing down on raw sugar following its re-start and will contribute to volume improvement.

Internationally, Mr Mtsambiwa said the markets were very dicey with prices ranging from 13-14c/pound and what would be key would be how they were balancing the portfolio in order to offset the impact of the low prices. – Wires.