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following its collapse in recent years.
Hippo, which is majority owned by Ton­gaat Hulett of South Africa, said it had spent about US$14 million so far and the remain­ing hectarage would be planted between now and before end of next year.
Hippo, which owns vast cane estates in the Lowveld, said the project remained critical to the restoration of the industry’s sugar pro­duction to installed milling capacity of around 640 000 tonnes per year.
In a trading update last week, Hippo chief executive Mr Sydney Mtsambiwa said the total industry’s production for next year is expected to be between 450 000 tonnes and 500 000 tonnes.
Hippo’s share will comprise 48 percent. He said the company was enjoying premium prices and higher margins from exports to the European Union compared to the domestic market.
From last year’s industry production of  370 000 tonnes, about 125 000 tonnes were exported to the EU under preferential market arrangements at favourable prices (upwards of US$1 000 tonne of raw sugar in some instances) through the company’s marketing division, Zimbabwe Sugar Sales.
Domestic prices have, however, remained relatively stable, while international prices remain volatile as they are driven by a wider variety of factors although management is not expecting a downturn in the current sea­son from the 2011/12 competitive export prices.
In terms of throughput (tonnes cane per hour), the company is currently at 56 percent out of a rated capacity of 450 tonnes. The recovery of the Zimbabwe sugar industry is on going, underpinned by the accelerated private farmer sugarcane rehabil­itation programme initiated in 2010/11 under the Sustainable Rural Communities project.
Mr Mtsambiwa said Hippo continues to benefit immensely from its synergies with Tongaat Hulett especially on the marketing side.
Analysts said with recovery expected at starafrica, Hippo could push higher vol­umes in the domestic market, while continu­ance of the European Union preferential agreement will also guarantee a stable mar­ket.