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George Maponga in Masvingo

Over 1 200 sugar cane out-grower farmers in the Lowveld have delayed harvesting of their cane, affecting the opening of the 2023/24 milling season, until they hammer out an acceptable payment model for their crop with Lowveld-based miller Tongaat Huletts Zimbabwe.

Tongaat is the sole owner of Zimbabwe’s only two sugar mills at Hippo Valley and Triangle in Chiredzi but out-grower farmers have of late been unhappy with payments for their crops which they argue are unsustainably poor.

Farmers say the poor payments for their crop in the immediate past milling season almost bankrupted the majority most of whom are battling a very big debt overhang.

Last season, farmers delivered their cane for milling using a Milling Agreement(MA) which basically entails that they own sugar milled by Tongaat until it is sold in shops. Under this model, farmers also own by-products from sugar milling such as molasses.

Some farmers are now pushing for a Cane Purchase Agreement(CPA) where a farmer sells his sugar cane to Tongaat and gets a one-off payment for the tonnage of delivered cane at an agreed price before it is processed into sugar.

Talks have been ongoing between farmers’ representatives and Tongaat over an acceptable payment model for the 2023/24 milling season, delaying the start of sugar milling which traditionally runs from April to December.

Zimbabwe Sugarcane Development Association(ZSDA) spokesperson Mr Saul Chin’anga says delays in harvesting by out-grower will not impinge the availability of sugar in the local market.

“On behalf of ZSDA, please note that our Association takes note of the progress made so far in finalizing the Milling Agreement and the ongoing discussions concerning the Cane Purchase Agreement. It is our considered view that should all parties put their attention to these matters, the two agreements can be finalized in the next 10 days,” said Mr Chin’anga.

“We have therefore discouraged our farmers from delivering their sugarcane without an agreement in place. This delay in supplying sugarcane to the mills will in no way affect the availability of sugar in the country for three reasons. Firstly, we closed the last season on 31 March 2023 with excess sugar, enough to meet local demand well into the new season. Secondly, the delay in supplying sugar cane is just 10 days and this will not disrupt the availability of sugar. Thirdly, THZ has started crushing its own sugarcane for the new season.”

Commercial Sugarcane Farmers’ Association of Zimbabwe chair Mr Admore Hwarare in an audio message to his members, says farmers who harvest their cane without a Milling Agreement or a Cane Purchase Agreement with Tongaat were just like “sellouts”.

“I advise all members to stop harvesting their cane until we have an agreement in place with Tongaat. We must unite as farmers and speak with one voice so that we get fair payment for our cane which is difficult to tender for the whole year “said Mr Hwarare.

He said challenges affecting the sugar industry are getting attention from the highest offices in the land saying farmers toiled for nothing in the 2023/24 season after they were paid peanuts for their crop.

Outgrower farmers who benefited from the land reform programme now produce about 45 percent of Zimbabwe’s total sugar but of late high costs of inputs such as fertiliser and labour on top of a high milling charge were affecting farmers’ viability.