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Oliver Kazunga, Senior Business Reporter 

TONGAAT Hulett says it has made significant progress in developing its 4 000-hectare sugar project with 2 700ha of virgin land having already been cleared and ripped since the commissioning of the programme last November. 

The sugar project, which is called “Kilimanjaro” and designed to assist the underprivileged members of society, was launched in Masvingo by President Mnangagwa. In a statement accompanying financial results for the six months ended September 30, 2019, Tongaat Hulett said:

“Significant progress has been made to date following the official launch of the project by His Excellence President Emmerson Mnangagwa on November 9, 2019.

“To date, a total of 2 700ha of virgin land have already been bush-cleared and ripped, 4 000ha planted, six of 12 storage dams have been built, two pump stations have been installed and canals have been constructed.” 

The Kilimanjaro project is expected to be completed by the end of this year. It is envisaged that on completion the project will contribute significantly to the industry target of full utilisation of installed milling capacity of 600 000 tonnes of sugar by 2023/24.

More so, the Kilimanjaro project, which is fully supported by the Government and a consortium of banks, is also expected to provide about 2 000 direct and indirect jobs for the local community. 

“Tongaat Hulett said total industry sugar production from the recently concluded 2019/20 harvesting season was 441 000 tonnes which is less than the 453 000 tonnes in 2018. The reduced tonnage is as a result of reduced contribution of cane from third party farmers and low cane quality across the region. 

The giant sugar producer noted that while the commissioning of the Tugwi-Mukosi Dam in May 2017 provided security of irrigation water to the industry, subsequent poor rains have resulted in minimal inflows presenting a key risk to the industry. 

“Notwithstanding the current comparative low dam levels, the industry has irrigation water cover in excess of one season with expectations of improved rainfall activity in the February to April 2020 period. 

“With adequate water, the industry is accelerating efforts to maximise sugar production through yield improvement initiatives and the development of 4 000ha of virgin land to sugarcane by end of 2020,” it said. 

During the six months period under review, the company’s sugar production was 152 076 tonnes  which is marginally lower than the same period in prior year with total cane deliveries to the mill amounting 1,23 million. 

The company’s own cane deliveries amounted to 763 386 tonnes compared to 733 036 tonnes in 2018 while private farmers collectively delivered 469 914 tonnes compared to 471 920 tonnes in 2018. 

“Industry cane quality for the period was two percent lower than the prior season with cane to sugar ratio of 8.11  compared to 7.95 in 2018 partially offsetting the benefits of higher yields achieved by the company. 

“The high incidence of Yellow Sugarcane Aphids experienced in the region negatively impacted cane quality but robust crop management practices to contain the pest are being successfully implemented. 

“Other initiatives to restore cane yields to optimal levels are on-going with some 1 074ha having been ploughed out and replanted during the period,” said Tongaat Hulett. 

The company’s total revenue and operating profit for the period increased to $748 million compared to $425 million in 2018 respresenting a 76 percent increase. The company attributed the jump to timely price adjustment in the local market in line with inflation and higher net realisation from exports.

Resultantly, the sugar producer achieved a net profit for the period of $188 million compared to $22 million in 2018. —  @okazunga.