Hippo Valley Estates, is the local unit of South African sugar processor Tongaat Hulett.

HIPPO Valley Estates says it expects an increase in sugar production in the 2016/17 season largely premised on the completion of the Tokwe-Murkosi Dam and a favourable rainfall forecast.
A forecasted world sugar deficit would also provide a boon in terms of pricing for the sugar manufacturing giant.

Hippo Valley Estates, is the local unit of South African sugar processor Tongaat Hulett.
Chief executive, Sydney Mtsambiwa said production is expected to increase up to 220 000 tonnes from 204 000 tonnes due to an anticipated increase in irrigable land if Tokwe-Murkosi Dam is completed by December.
 “Our two sugar mills have been performing very well. Recoveries are better than they were last year and we anticipate the outturn for 2016/7 to reflect some improvement. From a production point of view, we anticipate to produce 180 000 to 220 000 tonnes of sugar this coming year,” he said. This is against total industry production of between 379 000 tonnes to 440 000 tonnes.

Earlier this year, Hippo reported a 10 percent decline in annual production due to restricted irrigation and a drop in sugarcane yields. The low production volumes pushed the company to an after tax loss of US$8,5 million in the full-year to March from a profit position of US$7, 3 million previously.
 The target goal for the industry continues to be the attainment of the sugar production installed capacity of 640 000 tonnes per annum. Hippo sugar production for the year ended March 2016 dropped 11 percent to 204 000 tonnes against 228 000 in the comparable year.
“We anticipate that the dam will be completed by the beginning of next raining season and we expect that the dam will provide water during the 2016/17 rainy season, further mitigating irrigation water risk, and presenting new development opportunities for industry expansion,” said Mutsambiwa.
Hippo expects to cash-in on the anticipated 1,5 percent annual growth in global sugar consumption. Prices abroad are getting a fillip from a deficit forecast by the International Sugar Organisation. The London-based agency had in May forecast a 3,8 million tonne deficit for 2016-17.