TONGAAT Hulett Zimbabwe has planted 700 hectares of winter wheat and sugar beans this year as part of a commitment to contribute to national food security initiatives.

In the previous cropping season, the firm delivered 7 000 tonnes of maize (grown on temporary fallow sugarcane fields) to the Grain Marketing Board (GMB).

In a trading update for the first quarter ended June 30, 2021, Tongaat Hulett said it produced 1 216 tonnes of seed maize in partnership with the country’s major seed house, Seed Co.

“A total of 700 hectares are under winter wheat and sugar beans,” it said.

On its 4 000ha Kilimanjaro sugarcane programme, the company said as previously reported, expansion works on the development project remain suspended due to delays in concluding funding arrangements with financial institutions pending further clarity on land tenure, both of which are being progressed.

The project is being undertaken by Tongaat Hulett Zimbabwe in partnership with the Government and local banks.

It has seen a total of 2 700ha of virgin land being bush-cleared and ripped and 562ha put under sugarcane.

“The recently launched partnership framework whereby Tongaat Hulett Zimbabwe is co-managing certain underperforming out-grower farms is gathering momentum and is expected to yield positive results in the ensuing harvesting season,” said the company.

“The company is also providing financial and technical assistance to a number of new sugarcane out-grower development projects.”

Tongaat said it awaits the finalisation of the 99-year lease relating to Hippo Valley North (23 979ha) and the Government has assured the company over the matter.

Total industry sugar sales into the domestic market for the quarter at 86 843 tonnes (2020: 66 492 tonnes) were 31 percent above same prior year due to a combination of strong demand and non-repeat of supply containment measures implemented in prior year to curb then existing speculative trading on account of price distortions.

“Price realisations in both local and foreign currency on the local market remained firm in current purchasing power terms.

“Sugar industry export sales for the quarter reduced by 66 percent to 10 873 tonnes (2020: 32 080 tons) as sales were maximised in the local market,” said Tongaat.

“The Kenya market, a key regional deficit market continues to be characterised by periodic temporary import restrictions, which the industry closely monitors and responds to by supplying other deficit markets.”

On outlook, Tongaat said the Lowveld dams hold sufficient stored water for an estimated three seasons of irrigation at normal water duty.

“The milling season commenced on schedule and is progressing satisfactorily. Barring unforeseen circumstances for the balance of the harvest season, which is almost half way through, industry sugar production for the current season is forecast at levels similar to last year,” it said.

“Due to the long cropping cycle of sugarcane, current cane expansion and yield improvement initiatives will impact production in future seasons.” — @okazunga