Zimbabwe: Bitter times for sugar industry

Published 2022년 8월 6일

Tridge summary

Zimbabwe's sugar industry experienced an 8% decline in domestic sales for the quarter ending June 30, 2022, due to reduced production and demand caused by economic challenges such as decreased discretionary incomes, currency shortages, and high interest rates. The country's largest sugar producer, Hippo Valley, saw a decrease in its share of total industry sugar sales from 52.1% to 54.5%. Despite the depreciation of the Zimbabwe dollar and exchange rate dynamics, Hippo Valley reported a 22% increase in cane deliveries from its plantations. The industry is struggling against cheap imports and is seeking a competitive playing field, while also focusing on improving cane quality and increasing production.

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Original content

Source: Bitter times for sugar industry | Herald (Business) Business Reporter Zimbabwe’s sugar industry registered an 8 percent decline in sales into the domestic market for the first quarter ended June 30, 2022 owing to reduced production as well as reduced demand due to purchasing power constraints experienced by customers, key industry player Hippo Valley said. The sugar sales declined from 91 645 tonnes to 84 228t. Hippo Valley’s, the country’s largest sugar producer, share of total industry sugar sales volume of 94 257t for the quarter under review was 54,5 percent, down from the comparable period volume of 98 718 tons was 52.1 percent. Reduced discretionary incomes, currency shortages, high interest rates, exchange rate distortions and the impact of high inflation on local currency are all seen as consequences of monetary policy uncertainty. “Despite the merging of auction rate with Willing Buyer Willing Seller as the country’s official rate, the Zimbabwe dollar suffered a ...

Source: Zimbabwesituation