Zimbabwe: Sugarcane farmers demand better deal from millers

Published 2023년 3월 5일

Tridge summary

Sugarcane farmers in Zimbabwe's Lowveld region are seeking fairer repayment terms for advances provided by millers, particularly from Tongaat Hulett, due to the current funding structure leading to unsustainable debt growth. The Association of Sugarcane Farmers (ASF) highlighted the 30-day repayment period and high interest rates as unfavorable and not in line with the sugarcane production cycle. Tongaat defends its voluntary co-management scheme, which provides technical services and input purchases on credit, and stands at about 1,400 hectares. The scheme includes agreements that result in cash flow issues for farmers. Despite these challenges, Tongaat continues to support farmers through extension services and financial assistance, offering advance payments against future sugar sales to help with cash flow.

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Original content

Source: Sugarcane farmers demand better deal from millers | Sunday Mail (Business) Martin Kadzere SUGARCANE farmers in the Lowveld are appealing for “better” repayment terms for advances they receive as working capital from millers, arguing the current funding structure is threatening their viability, The Sunday Mail Business can report. Tongaat Hulett, which owns Zimbabwe’s major sugar milling assets, runs a scheme under which farmers get advances as working capital and are required to repay in 30 days. Failure to repay, the farmers, who produce about 46 percent of sugarcane, are charged 16 percent interest in Zimbabwe dollars or 12 percent in US dollars, which is compounded if they fail to pay within 30 days. According to the Association of Sugarcane Farmers (ASF), this leads to unsustainable growth of debts. The sugar industry is one of the largest formal employers in Zimbabwe, with a total labour force of between 25 000 and 27 000 employees mainly in the country’s Lowveld ...

Source: Zimbabwesituation