Zimbabwe: Sugarcane farmers demand better deal from millers
Sugarcane
Vegetables
Zimbabwe
Published Mar 5, 2023
Tridge summary
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.
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 ...
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