Business / Companies
Hippo expects to enjoy premium pricing from EU
05 Sep 2012 at 19:25hrs | Views
Hippo is expecting to enjoy premium pricing from the European Union in the coming season which will support revenue growth, CE Sydney Mtsambiwa told the AGM this afternoon as he gave a brief update on the companys' operations.
"We believe we will continue to enjoy premium pricing in the EU as was the case in the previous year ending March 2012 as there is likely to be a shortage of supply in that market," Mtsambiwa said.
He added that "…the average current prices remained competitive and we do not see any huge downturns which we believe will work in our favour."
Mtsambiwa said the industry is expecting to produce 450 000-500 000 tonnes of sugar this year with Hippo Valley providing around 47-48% of that.
He also told the meeting that they expect to export similar levels just as in the year ending March 2012.
The domestic market remained buoyant but Mtsambiwa also flagged that there were supply limitations that had been caused by the reduced refining capacity at Star Africa. As a result retailers are importing refined sugar despite the availability of huge quantities of raw sugar locally.
"The outgrower scheme is moving very well and so far 16 000 hectares is under production while the quality of cane is also improving," Group FD John Chibwe added.
He also noted that domestic prices of sugar were relatively stable compared with the international market which was more volatile.
Acting chairman, Sean Louis Slabbert, left, with Mutsambiwa, centre, and Chibwe
All the resolutions were passed including the approval of Audit fees of $170 452.
Asked if directors nominating directors went against basic corporate governance procedures, acting chairman Sean Louis Slabbert said this was not against Tongaat Hulett's policy.
"We believe we will continue to enjoy premium pricing in the EU as was the case in the previous year ending March 2012 as there is likely to be a shortage of supply in that market," Mtsambiwa said.
He added that "…the average current prices remained competitive and we do not see any huge downturns which we believe will work in our favour."
Mtsambiwa said the industry is expecting to produce 450 000-500 000 tonnes of sugar this year with Hippo Valley providing around 47-48% of that.
He also told the meeting that they expect to export similar levels just as in the year ending March 2012.
The domestic market remained buoyant but Mtsambiwa also flagged that there were supply limitations that had been caused by the reduced refining capacity at Star Africa. As a result retailers are importing refined sugar despite the availability of huge quantities of raw sugar locally.
"The outgrower scheme is moving very well and so far 16 000 hectares is under production while the quality of cane is also improving," Group FD John Chibwe added.
He also noted that domestic prices of sugar were relatively stable compared with the international market which was more volatile.
Acting chairman, Sean Louis Slabbert, left, with Mutsambiwa, centre, and Chibwe
All the resolutions were passed including the approval of Audit fees of $170 452.
Asked if directors nominating directors went against basic corporate governance procedures, acting chairman Sean Louis Slabbert said this was not against Tongaat Hulett's policy.
Source - zfn
