Tongaat hails Govt for banning illegal sugar imports

Tongaat Hullet's Hippo Valley Estates has hailed the Government for banning illegal sugar imports into Zimbabwe as these were going to have a serious negative impact on the local industry.

This was said in the Hippo Valley Estates unaudited interim results for six months ending September 30, 2016.

In the results signed by Tongaat Hullet chief executive officer, Sydney Mtsambiwa, Hippo Valley reported a profit of $1,4m which is lower than  the $2,1m realised in the same period the previous year.

The total revenue for the six months period amounted to $82,9m which is 18% higher than the $70,2m realised in 2015.

The company predicted better results in the second six months of this financial year compared to 2015. However, the report bemoaned a number of factors that may negatively impact on the final results and these include low rainfall that is affecting irrigation.

"On the domestic market, Government interventions to protect local industry from illegal imports, in particular the introduction of SI 64 of 2016, helped in mitigating the full impact of these negative environmental factors.

"The industry should continue to benefit substantially from improved local sugar market volumes and prices following Government's import protection measures and also from improved export revenues," said the report.