Sugar stocks exceed national demand

Zimbabwe's leading sugar producers, Hippo Valley Estates and Triangle, have moved to allay fears of shortages and price hikes, assuring the nation that local sugar stocks are more than adequate to meet domestic demand.

In a joint statement issued yesterday, Tongaat Hulett Zimbabwe's corporate and industrial affairs executive, Dahlia Garwe, revealed that the two companies had produced over 440,000 tonnes of sugar in the last season, far exceeding the country's estimated annual consumption of between 320,000 and 360,000 tonnes.

Garwe said as the 2025 season commenced, the companies had 84,600 tonnes of sugar in stock, a volume described as more than sufficient to meet local market needs.

"This volume comfortably exceeds national requirements and ensures sufficient stocks to meet ongoing domestic demand," the statement read. "Any surplus sugar is exported."

The assurance comes amid renewed pressure on local producers from cheaper imported refined sugar, which continues to find its way onto the market despite government efforts to control such inflows. This follows the repeal of Statutory Instrument 80 of 2023 earlier this year, which had previously allowed duty-free importation of sugar and other basic commodities.

The 2023 policy temporarily opened the Zimbabwean market to foreign sugar brands, leading to a flood of cheaper products that disrupted the local industry by slashing prices and reducing market share for domestic producers.

According to the producers, imported sugar remains more affordable largely due to heavy subsidies provided to foreign producers by their governments - a benefit that Zimbabwean manufacturers do not enjoy.

"We acknowledge that the cost of production in Zimbabwe is generally higher compared to regional markets," said the statement. "This disparity is attributed to various factors peculiar to our environment."

They cited high costs of essential agricultural inputs such as fertilisers, water, agrochemicals, and electricity, alongside elevated labour costs and steep borrowing charges. The producers also pointed to logistical and infrastructure challenges that continue to drive up production expenses.

The statement was issued to counter growing concerns among consumers and retailers over possible sugar shortages and a potential spike in prices, particularly in the face of import restrictions and economic volatility.

The industry players say while the local sugar industry remains viable, policy support is essential to ensure its sustainability and competitiveness.

As the sugar season progresses, both Hippo Valley and Triangle say they remain committed to ensuring consistent supplies and maintaining market stability, despite facing external pressures from imported sugar and internal cost constraints.