Business Reporter
Hippo Valley Estates Limited has reassured the nation of sufficient sugar supplies to meet both domestic demand and export commitments, despite market fluctuations and challenges posed by illegal imports.
In its third-quarter trading update for the period ending December 31, 2024, the sugar producer reported a significant boost in local sales following the repeal of Statutory Instrument (SI) 180 at the end of January 2024.
The policy change led to a surge in demand for the company's flagship Huletts “Sunsweet” brand.
However, export volumes plummeted by 53 percent, as the company shifted focus towards stabilising domestic supply.
Despite this strategic shift, Hippo Valley raised concerns over illegally imported unfortified sugar brands flooding the local market, urging authorities to take swift action.
The company reported a robust performance in the latest harvesting season, with cane deliveries from its miller-cum-planter operations increasing by 18 percent.
This growth was attributed to a 7 percent rise in yield and improved sugarcane delivery efficiency.
Private farmers, however, saw a marginal drop in total cane deliveries despite a 4 percent increase in yield, mainly due to a reduction by 124 hectares in the area under cane cultivation.
Sugar production also improved, driven by increased mill uptime following a successful off-crop maintenance program conducted ahead of the 2024/25 season.
The company confirmed that its current off-crop maintenance, which commenced in December 2024, is progressing well, with operations expected to resume for the 2025/26 season in April.
Despite steady production levels, Hippo Valley warned that illicit sugar imports remained a threat to both local pricing and product quality standards.
The company emphasised that authorities have been notified and urged to intervene in protecting the formal market.
Looking ahead, Hippo Valley remains focused on enhancing operational efficiencies and maintaining adequate supply levels to meet both local and export market demands.
