GOVERNMENT’S decision to review duty upwards on sugar imports will enable local sugar industry players to regain lost market share, a sugar concern has said.
BUSINESS REPORTER
In his mid-term fiscal policy review recently, Finance minister Patrick Chinamasa increased duty on a wide range of imports of finished products, including cooking oil, poultry, soap, maize-meal, flour, beverages, sugar, fresh and canned fruits and vegetables, among others.
Zimbabwe's first green power plant produces ethanol from sugarcane and could help the country achieve energy independence. But its detractors say it has one big drawback: it has displaced local cotton farmers.
The Green Fuel Private Limited ethanol plant sits about 500 kilometres south of Harare near the Mozambique border, amidst 11 500 hectares of sugarcane.
With the agricultural sector still ravaged by difficulties stemming from the haphazard land reform, Zimbabwe's sugar producers are expecting a nominal production increase to just over 370,000 metric tonnes of sugar for the 2011/12 season, a figure which is way below the industry's installed capacity of 600,000 metric tonnes per year.
Tongaat Hulett Hippo Valley Estates sees sugar production up in the 2011/12 season to between 360 000 and 380 000 tonnes helped by improved cane age and yields on a similar number of hectares harvested.
South African sugar manufacturer Tongaat-Hulett has cut back sugar production forecasts for Zimbabwe and Mozambique in the current financial year through to March 2012.
The company operates through its subsidiaries Triangle Sugars and Hippo Valley Estates that have a combined installed sugar milling capacity of 600 000 tonnes.
THE Zimbabwean sugar industry has been encouraged to take advantage of the India Sugar Expo to be held in Kenya next month.
The Sugar Technologists’ Association of India in collaboration with the Government of India will be holding the India Sugar Expo — 2010 at the Kenyatta International Conference Centre in Nairobi, Kenya from July 2-4.
"This will be a mega-event where over 60 Indian sugar machinery manufacturers ranking from turn-key sugar plant manufacturers to small and medium machinery, chemical and agri-machinery manufacturers will be showcasing their products during the expo.
"The focus of the expo is on showcasing the products, processes, services and technologies related to the sugar industry offered by the Indian sugar machinery manufacturers. The expo will provide an opportunity for Zimbabwe players in the sugar industry as they would get a chance to view and learn about the latest technological developments in the field of sugar, power and alcohol at this exhibition. Exhibitors will also make presentations on their products and technological services," said Dr Rao, a spokesperson for the expo.
The Indian sugar industry is the second largest after Brazil sugar industry in the world.
Today Indian sugar technologists, consultants, professionals and sugar machinery manufacturers have large presence in most of the Afro-Asian countries.
The Zimbabwe sugar industry has in the past decade failed to supply the domestic market resulting in an influx of imported products, especially from South Africa, which further threaten the viability of the local market.
However, it may benefit significantly from the technologies, processes and services rendered by the Indian sugar companies, which are considered to be the most cost-effective and efficient in the world.
source: herald.co.zw
Zimbabwean operations ready for growth, with or without reappropriation
Tongaat Hulett expects its profit for the year to December to increase by nearly 40 percent due to favourable weather conditions and an exceptionally high sugar price.
Tongaat, an agroprocessor listed on the JSE, yesterday issued a statement saying that its headline earnings for the year to December would increase by between 40 percent and 45 percent above the R538 million from the previous year.
The group's Zimbabwean operations are now consolidated in its financial results.
"The accounting treatment in terms of the International Financial Reporting Standards (IFRS) on the commencement of consolidation of the Zimbabwe operations gave rise to a balance sheet take-on gain of R1.9 billion, which is recognised in the income statement," the group said.
This gain is excluded from headline earnings and profit from operations.
"We expected the group's core sugar operations, excluding the Zimbabwean operations, to perform well," said Mohamed Shafee Loonat, a portfolio manager from Element Investment Managers.
Loonat said the group's Mozambique expansion should be gaining traction and begin to increase production.
The Mozambique profit from operations increased increased 74 percent from R77m to R134m in the half-year to June last year.
In the statement Tongaat said group total net profit for the 12 months was expected to be approximately R2.8bn, with net profit a share being approximately R27 50 a share.
"The South African sugar business should also do well. Last year's crop was low and impacted by rains at the wrong time and some cane was left on the fields," Loonat said.
"The world sugar price was also much higher compared to 2008," he said.
According to the International Monetary Fund, the world sugar price rose 30 percent from 21.72 US cents a pound in August to 28.38 US cents a pound last month.
Loonat said Tongaat's starch business was also benefiting from previous restructuring and the new brewery that was built in Gauteng should help boost demand for the group's product.
He said the group benefited from low-cost production in Mozambique and Zimbabwe in an environment where world sugar prices had risen considerably and production in Europe had been cut as part of the reforms to the European sugar industry.
Meanwhile, Loonat doubted that talks of selling 50 percent of foreign-owned companies doing business in Zimbabwe would be carried through.
"Zimbabwe needs foreign investment to help rebuild its economy and laws like this will scare investors away."
He added that Tongaat would be able to manage the process in a responsible way if the law was enforced: "South African companies do have experience in the area of BEE... (black economic empowerment) Tongaat actually has two businesses in Zimbabwe, the one is unlisted, but the other is listed and already has a large Zimbabwean ownership."
source: busrep.co.za
The Zimbabwe Sugar Association said in a statement over the weekend that 65 percent of this year's crop would be for domestic consumption while the remainder would be destined for the export market.
Last year, 68 percent of the crop was set aside for the domestic market while 32 percent went to the export market.
"In 2005, a total of 429 318 tonnes was produced by Hippo Valley Estates and Triangle Limited," the Association said.
"Of this, 290 072 tonnes or equivalent to 68 percent of total production was sold on the local market.
"The remaining 139 246 tonnes or 32 percent of total production was sold to the export markets."
Total sugar production for 2006, it said, was forecast at 491 000 tones of which 320 000 tonnes or 65 percent of total production has been allocated to the local market.
Meanwhile, the Association denied reports that it was involved in illegal exportation of sugar, which has generally been blamed for the shortage of the commodity on the local market.
"The sugar industry is not involved in any illegal exportation of sugar," it said.
The comment by the Association comes in the wake of recent press reports on sugar supplies for both local and export markets, which it says contains some inaccuracies.
"There have been a number of press reports recently containing inaccuracies in respect of issues pertaining to the supply of sugar for the local and export market," it said.
The Association said it was aware of the illegal export of sugar into neighbouring countries and that it regularly liaised with the Ministry of Industry and International Trade on ways to prevent such practices.
The ministry monitors and control all sugar exports and is also responsible for the issuing of export permits on the basis of a crop disposal schedule which clearly allocates a specific tonnage of sugar for the local and export markets.
The allocation of sugar to the various markets was also agreed between the sugar industry and the Ministry of Industry and International Trade at the beginning of each milling season in April every year, it said.
It added that that the sugar exports by the industry were also regularly audited and monitored by the central bank, the Zimbabwe Republic Police and the Zimbabwe Revenue Authority in terms of the rules and regulations specified by the authorities. ' New Ziana.
source: southerntimesafrica
TO supplement revenue to be lost as a result of the further price reduction of sugar exported to the European Union (EU) at the end of this month, Swaziland is also seeking to supply hydro markets.
Swaziland Investment Promotion Authority (SIPA) Investor Facilitation and After Care Director Mandla Nkambule said among the counteractive strategies being put in place, the country was looking for hydro markets so as to make up for the loss in revenue.
He was responding to a question posed by Zimbabwe Ministry of Industry and Commerce Enterprise Development Director Stanslaus Daison Mangoma, who wanted to know what Swaziland’s plans were regarding the sugar industry, taking into consideration the further decline of prices at the end of this month.
Responding, Nkambule said since some African, Carribean and Pacific (ACP) countries might drop out of the export bandwagon because of the lower prices, this would increase chances for countries like Swaziland to supply more sugar to the EU. “So we’re looking at increasing our volumes of production,” he said.
“Also, smallholder sugar cane farmers are being encouraged to produce other crops.”
Annual production capacity of sugar is currently estimated in excess of 600 000 tonnes. The industry produces raw, refined and brown sugar while annual molasses production is 195 713 tonnes.
Federation of Swaziland Employers and Chamber of Commerce (FSE&CC) CEO Zodwa Mabuza noted that Swaziland was one of the low-cost producers of sugar, so even though prices have been reduced, the industry was still profitable.
She said counteractive strategy included the country producing as much as it possibly could to supply the EU as well as diversification, “where there’s more emphasis on ethanol and power production”.
More opportunities in infrastructure development.
MEANWHILE, the Zimbabwe delegation led by Minister of Industry and Commerce Professor Welshman Ncube was informed on the various infrastructure development projects government is currently undertaking.
Swaziland Investment Promotion Authority (SIPA) Domestic Investments Director Sabelo Mabuza informed the delegation that these projects included development of Sikhuphe International Airport, whose complete construction he said should be done by January, 2010. He said even though there were technical challenges along the way, they were hopeful that the airport would start operations by March, next year as construction of the terminal had already started. Other infrastructure development projects in the pipeline, Mabuza informed the delegation, included toll gates, a 30 000-seater stadium, railway expansion, international convention centre five-star hotel (projected at cost of US$40 million), an amusement park (projected to cost US $60 million).
Other projects with available investment opportunities currently being implemented are Jozini Big Six; game parks, 36-hole golf estate and holiday homes; Nkonyeni Golf Estate with five-star hotel facilities and a world class restaurant and Summerfield Casino and Golf Estate.
source: observer.org.sz
HIPPO Valley Estates, the country’s largest sugar producers, will not be publishing its financial results for the half year ended June 30 2009, as it remains exempted from doing so by the Zimbabwe Stock Exchange.
Hippo told shareholders in its trading update that if published, the statement would be misleading following the move to United States Dollars based economy and the nature of its business.
The company said, it would report its results for the year ended December 31 2009.
Hippo said the milling season is forecast to end by mid-December and production is expected to be similar to the 117 348 tonnes produced in 2008.
Management at Hippo said the company has failed to up production due to lack of liquidity as well as the presence of imported sugar that has flooded the market.
However, Hippo is riding behind increased demand for the locally produced sugar that has remained reasonably firm.
Players in the sugar industry, Star africa corporation included, have suffered a major blow due to an influx of sugar imports in to the country, which are threatening the operations of local producers.
Imported sugar products are cheaper compared to locally produced ones.
Meanwhile, to the end of June 2009, the company managed to deliver 151 786 tonnes of cane, whilst the out grower groups have collectively delivered 39 523 tonnes cane, giving a total can delivery of 191 309 tonnes.
Sugar production to the end of June totalled 21 118 tonnes.
Going forth, in order to optimise cane throughput and milling efficiencies management is coming up with strategies aimed at shortening the crushing season to take advantage of the peak of sucrose period to enhance sugar production.
"Cane quality has been slightly better than forecast whilst high fibre has also assisted in significantly reducing coal consumption," Hippo said.
During the period under review, export shipments to the European Union continued in anticipation of a reduction in the EU sugar pricing dispensation as a consequence of the further de-regulation of the EU sugar regime with effect from 1 October 2009.
To take advantage of this trade partnership, Hippo said any sugar production not taken up on the domestic market would be sold to the EU and USA in terms of preferential market access that the sugar industry in Zimbabwe enjoys.
The company can only benefit if management is focused on improving cane yields and the re-establishment of out-grower cane lands to restore sugar production in the medium-term to previously achieved levels.
Local sugar producers among other beneficiaries of the European Union preferential status next month start shipping their produce to the EU without tariffs. According to the International Sugar Organisation as part of the reform, the EU will cut the reference price, used as a base for negotiations between sellers and buyers, for sugar imports.
Other African countries expected to benefit include Sudan and Mozambique. Zimbabwe, along with several African Caribbean Pacific countries, supply the EU, the world’s biggest sugar purchaser, with 1,6 million to 1,7 million tonnes of the commodity each year under preferential deals.
Besides exports to the EU, Zimbabwe also ships sugar to the United States, where it has a 12,012 tonne quota, as well as South Africa, Egypt, India, Malaysia and Canada.
This development comes after the EU announced in June this year that they are ready to disburse 2,3 million euros of the 45 million euros the regional block set aside to revamp the country’s sugar industry.
Output of raw sugar at Hippo Valley had fallen 15 percent to 297,662 tonnes during the 2008/09 period, down from 348,670 tonnes in the same period in 2007/08.
Availability of sugar on the domestic market declined mainly as a consequence of the severe price controls and speculative activities.
source: herald.co.zw
Harare — Local sugar producers and other beneficiaries of the European Union preferential status will soon start shipping their produce to the EU without tariffs.
According to the International Sugar Organisation, as part of the reform, the EU will cut the reference price, used as a base for negotiations between sellers and buyers, for sugar imports.
In 2006 the EU started reducing preferential sugar prices and from 1 October 2009 the price will be cut from 448,80 euros (US$604,7) per tonne to 335,20 euros.
Other African countries expected to benefit include Sudan and Mozambique.
Zimbabwe, along with several African Caribbean Pacific (ACP) countries, supply the EU, the world's biggest sugar purchaser, with 1,6 million to 1,7 million tonnes of the commodity each year under preferential deals.
Besides exports to the EU, Zimbabwe also ships sugar to the United States, where it has a 12,012 tonne quota, as well as South Africa, Egypt, India, Malaysia and Canada.
This development comes after the EU announced in June this year they were ready to disburse 2,3 million euros of the 45 million euros the regional block set aside to revamp the country's sugar industry.
Output of raw sugar at Hippo Valley had fallen 15 percent to 297 662 tonnes during the 2008/09 period, down from
348 670 tonnes in the same period in 2007/08.
The country's sugar production has been on the decline since 2000 due to acute shortages of foreign currency, financing, power and inputs. Availability of sugar on the domestic market declined, mainly as a result of the severe price controls and speculative activities.
According to a production report issued by the sugar producer, the industry managed to sell 185 935 tonnes in the domestic market, which is 19 percent lower than the 229 433 tonnes sold in the previous year.
The company said a total of 869 233 tonnes of company- owned sugar cane was delivered in the mill for crushing, compared with 936 976 tonnes achieved in the prior year.
The seven-percent reduction was attributed mainly to the non-availability of mill spares, coupled with reduced cane haulage capacity.
A total of 15 732 tonnes of cane at a yield of 58,9 tonnes cane per hectare was delivered from the Mkwasine Estate joint venture with Triangle Limited, a decrease of 17 percent from the previous season's deliveries of 18 940 tonnes.
Mkwasine Estate out-growers delivered a total of 81 808 tonnes of cane from 2 100 hectares harvested compared to 138 448 tonnes cane from 2 376 hectares harvested in the previous year, at an average of yield of 39 and 58,3 tonnes cane per hectare respectively.
A total of 119 024 tonnes of cane was delivered by the Hippo Mill Group, comprised of the Chiredzi Sugarcane Farmers Association of Zimbabwe and commercial growers under the Zimbabwe Cane Farmers Association.
The Association achieved the production at an average yield of 53 tonnes of cane per hectare, a decrease of 38 percent from the 185 533 tonnes of sugar cane at average yield of 48,8 tonnes of cane per hectare, delivered in the previous year.
source: allAfrica
A blend of ethanol with petrol could cut carbon dioxide emissions from vehicles by 90 percent, and sugar producer Tongaat Hulett intends to move vigorously into this market over the next few years.
Sugar cane is one of the main raw material inputs for manufacturing bioethanol. It is relatively easy to manufacture and provides an alternative to petrol.
Tongaat Hulett, which has just consolidated its operations in Zimbabwe into its interim financial statements, maintains that it could become a leader in this field in a few years.
Speaking at the group's presentation yesterday, Tongaat Hulett chief executive Peter Staude said a renewable energy programme for the sugar industry would be more effective if it included other countries in the Southern African Development Community region rather than South Africa going it alone.
Staude said Tongaat Hulett's operations in Mozambique and Zimbabwe had renewable energy potential.
"We need a mandatory 10 percent blending regime to kick-start renewable energy programmes, but first people must realise that it (renewable energy) will play an increasingly important role in the future and be prepared to pay for it," he said.
Blending ratios which included up to 25 percent of ethanol in fuel were already dominating markets like Brazil, he added, but the first step in local transitions would be an appeal for 10 percent ethanol added to petrol.
Globally, sugar cane's biomass is increasingly being acknowledged as a partial answer to greenhouse-gas emissions and global warming.
The Global Agricultural Information Network's annual report notes that South Africa's biofuels strategy recognises sugar cane as one of the best renewable energy feedstocks.
However, investment in the development of a bioethanol plant for this process is not picking up pace.
Staude said the government had not "tuned into this issue properly". He reiterated that the energy market was poised for a substantial shift worldwide as the current debate about climate change gained momentum.
Dipolelo Makhubedu, an analyst at Argon Asset Management, said given Tongaat Hulett's position as an industry leader in sugar production, the group was well positioned to contribute substantially to renewable-energy initiatives.
Mohammed Loonat, a portfolio manager at Element Investment Managers, agreed and added that sugar cane was much less of a political issue than maize, which is one of the country's main food sources.
He said Tongaat was only likely to start seeing the financial benefits of its proposed renewable energy programmes in the next five years.
But Brian Jones, the head of green energy at the City of Cape Town, said the manufacture of biofuels was controversial as it would require using water and land that could be used for food production.
However, he added that the government's biofuel policy was being revised. "We should not be looking for alternative energy, we should be using less energy by changing our modes of transport," he said.
source: busrep.co.za
Tongaat-Hulett's 2009 first half profit was sweetened by higher sugar prices and the improvement in conditions in Zimbabwe, the JSE-listed company said.
Headline earnings increased to R440 million compared to R252 million in the first half of 2008, the sugar producer said.
Profit from operations rose to R864 million and the profit from operations in the first half of 2009 in Zimbabwe was R305 million, Tongaat-Hulett said.
The South African agriculture, sugar milling and refining operations contributed R77 million to profit.
The company said in the first half of 2009, raw export volumes from South Africa increased to 93,000 tons while South African domestic sales were 240,000 tons.
"In 2009, sugar production is estimated to be 638,000 tons compared to the 644,000 tons produced in 2008," Tongaat-Hulett said.
However, profit from operations in the second half of the year was expected to be below that achieved in the first six months. The company noted that agricultural land conversion opportunities were limited in current market conditions.
Furthermore, a stronger rand would affect exports from South Africa and the profit in rands reported by the operations outside South Africa, the company said. Profit from operations in Zimbabwe in the second half was likely to be well below the first half of the year, which had seen the benefit of the recovery of pricing and its impact on sugar stocks and the value of cane.
In Zimbabwe, the company had focused on improving cane yields and the re-establishment of outgrower cane lands, to restore sugar production to the existing installed capacity of 600,000 tons per annum from the current production level of some 298,000 tons.
Similarly, the attention in Mozambique was on moving from the 105,000 tons produced in 2008 to the newly installed milling capacity of 300,000 tons per annum. "Both Zimbabwe and Mozambique benefit from preferential access to the attractive European Union markets," Tongaat-Hulett added.
It said the current dynamics of a higher world sugar price were encouraging for the South African sugar industry. "Improved returns from sugar cane farming will encourage an improvement in farming practices and increased hectarage under cane," the company said.
(source:Sapa)
Harare, The European Union (EU) has pledged to disburse 2,3 million Euros to resuscitate the troubled industry. Hippo Valley Estates confirmed the funding of the industry by the EU, as part and parcel of the latter's adaptation strategy.
"As part of its adaptation strategy, 2,3 million Euros have been approved for disbursement allowing for the establishment of operational infrastructure for this programme," said a source from Hippo Valley.
Price controls introduced by the government last year and speculative activities caused the scarcity of sugar on the domestic market.Most retailers are selling imported sugar.This has adversely affected Hippo Valley's production capacity which has declined by 15 percent for the 2008/9 season.
The Sugar Industry managed to sell 185 935 tonnes on the domestic market which is 19 percent lower than the 229 433 tonnes sold last year.The reduction in production has been attributed to negative economic conditions which prevailed last year.
source: zimeye.org
Harare, May 18 - Zimbabwe's sugar production fell in the year to end-March as the industry took a knock from shortages of inputs and electricity but exports to its main market the European Union rose, an industry official told.
Steve Frampton, Zimbabwe Sugar Sales general manager, said output of raw sugar had fallen 15 percent to 297,662 tonnes during the April-March period, down from 348,670 tonnes in the same period in 2008.
"The major challenges facing the raw sugar industry include availability of critical inputs including coal, fertilisers and chemicals ... and electricity for irrigation," Frampton said in an e-mailed response to questions from Reuters.
Frampton said a lack of consistent supply of rail wagons to move cane and sugar had also impacted on production.
Zimbabwe's sugar production has been in decline since 2000, from a high of 600,000 tonnes when President Robert Mugabe's government started seizing white-owned commercial farms, including sugarcane plantations, to resettle landless blacks.
Frampton urged the government to help restore confidence on such issues as land acquisition, land tenure and the enforcement of law and order to re-assure growers, millers and refiners.
"There should be a land audit, an assessment of the performance of new settler farmers, maintenance and retention of critical technical skills (and) declaration that sugar is a strategic crop," Frampton said.
Critics say most of the resettled black farmers lack commercial farming skills and do not have adequate inputs to fully utilise the land they inherited from white farmers.
EU EXPORTS RISE
Zimbabwe, along with several former European colonies in the ACP, supply the EU, the world's biggest sugar purchaser, with 1.6 million to 1.7 million tonnes of the commodity each year under preferential deals at above-market prices.
In 2006 the EU started reducing preferential sugar prices and from Oct. 1 this year the price will be cut from 448.80 euros ($604.7) per tonne to 335.20 euros.
Frampton said exports to the EU had nonetheless risen to 86,880 tonnes in the just-ended season, up from 55,910 tonnes previously. He did not give reasons for the jump but added that the figure was unlikely to change this year.
Zimbabwe was allocated 44 million euros to compensate for the cut in the sugar price but has only drawn 2.7 million euros and has applied for 5.78 million euros this year.
Besides exports to the EU, Zimbabwe also ships sugar to the United States, where it has a 12,012 tonne quota, as well as South Africa, Egypt, India, Malaysia and Canada.
The southern African country has potential to raise production to 1 million tonnes, Frampton said, if water for irrigation is increased by constructing more dams in the sugarcane producing southern region.
source: flex-news
MASVINGO - At least 100 hectares under sugar cane went up in smoke when workers in the Lowveld downed tools and set ablaze the mature crop to press for better salaries and the immediate dismissal of union leaders.
The workers are demanding payment in foreign currency. They say they want the lowest paid worker to earn US$130 a month.
Following negotiations which were largely unfruitful this week the angry workers set the fields of mature sugar cane ablaze.
The workers also demanded the immediate dismissal of Admore Hwarare the self proclaimed president of the Zimbabwe Sugar Milling Industry Workers Union (ZISMIWU). They accuse him of failing to properly represent them and of abusing union funds.
Police in Chiredzi yesterday confirmed the incident. They said no arrests had been made so far.
“We are investigating a case in which workers in the sugar industry from Mkwasine, Hippo Valley and Triangle estates set on fire the mature crop”, said a police spokesman who requested anonymity.
“We have not arrested anyone but investigations are continuing”.
Hwarare also confirmed the industrial action.
“The workers set ablaze the crop because they were pressing management to act on the issue of salary increments”, he said.
However investigations by The Zimbabwe Times revealed that the workers apart from the salary increases the workers would also want Hwarare to immediately relinquish his post.
“We no longer want Hwarare because he has abused us “, said one of the disgruntled workers.”He does not represent us properly but instead milks us dry every month by collecting union subscriptions.
“We did not vote for him hence we are calling for his immediate dismissal”.
Zimbabwe Congress of Trade Unions (ZCTU) Masvingo regional coordinator Wilson Mposhi said the Hwarare led executive was illegitimate.
“Workers normally choose their own union leaders but in this case Hwarare just imposed himself on the workers”, said Mposhi.
“We need to revamp the whole executive and the workers no longer want to see Hwarare and his executive”.
This is not the first time that the workers in the sugar industry have set ablaze the crop on fire.
Last year the disgruntled workers also set ablaze the mature crop to press for salary increments.
Meanwhile Hippo Valley and Triangle Limited have resumed sugar sales after briefly suspending sales, citing low prices and demanding from government that the product be sold in foreign currency.
Given the current dollarisation of the country’s economy the two sugar milling giants have since been allowed to sale sugar in forex.
Before the dollarisation of the economy sugar prices were controlled by government and any price increases were supposed to be approved by the state.
SOURCE: thezimbabwetimes
CHIREDZI - Senior Assistant Commissioner Edmore Veterai, who has been entangled in a bitter fight for control of the Zimbabwe Sugar Milling Industry Workers Union (ZISMIWU) in the lucrative sugar growing industry in the Lowveld, has ordered the arrest of his rival Admore Hwarare in trumped up charges as a bid to strip him of the chairmanship, sources told Radio VOP.
Veterai, who grabbed a very productive farm here from a white farmer, Andrew Nesbit, has been at the center of a serious fight for the control of the association after Hwarare, also a ZANU PF loyalist, has been resisting moves to elbow him out.
ZISMIWU has a membership of more than 5 000 workers among them cane cutters, and artisans in the sugar processing plants that pay a monthly subscription of R50.
Sources said Veterai ordered the police top brass in Chiredzi to arrest Hwarare over ‘unfounded allegations’ in a bid to discredit him and unseat him.
"This is an extension of the power struggles between Hwarare and Veterai. Veterai has always been eyeing the post. Now, Hwarare was arrested over some unfounded allegations of corruption. They alleged he smuggled some tones of sugar outside the country last week," a member of ZISMIWU said.
Provincial police spokesperson, Inspector Phibion Nyambo could neither deny nor confirm the arrest of Hwarare.
"I am out of the office, phone me on Monday next week so that I can clarify with Chiredzi," said Nyambo.
Details of where Hwarare was detained remained hazy by the time of going to print as the police remained mum over the issue.
source: .radiovop
MASVINGO - Zimbabwe’s sugar producers have suspended indefinitely the sale of sugar, while demanding that the price of the commodity be pegged in foreign currency amid reports that workers in the industry have downed tools demanding salaries in forex.
The country’s two sugar milling giants Triangle Limited and Hippo Valley have stopped delivering sugar arguing that the Zimbabwean dollar is now useless.
The move is likely to further worsen the shortage of the product on the local market where it has been in short supply since 2007.
Sugar prices in the country are controlled by government and the players in the industry have to apply to the state to set new prices.
Sources at the two companies yesterday revealed that all sales had been suspended while those who had booked for supplies had their orders cancelled.
However the companies will continue to service their external markets
“We have stopped all sugar sales until such a time when we are allowed to sell the product in forex”, said a senior official at Triangle.
“It has become unviable to continue selling the product in Zimbabwean dollars and we have since formally applied for the prices to be pegged in forex”.
“Until this has been done we have suspended all sales”.
Chief executive officer of the Zimbabwe Sugar Producers Association, Daniel Nsingo, yesterday confirmed the development.
“We have to come up with a proper pricing structure because selling the product in Zimbabwean dollars is no longer viable”, aid Nsingo.
It also emerged yesterday that workers in the sugar industry this week downed tools demanding payment in forex.
A spokesman for the workers said, “We are no going back to work until our demands are met.
“We need to be paid sustainable salaries hence the industrial action. We are demanding an average of US400 a month for the least paid worker in the industry”.
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