Sugarcane farmers in Zimbabwe’s Lowveld region have successfully increased their share of revenue from raw sugar sales from 77% to 80.5%. This change comes after a review aimed at resolving ongoing disputes with Tongaat Hulett, which runs the Triangle Limited and Hippo Valley sugar mills.
The revenue-sharing system, called the Division of Proceeds (DoP), divides earnings between farmers and millers. Farmers had been asking for their share to be raised to 85% due to high production costs.
An official from the Ministry of Industry and Commerce stated that while the new share of 80.5% is an improvement, it is still not enough to cover farmers’ expenses. They may consult experts for further reviews.
Attempts to get comments from Tongaat’s spokesperson were unsuccessful, but in a previous statement, she mentioned that the DoP is still being reviewed.
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A leader from a farmers’ organization called the increase a positive step but noted that more work is needed to achieve fair profit distribution. They emphasized the importance of continued advocacy for better conditions in the sugar industry.
The sugar industry is a major employer in Zimbabwe, with around 25,000 to 27,000 workers. Changes in land ownership since the early 2000s have affected the industry, with Tongaat now controlling 56% of sugarcane land, down from 75%.
Farmers are pushing for reforms to reduce Tongaat’s influence and to update the Sugar Production Control Act, which they believe is outdated. They have petitioned Parliament for changes that would ensure better representation for farmers in industry decisions and protect them from monopolistic practices.
Farmers want the law to reflect the current situation in the sugar industry and ensure that their interests are represented on key boards. Zimbabwe exports sugar to various countries, including those in the SADC and COMESA regions, as well as North America.