Hippo Valley Estates Reports 8 Percent Rise in Q1 2025 Sugar Production
Hippo Valley Estates Limited has reported an eight percent increase in sugar production for the first quarter of 2025, reaching 65,918 tonnes compared to the same period last year. The growth was driven by a 15 percent rise in cane supply from the company’s own plantations.
According to the trading update, cane supply from Hippo Valley’s estates rose to 341,655 tonnes from 297,902 tonnes in the prior year, while deliveries from private farmers declined slightly by 1 percent to 218,153 tonnes.
Chief Executive Officer Tendai Masawi attributed the growth to higher milling crushing rates, despite a shortened crushing season of 26 weeks compared to 33 weeks in 2024. “The average delivery rate of cane exceeded the prior year, supported by a consistently efficient cane delivery system. This improvement was achieved through retooling the agricultural business unit with cane haulage equipment,” he said.
Cane quality also improved, with estimated recoverable crystal rising from 11.30 percent to 11.46 percent. The company achieved a cane-to-sugar ratio of 8.49, slightly better than last year’s 8.50 and above the target of 8.75. Minimal mill start-up challenges affected operations early in the season, contributing to a marginal decline in deliveries from private farmers who diverted cane to the Triangle mill.
On the sales front, local sales grew by 4 percent over the prior year, led by the SunSweet brand, which recorded a 19 percent increase. However, raw sugar sales fell by 32 percent below the quarter’s target and 31 percent below the prior year, largely due to reduced demand from beverage manufacturers following the introduction of the sugar tax. Industrial customers’ continued reliance on imports further constrained overall sales performance.
The results highlight Hippo Valley Estates’ operational resilience and improved efficiency in cane delivery and milling, even as market challenges such as tax policies and import competition affect sales.
