South Africa : GOVT TO BREAK UP TONGAAT MONOPOLY
Chiredzi is set to welcome its third sugar mill, aiming to break Tongaat Hulett’s monopoly in Zimbabwe’s sugar industry. This government-led initiative seeks to offer farmers more options and improve service quality. Farmers have long faced challenges like price fixing and long milling delays at Tongaat’s two mills. The new mill is expected to enhance competition, benefiting both farmers and the broader economy.
Chiredzi is poised to welcome its third sugar mill, a move that is expected to boost output, stimulate competition in the local sugar industry as well as end monopoly by Tongaat Hulett.
Sugar cane farmers in the Lowveld were forced to deliver their cane to Tongaat Hulett mills allowing the company to determine price fixing among other things, which government has responded to by establishing another mill to give growers an option.
This was revealed by the Minister of State for Provincial Affairs and Devolution Ezra Chadzamira during Masvingo Business Expo held at Urban Lifestyles Hotel in Masvingo recently.
“Government has noticed the manipulation of Chiredzi Farmers by Tongaat Hulett since it is the only company in Zimbabwe which has processing mills, and has decided to decentralize power in the sugar industry,” said Chadzamira.
He also added that the government was doing inquiries and sourcing for investors who might want to come and invest in Chiredzi, with several investors already showing interest.
“The new mill aims to provide farmers with more choices and curb Tongaat’s monopoly in Chiredzi. We have called for investors willing to invest in that area and several of them have already shown interest so we hope that the work will begin soon,” added Chadzamira.
One Chiredzi sugarcane farmer Maria Kujinga said she welcomed the government’s intervention, saying it will diversify choices for farmers and minimize monopoly in the industry.
“If government sets up the mill in Chiredzi, farmers will have a choice and that means we will get better services,” said Kujinga.
Former Chiredzi South MP who is also a farmer Kalisto Gwanetsa, welcomed the development and said government involvement in sugarcane production was overdue.
“Government should intervene in the cane farming the way it does to other crops like maize and wheat,” said Gwanetsa.
Another farmer David Jani Masomere told TellZim News that it was the best idea that government will establish a mill as there was a lot of sabotage and delays by Tongaat Hulett.
“The idea of the third mill is the best since farmers are waiting in long queues for milling which causes the depreciation of value of sugar cane. As far as we know, Tongaat is also a farmer and they prioritize their cane first,” said Masomere.
Masomere also said the country will benefit from the products, not only sugar but molasses as well as ethanol.
“If the government can establish the third mill it will benefit farmers as well as the nation at large since all the end products like molasses and ethanol will be held by government,” added Masomere.
Over 1 200 indigenous commercial sugar cane farmers in the Lowveld are waiting for two mills at Hippo Valley and Triangle which are not adequate for them since farmers will be spending several days waiting for milling, which compromises the sugar cane’s quality.
Tongaat runs the country’s only two sugar mills at Triangle and Hippo Valley Estates, having a combined annual milling capacity of 600 000 tonnes. TellZimNews
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Source Link : https://www.newsdzezimbabwe.co.uk/2024/09/govt-to-break-up-tongaat-monopoly.html
