ZiG/ USD mis-match impacts country’s biggest sugar producer, Hippo Valley

The country’s biggest sugar producer, Hippo Valley reports mis-match in income and expenditure due to the Zimbabwe Gold (ZiG) and US dollar

The company says it is currently experiencing a discord between the ZiG and USD on revenues and expenditure, where the currency mix on revenues is currently showing a decrease in USD denominated sales.

It further notes that this has resulted an increase in ZiG denominated sales, while providers of goods and services are currently preferring settlement more in USD than what the company is able to generate from the normal sales.

Hippo Valley was established in 1956 as a citrus estate and soon it diversified with the first cane planted three years later in 1959.

Canned Hippo Valley fruit was exported across southern Africa until the 1970s.

In the wake of the sugar market crash in 1975, the estate initiated irrigation programs to water its sugar plantations.

Today, it is the major producer of sugar and in conjunction with Triangle Estate, has a fifty-fifty holding in nearby Mkwasine Estate.

Zwnews