SUGAR producer Hippo Valley Estates (Hippo) says its cash flows were subdued during the first half of the year to March 31,2024 after it was forced to redirect significant sugar stocks to low yielding export markets after losing domestic market share to cheap sugar imports.
During the period, the government through a Statutory Instrument 80 of 2023 suspended duty on imported basic commodities, including sugar resulting in flooding cheaper imported sugar on the domestic market.
In response to market saturation, the group resorted to selling its sugar in export markets which generally fetch lower prices leading to a compromised liquidity position.