Dispute Between Tongaat Hullet And Outgrowers Spills Into Mohadi’s Office

Indigenous sugarcane farmers in the Lowveld have roped in Vice President Kembo Mohadi in their dispute with Tongaat Hullet Zimbabwe over Division of Proceeds (DOP).

This was revealed by Minister of State in VP Mohadi’s Office Davis Marapira on Thursday. He said:

We have been meeting both sides (Tongaat and outgrowers) as part of an ongoing engagement process being led by the Vice President to make sure there is harmony in the Lowveld sugar industry and we have so far covered some ground.

The main sticking issue at the moment remains the issue of DOP and both sides have made presentations in support of their positions, but we have asked representatives of farmers to bring more documentation before we can make a determination.

… It is everyone’s hope that in the end there is a win-win situation. We want our farmers to benefit to remain afloat, but at the same time, we must also take cognisance of Tongaat’s concerns.

The outgrowers are indigenous farmers allocated land during the land reform program, and they process as well as market their sugar through Tongaat Hullet.

The Herald report says that DOP is the scientific ratio used to share proceeds from sugarcane milling between the miller (Tongaat) and the outgrowers.

More: The Herald

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