2 648 FARMERS UNDER LUSIP I SHARE E60.9M

MBABANE – At least a total of E60 948 012.43 was declared as dividends to 2 648 shareholders in 46 sugar cane Farmer Companies (FC) in the year 2023/2024.

These are farmers under Lower Usuthu Smallholder Irrigation Project Phase I (LUSIP I). According to the Eswatini Water and Agricultural Development Enterprise’s (EWADE) annual report for 20223/24 financial year, this was an 81.4 per cent increase from E33 604 522.19 declared in the year 2022/2023. The significant increase is noted above from the increase of sugar cane revenue. There were no dividends declared under the diversified businesses during this period.

The total number of households with access to portable water supply was 2 740, benefiting 14 646 people, while those with access to sanitation facilities (VIPs) was 2 874 households befitting 20 018 people. This brings the total population number of benefitting beneficiaries to 99.76 per cent of the original target which is 20 000 people. The portable water programme was 100 per cent complete in six Chiefdoms (Gamedze, Shongwe, Ngcamphalala, Mphumakudze, Lesibovu Chiefdoms and KaMamba chiefdom). To date, the LUSIP I have 98 farmer companies and of these, 56 are operational sugar cane farmer companies, three Banana farms, one Livestock and 4 HVCHP operational farmer companies.

Increase

A total of 6 354.38ha was developed for agricultural production against the target of 6 500 ha. The total constitutes of 5 110.68 ha for sugarcane and 1 243.7 ha for alternative crops which include banana, pitaya, papaya and vegetables (greenhouse tunnels and piggeries). The total area of sugar cane harvested for the 2023/2024 season was 5 110.68 ha compared to 5 027.02 ha harvested in 2022/2023. This showed an increase of 1.66 per cent of the area harvested.

The 5 110.68 ha produced 451 743 tons of cane which is a 1.7 per cent decline from the previous year’s performance of 459, 453.70 tons. The average yields in 2023/2024 stood at 88.4 tons cane per ha (TCH) (2022/23: 94.7 TCH), and 13.9 per cent sucrose (2022/23:13.6 per cent). During the 2023/24 harvesting season, sugar cane was harvested at 10-11 months old (instead of 12 months), hence the low TCH. During the 2022/23 harvesting season, harvesting of cane was completed in January 2024 hence the following season had a shorter growing period.

The gross revenue from sugar cane was E396 405 760.93 (before tax) calculated at E6 312.97 per ton, which is a decrease by 9 per cent from E434 169 870.04 (before tax) reported in the year 2022/2023.  The decrease in revenue is due to the low TCH in 2023/24 (88.4), compared to the TCH in 2022/23 (94.7) despite an increase per ton of sugar cane from E4 230.70 in 2022/23 season to E6 312.97(estimate 6) in 2023/24 season. The gross revenue from diversified agribusinesses under this reporting period was E6 562 309.15, a 31.6 per cent decrease from E8 491 437.76 reported in the year 2022/2023.The loss was due to financial challenges faced by the farmer companies leading to them not being able to buy inputs like fertilisers.

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