HIPPO Valley Estates (Hippo Valley) is reeling from an unfavourable cost structure within its operations characterised by high cane and manpower costs, resulting in significant profit margin erosion.According to the group, costs are predominantly driven by an exorbitantly high minimum wage, an uncompetitive cost of cane under the Cane Purchase Agreement (CPA), and the division…
‘Unfavourable’ cost structure chokes Hippo
Hippo Valley recorded a 14 percent increase in overall industry sales volume while the local market saw a 10 percent increment in volumes.