adminElita Chikwati Agriculture Reporter
The year 2015 was an eventful one in Zimbabwe’s agricultural sector. The resuscitation of irrigation schemes countrywide under the $38 million Brazil More Food for Africa Programme, revival of the Agricultural Rural Development Authority estates and settlement of the outstanding payments by the Grain Marketing Board characterised the 2015 agricultural year.
However, farmers continued to face challenges such as drought, high inputs costs, lack of affordable funding and foot and mouth disease outbreaks which are threatening the sector.
Farmers also complained of the imported agricultural produce that flooded the local market as they failed to secure viable markets.
Irrigation
In 2015, Government secured a loan facility from the Brazilian Government to cater for agricultural machinery and equipment targeting about 22 000 A1 and communal farmers. The equipment was availed on a cost recovery basis.
Beneficiaries of the programme received tractors, fertiliser spreaders, lime spreaders and irrigation kits.
The move was hailed by most agricultural experts as a noble way to capacitate smallholder farmers who played a pivotal role in food production.
Experts said by modernising and commercialising smallholder farming, the nation would achieve household food security, which would eventually translate into national food security.
Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made said the programme empowered smallholder farmers, especially youth and women with modern machinery to boost production.
“The programme has a direct impact on food production. Farmers will be able to produce crops that will boost their income. Ending hunger is also an overall objective of the African continent and Sadc. This programme will enable production of crops of all kinds including horticulture throughout the year,” said Minister Made.
Agriculture economist, Mr Midway Bhunu said irrigation resuscitation was the best development in 2015 since smallholder farmers experienced challenges of erratic rains as a result of climate change.
“We have irrigation schemes with the potential to produce, but have been failing as the equipment is dilapidated. This machinery will ensure farmers improve the quality of their produce since there is modern technology to be used across the production cycle from tillage, planting, weed control to harvesting,” said Mr Bhunu.
“Production costs will be reduced as operations become more efficient.
“Farmers will produce high quality produce that will fetch viable prices on the market,” he said.
Arda
The Agricultural Rural Development Authority is on a recovery path with 50 percent of its estates now operational through public-private partnerships.
Arda revived 11 of its 21 estates in 2015 and they are now highly mechanised.
Estates such as Middle Sabi, Mkwasine, Katiyo, Nandi, Sisi, Jotsholo, Fair Acres, Chisumbanje, Antelope, and others were resuscitated and put to production of sugarcane, wheat, maize, seed cotton and soyabeans, among other crops.
Some of the estates are expected to start value addition of agricultural produce soon. The PPPs arrangement allows the investor to bring in cash, equipment and inputs. Arda owns the land and they get into a contract.
The contracts are for five years and are renewable. The joint ventures have also created employment opportunities for surrounding communities.
Grain Marketing Board
The GMB, which is the one of the buyers offering high prices for grains, managed to settle its debts by paying farmers who had been owed money for grain delivered. This season, GMB cleared all outstaying payments with farmers who delivered their wheat from as far back as 2007 receiving their money. This move increased farmers’ viability as they could buy inputs and prepare for the 2016 summer cropping season. Farmers have, however, called on Government to re-capacitate the GMB to pay farmers instantly as this will boost maize production and national food security.
Inputs/funding
There was a decline in fertiliser prices in 2015 with the sector targeting to reduce prices by 20 percent. This however did have any meaningful impact as the price of seed increased in 2015 further eroding farmers profits. Fertiliser uptake has remained low despite the decline in prices since October. Compound D was selling at $27,50 down from around between $32 and $35 per 50 kilogramme bag. This poor uptake was attributed to the prediction of an El Nino phenomenon and the resultant low rainfall activity. Although farmers faced liquidity challenges, the major problem was drought.
Funding
Farmers continued to face funding challenges in 2015, despite efforts by the banking sector to support agriculture through $1 billion fund. Most farmers failed to access the fund especially small-scale who did not have collateral.
Banks have not started accepting 99-year leases as collateral and this has further affected farmers’ chances of accessing funding.
Farmers have also complained of high interest rates and short terms of repayment on loans, which they say is not conducive for agriculture. Tobacco farmers have benefited from funding through the contract system.
The bulk of the money availed by banks goes towards tobacco production as it is easy for the institutions to recover their money. Tobacco has an organised marketing system. Government is however working on re-introducing the stop order system for all crops to enhance participation of the banking sector in funding of agriculture.
Drought
The Meteorological Services Department predicted normal to below normal rainfall for the 2015/ 16 season.
The season is expected to be short and this is not good for agriculture.
A number of farmers have reduced production of tobacco, maize crops while others have diversified to small grains. Other farmers have turned to conservation agriculture.
Tobacco
The tobacco sector remained one of the most competitive industries although there were challenges especially during the marketing season.
In 2015, tobacco growers collectively earned $584 million from the sale of 198 million kilogrammes of flue cured tobacco. A number of tobacco growers improved their livelihoods and lifestyles using proceeds from the golden leaf.
The marketing season opened in March instead of mid-February. Growers complained of low prices especially at the auction floors where a ceiling price of $4,99 per kilogramme has prevailed for four years while on contract floors, the highest price of $6,25 per kg was recorded.
The season started late with the crop suffering from flooding and drought. This compromised the quality of the crop hence the low prices on the market.
The Tobacco Industry and Marketing Board is now offering free training to farmers in tobacco producing areas on important production stages from seedbed to presentation of the crop for sale.
According to TIMB, farmers were having challenges grading their crop and presenting it to the market. The farmers still had challenges in classifying the crop into different styles.
TIMB is also teaching farmers against nesting (including foreign material in the bale to increase weight), side marketing and paying auction floor workers to influence prices.
Cotton
The cotton industry has grappled with numerous challenges resulting in output falling from a peak of 353 000 tonnes in 2000/ 2001 to 95 000 tonnes in 2015. As a result, private companies exited the cotton industry, while Cottco, a major player in the industry with about 35 percent market share, was on the verge of collapse. This affected a number of farmers who depended on cotton, resulting in some diversifying into tobacco. Government had to intervene to assist Cottco to restore its role in the cotton industry value chain that benefits more than 300 000 smallholder farmers in rural communities.
Cotton was also included in the Presidential Inputs Scheme with one million households in cotton growing areas benefiting.
Government views cotton as one of the crops that are important in dry weather conditions especially the 2015 /16 season where the Meteorological Services Department has predicted normal to below normal rains.
Under the cotton programme, each household will receive five kilogrammes of seed, chemicals and fertilisers covering a quarter of a hectare. Government will also secure markets for the crop relating to the Government inputs.
Livestock
Because of the low rainfall and dry weather conditions, the livestock industry was affected with livestock experts urging farmers to de-stock to minimise losses due to drought.
According to the Minister of Finance and Economic Development Cde Patrick Chinamasa, the national herd which was supposed to increase by 2 percent
from the current 5,5 million would have to be managed downwards and later on be improved through a restocking exercise.
In 2015, the cattle herd was also threatened by foot and mouth, which continued to spread as a result of increased mixing of wildlife and cattle. Cattle moved in search of water. This resulted in six out of the 10 provinces in the country being affected by the disease, leading to disruption of commercial activities involving cattle and other livestock products.
Government managed to contain the spread of the disease by vaccinating 450 000 cattle while over 600 000 cattle were inspected.
Quarantine zones were established around affected areas and movement of cattle has been banned.
Government will facilitate the importation of some dairy heifers in order to increase the herd from the current level of 28 000. Government will also provide incentives for companies participating in dairy outgrower schemes.
Most farmers described 2015 as a tricky agricultural year but are optimistic of a better 2016.
Online Reporter