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Walter Mswazie and Molline Gagare Business Reporters
THE winter wheat farming season begins soon but farmers are ill prepared with the government calling on agro-processing firms and banks to support the sector to ensure increased yields.
A majority of firms import flour due to a poor local wheat output that has been blamed on inadequate support for farmers.
Agriculture, Mechanisation and Irrigation Development Deputy Minister responsible for cropping, Davis Marapira said local companies should be at the forefront of supporting wheat farmers and widening the domestic market for the crop as they are the net beneficiaries of the crop.
At present the cash strapped Grain Marketing Board (GMB) is the sole buyer of wheat and other grains but owes millions in unpaid dues to farmers.
“Companies like Innscor and National Foods who are the major processors of wheat have been allowed to keep on importing wheat from other countries at the expense of our own wheat producers.
“These companies should provide a ready market for wheat farmers instead of the cash-strapped GMB, which takes long to pay,” said Marapira.
“They (companies) can also provide funding to improve production.”
GMB has since paid farmers who delivered their wheat last year about $5 million leaving a balance running into millions, which Marapira indicated would be settled soon.
The Zimbabwe Farmers Union (ZFU) has said few farmers were participating in this year’s winter wheat cropping season due to the stated challenges.
The organisation’s executive director, Paul Zachariah said many farmers had no access to capital as financial institutions were reluctant to avail funding.
“Those that did land preparations are on course. To be honest, wheat production has been very low over the years. It has just not been viable. Financial institutions have taken their time to roll out funding to farmers so they procure inputs. This will compromise output,” said Zachariah.
“There are very few takers during the season because of electricity challenges. Irrigation equipment needs an uninterrupted supply of electricity so that crops don’t die from frost. All that farmers get are assurances from Zesa of uninterrupted power service.
“To be honest, those are just words. Farmers can’t afford supplements which are even costlier. It’s expensive to operate a farm on generators. How many thousands of dollars will be spent on petrol to fuel the generators?”
It has also emerged that the Zimbabwe National Water Authority (Zinwa) is demanding cash upfront from farmers.
“How are the farmers expected to make a profit when Zinwa demands up to $5,000 upfront on water charges? This is totally unacceptable. This situation needs to be tackled by all relevant stakeholders that include the financial sector, the government, farmers and farmers’ unions. This is killing our own agriculture industry,” added Zachariah.
He also said lack of infrastructure was another reason behind the collapse of irrigation farming.
“Farmers simply don’t have adequate infrastructure to remain viable. Where will they access loans to buy tractors, tillers and irrigation pumps? The 99-year leases given to farmers should be used as collateral by banks because they own land. That can be used as security. Agriculture survives on loans, not money from the pocket,” Zachariah said.
“As an industry, there’s a need to interrogate issues head on. Production costs are too high. Everything is just too expensive for the farmers. How then can we be competitive as a country? Countries like South Africa, Malawi and Zambia are exporting their excess products to us. This isn’t acceptable.”
Deputy Minister Marapira acknowledged the challenges facing winter wheat farmers but quickly pointed out that the government’s coffers were constrained.
He urged banks to provide affordable loans to farmers.
“Winter wheat farmers, both A2 and commercial farmers have to contend with a plethora of challenges ranging from securing funding, costs of water for irrigation and incessant power cuts,” Marapira said.
“It’s high time our banks avail affordable money to our farmers. The government will continue engagements with the power utility, Zesa, so that they don’t shed winter farmers.”
He said it was the government’s mandate to ensure that the ground for farmers is level by solving the problems of electricity, water and markets especially when faced with imports of flour and wheat.
Online Reporter