malvernmugadzikwa
Business Reporter
FOR years, Zimbabwe’s dryland tobacco farmers have grown the “golden leaf”, with their livelihoods intricately woven with the rhythm of the seasons.
But the melody is changing.
Repeated brutal cycles of drought, a harsh reality of climate change, are now a constant threat.
The recent El Niño effect has exposed the vulnerability of communal and A1 farmers, who constitute over 85 percent of growers, as their lack of access to irrigation infrastructure leaves them solely reliant on rainfall.
This has resulted in low yields, poor quality tobacco and reduced revenue.
As the 2024 marketing season draws to a close, national crop output stands at 224 million kilogrammes (kg), a stark contrast to last year’s record-breaking harvest of 298 million kg. This translates to a projected decline of over 20 percent.
“Tobacco is a critical crop for Zimbabwe, with the potential to generate over US$5 billion in revenue (annually),” Chevron Tobacco managing director Mr Tapiwa Masedza told The Sunday Mail Business in an interview.
“However, reliance on rainfall is no longer a viable option due to climate change. Irrigation is essential to ensure better yields, improved quality and sustainability of tobacco production. With irrigation, farmers can produce high-quality tobacco, which fetches better prices in the global market.”
With erratic rainfall patterns becoming the norm, dryland tobacco farmers struggle to predict planting times, leading to stunted growth of the crop or complete failure.
“The rain used to come like clockwork,” said Mr Slyvester Marenge, a Headlands dryland tobacco farmer who has been growing the crop for over 20 years.
“Now, it’s a gamble. You plant too early, and the drought shrivels the seedlings. You wait too long, and the harvest is meagre. It’s a constant worry.”
The dryland tobacco farmers’ struggles have a ripple effect on Zimbabwe’s economy.
Tobacco is a major export crop, and declining yields due to drought threaten vital foreign currency earnings.
One potential solution, irrigation, remains elusive for many due to a formidable obstacle, the crippling cost of the required infrastructure.
Unlike their larger-scale counterparts, small-scale farmers often lack the financial resources to invest in the infrastructure needed to defy the whims of the weather.
“Putting in irrigation is a dream for most of us, small-scale farmers,” says Ms Miriam Ndiraya, a tobacco grower in Rusape.
“The cost of pipes, pumps, solar systems and everything else is simply out of reach. After paying back loans to contractors, most of our earnings are wiped out. We are stuck relying on the rains, and with the droughts getting worse, it becomes unpredictable every season,” she said.
As such, Government support and investment in irrigation infrastructure become crucial to mitigate the effects of drought and ensure the long-term sustainability of Zimbabwe’s tobacco sector. This could be achieved through public-private partnerships, where the Government collaborates with private companies to develop irrigation infrastructure. The Government can provide incentives to farmers to invest in irrigation systems and adopt conservation agriculture practices.
With improved yields and quality of the crop, farmers can command better prices, revenue and profits, securing the future of this vital industry.
Over the past few years, irrigated land has increased significantly from 175 000 hectares (ha) in 2019 to 217 000ha this year and the Government intends to expand irrigation coverage to an impressive 350 000ha by next year through the Accelerated Irrigation Rehabilitation Development Plan.
Tobacco Farmers Union Trust vice president Mr Edward Dune said there was need to provide farmers with affordable facilities to enable them to graduate from dryland to irrigation agriculture.
“Import and export regulations need to be revised so that they exempt tobacco farmers from being classified as exporters,” said Mr Dune.
“As a tobacco farmers’ union, we are lobbying for the relaxation of import and export regulations.”
Mr Masedza acknowledged that, while irrigation provides a powerful solution to the drought challenge, farmers could also consider adopting water conservation techniques and shorter-season crop varieties.
“Farmers must adopt good agronomic and cultural practices that conserve moisture, such as early ploughing, ridging across slopes and using drought-tolerant varieties,” he said.
“The Tobacco Research Board’s breeding programme offers suitable varieties for dryland farming. Additionally, farmers should consider using conservation agriculture practices, such as early land preparation and weed control in order to conserve moisture.”
Poor debt recovery
Lower yields are causing a significant drop in debt recovery rates for tobacco merchants. The industry now expects recoveries to fall within the 60 percent to 70 percent range, translating to potential losses of similar magnitude.
Low recovery rates reduce revolving funds for contract farming and this could result in a significant increase in the cost of capital for the upcoming season.
“With recovery rates potentially dropping as low as 60 percent, it’s forcing us, merchants, to re-evaluate our support programmes,” said an executive with a leading tobacco merchant.
“Reduced revolving funds for contract farming are a real concern.
“This could translate into higher financing costs for the next season, which unfortunately may mean having to tighten our belts on support offered to farmers.”
Mr Masedza said, with local financial institutions unable to provide adequate funding, merchants were facing a daunting task in recovering debts from farmers. He said the debt level percentage had surpassed the bad debts threshold, straining cash flows and potentially limiting local companies’ ability
to increase the hectarage under contract.
Risk mitigation
With climate change fuelling relentless cycles of drought, agricultural experts and financial analysts increasingly view insurance as a crucial tool for Zimbabwe’s dryland tobacco farmers.
Drought insurance offers a financial safety net for farmers. By paying a premium, farmers can receive compensation for crop losses due to insufficient rainfall. The financial buffer can help farmers recover their costs, maintain their livelihoods and continue farming.
In addition, insurance programmes can incentivise sustainable practices like water conservation, which can further mitigate drought risks.
It is essential to encourage farmers to take up insurance against drought and other risks associated with tobacco production. Insurance can provide a safety net for farmers, protecting them from the adverse effects of climate-related shocks and ensuring that they can continue to produce high-quality tobacco.
Furthermore, the drought has highlighted the need for risk management strategies to ensure the long-term viability of tobacco production in Zimbabwe. By promoting insurance uptake among farmers, the country can build resilience in the sector and safeguard the livelihoods of those dependent on tobacco production.
Despite its potential benefits, implementing drought insurance for dryland tobacco farmers faces challenges.
Limited access to financial resources can make it difficult for farmers to afford premiums, while complex insurance products and lack of awareness can create barriers to participation.
Building trust and developing user-friendly insurance options specifically tailored to the needs of small-scale farmers will be crucial for wider adoption.
Climate change experts warn of a significant shift in Zimbabwe’s weather patterns, with a projected rise in frequent and intense droughts.
Online Reporter