adminFreeman Makopa
THE local fertiliser industry says it requires $15 million per month to produce sufficient quantities for the 2014/15 cropping season.
Chemplex Corporation chief executive Mr Misheck Kachere said fertiliser companies were failing to produce the required output due to liquidity constraints.
“Fertiliser companies are facing liquidity constraints as banks are not prepared to extend credit to them thus causing poor performance in the sector,” he said.
Mr Kachere said the sector was operating below 30 percent capacity.
“The sector was producing below 5 000 tonnes per month of both ammonium nitrate and compound D when it had the capacity to produce up to 10 000 tonnes.
He said the estimated output for the coming season stands at 350 000 tonnes compared to 320 000 tonnes acquired last year.
“We are estimating the production output to be around 350 000 tonnes during the 2014 /15 season up from 320 000 tonnes last year, of which the increase is attributed to the bumper harvest experienced last year.
“This means more farmers are expected to buy more fertiliser for the coming season and we are to increase the output.”
However, he said although fertiliser demand was high, manufacturers face problems of inadequate funding for raw materials and operations, low capacity utilisation and antiquated technologies with high inefficiencies.
The country has three major fertiliser-manufacturing firms — Sable Chemicals, Windmill and Zimbabwe Fertiliser Company.
Currently 40 000 tonnes are in stock.
Online Reporter