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The local fertiliser industry requires $40 million for retooling and refurbishments to produce sufficient quantities for the 2013/14 cropping season, Chemplex Corporation chief executive Mr Misheck Kachere, has said. Demand for fertiliser for the forthcoming season is projected at 300 000 tonnes both compound D and ammonium nitrate, compared to 280 000 in the last farming season.
Mr Kachere, who is also spokesperson for the fertiliser industry, said manufacturers were operating below 30 percent capacity utilisation.
“The situation is bad. Capacity utilisation is averaging about 25 percent. We need capital injections for refurbishment, for the raw materials and to pay debts.
“About $40 million is required to produce enough fertilisers for the upcoming cropping season. We are even failing to access raw materials from our suppliers because we have not honoured our obligations.”
The country has three major fertiliser manufacturing firms namely Sable Chemicals, Windmill and Zimbabwe Fertilizer Company.
Mr Kachere said 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 per month.
He said players in the sector were in talks with financiers to avail credit lines.
“We are trying to negotiate credit facilities to increase capacity utilisation. We are engaging both local and international financiers to help us increase production and we hope to conclude the talks soon,” he said.
Mr Kachere said if the industry failed to secure the money, the country would have to import to fill the gap as happened last season when 50 percent of the fertiliser was imported.
Fertilisers are often sourced from China, Russia, India and South Africa.
Mr Kachere said the liquidity crunch and poor wheat season impacted negatively on the sale of the little fertiliser being produced.
Only 4 000 hectares were put under wheat this season out of the targeted 40 000 which saw sales declining sharply.
At its peak, the local fertiliser industry produced over 500 000 tonnes of both ammonium nitrate and compound D supplying the domestic and foreign markets but due to a number of constraints, the companies are failing to meet even domestic demand. — New Ziana.
Online Reporter