Online Reporter
Edgar Vhera Agriculture Specialist Writer
PRESIDENT Mnangagwa’s thrust to encourage exports of value-added agricultural products ahead of the unprocessed is beginning to bear fruits with processing of wheat into pasta set to begin shortly, which will cut on imports being spurred by current changes in consumption patterns as citizens shift from being maize-centric to less starchy options.
This comes as the nation’s biggest milling company — National Foods Limited (NFL) — has just established Zimbabwe’s first-ever US$5 million pasta manufacturing factory with capacity to produce over 16 000 tonnes of pasta annually, which will significantly reduce the import bill.
The plant is part of the US$30 million investments the company pledged to roll out across the country.
The company’s chief executive officer, Mr Michael Lashbrook, recently revealed that the plant would save on foreign currency expenditure from pasta imports, as the wheat will be sourced locally.
“The pasta plant is expected to come on line this year and this establishment will see the country saving up to US$2, 5 million monthly in imports. When we become a surplus wheat producer, to us it does not make sense to import pasta, which is basically flour and water. We must make this (pasta) locally.
“We have since gone into breakfast cereals in a big way in other sites and in Bulawayo we have a very important investment in the form of a new flour mill on the existing site. A lot of those investments are going up the value chain and what we are aiming to achieve is to value-add our maize and flour,” he said.
The investments by NFL will see the localised manufacturing of products that had previously been imported, reducing foreign currency requirements and increasing demand for locally grown produce. NFL procures most of its raw material requirements through local contract farming schemes.
The Minister of Industry and Commerce, Dr Sithembiso Nyoni, recently commended the investment, saying it would boost capacity utilisation of the local manufacturing industry.
“Everywhere I go, I see growth and I want to congratulate National Foods because they are putting out two new plants for pasta and biscuits. This shows a good record of growth and when I was talking to them and asking how they have managed to grow, they mentioned the stability of the local currency,” Minister Nyoni said.
Former Lands, Agriculture, Fisheries, Water and Rural Development permanent secretary, Dr John Basera, earlier in the year said Government was impressed with NFL’s investment plans.
“We are impressed by their contribution, especially to food security with a slant towards food self-sufficiency in Zimbabwe. We are also impressed with the capital expenditure (CAPEX) investments, which they are inclining towards automation, modernisation and also trying to improve the production and processing efficiencies so that ultimately as a country and industry we are competitive,” Dr Basera said.
Pasta is made up of unleavened dough of wheat flour. It is a prevalent food with its unique texture, taste, appearance and nutrition. Macaroni is a dry pasta shaped like narrow tubes made from durum wheat and is commonly cut in short lengths.
As a result of change in consumption patterns among the populace as well as the Vision 2030 objective of an empowered and upper middle-income society, a significant part of the inhabitants are likely to shift from being maize centric and consume other wheat products like pasta.
To show the change in consumption patterns, eating of pasta and macaroni has continued on an upward trend from 2010 to date.
However, due to the absence of local production of pasta products, such demand was met by imports.
The rising import trend is definitely going to be reversed as the country has moved from wheat self-sufficiency to surplus, this coupled with investments in pasta production will see consumption of local pasta products rising too.
What made the decision to invest in pasta factory
The growing increase in area planted under wheat cultivation from 24 000 hectares in 2019 to this year’s 90 000ha, as well as the increase in production of the crop over the years from 100 000 to over 420 000 tonnes expected this marketing season gave industry the motivation to undertake this investment.
The country requires about 360 000 tonnes of wheat for national consumption annually. Since last year, local production was exceeding requirements leaving room for surplus. Over the years, demand for wheat had been rising due to the increase in population growth and changes in consumer tastes and preferences thereby outstripping supply. This necessitated imports to fill the gap with hard wheat also required to improve the glistening of the local wheat product.
What policies has the Government instituted to ensure sustainable wheat production?
The Government observed that there would be no wheat revolution without incentivising stakeholders in the wheat value chain.
The wheat value chain can broadly be grouped into five levels comprising input suppliers, producers, traders, processors and end markets consumers.
Presidential Input Scheme
The Presidential Input Scheme (PIS) programme provides prospective wheat farmers with inputs for production of the cereal. This year the Government extended support for beneficiaries to undertake production on 25 000 hectares.
Setting production target
The Government annually sets production targets. This year a target of 90 000 hectares was set and 90 192 hectares were planted, thereby achieving a 100 percent success rate.
National Enhanced Agriculture Productivity Scheme (NEAPS)
Commercial wheat production was boosted with farmers accessing funding from CBZ Agro Yield and AFC Land Bank.
The Government acquired equipment such as tractors, planters and combine harvesters to be administered through these two institutions.
This current season CBZ Agro-Yield targeted 20 000 hectares while AFC Land Bank is on 15 000ha.
Joint venture arrangements
Government’s joint venture (JV) policy is also bearing fruit as engagements between beneficiaries of the land reform programme and investors are paving the way for increased wheat production.
Uninterrupted electricity supply
Government allayed farmers’ fears of disruptions on irrigation schedules due to load shedding and mandated the Zimbabwe Electricity Supply Authority (ZESA) to ring-fence 120 megawatts of power for wheat production this 2023 winter season.
Electricity supply has since been steadied by increased power generation at Hwange and Kariba stations.
Quelea bird control
Government also intensified the control of quelea birds with the department of Migratory Pests and Biosecurity Control further capacitated to incorporate the use of drone technology in curbing the threat of quelea birds this year.
To bust the quelea birds, the use of aerial technology in the form of calibrating planes will complement the drone technology alongside motorised backpacks on mounted vehicles, traps and nets as part of an elaborate plan to save the crop from damage.
Pre-planting producer price setting
The Government has been announcing lucrative pre-planting wheat producer prices to allow farmers to make the right planting decisions with a 15 percent return on investment. This marketing season the announced pre-planting price of US$520 was set as the final price with farmers getting 75 percent of the funds in United States dollars (US$390) and the balance of 25 percent in local currency at the ruling interbank rate.
Wheat trading on the Zimbabwe Mercantile Exchange (ZMX) platform
Wheat and barley are among a list of 49 commodities that are currently being traded on the ZMX trading platform as a form of price discovery.
Self-financing
Individuals who are seriously taking farming as a business are producing wheat for sale to Government, ZMX or other players using their own resources.
Private sector interventions
Government’s call for private players to fund production of 40 percent of their annual raw material needs from local producers through contracting, joint ventures and corporate farming saw farmers under the Food Crop Contractors Association (FCCA) grouping planting wheat on 15 500 hectares in 2021, 30 000ha in 2022 with over 25 000ha this current season.
