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Dumisani Nsingo, Senior Farming Reporter
PRICES of horticultural products in and around Bulawayo have gone down by nearly a quarter compared to last year due to low demand triggered by a shrink in disposable incomes.
This has also seen marked decrease in profits for farmers who are into horticulture farming.
Farmers interviewed last week said the prices of horticultural produce continues to slide owing to low demand on the market, a situation which they attributed to the liquidity crunch prevailing in the country and little disposable income at household levels.
“The price of horticultural produce at vegetable markets is no longer lucrative. We have the capacity to produce but the profit margins we get are ridiculously low and we can hardly improve our agricultural enterprises. Electricity is still a challenge to us as the charges are high while the pre-paid meter system is retrogressive towards ensuring viability at farms,” said Mr Antony Kepe Dube of Vunda-Falakhe farm at Umguza Irrigation Scheme Lots.
Mr Dumisani Ncube of Freeway Farm reiterated Mr Dube’s sentiments stating that the cost of production was hampering the viability of their businesses.
“The cost of production for cropping horticultural produce is very high while the price we are getting on the market is low and we are hardly realising any meaningful profits from our enterprises.
“I think there is little disposable income and as such we are feeling the brunt as farmers. A number of farmers have quit as they are failing to realise any meaningful returns,” he said.
Matabeleland North Department of Agricultural and Technical Extension Services provincial officer Mr Dumisani Nyoni said lack of disposable income was a familiar phenomenon at this time of the year as people are still recovering from the festive season spending.
“As you know the whole economy works through expendable income this is how much one can spend. If you look at the situation now, we are coming from the festive season and payment of school fees meant that people were left with little to spend. The other issue is that farmers tend to grow the same crop leading to high supply while the demand is low and this drops the prices.
“There is also the issue of heat wave, which affects the quality of the produce while lack of funds to buy inputs by the farmers also affects the quality and as a result the produce uptake is slow and in many instances it ends up rotting. However, vendors don’t get the best tomato on the market but the cheapest because their client base want cheaper tomatoes thus the farmer who brings quality product will be short changed as well,” Mr Nyoni said.
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