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Monalisa Chikwengo
MACADAMIA nut farmers are appealing to Government to review downwards the current 25 percent surrender portion on macadamia nut export receipts to cushion them from the impact of low prices.
This was said by Macadamia Producers Association of Zimbabwe (MPAZ) secretary-general, Mr James Maisiri during a telephone interview yesterday when he gave an update on the recently completed marketing season.
“Prices of the macadamia fruit have gone done on the domestic market with the lowest price sitting at US$0, 40 per kilogramme this season against last season’s US$0, 80.
“We therefore call on the Reserve Bank of Zimbabwe (RBZ) to lower the exporter surrender portion from the current 25 percent, which is one of the reasons influencing buyers to offer low prices,” he said.
The RBZ under exchange control directive RY002/2023 standardised the foreign currency retention across all sectors of the economy to 75 percent with the balance of 25 percent of the export proceeds sold to the RBZ at the prevailing interbank rate.
Mr Maisiri said most macadamia farmers purchase their inputs from agro-dealers who require foreign currency as opposed to local.
“Because of last year’s low prices, most farmers were unable to procure enough agro-inputs to properly take care of their trees this season with negative repercussions on the quality of the fruit. The quality of macadamia fruit from most growers was inferior resulting in growers offering low prices of US$0, 40 per kg,” he added.
Many farmers ended up buying generic inputs, which were cheap but these do not improve the health bill of a plantation crop like macadamia and its productivity and profitability went down.
Mr Maisiri said only Government’s interventions on lowering the surrender portion from 25 percent could influence buyers to offer high prices for their produce.
“The 25 percent surrender portion is excessive and cannot be maintained over time. International markets are in China and merchants fetch prices of US$12 per kilogramme for the dry nut in shell and kernel,” he said.
Mr Maisiri added that the association had met with the Agricultural Marketing Authority (AMA) recently and expressed its concerns on the low foreign currency retention level.
Though macadamia marketing has ended, the association is still compiling statistics on total production this season, he observed.
Macadamia nuts are mainly grown in Chipinge and exported to Asian countries where demand is high.
International customers’ demand, numerous uses and a long harvesting cycle make macadamia nuts a highly profitable crop.
Online Reporter