Olivine to contract soya farmers

business.
Olivine, a subsidiary of the Industrial Development Corporation, is one of the largest producers of oil-based products in the country. But the company is struggling to secure the crop locally, owing to low production, and high prices for the little soyabeans available.
IDC chief executive officer Mr Mike Ndudzo said, for sustainability, Olivine had to be involved in the production of the crop.
“Soyabean has been inadequate and soon we will go into contract farming to enhance the production process,” he said.
“To be assured of adequate supply, we have to get into contract farming,” he added.
Mr Ndudzo said unavailability of cheap long-term capital had resulted in Olivine and other players failing to stock up on the crop, and relying on expensive merchants instead.
“Speculators with access to capital are hoarding the crop and later sell the commodity to us at exorbitant and extortionist prices,” he said.
He said Olivine had resumed production of products that had been suspended during the hyperinflationary era, but needed more raw materials.
“Our Dolphin, Perfection and Jade soaps, Luna candles are back on the market,” he said.
Olivine, on its own, required at least 120 000 tonnes of soya- beans per year. Annual national demand for the crop stands at 450 000 tonnes, but production has slumped to as little as
50 000 tonnes a year.
“How soon (Olivine will start contract farming) depends on the availability of financial resources, but we would want to commence in the next soyabean farming season, the sooner we engage farmers the better,” Mr Ndudzo said. – New Ziana.