Power cuts cost Sable Chemicals US$12m

agricultural industry on the impact of Zesa power cuts on production over unpaid bills and load shedding.

The report indicates that Sable Chemicals, the country’s sole manufacturer of AN, was switched off at the peak of production, which created shortages of the commodity on the market.
“The country had to import 10 000 tonnes of AN valued at US$6 million,” read part of the report.

“Production of local ammonia was, however, to resume around April 15 2012 as the plant equipment had gone completely cold.
The shortage of AN is also affecting compound fertiliser formulation by ZFC and Windmill — the effects of which will be very adverse on the 2012 winter wheat crop.”
The overall impact of the power cuts on the agricultural sector has been far-reaching, further explained the report. Viability of most agricultural enterprises has been grossly compromised by increases in production, processing, storage and repair costs for damaged equipment and use of generators, leading to downscaling of activities.

The report revealed that the sector had suffered huge efficiency losses.
“Capacity utilisation at the farm, processing, wholesaling and retailing have consequently remained very low despite the availability of demand as exemplified by imports,” read the report.

“The quality of most perishable agricultural products has also been compromised due to disruptions of the cold chain systems.”
Government recently expressed concern over escalating load shedding, saying the development was denting efforts to resuscitate the agriculture sector.

Agriculture, Mechanisation and Irrigation Development Minister Joseph Made said prolonged power cuts were causing insurmountable challenges to agriculture and downstream industries.

He singled out seed companies that had turned to using generators to dry seed, which he said was making it difficult for them to remain in business or sell the product at profitable prices.

The 2012 wheat production, Minister Made said, had taken a severe battering from load shedding as many farmers had abandoned it, citing losses induced by failure to irrigate.

Most crop losses in recent seasons could have been avoided if farmers were irrigating their crops, Minister Made said. Zesa Holdings spokesperson Mr Fullard Gwasira has tried to calm farmers’ nerves by saying that power supplies were set to improve for the 2012/13 season with the power utility devoting 50 megawatts to the winter wheat programme.

 

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