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Elton Manguwo
THE private sector has received plaudits from Government for supporting the production of 32 percent of this year’s winter wheat in line with the country’s push to boost food security and avail raw materials for the processing industry.
“We are happy with the positive appetite demonstrated by the private sector, as it continues to show an inclination towards primary production in a move that bridges the gap towards maximum production and the import substitution thrust,” permanent secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, Dr John Basera observed recently.
The private sector supported 10 000ha of wheat in 2020 and 20 000ha in 2021, then 30 000ha in 2022, which is reflecting a steady, but aggressive growth trajectory for food production.
The value addition component is even now more attainable especially with the import substitution thrust that seeks to empower local manufacturers and farmers to produce crops that can be consumed by the industry.
Dr Basera added: “The desire by the private sector to import is quickly fading as the backward integration towards empowering farmers is proving to make more business sense and this is most welcomed at a time we are seeking to transform our agriculture sector to embrace business models.”
Additionally, the Government through its policy of binding the private sector to fund 40 percent production of its raw material requirements locally has been able to motivate contract farming from key buyers.
This has therefore, given traction to the Ministry’s vision of transforming the industry into becoming more business oriented through such interlinking ‘farm to industry’ initiatives. Dr Basera also highlighted how private sector participation is beneficial in the commercial viability of agriculture to both farmers and the agro-processing industry’s level towards expanding the food sector value chain.
One of the critical touch-points across the National Development Strategy 1 (NDS1) is to crowd the participation of everyone and the private sector into the mainstream of primary production.
This has also seen the Food Crops Contractors Association (FCCA), which is a consortium of private millers, commodity processors and contract farming companies planning to expand its footprint during this summer crop season.
“We are engaging with farmers, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development and key input suppliers to ensure that expanding operations can be accommodated.
There is, however, uncertainty on liquidity matters and the cost of borrowing,” FCCA chairman Mr Graeme Murdoch observed recently.
Online Reporter