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Elton Manguwo
COLLABORATION between Government and private sector players in fostering agricultural growth continues to gain momentum with the Food Crop Contractors Association (FCCA) committing to fund 97 000 hectares of crops this coming season.
In a recent interview, Lands, Agriculture Fisheries, Water and Rural Development permanent secretary Professor Obert Jiri disclosed that the 97 000-hectare target would comprise 45 000 hectares of maize, 40 000 hectares of soya beans and 12 000 hectares under sorghum.
“The main private sector contractors under FCCA are Staywell, PHI Commodities, Delta Corporation and Northern Farming,” said Prof Jiri.
By expanding the area for summer crops, the FCCA is not only promoting agricultural growth, but also opening up more economic opportunities for farmers.
“This strategic move will likely enhance productivity and enable farmers to participate more actively in the market, thereby contributing to the overall development of the agriculture sector,” said Prof Jiri.
According to the current Government policy, the private sector is mandated to ensure that a minimum of 40 percent of their annual raw material requirements are sourced through value chain financing that supports farmers’ production efforts.
This requirement underscores the importance of collaboration between the private sector and agricultural producers.
“By investing in value chain financing, private companies can facilitate access to essential inputs, resources and technologies that empower farmers to increase their productivity and enhance the quality of their crops,” said Prof Jiri.
He stressed that the move would drive sustainable economic growth by promoting local production and reduce dependency on imports.
In the 2023/2024 summer season, the private sector contributed 449 300 tonnes to the 843 761 tonnes overall national crop output. This contribution accounted for 30 percent of maize production and 67 percent soya beans.
Meanwhile, the recently approved 2024/25 summer crop plan is targeting to increase crop production and productivity to surpass the national requirements for human consumption and livestock feed by at least 10 percent.
Private sector involvement in production will be strengthened through irrigation development with area under irrigation expected to be expanded from 75 000 hectares to 90 000 hectares in the 2024/2025 season.
FCCA chairman Mr Graeme Murdoch said the group was dedicated to extending financial support to farmers in acknowledgement of the vital role that adequate funding plays in boosting agricultural productivity and sustainability.
“Preparations for the upcoming summer season are progressing positively with many stakeholders actively engaged in laying the groundwork for successful production. The private sector is, however, grappling with liquidity challenges that are limiting its ability to offer the necessary financial support for the scale of crop production that both farmers and the Government envision,” he said.
Without finance from the banks and other financiers, there will be a limit on the hectarage to be planted.
“It is crucial for authorities to expeditiously address this liquidity crisis to ensure that the country’s potential for increased crop production and enhanced productivity is not compromised,” said Mr Murdoch.
Online Reporter