Andrew
Word from the market with AMA
The raging Russia-Ukraine conflict could have come as a blessing in disguise as it got Zimbabwe to rethink about sunflower oil supplies.
Ukraine and Russia are the two main global suppliers of sunflower oil and due to these disruptions, Zimbabwe was forced to reconfigure production of the edible oil.
Due to far-reaching agricultural reforms instituted by the Second Republic, more players are now financing agricultural projects.
These reforms are in line with Zimbabwe’s “open for business” mantra adopted by President Mnangagwa’s Government, and have led to the prioritisation of food security and nutrition through the promotion and development of new and existing enterprises as outlined in the National Development Strategy 1.
One private player, Pure Oil Industries, popularly known as Zimgold, warmed up to the Government’s call for investment in the agriculture sector and sought to expand its horizon by resuscitating sunflower oil production on the local scene. The company, which has since set up an oil processing plant in Chegutu, has contracted 100 000 communal farmers, which translates into 107 000 hectares of sunflower across the country. The Government has this year set up a national target of 100 000 hectares to be put under sunflower, and Zimgold has surpassed the target.
“The Russia-Ukraine war has also impacted on the availability of raw material, hence our response by targeting to put huge tracts of land under the crop. Sunflower is an important crop in edible oil production, hence the need to increase its production,” said the Zimgold supply chain manager.
This noble move is one way of diversifying food sources for Zimbabwe, moving away from dependency on other oils.
According to the second-round Crop and Livestock Assessment Report for the 2020/2021 season, the estimated production was 14 000 tonnes. At one time, sunflower production rose to 60 000 tonnes per year. Estimates indicate that Zimbabwe requires between 50 000 tonnes and 70 000 tonnes annually. A huge supply gap is evident, forcing oil refiners and seed houses to put more emphasis on other alternatives such as soya bean and cotton.
The Agricultural Marketing Authority (AMA) facilitated Zimgold’s entry into sunflower contract farming and is responsible for registering sunflower farmers.
With the country importing cooking oil and margarine, especially from South Africa, ramping up sunflower production presents an opportunity to increase income and livelihoods while suppressing imports. Furthermore, farmers can realise more income by engaging in value addition through local stockfeed manufacturers, who use sunflower meal as input.
A snap survey conducted by AMA indicates that cooking oil imports are still prevalent on local supermarket shelves when Zimbabwe has everything at its disposal to produce its requirements.
Zimgold intends to increase production of oil to 60 000 litres daily, but over the years, it has been “struggling to get the commodity on the local market”, resulting in the company venturing into contract farming.
Contract farming guarantees farmers markets and capital to buy inputs and minimise post-harvest losses. Zimbabwe needs 150 million litres of cooking oil per annum.
The country has ideal climatic conditions for sunflower production as the crop thrives even in drier regions. It has immense benefits that arise from a low input cost, short growing period and tolerance to dry conditions. With climate change, sunflower could be a go-to crop. One sunflower farmer in Bindura was optimistic about the prospects of the 2022/2023 season.
“Last year, I did not have proper inputs; I used recycled seed and could not get much out of it. But now that I have received inputs from Zimgold, I am sure I will have a good harvest come next year. One of the advantages of sunflower is that it can thrive even when there is moisture stress and is also an early maturity crop,” said Munashe Ajabu of Matepatepa in Bindura.
There is consensus on the need for improved higher-yielding varieties. Seed companies have a role to play by providing the best-yielding varieties with a high oil percentage.
Local seed manufacturer Mukushi Seeds says its variety, Veronica, is ideal for most areas in Zimbabwe. This variety has an average of 52 percent to 53 percent oil.
Sunflower production is lucrative. Currently, the average market price of sunflower is US$500 per tonne.
The crop has several uses that include manufacturing of edible oil, livestock feed and confectionery products. Sunflower cooking oil is of greater quality compared to oil from soya and cotton. Its market price is also higher than available alternatives.
On the production front, the international average yield for the crop stands at 1,6 tonnes per hectare and with good agronomic practices, farmers can surpass this. Russia is the largest global producer of sunflower. Argentina, the European Union, China, India, Turkey and South Africa are all significant producers of sunflower. Zimbabwe could benefit from import substitution, food and nutrition security and employment creation if it increases its sunflower production. The potential is evident.
Word from the market is a column produced by the Agricultural Marketing Authority (AMA) to promote market-driven production. This week’s edition was written by Cliff Chiduku and Humphrey Kabade. Feedback [email protected] or WhatsApp/Call +263781706212.
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