Online Reporter
Word From The Market
Tina Nleya
Last week, we spoke about ensuring that quality produce reaches the market.
This week’s Word from the Market is that markets thrive on certainty.
Buyers can only commit to contracts when they are confident of supply, processors can only invest when they are assured of consistent raw materials and farmers can only maximise returns when production is reliable.
In an era of climate change, production certainty has become one of the most valuable aspects of agriculture.
This is why President Mnangagwa’s call for accelerated investment in climate-smart agriculture is not only an environmental imperative, but also a market imperative.
As the President has consistently emphasised, Zimbabwe must move beyond dependence on rain-fed agriculture and build resilience through irrigation development if the country is to guarantee food security, strengthen agricultural value chains and enhance competitiveness.
The market is increasingly rewarding countries and producers that can supply agricultural commodities consistently, regardless of rainfall patterns.
Irrigation has, therefore, become the bridge between climate resilience and market competitiveness.
It is against this backdrop that the implementation of Statutory Instrument (SI) 87 of 2025 presents an important case of how market-based financing can be transformed into productive agricultural infrastructure.
The grain levy introduced under the SI is not simply a revenue collection mechanism.
It is an investment vehicle that is already delivering tangible benefits to Zimbabwe’s agriculture sector by expanding irrigation development across the country.
The results are becoming visible.
To date, resources mobilised through the grain levy have financed the development of 1 796 hectares (ha) of irrigated land.
The first phase successfully developed 850ha across 17 irrigation schemes, while the second phase that is underway is bringing an additional 946ha under irrigation across 11 schemes.
Last week, officials from the Ministry of Agriculture, Mechanisation and Water Resources Development, led by Permanent Secretary Professor Obert Jiri, visited the Glen Somerset Irrigation Scheme, one of the beneficiaries of this programme.
The scheme comprises 20 farmers cultivating 50ha under irrigation.
For many years, one of the greatest constraints to agricultural marketing has been fragmented production.
Individual smallholder farmers often produce limited quantities at different times, making it difficult to meet the volume and consistent requirements of processors, exporters, supermarkets and institutional buyers.
Irrigation schemes naturally address this challenge by creating opportunities for production aggregation.
Farmers operating within the same irrigation infrastructure are better positioned to synchronise production calendars, adopt common production standards and harvest marketable volumes at the same time.
This significantly reduces transaction costs for buyers while improving farmers’ bargaining power.
Aggregation has become increasingly important as agricultural markets continue shifting towards structured marketing arrangements. Processors require uninterrupted supplies of raw materials throughout the year. Grain buyers seek predictable volumes.
Export markets demand consistency in quality and quantity.
Irrigation enables farmers to meet these market requirements because production is no longer entirely dependent on seasonal rainfall.
In simple economic terms, irrigation reduces production risk while increasing market confidence. This is precisely the type of climate-smart agriculture that the President has called for.
Beyond protecting crops from drought, irrigation transforms agriculture into a more predictable commercial enterprise that attracts investment across the value chain.
Financial institutions become more willing to finance production where irrigation reduces climatic risk. Input suppliers gain confidence to establish distribution networks in productive farming areas.
Agro-processors are encouraged to expand capacity when reliable supplies of raw materials are available.
Transporters, warehouse operators and other service providers equally benefit from increased agricultural activity.
The economic impact, therefore, extends far beyond the irrigation scheme itself.
Perhaps most importantly, the programme demonstrates that resources raised through SI 87 of 2025 are being reinvested directly into productive infrastructure that strengthens the very sector from which those resources are generated. From an agricultural economics perspective, this represents an efficient recycling of value within the agricultural economy.
Rather than treating levies as purely fiscal instruments, Zimbabwe is using the grain levy to finance long-term productive assets that improve future agricultural performance.
Every hectare developed today creates opportunities for multiple production cycles in future seasons, generating returns that extend well beyond the initial investment.
The benefits also extend beyond grain production.
Reliable irrigation provides farmers with opportunities to diversify into higher-value enterprises such as horticulture, legumes, oilseeds and seed production.
Such diversification improves household incomes while strengthening domestic value chains and expanding export opportunities.
At the national level, increased irrigation contributes to import substitution by reducing reliance on imported agricultural commodities while creating conditions for surplus production that can supply regional markets.
Consumers also benefit.
Stable production helps moderate price volatility by reducing the likelihood of severe supply shortages during dry seasons.
More predictable production translates into more stable markets, improving food availability throughout the year.
The Glen Somerset model demonstrates another important lesson for agricultural marketing.
With 20 farmers operating within a shared irrigation system, we can buy inputs together, share machinery, coordinate extension support and market jointly.
Such arrangements lower production costs while making it easier for farmers to negotiate contracts with large buyers. This is the essence of market-led agriculture.
The Agricultural Marketing Authority (AMA) has consistently encouraged farmers to produce with the market in mind.
However, successful market participation requires more than identifying demand. It requires the capacity to consistently meet that demand. Irrigation provides precisely that production certainty.
The irrigation developments financed through SI 87 of 2025, therefore, represent more than infrastructure projects.
There is practical evidence that contributions made through the grain levy are being translated into productive investments that strengthen food security, improve farmer incomes and enhance agricultural competitiveness.
Ultimately, the true value of the grain levy will not be measured by the revenue collected, but by the productive capacity it creates.
Every hectare brought under irrigation represents another step towards a Zimbabwean agriculture sector that is resilient to climate change, responsive to market demand and capable of driving inclusive economic growth.
Tina Nleya is AMA’s marketing and public relations manager. She can be contacted by email: [email protected]. Word From The Market is a column produced by AMA to promote market-driven production.
