Agri-business window of opportunity for Matebeleland farmers

A CATTLE production study conducted in South Africa by Punjabi has shown that across the world rapid agricultural growth occurs on mainly on post-production activities. This phenomenon is largely influenced by growth of middle income consumers even in low income countries who have more disposable incomes and demand better quality value added products.

The absence of agro-industries and agribusiness activities in Matabeleland could be a result of low levels of value addition to agricultural commodities. This is one of the main causes of stagnation in rural incomes in the region.

Matabeleland requires a substantial agribusiness sector generating high outflow of value added commodities for commercial purposes for local markets and abroad. This will result in positive correlation with high agricultural GDP, high rural incomes and improvement of livelihoods.

Culture, norms and values
This concerns habits of the resettled farmers in Matabeleland and preferences that determine and impact on the nature of the resultant beef value production gains. Cultural belief lowers technical efficiency in beef cattle production, influences marketing decisions and subsequently off-take rates.

Decisions on off-take are determined by a diversity of factors namely the availability of marketable surplus, land rights, access to factor markets and alternative sources of income. Beef cattle production is, however, affected by natural and socio-economic factors though at varying degrees in different sectors of production.

These factors allow for a measure in performance of value chains as well as an understanding of how the chains function. Farmers need to understand that cattle farming should go beyond herd count and become a continuous income generator.

Need for training
It is amazing why there is no college or training centre for cattle production in Matabeleland when cattle are a major agricultural produce. Funny enough, the only Esigodini Agricultural Training centre produces teachers and Agritex officers only. One would expect that institution to produce cattle farmers that can turn around the economy of this country.

There is need for stakeholders to revisit the curriculum of that institution or better still develop an institution that trains specifically livestock farmers for the region. Matabeleland desperately needs such expertise for the country to be able to restore its lost glory of being the producer of premium export quality beef.

Over the years there has been a decline on beef and beef products exports to Europe and hence reduced foreign currency earnings for the country. In the early 80’s, beef export earnings alone used to contribute significantly to the country’s foreign earnings.

Known beef value addition practices
Cattle and beef value addition practices are not known to many farmers in Matabeleland. They engage in limited value addition practices characterised by infiltration of beef value added products from external sources. On the ground their activities are only limited to cattle breeding, fattening and slaughtering.

Therefore, there is need for beef farmer education and empowerment by Government and NGOs to improve beef value addition activities in Matabeleland.

This will improve on farmer general livelihoods and food security in the region. Thumbs up to Government for supporting Matabeleland cattle farmers under the Command Agriculture scheme and NGO initiatives. Programmes on artificial insemination and cattle fattening have been undertaken in Matabeleland to promote cattle production.

There are feedlots dotted in Matabeleland but on certain wards only. This makes it difficult for many to reach them considering the distances to be travelled. However, there is need for the construction of more feed lots and increasing the number of Agritex officers.

Farmers’ perceptions on beef value addition
Most farmers from Matabeleland have strong awareness of the potential for growth in revenue and profits by value addition to beef but get deterred by high costs of capital requirements. There is, however, need for stakeholder financial support to potential and eligible cattle farmers. The colonial thinking that it can only be afforded by white people should be eradicated.

It only takes risk averse and determination to turn around the agricultural economy. Beef farmer’s capacity is only limited to cattle ownership and access to critical factors like sufficient knowledge, transport, feedlots, factories and abattoirs etc, is lacking. This makes it difficult for value addition to be executed. There is need for adequate resources to encourage value addition activities in the region.

Current beef value addition practices
Research has shown that there are minimal beef value addition practices in Matabeleland. The findings proved that indeed it’s minimal, with indications of a few farmers fattening their cattle, drying and slaughtering. Activities like grading, freezing, tinning, mincing, patties, cold meat and sausages are not practiced on a large and competitive scale.

This is the reason why there is high infiltration of imported value added products into the region. There is, however, need for stakeholder support in training of farmers in these areas of value addition to help them increase their return on cattle production.

Government and other stakeholder involvement in beef value management. It was so interesting to note that Government and extension services involvement only supported provision of dip tanks, few feedlots, slaughtering, breeding and restocking.

There was a general agreement that Government regulations, policies and local culture supported beef value addition practices, though to a lesser extent as the above mentioned are in limited numbers. There is need to consider an increase on the scale of the provision of the basic requirements that promote value addition by responsible authorities before even talking about exportation of beef products. Good quality breeds should be retained and improved to meet global standards.

What stakeholders need to do?
Communal and A1 farmers need to collaborate and work with A2 and commercial farmers to get information on better cattle breeding methods and value adding activities to improve quality of cattle produced.

This will help them to get serious attention from the formal buyers and get lucrative hook and off-hook prices. It is also important for beef producers to act on basic requirements from buyers because they are based on trends in the markets. This is particularly important on requirements like quality grading, freezing, packaging, drying and other related processing.

Producers should specialise and concentrate on specific value adding activities to dilute the oligopoly structure that exists in the industry. They can use this approach to build their names in the market then diversify when they have developed their systems.

Producers need to invest in high quality cattle breeds so as to be able to supply both local and international markets so that they can revive the country’s beef export strength. To build a good name on consistency, smallholder farmers need to start with a few formal markets and supply them consistently rather than serving many markets, which they will fail to fully satisfy. Producers should build technical and business skills to be able to engage formal buyers with an appreciation of the business climate.

Commercial farmers
Since most commercial farmers have indicated some engagement in beef value addition activities, they need to increase the level of value adding from just slaughtering, freezing, packing and making biltong to canning and vacuum packing. There is also an increasing health requirement by consumers for organically produced beef. This is a window of opportunity for growth for commercial farmers. They need to acquire knowledge and skills on organic beef production methods.

Other stakeholders
Government should come up with a regulatory body that will bring together public departments and farmers. The Botswana Beef Cattle industry is run this way. This will help solve structural issues that are embedded in the beef value chain. There is a colonial trickle-down effect that is characterising beef farming practices.

The restructuring will move control power from a few individuals and give individual farmers an opportunity to engage in advanced beef value addition activities. The regulatory body will help solve price irregularities and complement existing statutory instruments that offer minimum requirements for beef production in Zimbabwe. With assistance from NGOs, Government should develop infrastructure that promotes beef value addition in Matabeleland.

Instead of having private abattoirs, beef factories and buyers, these should be state run. A Government run programme through the veterinary and Agritex departments, which will identify capable beef farmers from both communal and commercial sectors that will be grouped into cooperatives and then leased abattoirs, factories and feedlots.

The proceeds from their operations will be remitted to pay for management of the infrastructure. When these cooperatives get established they get weaned off to Government resettlement plots and farms specifically set aside for such activities. This will help grow the national herd, improve quality of beef produced and ensure food security.

Farmers who are allocated Government farms after graduating from cooperatives can embark on cattle tourism where tourists come and view various cattle breeds in farms and even enjoy tasting the quality of beef produced at international levels. This can be made possible if the ministry of agriculture work in collaboration with the ministry of tourism.

This will also assist curb the problem of stray game animals i.e. buffalos, which spread foot and mouth disease.

If the two ministries work together better security boundaries can be erected to prevent stray game animals. The country has thrown away a wealth of talent and expertise after the land reform programme.

The majority of farm workers who used to work for white farmers are lying idle. This could be the starting point of Government to mobilise these individuals and group them into cooperatives where they can be given resources and then made to work with and teach others beef farming methods. This could provide solutions to some of the Matabeleland problems if not all.

Judith Moyo is a researcher and academic in the field of agri-business marketing. Feedback on 0716171249/0772467096