Zimbabwe Crop Producers’ Association for Congress 2010

Good morning Ladies and Gentlemen, welcome.

This past year’s rainy season started off late, with fair rains into the early part of January, when areas throughout the country experienced a very dry spell. The southern areas of Zimbabwe being hardest hit by this dry spell causing virtually a complete write off of row crops. All districts received an extended rainy season which in most cases assisted crops with some experiencing to much rain contributing to disease. The season’s rainfall started late and although being an extended rainy season was not enough to fill most dams, with many remaining critically low.

By and large in most areas row crop yields were better than the previous year however other areas where yields looked good, were in fact disappointing due to the mid season dry spell.

Once again this season has not been any easy one for farmers. As a prerequisite to any successful agricultural season, financial facilities, good planning and timely on farm placement of inputs are essential.

This year although the Stabex scheme was better planned with cheaper fertilizer, it still had its faults.

Luckily the rainy season started late or else many farmers would have had crops in the ground with very few able to top dress at the correct time as a result of the late supply of ammonium nitrate.

At the start of the last summer season, dollarization into a stable currency and a Government of National Unity gave us hope for a return to maximizing production. Sadly, due to poor liquidity, financial facilities through the banks have remained extremely difficult for crop farmers to make use of.

With only 60 to 120 day money being offered, exacerbated by unrealistic interest rates, row cropping has become totally unviable. These financial scenarios, coupled with falling international commodity prices make it extremely difficult to farm.

It has long been mooted that agriculture is the backbone of the economy, and as primary producers our Government must create a conducive environment in which farmers can operate unhindered.

Without a thriving primary producer base, all downstream manufacturing and value adding remains at risk. To this end, I urge our Government to close the chapter on land reform, revise retrogressive policies, and create the enabling environment to maximize production.

The supply of electricity continues to plagued farming with long power outages, some lasting for days not just hours, and irrigation by generator is not an option for row croppers due to poor viability.

ZINWA, another statutory body continues to increase charges for no apparent good reason. If one is using water out of a government dam or facility you can expect charges that will range from $14.00 – $18.00 per cubic meter, up from $ 3.50. Should you have your own dam then you will be expected to pay $5.00/ cubic meter.

This all adds to the cost of production and impacts viability, and as if all of the above is not enough, commodity stocks for grain crops worldwide are almost record high levels resulting in poor prices.

Currently maize in Zimbabwe is trading at between $200 and $240 per ton and soya beans at around $350 per ton. Again due to this, farmers face extreme cash flow problems placing them in a very precarious position.

However Ladies and Gentlemen, if we are to succeed we must face the reality. If we look across the fence at our counterparts in the dairy and poultry industry we see them faring much better. They have learned to value add their products, and they can do so on smaller pieces of ground than they used to have. We too must take up the challenges that face us, put our minds to the realities ahead, and become versatile if we are to succeed.

Once again, the association has managed to negotiate a favorable insurance scheme through Optimal Insurance Company for this year’s winter crops. This is not restricted to Barley only like last year as we have built in a levy collection system with our new insurance partners.

Whilst we have pretty much been in survival mode for the last few years, Richard Taylor joined us in October 2009 as our Association Manager and has been a welcomed addition to the team.

Although the Association continues to face problems of lack of income through levies due to an ever decreasing membership caused by further evictions, The EU support program has helped to keep us going financially for which we are truly grateful. However this is not a sustainable option and will be coming to an end soon, but it remains our intention as an association to become self sustaining again.

There is still the requirement for representation at the highest level, and for our voices to be heard.

We still need to protest against cheap, subsidized imports. As farmers we still need research to be done and extension to be carried out. We still need to be informed of crop prices worldwide, and influence where possible. For these reasons we must strive to keep this association going for the benefit of our members.

In conclusion I wish to thank the members of the committee that so faithfully still give of their time to come to meetings and represent farmers interests, particularly Angus Guthrie my vice chairman who sat on the Art farm board on our behalf,…and to our staff. Richard, Clive and Pam, thank you all for dedication to keeping the association going.

Thank you