Agriculture set to continue on recovery path
http://www.theindependent.co.zw/
Thursday, 28 October 2010 20:12
AGRICULTURAL production for the 2010/2011 farming season is in the hands of
the farmers as conditions for success, such as favourable rains and
availability of inputs, have improved compared to the last few years.
Unlike past seasons when the agricultural sector had to muddle through
perennial shortages of inputs and funds, there has been a significant
improvement in planning for the coming season.
Government has provided US$30 million towards the support of smallholder
farmers, but Ngoni Masoka, permanent secretary in the Ministry of
Agriculture, Mechanisation and Irrigation Development, said more should be
done.
“In Zimbabwe, it is necessary that the government supports our smallholder
farmers earnestly if we are to restore the food basket status of the country
and achieve food security. It has to be a deliberate policy to support our
farmers just like our neighbours are doing,” Masoka said.
The president of the Zimbabwe Farmers’ Union, Silas Hungwe, said there was
additional support for tobacco and cotton farmers who had entered into
contracts with buyers.
“However, there is no support for the small grains, but government is making
subsidised fertiliser available to farmers,” Hungwe said. “This fertiliser
is charged at US$15 per bag and is available through GMB depots.”
Government provides subsidised fertiliser to communal farmers to try and
improve food security in the country.
Once a breadbasket of the region during the first two decades of
Independence, Zimbabwe had become a beggar as it faced serious grain
deficits in the last three years as a result of erratic rains and shortages
of inputs induced by the economic downturn. In addition, production also
plummeted when Zanu PF supporters forcibly took commercial farms from white
farmers during the land reform programme. For the last 10 years, Zimbabwe
has been relying on food handouts from aid agencies.
Agriculture is the centre of gravity for the economy contributing 19% of the
gross domestic product (GDP) last year. GDP is the most important measure of
economic activity in the country as it is the crossing point of expenditure,
output and income.
While the input costs are still very high, compared to regional averages,
farmers are able to access fertiliser, chemicals and seed on time.
Transportation of the inputs, Hungwe said, had improved as farmers now
access them close to their farms.
Input costs, as is the case with all real sectors, remain high with a 50kg
bag of fertiliser costing US$30 compared to the regional average of around
US$7 and this may weigh down a continued growth of the sector which expanded
18,8% this year against an anticipated 10%.
In 2009, agriculture grew 14,9% from a 39,3% contraction a year earlier at
the height of the economic downturn.
This year’s growth was mainly driven by tobacco which, to the surprise of
many, doubled to 120kgs on the 2009 figure. More than US$320 million was
realised from the sale of the crop this year.
The acting chief executive officer of the Tobacco Industry and Marketing
Board (TIMB), Andrew Matibiri, said planting for the next crop had started.
“There are no figures as to how much of the crop would be produced,” said
Matibiri. “However, indications from the seed sales show us that we can have
a minimum of 90 million kgs.”
Matibiri said 72% of the crop that was sold this year came from contract
farming with the remainder coming from farmers who “look after themselves”
as they finance their own crop.
Agribank and FBC Bank on Wednesday floated tobacco bills worth US$10 million
aimed at supporting farmers. Other banks have different funding mechanisms.
Matibiri added that they would get a clearer picture by mid next month when
they would have collected the information from all tobacco growing
districts.
Hungwe said government had also initiated a programme where farmers without
the capacity to buy inputs would work on community projects under the
supervision of councillors and local leadership and get seed and fertiliser
in return.
“Farmers are also entering contracts with other companies where they receive
inputs and will repay after harvests,” said Hungwe.
This could be a departure from the heavy dependency on government handouts
farmers had become used to since the turn of the century.
Government and donors said they would assist 956 000 communal (A1), old
resettlement and vulnerable farmers with inputs to cater for 0,25 ha each.
Inputs in the basket include a 50kg bag of compound D fertiliser, 50 kg bag
top dressing fertiliser and 10 kg of maize seed.
Masoka, however, bemoaned the fact that government support to the
agriculture sector had been hovering below 10% of the national budget and
that in the current season over half a million smallholder farmers will not
receive support.
“Despite the immense contribution of the agriculture sector to the national
economy, a record of vote appropriations indicates that agriculture
received between 2% and 7,5% of the national budget between 1995 and 2010.
In the 2010/2011 season, 575 185 smallholder farmers will not receive inputs
support,” Masoka added.
It was predicted at the 14th Southern Africa Regional Climate Outlook Forum
held in August there was a high probability that Zimbabwe would receive
normal to above normal rains during the 2010/2011 season.
The forum, which was held in Harare comprised climate scientists from the
National Meteorological Hydrological Services within the Southern African
Development Community region working with the Sadc Drought Monitoring
Centre.
While the conditions are supportive of a successful agricultural resurgence,
the residue of the preceding season’s problems could dent a rapid growth.
One area which faced problems was cotton selling where there was a standoff
between the farmers and the buyers.
Cotton farmers held on to their crop season asking for “reasonable” prices
as the buyers, who were also contractors offered very low rates. It required
government intervention, setting the price at a minimum 35c per kilogramme.
Things got worse when new players, especially Sino-Zimbabwe, came in
literally reaping where they did not sow as they started buying cotton
bypassing the contractors.
This threatened the viability of the sector, with no comprehensive
mechanism, such as passing the proposed legislation that sought to protect
the farmers and contractors.
Apart from the legislation, other stakeholders such as the Zimbabwe
Electricity Supply Authority (Zesa) could also play a decisive role in the
success of the agricultural season. Zesa has on many occasions promised
farmers that they would not be affected by load shedding but this has not
been honoured.
Leonard Makombe / Paidamoyo Muzulu