Rural farmers should go commercial –– Olam
http://www.theindependent.co.zw/
Thursday, 11 August 2011 18:54
ZIMBABWE’S goal of improving rural livelihoods can only be done by
accelerating the shift towards a more commercially-oriented small-scale
agricultural sector that produces goods for identified markets, according to
international agri-products and supply chain management company Olam.
At a recent media briefing, Olam president and regional head of South and
East African operations MD Ramesh pointed out that this depended on
incentivising the rural farmers to go commercial.
One such method was prompt payment of the farmers for their crop at
competitive prices, such as the cash spot payment facility that his company
was using in Zimbabwe.
The other was employing schemes where farmers can access inputs such as
seed, fertilizer and chemicals on credit.
This system, initiated in Zimbabwe by Cottco and employed by Olam in the 28
African countries in which it operates, has scored measurable success.
However, according to Ramesh, ultimate success for the agricultural sector
lay in partnerships between and among the public and private sectors in the
country in growing the sector.
“We believe we are in a very attractive industry with strong growth
prospects,” Ramesh said. Olam, he said, was committed to supporting the
growth and development of agriculture in Zimbabwe and to working towards
economic improvement for the country as a whole and for the people of
Zimbabwe, using its well-known international strength and diversity to
stimulate and enhance economic progress. Ramesh complimented the high
literacy and education skills in Zimbabwe, which put it in a good stead to
compete globally. Olam is a leading global supply chain management
organisation and a processor of agricultural products and food ingredients.
The company operates an integrated supply chain of 20 products in 65
countries, employing more than 18 000 people, delivering these products to
over 10000 customers worldwide.
Products with which the company is involved include edible nuts (such as
cashews, peanuts and almonds), spices and beans, food staples and packaged
foods (such as cocoa and coffee), confectionery and beverage ingredients
(such as rice, sugar, dairy and palm products), industrial raw materials
(such as cotton, wool, wood and rubber) and a range of commodity financial
services.
The company is involved in local maize and soya procurement and wheat
imports for millers, and providing them with credit facilities during low
liquidity periods.
Olam has ginning operations in Zimbabwe, Ivory Coast, Zambia, Uganda,
Tanzania, Mozambique and Nigeria.