Business Editor

DEVELOPING vibrant industrial value chains should be anchored on improved co-ordination and strengthening of linkages between farmers and agro-processing industries, industrialist, Mr Busisa Moyo, has said. 

As the country moves to transform its economy towards investment, innovation and export-led industrialisation, the agriculture sector needs to claim its place as the mainstay of the economy. 

Mr Moyo, a member of the Presidential Advisory Council and chief executive officer for United Refineries Limited, believes revitalising the agriculture sector holds the keys to a successful re-industrialisation process.

Posting on his Twitter handle yesterday, he said the cash crop supply gap in the domestic market, particularly soya bean and cotton seed, was frustrating the operations of agro-processing industries. For instance, Mr Moyo said, soya bean demand for adequate stock feed production this year was about 400 000mt compared to less than 40 000mt output. 

Although the private sector had channelled millions of dollars under contract soya farming in the last season, drought conditions frustrated the efforts and the yields were poor. 

“On cotton seed we are likely to access 30 000mt versus a requirement of 300 000mt. As we start planning the 2019/20 agric season these numbers are instructive,” said Mr Moyo.

“Soya beans affect poultry, egg and cooking oil availability. Cotton affects cooking oil and beef availability. Feedlots use cotton meal for cattle feed. These are value chains whose impact is often underestimated. Private sector links on financing, farming and production are key.”

As preparations for the next farming season gather momentum, the Oil Expressers Association of Zimbabwe president stressed the need to harness all possible opportunities to secure a good yield that will sustain agro-processing industry supplies.

“Cotton meal is absolutely critical for sustenance feeding or else we may see cattle losses we saw in 1992,” Mr Moyo added.

The Zimbabwe National Industrial Development Policy (ZNIDP 2019-2023) also stresses the importance of agricultural value chains towards fulfilling an upper middle income vision by 2030. Zimbabwe is richly endowed with fertile agricultural land and a climate that is conducive for the production of a variety of crops for different industrial and food security purposes. 

As such, the ZNIDP seeks to promote industrialisation that leverages on vibrant agricultural value chains. 

The policy document underscores the need to increase stakeholder co-ordination and linkages between farmers and industry, adoption of best practice agricultural models, domestic value addition and beneficiation as well as research and development, among others. 

Agro-processing industries constitute a big chunk of the country’s manufacturing sector. However, a majority continue to operate below capacity due to poor supplies. The situation is worsened by inadequate forex to import key raw materials and equipment for the entire productive sector.

Capacity utilisation dropped to an all time low of 10 percent in 2008 and rose to 57 percent in 2011 following the adoption of the multiple currency system. Thereafter it has fluctuated, dropping to 34,4 percent in 2015 and rising to 47,4 percent in 2016. There was a slight drop in 2017 to 45,1 percent and in 2018 it rose again to close the year at 48,2 percent, according to the Confederation of Zimbabwe Industries.