Enacy Mapakame

Business Reporter

Stakeholders in the agriculture sector have expressed preparedness for this coming marketing season with all modalities almost in place.

In a virtual meeting on preparedness for the 2020/21 agricultural marketing season with Ministry of Lands, Agriculture, Fisheries, water and Rural Resettlement Permanent Secretary Dr John Basera, stakeholders from across the value chain provided reports that showed readiness for the season while others expressed their expectations.

From the Grain Marketing Board (GMB) to farmers representatives, Agricultural Marketing Authority (AMA), millers, Agritex, Department of Mechanisation as well as the soon to come commodities exchange — all indicated readiness for the marketing season in which Zimbabwe and the rest of the region expect increased production on the back of good rains received.

Zimbabwe Farmers’ Union (ZFU) executive director, Paul Zakariya, noted that as the country prepared for the marketing season, farmers were pleased with efforts made towards ensuring improved production such as the timely distribution of inputs, which he said was a first in many years.

He, however, highlighted farmers’ concerns which he said needed to be addressed, such as efficient settlement of payments as well as fair pricing of agriculture commodities.

He called on the Government to step in and protect the interests of farmers from exploitative tendencies by buyers.

“Farmers were encouraged and they produced. They must also reap good results from their hard work so that they will do more in the next seasons.

“Last year cotton farmers were not happy with the payment system. The Government should step in and ban the use of groceries as payment like what happened last year with cotton farmers.

“They should be paid in cash so that they buy what they want,” he said.

Mr Zakariya said as farmers, they were looking forward to the launch and successful implementation of the commodities exchange, which among other advantages will ensure farmers get a fair price for their commodities as well as cut on post-harvest losses.

“It is important we put this in place. In terms of storage, this will be critical in ensuring that farmers do not lose their produce due to poor storage,” he said.

The commodities exchange — the Zimbabwe Mercantile Exchange (ZMX) is scheduled to be launched end of this month.

The ZMX will ride on the Warehouse Receipt System (WRS) and one of its benefits to farmers is  give them access to post-harvest financing from private sector.

Speaking during the meeting, Escrow Group chief executive officer Collen Tapfumaneyi said significant progress has been made towards the establishment of the ZMX and all the partners were committed towards its successful implementation.

“We do not want to set up an exchange that falters within a few months,” he said.

He added the exchange was designed for a broad range of commodities providing a fair price discovery mechanism as well as predictable pricing.

“The commodities exchange will also alleviate burden on Government to finance agriculture as well as ensure improved product quality. Farmers will strive for better quality because this will fetch more money,” said Mr Tapfumaneyi.

The commodities exchange is a public private partnership (PPP) between the Government, development partners and private sector led by Financial and Securities Exchange Limited (FINSEC) who are undertaking the technical implementation work in setting it up.

Escrow Group is FINSEC’s parent company.