Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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AMA opens 2014/15 contract farming registry

AMA opens 2014/15 contract farming registry

August 15th, 2014


Maxwell Chikanda, Ama director production planning and operations

Maxwell Chikanda, Ama director production planning and operations


The Agricultural Marketing Authority (Ama) has opened registrations for the 2014/15 season contract farming for crops and livestock.

In an interview yesterday, Ama director production planning and operations Maxwell Chikanda said potential contractors and contractees of various crops and livestock should submit their expression of farming business intensions for the 2014/15 season.

“The contract farming registry captures contract farming information in terms of crops and livestock enterprises, quantities, quality, type and level of support required.

“The contract farming registry links contractors and farmers interested in participating in contract farming arrangements,” he said.

Registrations for contract farming also undertakes to support both contractors and farmers in protection of investments through facilitation of timely input supply, setting and monitoring of community grades and preventing side marketing.

In the 2013/14 season, Ama registered at least 11 maize contractors for a total hecterage of 74 000 that yielded 259 000 tonnes of maize.

These were Biscray Enterprises, Cargill, Ingwebu Breweries, ITEC Zimbabwe, Lake Harvest, national Foods, Northern Farming, PHI Commodities, Pro-feeds, Stay well and CFI (Victoria Foods).

Soyabeans, wheat and cotton also attracted a significant number of contractors. Soyabeans attracted a total of 12 contractors, while wheat got 7 and cotton attracted 13 contractors.

Asked if the new special instrument to criminalise the purchase of grain below the $390 producer price would not affect farming, Chikanda said contract farming would not be affected.

“Contract farming would not be affected by the new instrument, this is because Ama respects contract agreement.

“If it was agreed that grain would be purchased by the contractor at $290 then grain produced under that arrangement will be sold for that price. When the agreement is fulfilled then the law will apply to new engagements,” he added.

Chikanda said that a number of farmers were turning to contract farming due to the limited credit lines from banks.

“Contract farming is the only current alternative means of financing for agricultural activities in the country. We are getting plentiful of
calls from farmers seeking firms who are supporting contract farming.”

He urged farmers to avoid side marketing to keep the alternative financing of contract farming alive as the continued existence of the arrangement is dependent upon experiences of contractors from previous seasons.



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