Bleak future for winter wheat production
http://www.herald.co.zw, Wednesday March 10, 2010
By Martin Kadzere
ZIMBABWE could be bracing for another year of food insecurity, amid bleak expectations for both the maize harvest next month and the forthcoming winter wheat production.
A recent maize crop assessment conducted by the Government has revealed that write off, a figure independent observers believe could be higher.
The winter wheat crop is not expected to contribute much to food security.
Government has only managed to release US$10 million instead of US$45 million required to finance
50 000 hectarage.
Banks largely supported the 2009/10 summer cropping season of which 11 percent of the crop has been declared a write off.
Speculation is rife that since some farmers may fail to pay back their loans, few financiers would be prepared to take the risk of availing more loans for this year’s winter wheat programme.
There is also a lukewarm participation by the private sector, which, during the past two seasons, has financed winter wheat through contract farming programmes.
The majority has abandoned the contract farming schemes because farmers were breaching the contracts through side marketing.
Side marketing is when a farmer decides to sell their produce outside the contractual agreement after being supplied with inputs.
For optimal winter wheat yields, planting should begin during the beginning of May and it is unlikely that farmers would be able to secure enough funding during the few weeks remaining.
“It is a tough situation. Given the challenges facing the Government and farmers, this year’s crop could the lowest in years.
“There is insufficient money to buy inputs while irrigation equipment at many farms is quite old,” said one analyst with a local bank.
Apart from funding constraints, frequent power cuts were also likely to have adverse effects on yields. Zimbabwe is grappling with frequent power cuts largely due to low generation at Hwange Power Station, the country’s largest power plant.
Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made has warned farmers without reliable electricity and water supplies to avoid planting winter wheat.
Economists have pointed out that a deficit in wheat and maize harvests would mean the Government would have to commit more funds towards importation of grain.
“Importation of food is not developmental and the country is going to loose more money as a result of poor harvests,” an economist based in Harare said.
The economist added the situation would also compound the current liquidity on the market since money “will be going out”.
A Glendale farmer however said “farming is business and farmers should treat it as business.”
“The US$10 million is enough but the problem is farmers still need to continue relying on Government funds. Government has a lot of commitments. its not only winter wheat so serious farmers should approach banks and get money to finance production” he said.
The US Department of Agriculture’s foreign Agricultural Service said recently wheat harvests would not exceed 18 000 tonnes.
Zimbabwe needs about 400 000 tonnes of wheat per annum.