02 JULY 2010

 

EXECUTIVE NEWS

 

It has been very cold in Harare this month and there have been reports of some severe ground frost particularly in the Midlands.

 

The situation for our remaining farmers, particularly in the Chipinge district has certainly heated up this week. Although there has been success in the High Court in a couple of cases early in the week with High Court applications for spoliation orders being granted in favour of the applicant farmers, they have once again been ignored by the authorities and the people on the ground.

 

Whereas the farmers were given permission to return to their farms to regain possession they have only been allowed to visit under heavy police guard to collect their household effects.

 

Further urgent High Court applications are currently being held up in the courts and this includes a dozen or so in Matabeleland, which were originally heard in February 2010.

 

There will be a further test on the South African/Zimbabwe BIPPA in a case where a South African horticultural company stands to lose hundreds of thousands of US dollars in a joint investment with a Zimbabwean farmer who has recently been evicted against the orders of the courts. Their immediate losses are in the form of packaging and royalties and their case will undoubtedly set another very useful precedent in our challenge against the current lawlessness in the country.

 

The CFU test case in the Supreme Court in our application for a moratorium on the current prosecutions and evictions has been filed and the one (out of seven).  Response is not really of any consequence in the form of a legal argument so we are looking forward to the set down of the case.

 

At the Union itself our continuing discussions on compensation and recovery are attracting more interest every day as is the renewal of membership from past members who have left the country.

 

We find this extremely encouraging that they have found a renewed faith in their Union. We welcome them all back on board.  The only way we are going to overcome the current problems will be absolute unity of all past and present members.

 

In last week’s CFU Calling we advertised a few companies (below) who are offering a discount for our membership on production of the membership card. We are in discussion with many more companies in business but in order for you to take advantage of the discounts you must have an up to date membership card.

 

We still have several hundred membership cards waiting collection in Natanya Scott’s office and we urge you to collect these or arrange for a friend to collect them as we do not send them out in the post, unless specifically requested.

 

For those prospective members who wish to pay their subscriptions through bank transfers, from either internally or externally, please note that our bank account number has suddenly been changed by the bank. The details are as follows, which are also available on the website:

 

Commercial Farmers Union

Standard Chartered Bank

Avondale Branch

 Account No: 870022 726 2100.

 

 

Deceased Estates and Compensation

 

We have sought legal advice on this subject and the advice forthcoming was that any person with a right to resist acquisition of a farm or to claim compensation is in a position where that right constitutes an asset. If the person dies it becomes an asset in his estate and therefore the surviving family must immediately get in touch with the executor or executrix to ensure that the assets can be claimed in the administration of the estate, from the Government of Zimbabwe. Should there be any queries you are advised to contact a legal practitioner.

 

We spoke recently about the possible difficulties which may result from the compulsory acquisition of properties whose title deeds were in the name of companies and the lapsing of the registration thereof. We have consulted legal counsel on the matter.

 

Our lawyers will endeavour to have a meeting with the Registrar of Companies in an attempt to get agreement that annual returns are exempt for companies subject to acquisition whether they were landowning or operating pending the payment of compensation.

 

The duty to pay compensation is a government matter the pace of which is ordinarily dictated by law by Government. We will report back and advise the best course of action thereafter.

 

The following article has been copied from the BIZ Bulletin dated June 2010:

 

INDIGENISATION REGULATIONS AMENDED on Friday 25^th June

– Form IDG 01 is still due on Wednesday 30^th June – or is it?

Statutory Instrument 116 of 2010 was gazetted late in the afternoon of Friday 25^th June, as the Indigenisation & Economic Empowerment (General) (Amendment) Regulations, 2010 (No. 2).

Ø  We covered the minor amendments effected by Amendment No. 1 (SI 95 of 2010) in our May 2010(2) Bulletin in this series, sent to you 19^th May.

Ø  In this Bulletin, we shall cover the changes effected by Amendment No. 2, which more extensively amends the General Regulations contained in SI 21 of 2010. (We examined the General Regulations in 8 bulletins since February this year.) Please note we have tried to include salient points but since SI 116 stretches to 16 pages, we have not covered every minor amendment.

 

Friday’s Statutory Instrument 116/2010 amends –

Section 2 of the General Regulations (Interpretation), adding 6 definitions –

·          ‘dispose’ (sell/donate/otherwise dispose)

·          ‘management share ownership scheme/trust’ (to enable managerial employees to acquire stock/shares/debentures and receive income)

·          ‘managerial employee’ (principal exec officer, corporate sec, CFO, HR manager whether or not also a director; any employee directly answerable to the board of directors; any employee who can hire/transfer/promote/suspend/lay-off/dismiss/reward/discipline/adjudge grievances of other employees)

·          ‘net asset value’ (net worth, i.e. total value of fixed and other assets minus liabilities)

·          ‘sector/subsector of economy’ (in table under item 3 of Form IDG 01)

·          ‘share option scheme’ (arrangement where shares are offered to employees for purchase at a future date at a price fixed in advance)

– and changing the definition of ‘qualifying scheme or trust’ to ‘an employee, management or community share ownership scheme or trust that qualifies in terms of section 14, 14A or 14B for the purposes of being used to assess the extent to which a business that is a company has achieved or exceeded the minimum indigenisation and empowerment quota’.

Section 3 (Objective of regulations), replacing ‘cede’ with ‘dispose of’.

Section 4 (Notification of compliance with indigenisation), firstly, inserting ‘non-indigenous’ between ‘every’ and ‘business’ (probably realized he had bitten off more than he could chew so decided to single out slaughter stock –but see observations below); secondly, inserting a cross-reference to subsection (1) into subsection (2), thereby belatedly clarifying that the regulations only apply to businesses with a net asset value of half a billion-plus. The original section 4(2) appeared to require even businesses below this threshold to comply.

Section 5 (Minister’s approval of indigenisation plans), mainly inserting ‘provisional’ before ‘indigenisation implementation plans’; and adding a new section 5A, dealing with sectoral and subsectoral committees (the significance of which is explained below).

Section 14 (Employee share ownership), extending this to include new sections 14A (‘management’) and 14B (‘community’ share ownership) as means of achieving the minimum indigenisation quota. Community schemes would apply particularly to companies exploiting natural resources in ‘distinct communities’, such as Rural District Council areas.

Section 15 (Identifying counterparties to notifiable transactions), making the ‘Fund’ set up in terms of section 12 of the parent Act and to be financed by levies on businesses (see the May 2010(2) bulletin in this series) the purchaser of last resort in certain cases.

Section 16 (Valuation of businesses, in cases of dispute), changing ‘value of its assets ‘ to ‘net asset value’, and requiring that any ‘valuator whom the Minister may appoint’ must be a person ‘registered in terms of the Public Accountants & Auditors Act (Chapter 27:12)’, i.e. not any old crony,  

– and amendments are made to 5 of the 6 Schedules (various forms).

 

What is the overall effect of the amendments? Confusion continues.

Ø  On the one hand, broadly speaking, the amendments require non-indigenous businesses with a net asset value of US$500 000+, which are not already 51% owned by indigenous Zimbabweans, to still submit Form IDG 01 to the Minister by next Wednesday 30^th June, notifying him of the extent of indigenisation within the business and the company’s provisional indigenisation implementation plan over the next 5 years.

Ø  On the other hand, the amendments require that in due course the Minister must set up approximately 60 sectoral and subsectoral committees that will have each have 3 months thereafter to recommend to him ‘the appropriate minimum net asset value threshold above which a business in the sector or subsector concerned is required to comply with these regulations’. He can only set up the committees after consulting with various Ministers responsible for the 8 main sectors (manufacturing, mining, tourism, finance, transport, communication, construction and energy) and the 51 subsectors listed in section 3 of Form IDG 01. (A scanned copy of the amended form appears at the end of this article.)

 

So if you have not yet sent in Form IDG 01, what should you do?

Ø  It would seem to be in order to wait for the sectoral/subsectoral committees to be established and finish their work, because only thereafter will you know if you have to comply with the regulations.

Ø  Each sectoral/subsectoral committee will also have to recommend whether less-than-51%-shares and longer-than-5-year-periods should apply, plus percentage weightings to be assigned to ‘socially and economically desirable objectives’ (i.e. diluting the obligation to dispose of 51% as a result of ‘intended’ development work in the community, beneficiation of raw materials, transfer of new technology, employment of local skills, imparting of new skills and ‘any other desirable objective’, in terms of section 5(4) of the regulations, repeated under item 9(b) in Form IDG 01. Since these recommendations are likely to have a major impact on any 5 year plans, how can you formalize a plan before the committee for your sector has addressed these issues?

Ø  If you don’t send in Form IDG 01 by 30^th June, please note that the situation regarding non-compliance remains as outlined on page 1 of the May 2010(1) Bulletin in this series, sent to you on 7^th May – i.e. there is no penalty at this stage. Section 4(4) remains as it was – so if any non-indigenous business does not submit the form, at his leisure (i.e. no time-frame is given in the regulations) and at his discretion, the minister could then indicate which businesses should submit the form and after that they have another 30 days to send in the form. If by that deadline a business that has been specifically told to send in the form has not done so, then the penalties may be invoked.

 

For your convenience, we include below a copy of amended Form IDG 01. (This supersedes the version sent to you on 8^th March.)       

 

Final Comment

Referring to the definition at the beginning of Form IDG 01, if ‘indigenous’ is meant to be legally synonymous with ‘all blacks’, then we still see various court challenges likely– as listed in the February 2010(1) bulletin.

 

 

Lend a hand . . . an appeal from the Zambezi Society

On Friday (25th June) the Zambezi Society had its Supa Cub plane fly the middle Zambezi River with a National Park officer as the spotter. Two islands, as previously reported, held animals in distress.

On the first (Namatutsi) there were approximately 50 buffalo of which ten were young and five had perished. The second island near G Camp/Chikwenya held a similar sized buffalo herd (four carcasses) as well as a large (in excess of 100) herd of water buck and numerous impala.

On Thursday (24th June) bales of hay had arrived at Mana Pools Parks office followed by a second load on Friday (25th June). This was followed, this weekend, by 13 tons of maize sweepings, 1 ton of “survival” meal, 1 ton of game pellets and game blocks. This was all made possible by donations of food, transport, fuel and cash – many thanks to you all.

National Parks have two boats and access to a larger boat from a local operator to do the drop offs. As a result National Parks believe this part of the program is under control and therefore do not need to accept offers of boat support. Should this change we will let those of you who have offered to set sail from Chirundu know.

We have yet to get a firm date from Zambezi River Authority (ZRA) as to when the Kariba gates will be closed and in the meantime will work on the latest closing date of 15th July. Allowing time for the animals to gain strength and for the river to drop we are planning for a project life span to the end July

PLEASE consider supporting the Zambezi Society in their efforts to save our wildlife. Our appeal remains for “enhanced” game food products, transport, fuel and cash. Get involved today: [email protected] or phone Nicola Maasdorp 0912-924043 or Tim Bacon 0912-880523

 

Finally, just another reminder of CFU Congress which is due to be held at Meikles on 2^nd and 3^rd August 2010. All members and non-members are invited so we can make this Congress a success. Please let us know who and how many people intend attending so that we can assist Meikles organise the catering etc.

 

Looking forward to seeing you all there.

 

Your Union is also busy in discussion with some 90 companies to come to an arrangement of mutual benefit on discounts for our members’ business with those companies. Although the final list will also be published on the website our initial list so far is set out below:

 

DISCOUNTS FOR CFU MEMBERS

 

Discounts are a recognized method of generating business. We are pleased to advertise those businesses which offer discounts to paid up CFU members on our website and through our weekly news bulletin (CFU Calling). All paid up members are provided with membership cards that are valid for one year with the expiry date displayed on them. The cards are used to determine whether an applicant qualifies for a discount, so members need to take their card when applying for a discount.

 

HADDON MOTORS

 

Haddon Motors offer a 15% discount on all Parts supplied ex stock, purchased either over the counter or fitted through their workshops. Haddon Motors are official dealers in Isuzu, Opel and Chevrolet, and carry a comprehensive stock of parts for all models.

 

In addition Haddon Motors sell new vehicles and have an agent dealing in second hand vehicles on site. Haddon Motors have in place a 6 month finance scheme, but have just started negotiations with a local bank who are looking at a 12 month finance scheme on purchases of new vehicles.

 

Contact person Barbie Dewis    4 – 746656/9 [email protected]

 

HUNT ADAMS AND ASSOCIATES

 

Hunt Adams offer lower premium rates on motor insurance cover (both private and commercial vehicles) and on house insurance to paid up members

 

Contact Mark Bailey 4 – 335895 [email protected]

 

PEDSTOCK INVESTMENTS – NETAFIM

 

The Company offers a 5% discount on all products to paid up CFU members and they are as follows:

 

1) vegetable seeds and seedlings

2) drip irrigation kits

3) Gatit fertilisers (soluble)

4) tunnel kits

5) greenhouses

6) technical back-up

 

Contact person P.Mahachi  4- 851687/90  [email protected]

 

PIONEER SEEDS COMPANY ZIMBABWE

 

Pioneer Seeds are offering paid up members a 5% discount on the retail price for maize seed purchases. The discount will apply to orders of 20 pockets and above. For orders to qualify, they must be made direct to Pioneer Seeds Head Office as the company does not have a mechanism of administering this facility through Dealer networks

 

Contact person David Makasi 4 – 339301  [email protected]

 

AGRICULTURE RECOVERY AND COMPENSATION (ARAC)(from the desk of Pete Steyl)

 

This week we have decided to give information on a number of different things.

However we would also like to know how we can serve you better. Einstein said “If you keep doing the same thing you will get the same result!”

We started our efforts at ARAC aiming to make a difference and it is now several months down the road and perhaps you out there would be prepared to assist us with some feedback. Yesterday we had a very interesting visit from a farming lady who simply asked “What are you doing about engaging the younger generation?” She was referring especially to those who grew up on farms and who, through the last few years, have been forced away. They still think of “home” and need to be kept in the loop.

Whilst every effort is being made to bring a speedy resolution to the compensation issue, there is no timeline in place yet. For many, this younger generation may well be the party that brings this chapter to a close. I am sure that there are also many anxious to be involved in the recovery of the country and we would like to have their input. For some maybe the trauma that was experienced still haunts them, we would like to help. If any of you have family members in this category who you believe would benefit by being kept informed, please send us their contact details and we will add them to our mailing list.

There are a few questions we would like to pose:

Are we reaching our target and are we doing the right stuff?

Are we providing real service to our members?

What is our relationship like with former members?

Is our purpose clear?

What are we not doing that can make the difference?

We value your input and are not afraid of criticism so send it!!

Congress will be upon us shortly on the 2^nd and 3^rd of August. This year the first day’s agenda will be devoted to in house business and is open to all paid up and former members. Only paid up members will be able to vote, however for those who are anxious to re-evaluate their relationship with the union and help chart the way forward this will be a great opportunity.

Following our recent circulation of the Recovery Proposal, we are concerned that the renewed efforts to bring focus to the compensation issue have created expectations. We would be irresponsible to predict either a quantum or a time line.  Nonetheless we believe the Recovery Proposal is a smart initiative i.e., specific, measurable, achievable, realistic and time bound, and we are making every effort to achieve this.

We promised feedback on the legal position in relation to mothballed companies and deceased estates; we are awaiting a full opinion and will disseminate this in due course.

With regards to your membership of the Union, we at ARAC are attempting to restore communication with all former members. We would encourage as many as can to rejoin as the essential requirement for a mandate is to have the endorsement of a live membership. We hope that the service and efforts on behalf of farmers will encourage the vast majority to rejoin. We are currently trying to streamline mechanisms for a smooth process for those in external situations. We are equally anxious to promote accountable and inclusive representation for all.  Contact the ARAC office email: [email protected] for more details.

We would like to thank you for your support and  assure you that we are all working tirelessly to get the best possible outcome for all farmers past, present and future.

COMMODITY UPDATE

 

ZIMBABWE CROP PRODUCERS ASSOCIATION (from the desk of Richard Taylor)

 

Next time I write, our combined commodities AGM forum will be over.

 

One thing that is for certain though is that the traders will still be here. As can be seen, commodity prices continue their downward trend. Not the fault of the traders really but both regional and worldwide surpluses of grain stocks. It will be interesting to hear how Roy Ormerod of Croplink, views this and what he has to tell us with regards future commodity trading in Zimbabwe, when he gives us his talk at the forum this coming week. I am sure he will have a lot of questions thrown his way.

 

Some questions farmers will need to be asking themselves and to ponder over for this winter crop that is already in the ground and the summer crop to come.

 

What is the future for grain crops in Zimbabwe going to be in the next few years, considering the low viability of these crops and how it affects them.

 

One has to deal with among many at present, high input costs, long daily power outages, exorbitant ZINWA charges, possible droughts, the high cost of borrowed money and more. Are we going to become more and more a net importer of these products?

 

How does one adapt to this ever changing environment? One thing that is certain however is that production costs have to be reduced somehow without affecting yields. How one achieves this I do not have the answer but maybe we need to look back at past practices involving minimum tillage and conservation agriculture. This will certainly reduce one’s land prep and fuel costs to start with. (It will however increase herbicide costs initially). Or does one go into a higher value crop or value add to your product through processing? 

 

A few challenges for the mind.

 

Local as at 2 July 2010 Exchange Rate R 7.63 – US$1       

Commodity	GMB	Agrifoods	Intergrain	Staywell	Croplink
White Maize	275	220	200	210	220
Yellow Maize	275	220	200	210	200
Maize Bran	150	120		120	120
Soyabeans	280	370	350	345	340
Soyabean Meal		500			430
Wheat	400 (tba)		400 450 (imported)	345 365 (imported)	360 380 (imported)
Wheat Bran		135		120	120
Groundnuts	450 (unshelled)		800 (shelled)	650-750 (shelled)	600 (shelled)

South African Foreign Exchange (SAFEX) as at 2 July 2010

Commodity	Rand/Tonne	US$/Tonne	Import Parity Rand/Tonne	Import Parity US$/Tonne
White Maize	1042	137	1202	158
Yellow Maize	1091	143	1251	164
Wheat	2307	302	2467	323
Soyabeans	2545	334	2705	355
Sunflowers	3337	437	3497	458

 

International Gulf

Commodity	US$/Tonne			Import Parity US$/Tonne
Wheat	181			331
Maize	157			307
Soyabeans	379			529

Source: South African Grain Information Service (SAGIS)

 

NATIONAL ASSOCIATION OF DAIRY FARMERS (from the desk of Rob Van Vuuren)

 

NADF is now counting down the days to the Commodities Forum AGM 2010 meeting at Troutbeck, Nyanga from 5^th to 7^th July 2010.  We have had an overwhelming response regarding this function and it is promising to be the “meeting place” of the year.

 

Troutbeck Hotel is now fully booked as are the Blue Swallow Timeshares so should you have not already secured your booking you may be able to do so at the following places :

 

Montclair                       :          (029) 3001 / 2441-6

 

Rhodes Hotel                 :          (0298)376/7 or (0298)425 or 0913 504 983 or Fax (0298)477 or

[email protected]

 

Inn on the Rupurara       :          (029)3021/3024 or fax – (029) 3025 or [email protected] or 0712 865 883

or book through Armadillo Travel (04)302261/67

 

If you have made payment to Troutbeck Hotel via RTGS, please take your proof of payment with you to the conference as it will assist the Hotel with recording payments accurately.

 

Sponsors, please also note to fax/e-mail a copy of your RTGS deposit slips to Debbie so that our accounts department at CFU can receipt and allocate your payments correctly.

 

Troutbeck have advised that if you have booked and paid and you do not attend the conference, there will be NO refund of any money paid to them.

 

PLEASE NOTE: If you have made a booking at the hotel and you have not arrived by 6.00p.m. on Monday 5^th July, your room will be re-allocated to the next person on the waiting list.  Should you experience any problems on your journey or should your arrival be delayed, please advise one the following people and we will ensure that your room is not reallocated:

 

Rob Van Vuuren             0912 311 612                 Debbie Mylroie               0914 177 447

Sue Bell                         0912 239 996                 Linda Nielsen                 0913 478 943

Richard Taylor               0912 311 704                 Clive Levy                     0912 231 068

Pam Cooper                   0912 248 730                 Hendrik Olivier               0912 235 640

June Nicholls                  0912 336 562

 

It is with pleasure that we advise that all meals have been covered by sponsorship, however the arrangement is that there will be a cash bar system.  There will be a US$10.00 charge per person per day for attending the conference.  On payment of this you will receive a name badge which must be worn at all times.  This badge will permit you entry into the dining room at mealtimes.

 

The Cheese and Wine Cocktail Party on Monday evening is a sponsored event.  If you require dinner, this will be for your own account.

 

Please note that the technical talks begin at 11.00 hours on Monday 5^th July, so please plan your journey accordingly.

 

Rob Van Vuuren visited Troutbeck last weekend and has advised that fuel supplies are not good at Troutbeck.  There was some fuel available in Nyanga and at the Montclair, but please keep fuel in mind for your return journey.

 

Please remember to bring your sporting equipment with you; otherwise there will be a charge for hiring equipment at the Hotel.

 

The first Regional Mashonaland “A” AGM Meeting was cancelled due to no attendance by Farmers and stakeholders and the second meeting held at Commercial Farmers Union was also cancelled due to non attendance.  We are planning to try to hold a Mashonaland Regional AGM prior to the National AGM at Troutbeck if there are enough Mashonaland A Farmers attending.  Very sad indeed!  NADF really needs your support.

 

We have received an e-mail from Rose Worthington in Nyanga and she has 4 cottages available to rent out at $15 per person per night.  Should you wish to rent one of these cottages, please contact Rose on [email protected]  Debbie has tried to obtain other contact details but none have been forthcoming.

 

STABEX VACCINE PROGRAMME

 

The next drawdown order of vaccines has arrived and we are currently processing the next batch of vaccine orders which are to be released.  Those who have applied and have been patiently waiting should be hearing from us shortly.

 

 

 

ACE

Wholesale prices in selected countries in East Africa are supplied by (RATIN) the Regional Agricultural Trade Intelligence Network. Current prices are indicated below and are valid as 28 June 2010. (N.B. Changes shown are calculated on the basis of today’s prices against those previously recorded, which may not necessarily be the previous days).

Please email [email protected] for the full CFU calling with the charts.

Oanda Live Exchange Rates
MWK19.08 = 1 ZAR – up
MWK146.4 = 1 US$ up
ZAR 7.57 = I US$ – down

COMMENTS AND VIEWS

Please let us know your comments and views on items contained within this issue or any other issues of CFU Calling by sending an email to us on [email protected]Disclaimer: This email and files transmitted with it contain confidential and privileged information and are intended solely for the use of the individual or entity to which they are addressed. If you have received this email in error please — do not read, disseminate, distribute, copy or take action in reliance on this email and- delete it immediately and arrange for the deletion thereof on your server, and- notify the administrator immediately. Any unauthorised, use duplication or interception of this e-mail or any files transmitted with it is expressly and strictly prohibited. No representation, guarantee or undertaking (expressed or implied) is made or given- As to the confidentiality or security of the e-mail system’ or as to the accuracy of the information in this email and any files transmitted with it is virus-free. No responsibility or liability is accepted for: the proper, complete transmission of the information contained in this email or any files transmitted with it or any delay in its receipt; or rising from or as a result of the use of or reliance on the content of this email or any files transmitted with it. Any views expressed in this email or any files transmitted with it are not necessarily the views of the Commercial Farmers’ Union. Queries regarding this email or any files transmitted with it should be directed to [email protected]. This disclaimer forms part of the content of this e-mail for purposes of section 11 of the Electronic Communications and Transactions Act 2002 (Act No. 25 of 2002).