Import permits threaten farmers

FORMER Confederation of Zimbabwe Industries (CZI) president Busisa Moyo says the continued issuing of import permits for finished products such as soya meal and cooking oil could affect farmers and other value chain players in the future.
Government has been issuing the permits to ensure adequate supply of edible oils in the country.
“While the situation requires sustained attention, it is still manageable given the foregoing, but issuing import permits of finished product such as soya meal and cooking oil could affect farmers and other value chain players,” the United Refineries chief executive said.
The oil expressing industry has largely relied on importing crude oils and soya beans, which are the critical raw materials required to produce edible oils.
Local farmers require at least $35 million to increase soya beans hectarage, which will result in significant reduction of the raw material import bill, which topped $119 million in 2016.
Moyo, however, said the industry has received 26 000 metric tonnes (mt) of soya beans from the Grain Marketing Board (GMB) from the local crop.
“We will produce about 5 200mt of edible oils, just below 50 percent of the country’s monthly requirements,” he said.
Demand for cooking oil in Zimbabwe is 8 000 tonnes per month, with the industry operating at between 50 and 60 percent of capacity. As a result, the industry requires at least $5 million per week to import soyabean, crude edible oils and other raw materials.
However, foreign currency supplies are constrained to less than $1,5 million per week, which translate to about 30 percent.
Local soyabean production reached 60 000 tonnes this year, up from 36 000 tonnes in 2017, and is not enough to meet five percent of the country’s oil needs.
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