It costs US$800 to produce a hectare of maize.

SAKUNDA Holdings, which has emerged as government’s biggest agriculture financier, has pledged to help cut the sector’s production costs by 20 percent in the next four years through mechanisation and a reduction in input costs.
Despite costs varying depending on individual circumstances and preferences, lack of machinery and the high cost of critical inputs such as fertiliser have generally had the greatest adverse effect on the cost of production.
The energy and commodities firm, which has since pledged to provide the US$320 million required for preparing for the 2017/2018 season, hopes the reduction in cost would translate to a 15 to 20 percent increase in production.
The cost of producing one hectare of maize currently averages US$800, making it unviable for the production of the staple crop, given the national average yield of 0,8 tonnes per hectare.
Linked to this general agricultural financing programme is a US$18 million funding for infrastructural development, mainly for farmers engaged in irrigation.
The Reserve Bank of Zimbabwe has released US$6,8 million for the acquisition of centre pivots for irrigation.
“This (funding) will (strictly) be commercial financing and will be issued to farmers to improve irrigation facilities on their farms,” Sakunda chief executive officer, Kuda Tagwirei, told a workshop on the government’s special maize import substitution programme, dubbed “command agriculture”, in Harare last week.
Government views irrigation development as a priority to help reduce the negative effects of droughts that saw 4,1 million people in 2016 requiring food aid.
Government has already approved Sakunda’s special irrigation rehabilitation and development programme.
“Government is making frantic efforts to increase irrigation capacity looking at the large number of reservoirs in the country. During implementation, it was established that the irrigated land was far below the targeted hectarage of 200 000 hectares, with most of the irrigation infrastructure requiring rehabilitation,” the deputy chief secretary in the office of the President and Cabinet, Justin Mupamhanga said last week.
During the just ended 2016/2017 summer cropping season 475 000 hectares was identified and verified for both irrigation and dry land maize production.
Of the total hectarage, 247 035 hectares were contracted, but only 168 666 hectares was planted by 36 536 farmers.
“Disparity between identified and contracted land is a result of the failure by some farmers to meet the set criteria. Disparity between contracted and planted hectarage was caused partly by the late availing of inputs and limited capacity by farmers to hire tillage services,” Mupamhanga said.
Initial budgetary requirements for the 400 000 hectares were put at US$503 million and the private sector offered to support up to US$505 million.
However, this amount failed to materialise, leading to government crafting a deal with Sakunda to supply inputs worth US$190 million.
Agricultural inputs for irrigable land were valued at US$85 million, while US$70 million was for dry land planting and US$30 million for the Presidential Input Scheme.
The financier also availed US$500 000 for the repair and service of 244 combine harvesters used for harvesting the current crop.
Of the 244, 70 were serviceable and 165 needed repairs.

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