Maravi

(HERALD) Firms urged to contract farmers

Firms urged to contract farmers
Saturday, 24 September 2011 02:00
Agriculture Reporter

GOVERNMENT has urged agricultural manufacturing and processing companies to contract farmers to produce raw materials for them. Acting President John Nkomo made the call at the Zimbabwe Commercial Farmers Union's 17th annual congress in Harare yesterday.

He said the sanctions imposed on Zimbabwe had made it difficult to mobilise finances off-shore as lenders demand high interests rate and at such rates, it also becomes difficult for farmers to borrow and make a profit hence the need for local companies to support farmers.

Cde Nkomo said the system whereby tobacco merchants, grain millers, cotton ginners and oil expressers contract farmers would benefit the two parties.

"Under such arrangements, farmers will be provided with the necessary support and will have a guaranteed market for their produce," he said.

Cde Nkomo warned farmers to be cautious when entering into contracts to avoid being offered poor prices for their produce.

"I am pleased to note that ZCFU has successfully run a winter wheat programme, where farmers were contracted by the Grain Millers Association to grow wheat," he said.

ZCFU also mobilised inputs for the contract growing of 20 000 hectares of soyabeans during the forthcoming season.

It has also come up with a farming inputs scheme for salaried personnel where employees buy inputs over an extended period of payment.

Cde Nkomo, however, urged farmers to repay their loans.
"I want to remind farmers that farming is a serious business where recapitalisation is a must, and banks will not continue to advance loans to bad apples as they are not creditworthy," he said.

Cde Nkomo said Government was undertaking a number of initiatives to enhance farmer productivity.
"We are in the process of acquiring tractors from Brazil and elsewhere to complement the fleet that is on the farms and also setting up mobile service centres that will assist farmers to repair the tractors and equipment on their farms," he said.

Government has also mobilised US$45 million of the summer cropping season through the provision of subsidised seed and fertilisers.

The ZCFU held this year's congress under the theme "Regaining the country's bread basket status through enhanced agricultural production".

ZCFU president, Mr Donald Khumalo said farmers were having problems with contractors who did not supply adequate inputs and yet claim the whole crop during the selling season. "Some companies inflate input prices and offer low prices when they buy the contracted crop from farmers," he complained.

Mr Khumalo also raised concern over the continuous electricity cuts, which he said has left many farmers not willing to produce wheat.

Labels: AGRICULTURE, CONTRACT FARMING, JOHN NKOMO, SANCTIONS, ZCFU

posted by MrK @ 6:52 PM