Monday, January 30, 2012

(HERALD) Fertiliser shortage hits Zim

Fertiliser shortage hits Zim
Monday, 30 January 2012 00:00

[Zimbabwe Farmers Union] AN acute shortage of top dressing fertiliser (Ammonium Nitrate) has hit the market, threatening crop yield. The fertiliser is only available on the informal market where it is being sold at prohibitive prices.

Early this month, Government turned down an appeal by fertiliser producers who sought to export the commodity, saying domestic demand had to be met first. Spokesperson for the fertiliser industry, who is also Chemplex Corporation chief executive, Mr Misheck Kachere, last Friday said operational challenges had affected production.

"It is true that there is a shortage of AN fertiliser on the market at the moment and it is due to the liquidity challenges in the economy.

"We cannot buy raw materials and pay utility bills, especially to Zesa," he said.

"In the past three months we lost about 15 000 tonnes of production due to disruptions." Mr Kachere said between four and five thousand tonnes of fertiliser were on the market.

He said firms were trying to mitigate shortages by importing the commodity although financial constraints sometimes forced them to cancel orders.

"There are stocks of between six to seven thousand tonnes as we speak at the Beira port, but we can only get them once we pay the money.

"We need about US$4 million to get the consignment on that ship and we are busy looking for that money."

Zimbabwe Farmers Union operations manager Ms Theresa Makomva said: "Farmers are complaining that they cannot access AN on the market.

"It is only being found on the informal market where prices are outrageous.

Government should intervene as a matter of urgency. If we do not get fertiliser in the next few weeks we are definitely going to miss the projected crop output."

The agriculture sector is on the recovery path following years of contraction, but real growth has been blighted by liquidity challenges and unreliable rainfall patterns.

Although there was little activity at some informal fertiliser dealers at Mbare Musika, those selling the commodity were demanding US$35 per bag instead of the recommended price of between US$29 and US$30.

All the dealers refused to disclose where they were getting the fertiliser.
However, there are claims that those receiving subsidised fertiliser end up selling it on the informal market.

Agriculture, Mechanisation and Irrigation Development Minister Joseph Made could not be reached for comment. - New Ziana/Herald Reporter.

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