(HERALD ZW) State to formalise contract farming
January 24, 2014
Elita Chikwati Agriculture Reporter
Government is drafting a Statutory Instrument to guide contract farming and encourage farmers to switch to the arrangement. Farmers are in a dilemma owing to lack of funding. Agriculture, Mechanisation and Irrigation Development Deputy Minister responsible for Cropping Davis Marapira said Government was in the process of drafting the SI
“With the current situation, we encourage farmers who are not able to finance themselves to go into contract farming. It is disturbing that some farmers were resettled on prime land but are failing to utilise it due to financial challenges.
“Contract farming is the only way to go. Farmers are stressed as they struggle to access inputs and establish markets for their produce.
“Under contract farming, the farmer is guaranteed of inputs and market,” he said.
Deputy Minister Marapira said the absence of a Government policy on contract farming was disadvantaging farmers and contractors.
“Contract farming does not mean land will be returned to the whites. Government allows farmers to get into contracts not leasing land to the former owners. We want proper partnerships that benefit farmers.
“We allow public-private-partnerships between farmers and parastatals,” he said.
Labels: CONTRACT FARMING, DAVIS MARAPIRA, TOBACCO
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Solwezi farmers supported by Kansanshi mining double yields
By Vincent Chilikima in Solwezi
Mon 20 May 2013, 14:00 CAT
KANSANSHI agricultural manager Mike Corken says his organisation's dream of improving small-scale farmers' productivity and production has started becoming a reality.
Speaking during a field day held at Solwezi Trades Training Institute, Corken said Solwezi farmers under the support of Kansanshi Conservation Farming Programme had more than doubled their maize yields.
He explained that prior to the intervention of Kansanshi Foundation in 2010, small-scale farmers were producing an average maize yield of 1.2 metric tonnes per hectare but on their first attempt on conservation farming during the 2010/2011 agriculture season, managed to increase their yields up to 2.6 tonnes.
Corken had projected that farmers would, during the current 2012/2013 season increase their maize yield up to four tonnes per hectare, describing the crop stand as good due to the farmers' increased experience and competence in conservation farming.
He said that with time, farmers were expected to increase their maize yield up to seven tonnes per hectare, adding that those who may be willing to step up their fertiliser and lime regime to commercial level may reach up to 14 tonnes per hectare.
Corken explained that Kansanshi Foundation, a Kansanshi Mining department in charge of corporate social responsibility, identified the support to local small-scale sustainable agriculture as a valuable undertaking because farming existed before and shall exist long after the mining activities.
"We had humble beginnings of seven beneficiaries in 2010, increased to 288 in 2011 and to 600 in the current 2012/2013 season. We intend to support 1,500 farmers in the next 2013/2014 agriculture season and continue thereafter increasing the number in every succeeding season," revealed Corken.
He disclosed that each farmer beneficiary receives inputs for an area within a range of 0.5 to one hectare adding that farmers after harvesting and selling their produce return only 30 per cent of the total cost of the inputs.
Corken further disclosed that the conservation farming programme had embraced and subsidised the production of soybeans, groundnuts, sugar-beans and vegetables in addition to maize, providing farmers with inputs that included seed, fertiliser and agriculture lime.
And officiating at the same function, North Western acting provincial agricultural coordinator Derrick Simukanzye described conservation farming as the farmers' 'magic' to success and implored farmers to engage in sustainable practices that would benefit both the current and future generations.
He also commended First Quantum Minerals' Kansanshi Mining Plc for supporting small-scale farmers by establishing a corporate social responsibility programme in the agricultural sector which he said was supplementing the programmes of the Ministry of Agriculture in Solwezi.
Labels: AGRICULTURE, CONTRACT FARMING, KANSANSHI MINING PLC, MIKE CORKEN
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Farmers to sell fresh produce to Pick n Pay SA
Sunday, 16 December 2012 00:00
Hillary Munedzi
South Africa’s retail giant Pick n Pay, which recently acquired 49 percent interest in Zimbabwe’s TM supermarkets, said it is now providing a ready market for Zimbabwean farmers to sell fresh produce to Pick n Pay supermarkets in South Africa.
The remarks come at a time when Justice Minister Patrick Chinamasa recently accused the retail giant of deliberately sabotaging the country’s agricultural sector by continuing to import fresh produce from South Africa and stocking its shelves with their finished products.
Mr Chinamasa said that sectors covering the wholesale, retail, distribution and fuel importation sector must be reserved for local investors.
He added that participation of foreign-owned entities in the domestic market will not add value to the economy, which is suffering from a ballooning import bill.
Speaking on the sidelines of the official opening of the Pick ‘n Pay supermarket at Westgate Shopping centre in Harare last week, managing director of TM Super Markets Mr Dave Mills said Pick n Pay will support the growth of the agricultural sector by selling local farm produce to South African supermarkets.
“The fruits and chickens are not exported from anywhere; they are 100 percent local and we will be selling fruits from Zimbabwe to South Africa Pick n Pay Supermarkets.
“We have already sold lychees to our Pick n Pay super markets in South Africa through the Kamfinsa supermarket and more Zimbabwean products could get into South African markets through this initiative,” said Mr Mills.
He also noted that a number of Pick n Pay branches will be opened, many of them at sites where TM supermarkets has been operating.
“The dual branding of TM supermarkets and Pick n Pay will go a long way in our market expansion initiative and it will add value to our products since TM supermarkets is a trusted brand,” he said.
He added that the supermarket will open other branches in Gweru, Masvingo and Bulawayo in the coming months. According to a Consumer Council of Zimbabwe survey report released recently, 85 percent of locally consumed goods were imported from neighbouring countries and this has remained unchanged over the past three years.
The value of trade between South Africa and Zimbabwe reached R19,2 billion last year.
South Africa, the biggest economy in Africa, is arguably the largest exporter to Zimbabwe, and many companies from that neighbouring country are currently operating in this country.
However, Zimbabwe has also stepped up trade relations with China.
Labels: AGRICULTURE, CONTRACT FARMING, NEOLIBERALISM, NEW FARMERS
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Contract farmers sing the blues
Sunday, 07 October 2012 00:44
Noah Pito in Hurungwe
Contract tobacco farmers in Hurungwe were shaken by a series of debt recovery exercises that resulted in several farmers losing their equipment after failing to honour agreements of their contracts
With the rains about to start and the 2012-13 cropping season ready for take-off, most ill-equipped farmers are wishing God had pushed the start of the rainy season by another few months while they put their houses in order.
Within this category are those contract farmers who are yet to receive the inputs promised by different firms while those who lost their agricultural equipment after failing to pay back what they owed these firms are seeking alternative ways of replacing the vital lost equipment.
In the district of Hurungwe — often dubbed “the breadbasket of Mashonaland West” — all is not well, especially among tobacco farmers.
Recently the district was shaken by a series of debt-recovery exercises that resulted in several tobacco farmers losing their farm equipment.
An assortment of agricultural machinery recovered from hundreds of farmers went under the hammer at the Karoi Messenger of Court’s Chongololo Complex.
Tractors, disc harrows, ox-drawn ploughs, trailers, scotchcarts, irrigation equipment, water pumps, generators, boom-sprays and even cars were auctioned — some for a song — while the owners helplessly watched.
The farmers had failed to pay back what they owed the Mashonaland Tobacco Company (MTC), Zimbabwe Leaf Tobacco (ZLT) and Golden Driven Investments (GDI), among others.
The Food and Agriculture Organisation (FAO) defines contract farming as agricultural production carried out according to an agreement between a buyer and farmers, which establishes conditions for the production and marketing of farm produce.
In the agreement, the farmer agrees to provide quantities of a specific agricultural product. These should meet the quality standards of the purchaser and be supplied at the time determined by the purchaser.
In turn, the buyer commits to purchase the product and, in some cases, to support production through, for example, labourers’ wages, the supply of farm inputs, land preparation and the provision of technical advice.
A win-win situation can be achieved since the farmers are guaranteed a ready market which reduces uncertainty regarding prices while they also obtain loans in kind through the provision of farm inputs such as seeds and fertilisers.
Purchasing firms, on the other hand, also benefit from having a guaranteed supply of agricultural products that meet their specifications regarding quality, quantity and timing of delivery.
Contract farming, like any other contractual agreement, can result in dire consequences, especially if the terms of the contract are not respected by one of the parties in the agreement. It is always the affected party that stands to lose.
Upon realising that they have produced only enough to service the loan with no surplus from which to enjoy profits, some farmers resort to selling to a different buyer (side marketing or extra-contractual marketing).This in most cases becomes the source of trouble that eventually severs the mutual relationship.
On another note, some companies can also refuse to buy the produce at the agreed prices, or can downgrade the produce quality resulting in the farmer and firm also trading accusations.
At times the buying firms, who are invariably more powerful than farmers, may use their bargaining clout to their short-term financial advantage just like in the recent cotton stalemate, although in the long run it is very counter-productive as farmers would cease to supply them.
According to a source from MTC who preferred anonymity, most of the farmers who lost their property in Hurungwe had failed to service their loans after they had side-marketed their tobacco. This, he said, was the source of trouble in their mutual relationship that resulted in legal action being taken.
The affected farmers, on the other hand, accused the firms for buying their tobacco at very low prices resulting in them failing to clear their loans.
“They took a tractor and all the irrigation equipment that I used on my farm. This had been my lifeline.
“Some of these people who are running these tobacco firms are just happy when the black man remains downtrodden,” said a farmer in the Tengwe area, who preferred anonymity.
A small-scale farmer at Peveril Farm Lot 2, Ngoni Diza, said one of the disadvantages of contract farming is that it did not present a win-win situation as the contract companies at times wilfully changed goal posts.
However, a prominent tobacco grower from the Tengwe area, who was also contracted last season, said:
“Most of these farmers that are crying foul take farming as a secondary investment. How can you fly to Victoria Falls using funds that have been tagged for agriculture?
“To be successful farmers, we should be realistic. We must not use money intended for inputs for any other purposes,” the farmer said.
During their annual congress held at Chinhoyi Country Club on August 27 this year, the Zimbabwe Commercial Farmers’ Union (Mashonaland West chapter) resolved that all contract-farming agreements
should recognise the farmer as the owner of the land, machinery and labour rather than the present scenario where firms are getting the bigger chunk of the proceeds.
Said the ZCFU Mash West provincial secretary, Mr David Marimo:
“We are not saying the farmers must not pay back, but we want the Ministry of Agriculture to review the current system where the firms are getting the greater share of the proceeds, yet the farmer’s contribution is greater than theirs.
“Part of the auctioned equipment like tractors and planters came from the Reserve Bank of Zimbabwe in a bid to enhance agriculture in the country, but now, look, the farmer is back to square one. We are advocating for these agreements to be turned into partnerships because in essence the farmer, being the owner of the land, is contributing not less than 70 percent in the arrangement,” he said.
According to Mr Marimo, these sentiments have also been voiced during their national congress held at Kadoma Training Centre recently.
Although contractual arrangements are more and frequently used in agriculture worldwide, they have often degenerated into contractual disputes that have seen farmers and their contractors trading accusations and even seeking legal recourse — each party blaming the other for not honouring their part of the bargain.
It is crucial for the parties to realise that a contract is a mutual assent manifested by an offer and an acceptance upon a legal consideration to meet some commitments or to desist from doing some acts that damage the relationship.
Labels: AGRICULTURE, CONTRACT FARMING
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Revitalising smallholder agriculture
Friday, 02 December 2011 00:00
Charles Dhewa
As the 2011/12 farming season gathers momentum, Netherlands Development Organisation (SNV Zimbabwe) is improving the availability of inputs to smallholder farmers through the Rural Agro-Dealer Restocking Programme (RARP).
The programme was started in 2009 and is designed to encourage wholesalers to avail inputs to smallholder farmers through supplying inputs in large quantities (consignment stock) to agro-dealer stores close to rural farmers and promote contract farming.
According to SNV Zimbabwe's senior agricultural advisor, Mr Albert Jaure, RARP is operating in all eight rural provinces of Zimbabwe involving 622 agro-dealers, 11 contracting companies and 10 821 contracted farmers.
Over the years, SNV Zimbabwe has built the capacity of agro-dealers to become economic drivers in the agriculture value chain. Agro-dealers have acquired skills in business management and cultivating strong links with rural farmers.
They have also grouped themselves into agro-dealer associations.
One of the most successful associations is Masvingo Agro-Dealer Association (Mada), which comprises business membership organisations from Masvingo province's seven districts, namely Bikita, Zaka, Chivi, Masvingo, Gutu, Mwenezi and Chiredzi.
Most of the members are agro-dealers, general dealers and rural artisans (carpenters and welders).
According to Mada chairperson Mr Edward Madzivadondo, the organisation has used lessons learnt during the economic hardships experienced in 2008 to build relationships with many organisations such as MicroKing Finance, Rural Development Organisation (Rudo), N. Richards Wholesalers, SNV Zimbabwe, Care Zimbabwe, Pioneer Seeds, Seed Co (Pvt) Ltd, to mention just a few.
Mada assists that members finance their enterprises through promoting credit and saving schemes in district associations; linkages to seed houses for consignment stock and to wholesalers for 14-day accounts. Other member benefits include capacity building and group accountability that enables every member to get a loan from Micro King and wholesalers such as N. Richards.
One of the reasons why agro-dealers have survived economic hardships better than big wholesalers is that they are agile enough to move with trends as compared to big wholesalers and manufactures, who tend to be tied down by inertia and other blockages.
Some of the major skills agro-dealers have acquired include merchandising, marketing, record keeping, input handling, conflict management, leadership, cattle fattening, value addition as well as lobbying and advocacy.
Demonstrations through field days are used by agro-dealers to show how their inputs work.
Most agro-dealers are involved in output marketing such as buying maize, groundnuts and livestock from farmers.
Farmers are benefiting a lot from working with agro-dealers.
"When I began farming in 2003, I struggled to harvest a tonne of maize but once I started working with agro-dealers, my fortunes have improved.
"Agro-dealers are now a big market for our commodities and we no longer wait for buyers from far away," said Mr Francis Tizai, a farmer from Masvingo District Ward 10.
l Charles Dhewa is community development worker and can be contacted at charlesdhewa7@gmail.com or dhewac@yahoo.co.uk
Labels: AGRICULTURE, CONTRACT FARMING
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ZCFU, farmers clash over soyabean contract-farming project
Friday, 04 November 2011 00:00
Agriculture Reporter
THE Zimbabwe Commercial Farmers Union has come under fire for allegedly duping farmers into joining non-existent soyabean contract-farming project.
According to farmers, ZCFU had managed to convince them that they would be assisted in soyabean production only to be
told at the last minute to approach banks for funding.Zvimba North Farmers Association president, Mr Chamunorwa Chibondo, said on Tuesday that
farmers who were interested in the soyabean production were asked to pay a joining fee of US$150, US$50 inspection fee and US$35 per hectare for administration.
"We were interested in the project and paid the fees. A single person who covered all farmers in a day did the inspection," he said.
After the inspections the farmers expected to start receiving inputs only to be told the scheme had changed as farmers were advised to approach banks, as individuals, for loans.
Mr Chibondo said ZB bank, which was recommended by ZCFU, did not accept individual farmers but instead preferred to deal with groups.
"We had come to collect the inputs at the ZCFU head office only to be told of the new arrangement. There is no way we can get funding from banks, as they require collateral. Where do we get the collateral," he said.
The farmers said the process of applying for cash from banks took long and this would affect their farming activities. Another farmer said: "Some of us had already done land preparations and we are now being told to start applying to banks. The process takes long and there is no guarantee we will get the funds. Even if we get the money the season will already be gone and this will obviously affect our yields."
Some of the farmers demanded their money back accusing ZCFU of daylight robbery for the union to collect money from farmers only to abandon them at the critical moment.
In July, ZCFU announced that it had engaged the private sector and input suppliers in rolling out a soyabean project expected to cover 35 000 hectares countrywide. The union promised that it was going to provide inputs such as seed, fertilisers and herbicides as well link farmers with markets.
Farmers involved in the project that was to be evenly distributed throughout the country were also promised with assistance in acquiring farm implements.
ZCFU official, Mr Shadreck Tsimba on Tuesday confirmed that farmers were not happy with the way the project had been handled and said discussions were underway to solve the problem.
"There has been a small misunderstanding since farmers are not happy with the new set up. We have not reached to a conclusion as negotiations are underway," he said. Mr Tsimba said this was not the first time ZCFU had run a contract project.
"We had a wheat project, which went on well, but this one has brought problems as it was slightly different and currently we are engaging banks to address issues raised by farmers," he said.
Contract farming has become an answer to many farmers who do not have ready cash to finance their operations.
However, on some occasions farmers blame the contractors of providing inadequate inputs and yet demand the whole crop at the end of the season. On the other hand, contractors blame farmers for side marketing.
Labels: CONTRACT FARMING, SOYA, ZCFU
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Farming contractors accused of cheating
Sunday, 23 October 2011 01:42 Agriculture
Agriculture Editor
FARMING contractors have been castigated for short-changing farmers amid revelations that most growers have lost agricultural equipment and properties worth millions of dollars over the past two years. Investigations conducted by The Sunday Mail revealed that some contractors were making farmers sign contracts whose contents were vague.
Due to poor input supply systems and difficulties in accessing finance, farmers have been lured into such contracts on the understanding that the contractor would fulfil the obligations.
In most cases the contractors would be expected to supply inputs, working capital as well as provide tillage facilities.
The farmers would then be expected to pay back through bank stop orders or by selling their produce to the contractor who, in turn, deducts the percentage as agreed in the contract document.
However, the contractors in most cases have failed to honour their obligations, thereby forcing farmers to source their own inputs which in most cases have been inadequate due to limited resources.
As such the farmers have failed to produce the expected yield as well as planting the agreed hectarage.
However, the contractors, despite failure to fulfil contractual obligations, have been dragging farmers to debt collectors, forcing them to pay in accordance with the signed contract.
Agricultural, Technical and Extension Services (Agritex) head of agribusiness and marketing Mr Wellington Chaonwa said contractors shortchanging farmers risked being blacklisted.
He said his department was now assisting farmers to scrutinise and understand the clauses of contracts before signing.
“We have seen that most of the contracts are not clear. In some cases the contractors have offered low prices to farmers resulting in misunderstandings between the parties,” said Mr Chaonwa.
A tobacco farmer who signed a contract farming with a local company said he received a tractor, an irrigation pump and a disc harrow after paying a deposit.
The balance was to be paid through a stop order facility in which the company was to provide the inputs that included tobacco seedlings, fertiliser and wrapping material.
“Since I entered into this agreement three years ago, the company has not, in any single season, provided me with the inputs thereby forcing me to struggle with my payments,” he said.
Another farmer who entered into the same agreement with the company who preferred not to be named said the company was supposed to provide him with tobacco seedlings as well as wrapping material and fertiliser.
“It (the company) was to get its money through a stop order facility on delivering my tobacco to the floors. I have not received any inputs from the company, but it received payment each season despite the fact that I would have sourced my own inputs,’’ said the farmer.
However, the chief executive officer of the contracting company said the farmers were supposed to have approached his office before rushing to the Press.
“I am not in a position to entertain you because these farmers were supposed to approach us before going to the Press,’’ he said.
Another farmer from Centenary almost lost his farm equipment but was saved by a High Court ruling which stopped the debt collectors from seizing the property.
Labels: CONTRACT FARMING
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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
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Side-Marketing Threatens Contract Farming's Future
Sharon Tawuya
20 July 2009
Harare — THE future of the contract farming system in the tobacco industry is under threat from farmers who are breaching their contracts through side-marketing, with the situation likely to impact negatively on the next season.
Side-marketing is when a farmer decides to sell their produce outside the contractual agreement after being supplied with inputs to grow the crop.
According to statistics from the Tobacco Industry and Marketing Board, 90 percent of the crop grown last year was under contract farming, but it was now being sold through the auction system.
TIMB had estimated that 5 million kilogrammes of tobacco would go under the hammer but that has been surpassed, confirming suspicion that farmers were side-marketing their crop.
About 13,9 million kg of the golden leaf has been sold through the auction system so far.
TIMB had set a target of 42 million kg of tobacco to be sold this year through both the auction and contract systems but 39,2 million kg had been sold as at July 14 this year.
Contractors might lose more than US$10 million through non-payment of debts by farmers who choose to dishonour their contracts.
Farmers risk not being supplied with inputs, as contractors would have to think twice before allocating their capital the next season.
A contractor, Mr Ken Butchart, director of the Zimbabwe Tobacco Growing Company, said they might lose more than US$10 million through non-payment of debts by farmers.
Mr Butchart said contractors would take remedies to recover their debts from farmers who were side-marketing their tobacco.
"We will take legal action to recover our funds from those farmers," he said.
He said a small section of farmers were side-marketing hence it was unnecessary for them to punish the whole industry by not assisting farmers next season.
"Those who are side-marketing need to be aware of the consequences as they risk not being supported the next season," he said.
"We are working with TIMB to rectify and control side-marketing as well as taking legal action," Mr Butchart said, adding that contractors had a long-standing relationship with the board and would not be compromised by a small section of farmers.
Butchart also said farmers were well informed of the contracts; thus they could not plead lack of knowledge about their contractual obligations.
TIMB chief executive Dr Andrew Matibiri said side-marketing was a cause for major concern to the industry.
"Farmers were supplied with inputs that were expensive but now they feel cheated," he said, concurring that they were working in conjunction with contractors to map the way forward.
Dr Matibiri said they would use their database to deal with farmers who were side-marketing their produce.
"TIMB will identify those farmers who were supported by contractors but did not satisfy their contractual obligations."
"We will then blacklist them from accessing funding from contractors, let alone the banking sector," he said.
He said they would also stop issuing new tobacco grower numbers at the moment to avoid side-marketing.
"When we resume the process, proper vetting of prospective growers would be done," he added.
Dr Matibiri urged farmers to know the value of their contracts before rushing into signing agreements.
He said they were getting complaints from growers who were claiming that some contractors who had supplied them with equipment were shifting goal posts in terms of payment deadlines.
An official with auction firm Tobacco Sales Floors said there was high possibility that a lot of tobacco was being side-marketed.
"The predicted volume of tobacco that was supposed to go under the hammer has been surpassed, so there could be leakage," said TSF managing director Mr Philemon Mangena.
He professed ignorance of facilitating the sale of contracted tobacco.
"We only sell tobacco that would have been booked so we cannot tell whether or not the crop would have been contracted," he said.
Some of the growers admitted that they were breaching contracts to get short-term financial gain.
"Contractors are ripping us off as their demands will leave us with no cash to pay workers and other expenses," said Mr Sydney Chidamba of Arda Farm in Mvurwi.
Mr Chidamba said some contractors who had supplied them with farm machinery were not giving them flexible time thus they decide to side-market their produce to avoid repaying debts.
He underscored the need for the Government to support farmers so that they reduce direct exposure with contractors.
"Farming without Government intervention is really difficult," he said.
Mr Chidamba urged farmers to communicate their concerns to contractors rather than resort to side-marketing as they risked losing financial support.
Most of the tobacco that is brought to auction floors comes from small-scale farmers who are always in a hurry to get cash while large-scale farmers usually sell their produce through the contract system. New Ziana
Labels: CONTRACT FARMING, SYDNEY CHIDAMBA, TOBACCO
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Eastern Farmers clinch Dutch groundnuts deal
By Gilbert Kaimana
A DUTCH import company, Tradin Organic, will start buying organically grown groundnuts from small scale organic farm producer cooperatives in Petauke. Tradin Organic has agreed in principal to buy groundnuts from the organic producers under a deal arranged with the assistance of the Organic Producers and Processors Association of Zambia (OPPAZ).
In an interview in Lusaka, OPPAZ chief executive officer, Mushimbwe Chitalu said the Dutch company initially wanted to buy 5,000 tonnes of groundnuts but the Petauke based cooperatives could not meet the quantities required.
Tigwilizane Cooperative of Petauke was only able to produce 100 tonnes of the organic groundnuts.
Mr Chitalu said the association was working with the farmers to help them organise themselves in order to produce more quantities.
The Dutch firm would be offering other services to the cooperatives it would be working with in Eastern Province to enable them increase production output of the organically-grown groundnuts.
Tradin Organic would be working in partnership with OPPAZ to introduce extension services, trade financing and capacity building services for the farmers.
He said the farmers would have an advantage in dealing with Tradin Organic because the organisation was certified as a fair trade organisation.
OPPAZ helps in, among other things, linking organic producers and processors to markets and financing.
“Small scale farmers rarely have markets for their crops, so we help develop market linkages as well as financing for them,” he said.
The association promotes a variety of organically-produced crops in Northern, North-Western, Central and Copperbelt provinces.
Labels: CONTRACT FARMING, EASTERN PROVINCE, GROUNDNUTS, MUSHIMBWE CHITALU, OPPAZ
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Freshmot invests K100m in pineapple outgrower scheme
By Kabanda Chulu
Monday March 24, 2008 [11:00]
FRESHMOT Zambia has invested K100 million for the development of a pineapple out grower scheme in Mwinilunga that will involve over 1,000 small-scale farmers. Company managing director Moses Tamele said Freshmot is currently negotiating with a South African firm to set up a joint venture to revive the pineapple industry in the district. Tamele explained the venture was part of the preparations for the revival of the Mwinilunga pineapple processing factory.
“The main objective at this stage is to ensure that the proposed fruit processing plant has sufficient raw materials for processing into a wide range of pineapple products and Freshmot plans to identify potential out grower farmers in the North Western and as well as the Copperbelt provinces,” he said.
He said that hundreds of tonnes of pineapples go to waste every year in the country due to difficult marketing conditions and the absence of any fruit processing facilities.
The Mwinilunga pineapple project was established in the early 1970s by the Kaunda government in an attempt to bring development to the North Western Province.
However, the factory could not survive the harsh liberalised economic environment after government stopped funding and earmarked it for privatisation.
Labels: CONTRACT FARMING, FRESHMOT ZAMBIA, PINEAPPLE
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Choma farmers sign five-year jatropha deal
By Business Reporter
OVER 200 small-scale farmers in Choma have entered into a five-year agreement with D1 Oils Africa which will entail promoting the cultivation of the jatropha plant in the district.
D1 Oils Africa is a bio-fuels development and promotion company with a presence in many African countries. The company’s field technician for Choma Bernard Mulenga said D1 Oils Africa has signed contracts with about 220 local farmers with the aim of promoting the cultivation of Jatropha in the district under an out-growers scheme.
Speaking in an interview in Choma, Mr Mulenga said the contracts include the provision of extension services, training, seedlings provision and market access.
He said the farmers’ diversification into jatropha cultivation would help boost the rural economy and contribute to poverty allevisation.
“We are interested in providing market access to farmers instead of them to go looking for markets when the seeds are ready. We are also encouraging farmers to diversify into other crops.” he said.
Mr Mulenga said the company would also bring in its refinery technology which would be used in processing the oil from the jatropha plant. He allayed fears that the plant caused soil erosion, saying it did not if properly used.
The jatrohpa plant has been identified as one of the more promising sources of fuel as the world grapples to search for alternatives in the face of a looming energy crunch. Ecological concerns have, however, stirred debate about the plant.
Labels: BIOFUELS, CONTRACT FARMING, D1 OILS AFRICA, JATROPHA
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‘Pineapple out grower scheme on cards’
By Business Reporter
Approximately K100 million has been earmarked for the development of a
pineapple out grower scheme in Mwinilunga involving
1,000 small-scale citrus farmers. Freshmot Zambia Ltd managing director, Moses Tamele said the venture was part of the preparations for the revival of the
Mwinilunga pineapple processing factory.
Freshmot is currently in negotiations with a South African firm aimed at setting up a joint venture in the revival of the pineapple factory. The objective was to ensure that the anticipated new factory had enough raw material for processing into various ends products.
Freshmot will soon embark on a programme to identify potential out grower farmers in the northwestern province which would also be extended to the Copperbelt.
The development has elated many farmers in the province who see the development as an opportunity to embark on commercially viable citrus farming.
“Hundreds of tonnes of citrus fruit go to waste every year in Zambia because of lack of market and the non availability of processing facilities to absorb the fruit.” Mr Tamele said.
A citrus farmer Mizinga Kayombo who grows fruit on the Copperbelt urged FreshMot to enter into long term contracts with farmers in order to sustain the project.
Mr Kayombo suggested that the company should also help farmers access the export market especially the Democratic republic of Congo and Angolan markets where much of the fruit including oranges, mangoes, pineapples and bananas are sold under individual arrangements.
Labels: AGRICULTURE, CONTRACT FARMING
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Vital to promote contract farming
EDITOR — Manufacturing companies complain that farmers are not producing enough to sustain our agro-based economy. We have heard the litany of complaints, but the question is what should be done to rectify this anomaly? I think President Mugabe should urge the Minister of State for National Security, Lands, Land Reform and Resettlement to insert a clause in the lease agreements to compel all commercial farmers reserve a minimum of 10 hectares for each of the following crops; wheat, maize, soyabeans and sunflower.
The clause should stipulate that the Government would buy these crops at market price, failing which the land will be repossessed.
We must not forget that these farmers got the land for free, and Agribank is giving them loans for a song, not forgetting the farm equipment they got under the mechanisation programme.
It is only fair that the farmers complement Government efforts to turn around the economy. The farmers can use the remaining hectarage to produce whatever they want.
As for the companies that are always complaining that the land is not being used productively, they should engage the commercial farmers and go into contract farming. This is working well in the cotton and beverage industry.
Tendai O. Tekere.
Warren Park D,
Harare.
Labels: CONTRACT FARMING, THE HERALD
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