Tobacco farmers blast TIMB
Sunday, 18 March 2012 10:27
Agriculture Reporter
Farmer organisations have criticised the Tobacco Industry and Marketing Board (TIMB) for introducing a US$40 fine for late registration, saying the penalty was likely to increase production costs.
In an interview last week, Zimbabwe Commercial Farmers’ Union (ZCFU) agronomist Mr Michael Mubvuma called on the authorities to reconsider the move, which was meant to compel farmers to register for the marketing season early. “We, as farmer organisations, are not happy with the fine, which we feel is too high,” he said.
“The cost of producing tobacco is already high and such a fine will not do us any good. It will increase the cost of production.”
Mr Mubvuma said stakeholders should view farming as a business with immense benefits to the economy, adding that the penalty would leave small-scale producers worse off.
“Of course, late registration is not good because it increases the number of days farmers will spend at the auction floors.
“However, US$40 is too much; the figure should be looked into. Last year, the auction floors opened early with only one company operating.
“There were long queues and the rains also compromised the quality of the bulk of the golden leaf. As a result, the prices were very low to the extent that growers walked away with nothing.
“As much as they wanted to register, most of them did not have money.
“They actually struggled to get bus fare, something the TIMB should also consider.”
Speaking at the official opening of the marketing season, TIMB chairperson Mrs Monica Chinamasa said registering early clears the way for proper planning.
Labels: TOBACCO, ZCFU
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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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A2 farmers struggle to finance operations
Monday, 24 October 2011 00:00
Obert Chifamba Agriculture Reporter
MOST model A2 farmers are struggling to finance their preparations for the 2011/12 farming season amid reports that banks are reluctant to extend loans to them as some are yet to re-pay the loans from last season.
In an interview yesterday, Zimbabwe Commercial Farmers Union president Mr Donald Khumalo said the majority of A2 farmers were failing to buy inputs, repair implements or even replace the obsolete equipment due to lack of funding.
"It is disappointing to note that most of these farmers have delivered grain to the Grain Marketing Board and have not yet received their payments up to this day.
"This development has seen most of the farmers failing to settle debts they incurred last season and banks can not extend more funds to them now because they have outstanding re-payments," said Mr Khumalo.
Most of the farmers were now failing to pay back what they owed due to accrual of interest rates, the ZCFU boss said.
He said his union was concerned about the development, which he described as a huge setback to the agricultural sector.
"Funding of agriculture is very critical. We cannot talk of anything to do with the economy and not mention agriculture so when farmers can not mobilise resources to buy inputs as well as mechanise their operations, it becomes a matter for concern," he added.
Mr Khumalo said the situation on the mechanisation side of agriculture was critical as most of the implements and machinery had aged and therefore no longer very reliable.
The dire situation, said Mr Khumalo, made it imperative for farmers to buy new implements or repair the ageing ones where financial resources were limited.
The GMB recently conceded that it still owed farmers US$40 million for maize delivered to its depots in the 2010/11 marketing season.
GMB general manager Mr Albert Mandizha said despite the parastatal having paid US$27,4 million to farmers so far, there was need for Treasury to urgently mobilise more funding to pay farmers for grain that was delivered after July.
"The rain season is upon us and farmers badly need that money to do their preparations, which they should have completed by now if we had paid them in time.
"The Finance Ministry recently released US$10 million, which we immediately sent to all our depots for the payment of grain that was delivered from the start of the marketing season to July 15 this year," he said.
The funding that was dispatched to the parastatal's depots was for paying farmers who delivered five tonnes and below for the period between April and July.
Most A2 farmers unfortunately have delivered bigger tonnages than this and therefore were not covered as they would be paid through banks.
Labels: A2 FARMERS, GRAIN MARKETING BOARD ZIMBABWE, ZCFU
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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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Farmers get boost input facility as ZCFU unveils credit facility
Saturday, 23 July 2011 23:50 Agriculture
Agriculture Editor
THE Zimbabwe Commercial Farmers’ Union (ZCFU) has come up with an input credit facility for the 2011/12 summer cropping season. The credit scheme, which is open to all farmers who are formally employed elsewhere, will allow access to inputs covering five hectares to facilitate early planting.
In an interview last week, the union’s chief economist, Mr Peter Gambara, said they had come up with the scheme to enable farmers to access inputs early. He said payment for the inputs would be spread over a period of between three and five months depending on the total cost of inputs one would have accessed.
Mr Gambara said arrangements would be made with the companies where the farmers are employed for the payments to be made through a stop-order facility.
“We are calling on all farmers, regardless of which union one belongs to, to take advantage of this facility as we are trying to address the challenges of farmers accessing inputs late,’’ said Mr Gambara.
He said all salaried farmers were eligible adding that the union was looking at assisting the Government in its efforts to avail inputs to the farmers.
He said failure to access inputs on time had previously led to farmers failing to fully utilise land. In some cases farmers had completely failed to plant.
Farmers welcomed the idea as noble but bemoaned the fact that the scheme was only open to those in formal employment.
A farmer from Beatrice, Mr Silas Zinzende, said such schemes were important as it was difficult for farmers to finance operations on their own.
He said lack of such schemes had left vast tracts of land being underutilised because of challenges related to the timeous procurement of inputs.
“I am not sure how many farmers will access these inputs considering that not many of them are in formal employment. We would have appreciated a scheme where all farmers are eligible to benefit,” said Mr Zinzende.
A farmer from Arcturus, Mr Tendai Mberi, said the scheme was good but reiterated the need to spread it to non-salaried farmers as long as they had the capacity to pay for the inputs.
Labels: AGRICULTURE, ZCFU
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Seed Co urges boost in food production
Friday, 24 June 2011 01:00
Agriculture Reporter
SEED CO has encouraged farmers to maximise production to reduce the effects of looming global food shortages. A boost in food production will ensure the country's food security and reduce money spent on imports.
Speaking at a hand over ceremony of funds towards the Zimbabwe Commercial Farmers Union golf tournament, Seed Co public relations and communications manager Ms Majorie Mutemererwa said Zimbabwe was not immune to looming global food shortages. To this end, there was need for farmers to increase production.
"We feel that farmers play a vital role in the ensuring food security and also contribute towards the economy of the country. While farmers should work hard to feed the nation there is also need to find some time from the field and interact with each other," she said.
Ms Mutemererwa who handed over US$250 donation towards the tournament said functions like these were essential to facilitate a break and interaction of farmers with other stakeholders in the agriculture industry.
"While it may seem to be a sporting activity, some farmers may learn new business ideas from this golf tournament through interaction with their counterparts," she said.
Speaking at the same function, ZCFU secretary-general, Eng Adiel Karima said his organisation was willing to work with Seed Co and the seed company had always been forthcoming to the union's assistance.
"We hope to hold more business with the company, making sure that farmers will sustain this relationship by giving Seed Co continued business," he said.
Eng Karima encouraged farmers to attend social gatherings, as they are platforms of knowledge exchange.
Labels: SEEDCO, ZCFU
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500-hectare potato project on cards
Sunday, 05 June 2011 00:46 Agriculture
by Emilia Zindi
THE Zimbabwe Commercial Farmers’ Union (ZCFU) has embarked on a 500-hectare potato-growing project after most of its members failed to access inputs for the winter wheat farming season.
Most farmers opted not to grow wheat this winter after experiencing several challenges, chief among them inadequate funding and unreliable electricity supplies.
The potato project will see union members accessing inputs on credit with repayment expected soon after produce sales.
In an interview last week, ZCFU head of commodities Mr Michael Mubvuma said his union realised that farmers needed to substitute wheat for other cash produce that enables them to effectively utilise land during this season.
He said beneficiaries would receive 1,5 tonnes of compound C fertiliser per hectare, 400kg of sulphate or potash, and 200kg of ammonium nitrate.
He said they would also get two litres of dual herbicides per hectare.
“This is the first time we have come up with such a project. We are trying to provide inputs for farmers with projects that are of financial gain,’’ he said.
Mr Mubvuma said farmers were expected to harvest a yield of between eight and 10 tonnes per hectare.
Planting from next month onwards will ensure the potatoes survive the damaging mid-winter season frost.
“We are giving inputs for 500 hectares this season as this is the beginning of the project,” he said.
“Perhaps we will increase the hectarage in future once we see how successful this project will have been.’’
He added: “Disbursement of inputs will start this week as everything is now in place. We are looking at farmers who want to start on a small scale of between two and five hectares.”
Farmers who spoke to The Sunday Mail said the project was a milestone in promoting agriculture, given that most farmers were facing challenges.
“We appreciate the work the union is doing. This will enable us to utilise land at our disposal,’’ said Mr Zvikomborero Mombeshora of Selous.
Another farmer from Chinhoyi, Ms Elizabeth Mwendamberi, urged farmer unions to assist their respective members.
“Although it is the mandate of Government to come up with assistance for farmers, everyone must be seen to be playing a part in supporting strategic sectors such as agriculture,’’ she said.
Potato-growing has proved to be a profitable venture as the crop continues enjoying a huge market.
Labels: ZCFU
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‘No funds available for wheat farmers’
Agriculture Editor
Saturday, 07 May 2011 23:09 Agriculture
THE Zimbabwe Commercial Farmers’ Union (ZCFU) has unveiled an input support scheme for wheat producers in a move expected to help boost the winter cropping season.
In an interview last week, ZCFU chief economist Mr Peter Gambara said his union introduced the facility after its members failed to access Government-subsidised inputs.
He said the organisation and local fertiliser and seed manufacturers signed a memorandum of understanding under which the inputs would be supplied on credit. The respective union members — who are expected to pay US$20 per hectare — have already begun accessing the inputs. The union is also expected to assess the equipment on the prospective beneficiaries’ properties at a cost of US$100 per member.
“It is worrying that challenges crop up every season,” he said.
“We do not know where things are going wrong. We are in mid-May and preparations should be on course.
“However, farmers lack working capital.’’
Farmers need working capital to purchase inputs and prepare land. However, most financial institutions tasked to provide such funding are yet to do so.
To compound the problem, Government-subsidised inputs that were supposed to have been dispensed by the Grain Marketing Board are not available.
The Agricultural Development Bank of Zimbabwe (Agribank) reportedly received US$30 million from Government to cater for the winter wheat programme.
The bank’s chief executive officer, Mr Sam Malaba, would not be drawn into revealing details about the disbursements.
However, insiders revealed that the funds were yet to be made available.
“We have not received any funds. All we have seen are Press reports about the funds,’’ said a source.
CBZ Bank also said it was yet to receive funds.
“We are yet to start disbursement because there is nothing we received for wheat production,’’ said an insider.
Farmers interviewed expressed fears that this season could be a complete disaster.
“The authorities are quite aware of the perennial challenges we face, but do not seem to correct them,” said Mr Timothy Mukonoweshuro, a Marondera farmer.
“All they do is blame farmers for failing to meet the planting deadlines.’’
A Bindura farmer, Mr Elliot Chimakure, said more was required to make the season a success.
“We have seen situations where funds are availed at the end of the season.
Where these funds will be, in the first place, is a question which no one has answered.
“All we hear are counter-accusations which do not help anyone.’’
Mr Chimakure added that incessant powercuts were also adversely affecting production.-The Sunday Mail
Labels: GRAIN MARKETING BOARD ZIMBABWE, WHEAT, ZCFU
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Give farmers loans, banks told
Agriculture Reporter
Zimbabwe Commercial Farmers Union president Mr Wilson Nyabonda has challenged the banking sector to come up with well-structured medium and long-term loan facilities ahead of the 2010/11 summer cropping season.
Mr Nyabonda was speaking on the sidelines of ZCFU Manicaland Province’s first annual congress in Mutare last weekend. "Lack of financing capacity could hamper the pros-pects of a great agricultural season," he warned.
Mr Nyabonda said the Government should urgently intervene to ensure farmers have access to lines of credit.
He lamented that Government had become farmers’ biggest creditor through utilities such as Zesa, Zinwa and rural district councils that were issuing high bills for services.
"This is rendering farming less and less profitable, which is a threat to the national drive to reclaim our bread-basket status.
"Farmers have the capacity to produce once the playing field is evened-up for them. The prospects of a good season are there with 590kg of seed for irrigated tobacco having already been confirmed sold while there are adequate stocks for maize seed and more than 100 000 tonnes of both top dressing and compound fertilisers in stock," he said.
Mr Nyabonda said the ZCFU would in November convene an all-stakeholders conference to discuss ways of making farming operations easier.
"Despite the assurances that there will be adequate seed and fertiliser, farmers still are not capacitated to buy inputs. This is one of the key reasons behind the conference in November," Mr Nyabonda said.
Provincial congresses have been held in Mashonaland East and West and Matabeleland North and South.
Labels: BANKING, NEW FARMERS, WILSON NYABONDA, ZCFU
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‘Wheat cropping preps slow’
By Elita Chikwati
LAND preparations for the 2009 wheat crop have started on a slow note across the country as farmers face the challenges of input availability. The preparations are behind schedule and farmers should be ready for planting.
Zimbabwe Commercial Farmers Union president, Mr Wilson Nyabonda said farmers need to harvest their summer maize and soyabeans before they could start winter wheat land preparations.
"Usually farmers start planting wheat from mid- April to May 25 and the fact that some farmers have not started harvesting their summer crops does not mean land preparations will be delayed. There is a lot of idle land to be used for wheat production," said Mr Nyabonda.
He added that wheat growers were bound to have difficulties mobilising inputs since the prices were now pegged in foreign currency.
Zimbabwe Farmers Union Director, Mr Paul Zakariya said farmers were facing challenges on mechanisation and costs.
"We are coming from a background where resources are scarce and this will cause a reduction in hectarage.
"Farmers are having problems of procuring fuel since banks are not forthcoming with funding. Very little is coming from the banks and working capital is hard to come by," said Mr Zakariya.
He added that until farmers are willing to engage in contract farming, this season was going to be a difficult one.
Through the Ministry of Agriculture, Mechanisation and Irrigation Development, a policy change was announced which was expected to boost production capacity of the agricultural sector in the short to medium term. The main points of the policy included market based access to inputs.
Mr Zakariya urged farmers to be precise with timing as this had an effect on the total yields.
To achieve the national target of 100 000 tonnes for this year, the sector requires,
6 000 tonnes of seed, 30 000 tonnes each of both Ammonium Nitrate and compound D fertiliser, 24 000 tonnes of lime and between seven and eight million kilogrammes of fuel.
Recently, the Minister of Agriculture, Mechanisation and Irrigation Development, Dr Joseph Made said about 6 000 tonnes of seed had been acquired for the winter wheat programme.
As of last week, 17 000 tonnes of fertiliser were available and this was not enough for the winter season. Fertiliser is selling between US$700-US$800 a tonne.
The Government is however working on addressing the challenges and had agreed to import some of the requirements while assisting the local industry to produce more.
Labels: WHEAT, WILSON NYABONDA, ZCFU
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Govt expresses support for farmers’ joint project
Business Reporter
GOVERNMENT has said it fully supports the Union Project, which was established by the country’s three farming organisations, The Zimbabwe Farmers’ Union, Commercial Farmers’ Union and the Zimbabwe Commercial Farmers’ Union to prop up the agricultural sector.
Under the project, farmer organisations are involved in the implementation of several projects with support from the European Union and Stabex’95 funds.
The project promotes private sector participation through contract farming for crop and livestock production.
Officially launching the project in Harare yesterday, the Minister of Agricultural Engineering, Mechanisation and Irrigation, Senator Joseph Made, who is also the Acting Minister of Agriculture, commended the formation of the project.
The Union Project, he said would have far-reaching positive production impact on smallholder farmers guaranteeing national and rural household food security, jobs and incomes.
Some of the schemes receiving funding are livestock production through the provision of vaccines, rehabilitation of the Central Veterinary Laboratory for vaccine production and dip tank rehabilitation in communal areas.
"Government, through the Ministry of Agriculture, supports these projects. Government appreciates the continued support of the agricultural sector by the international community.
"Agriculture is the backbone of the Zimbabwean economy as well as the mainstay of livelihoods in the rural areas and the smallholder communal farmers," he said.
Funding is also provided for crop production, institutional capacity building and conservation agriculture.
Sen Made said the Union Project has schemes in Guruve, Karoi, Kadoma, Masvingo, Rusape, Honde Valley, Chinamhora and Murehwa where about 1 085 farmers had been engaged.
By the end of the project, more than 3 000 farmers are expected to have benefited.
With support from the Food and Agriculture Organisation, European Union, the South African and Spanish governments, the project intends to increase food security through intensive extension, training and input support.
It also aims to introduce improved land use and land management farming methods and to set up market linkages with the private sector, including contract farming and input credit schemes.
Labels: CFU, FARMING, UNION PROJECT, ZCFU, ZFU
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