Delta increases contract farming hectarage

LISTED beverages producer, Delta Corporation Limited, has increased its hectarage under the maize contract farming scheme from 2 000 to 5 000 hectares, a development that will see the company meeting its annual raw material needs, which is around 50 to 60 000 tonnes.

Delta Corporation Limited

Delta, which produces traditional and clear beers, is a major consumer of grain and usually contracts farmers to produce barley, sorghum, and maize.

In a presentation of the 2022/2023 financial year analysis last Thursday, Delta chief executive officer, Mr Matlhogonolo Valela, said the company supports about 12 000 farmers growing sorghum largely in rural communities.

He said barley is their major input with about 7 000 hectares under contract farming. Last year the company spent about US$20 million on barley contract farming.

“Lately having met with cereal shortages from time to time, we have increased hectares under contract for maize so that the 50 to 60 000 tonnes we need per year may come largely from our farmers rather than competing with others in the market,” said Mr Valela.

Delta began the contract scheme of barley in 1975 after setting up a malting plant, sorghum in the early 1980s, and maize in the early 2000s.

The company has annual requirements of at least 65 000 tonnes of maize, 13 000 tonnes of red sorghum, 3 000 tonnes of eagle sorghum, and about 22 000 tonnes of barley.

Sorghum

Mr Valela said 100 percent of their direct farmers will be skilled, connected, and financially empowered.
He said the company supports about 50 barley commercial farmers with more than 300 000 jobs created downstream across the country.
Meanwhile, Delta, through its initiative to support families, offers training to women who are into vending and support them with informal carts, which have seen many families thrive.

“About 800 women are supported through the Coca-Cola Economic Empowerment scheme of vending trolley distribution,” said Mr Valela.

Chibuku Super Cup

The company also sponsors different sports initiatives, which includes the Chibuku Super Cup, Castle Premier Soccer League, and Coca-Cola 4-minute Mile to mention but a few.

“In that area, we invest more than US$1,5 million annually and it’s a conservative figure when you look at the total outlay that we do as we talk about direct sponsorship, not the indirect spending, and all properties are sponsored by us,” said Mr Valela. —-chronicle.cl.zw