Innscor’s agro unit invests US$10,4m in inputs

Innscor Africa Limited’s agriculture unit, PHI/Agrowth, invested a total of US$10,4 million in the current cropping season to ensure a continuous supply of key raw materials to the conglomerate’s agro-processing units while also contributing to national food security, a senior company executive has said.

As the leading purchaser of Zimbabwean maize, soya products, and wheat, Innscor has a diverse portfolio including National Foods’ milling operations, Profeeds, Probrands, Irvine’s, The Buffalo Brewing Company and Colcom.

The group also uses significant quantities of locally sourced sorghum, sugar beans, and popcorn.
PHI director Mr Graeme Murdoch said the company partnered with 199 farmers, resulting in about 6 800 hectares of key crops being grown under contract.

The investment not only strengthens the supply chain for various food products but also enhances the livelihoods of local farmers and promotes sustainable agricultural practices, he said.

Maize received the largest portion of funding, at US$8 million, supporting 4 804 hectares of commercial irrigation, 130 hectares of commercial dryland, and 132 hectares of dryland small-scale farming.

PHI also invested US$1,66 million in soya beans, planting a total of 1 231 hectares. The remaining funds were allocated to sorghum and popcorn.

“Our commitment to investing in local agriculture is fundamental to achieving both our business objectives and supporting food security in Zimbabwe,” said Mr Murdoch.

“By working closely with our farmers through initiatives such as contract farming, we help ensure stable production levels and provide them with the necessary tools and resources to succeed.”
PHI’s investment aligns with the Government policy requiring the private sector to meet at least 40 percent of annual raw material needs through value chain financing of farmer production.

PHI operates under the umbrella of the Food Crop Contractors Association, which also includes Staywell, Delta, and Northern Farming. For this summer cropping season, the estimated financial requirement was US$1,6 billion, with the Government contributing 37 percent, the private sector 60 percent through contract schemes, and self-financed farmers contributing 3 percent.

After last year’s drought, Innscor group companies have been relying on imports for their maize and soya requirements for most of 2024.

PHI purchased approximately 40 000 tonnes of maize and about 7 000 tonnes of soya beans from the 2023/24 summer crop, alongside 53 000 tonnes of contracted wheat from the 2024 wheat crop.
Looking ahead, the unit targets 6 400 hectares of winter wheat this year.

“The 2024/25 summer rains were much later than expected, with the first planting rains falling, for most areas, only in the middle of December,” Mr Murdoch said.

“The rain in the northern areas has been adequate for the crops, but run-off to fill the dams is still insufficient to guarantee a winter crop.”

The PHI/Agrowth scheme facilitates better yield outputs while fostering a cooperative environment among farmers.
The initiative not only assists farmers in accessing finance and essential farming inputs but also guarantees reliable marketing channels for their produce.

Looking ahead, PHI plans to continue expanding its agricultural footprint and increasing investments in crop production to meet the rising demand for locally sourced food products.

“As we move towards the next planting season, we are focusing on diversifying our crop base and enhancing our partnerships with farmers to cultivate a broader range of crops,” he said.

To bolster its efforts, PHI is seeking to enhance its collaboration with independent contractors to secure consistent off-take options for commodities, thereby solidifying Zimbabwe’s agricultural sector and ensuring a stable supply of raw materials for its diverse food production divisions.

Mr Murdoch said Innscor Africa’s strategic approach not only prioritises its operational needs but also plays a vital role in uplifting the agricultural sector and contributing to the broader economic landscape of Zimbabwe.-chroncile