PHI to invest US$13m in contract farming for 2024-25 season
HARARE – National Foods says Paperhole Investments (PHI)/A Growth will invest US$13 million in contract farming for the 2024−25 farming season, marking a nearly 19% decline from US$16 million invested the previous year.
In an interview, National Foods CEO Mike Lashbrook stated that the company will continue to serve as the off-taker for the grain produced under the PHI/A Growth scheme in the upcoming year.
“PHI/A Growth is targeting to provide US$13 million in financing support to farmers,” Lashbrook noted. This investment aims to enhance the supply of raw materials and increase production capacity.
Through the Agriculture and Food Systems Strategy, the company, in collaboration with A Growth/PHI, seeks to boost production in both contract and corporate farming sectors. “The scheme plans to cultivate 8,500 hectares, primarily of maize and soya beans,” Lashbrook added. The total area for this season will be allocated between contractors and off-takers.
The government continues to be the primary funder of agriculture in Zimbabwe through the Presidential Input Scheme and the National Enhanced Agriculture Productivity Scheme (formerly the Command Programme), with a target of 40% private sector funding. However, this goal remains a work in progress due to challenges faced by many companies in expanding contract capacity.
It is projected that the private sector will contribute to the production of soya beans, with a targeted area of 40,000 hectares and an expected output of 100,000 metric tonnes. The sector’s target for maize has been set at 45,000 hectares with an expected volume of 270,000 MT and sorghum, 12,000 hectares with an expected volume of 24,000 MT. The total targeted area for private sector crops is 97,000 hectares, with an expected total output of 394,000 MT
Recently, Busisa Moyo, CEO of Oil Refineries, indicated that the country needs US$1.2 billion in investments to achieve self-sufficiency in soya bean production. Zimbabwe requires approximately 300,000 tonnes of soya beans annually for food, feed, and industrial purposes, along with around 250,000 tonnes of oilseeds to produce sufficient soybean meal to meet this demand. This goal can be achieved by cultivating about 120,000 hectares of soya beans, with an average yield of two tonnes per hectare.
In the previous year, Zimbabwe produced 140,000 tonnes of soya beans, falling short of the national target of 450,000 tonnes.
PHI anticipates a total grain output of 45,000 tonnes by the end of the 2024/25 farming season, despite the challenges posed by dry weather patterns. This projected output represents a slight decline of 6.62% from the previous year’s target of 48,193 tonnes.
The projected output will involve 530 farmers nationwide, with expectations of participation from around 500 small-scale farmers and 30 large-scale farmers. The contract farming initiatives will span six regions, including Mashonaland East, Mashonaland West, Matebeleland South, Midlands, Mashonaland Central, and Manicaland. finx
