Private contractors to grow agric funding
Private sector contractors under the ambit of Food Crop Contractors Association (FCCA), have committed to increase funding support towards agriculture to drive production.
The FCCA is a loose and voluntary representative body of private-sector contractors involved in crop production.
The financiers have played a significant role in supporting production, mainly food crops, but also tobacco growing. Last year, the contractors were responsible for 64 percent of total wheat deliveries.
FCCA chairman, Graeme Murdoch, said the group was committed to promoting increased private sector involvement in agriculture funding.
“The evidence of that is to reference the 2021 wheat crop total deliveries to the Grain Marketing Board and to the private millers total of 250 000 tonnes,” he said.
Private sector funded crops accounted 158 000 tonnes of the 250 000 tonnes.
“We were the largest contributors to what was a very good wheat crop in Zimbabwe and that is evidence of our importance in agriculture in Zimbabwe.
“If we look at the summer crop of 2021-22 season that is on the ground, outside the hectares being financed and supported by the Presidential scheme, we are the next largest block. So the reality is that through private sector funding, we have become a large component of funding for Agriculture,” said Mr Murdoch One of the contracting firms, Staywell Trading, said it would expand its contracting level
as it makes inroads in taking more farmers in various regions across the country.
“Staywell’s medium term ambition is to expand our contracting to around 30 000 ha/annum with around 200 farmers on our books in next 3 to 5 years, pending effective funding solutions, that continue to promote a win:win solution between our farmers and ourselves,” said Origen, contracting and grain trading division of Staywell, director Brenda Smyth.
The company has significant investments in bulk silo, grain drying and warehouse infrastructure The group also runs a modern fertiliser blending facility, operating as NuFert, and has a partnership with a South African firm in internationally recognised firm, Collateral Management International (CMI).
Presently, the firm, whose majority contracts are in Mashonaland, has financed about 11 500 ha of maize and soya for summer season and over 5 500 ha of winter.
Last year, the Government amended SI 140 of 2013 (Grains, Oilseeds and Products) regulations to promote the honouring of contractual obligations by all parties and provide contractors with the ability to market their financed crops to all interested parties.
The Agricultural Marketing Authority has embarked on a farmer registration programme to create a database that will encourage further participation in the agri-financing and mitigate credit risks the industry has faced in the past.
The Government is encouraging big businesses that rely on raw material from agriculture to ring fence their production requirements by contracting local farmers.
The Government remains the leading funder of agriculture through the Presidential Inputs Scheme and (national enhanced agriculture productivity scheme) NEBS formally known as command agriculture.-The Herald
