Seed companies defend product pricing
SEED companies have defended their product pricing and are calling on farmers to invest in high quality inputs to achieve good yields.
Farmers have complained over what they say are exorbitant prices of seed and other inputs, but seed companies and dealers argue that their product value is commensurate with the prices.
Farmers’ unions across the country have said the prices are too high and as such could frustrate prospects for the 2020/21 cropping season.
Most hybrid seeds and inputs like fertilisers and chemicals are sold in United States dollars or local currency equivalent, but there are disparities in the exchange rate applied. A snap survey carried out by Business Chronicle has revealed that a 10kg bag of seed maize is selling for $2 783 with 25kg going for about $9 000, 50kg Compound D fertiliser at $2 050 while ammonium nitrate costs about $2 600.
Acting president of the Zimbabwe Seed Trade Association (ZSTA), Dr John McRoberts, said their product prices have not changed over time in US dollar terms.
“The seed prices in Zimbabwe have not changed over time in United States dollar terms. The issue is the value contained in the seed,” he said.
ZSTA is an umbrella association for all seed companies in Zimbabwe that include; Seed Co, K2, Pannar, Pioneer, Agriseeds, Arda seeds, Mukushi, Syngenta, among others.
Dr McRoberts said seed companies have been investing heavily in research to bring out new and improved varieties that have great yield potential and resistance or tolerance to biotic and abiotic stresses.
He said the sector has invested in modern infrastructure to provide farmers with timely and high-quality seed. The seed production and processing cycle is long and risky, requiring two-three seasons, skilled farmers, irrigation and advanced technology, said Mr McRoberts.
“Seed is one of the best investments farmers can make because it is the one input that gives a great return. Consider a farmer who spends say US$70 for 1ha maize seed and yields 7t/ha at a grain price of US$200/t, he has achieved a return of 20x his investment in seed,” he said.
The ZSTA leader said it was critical then for farmers to focus on achieving high yields of quality grain from their fields. He explained that all seed companies have varieties that can enable farmers to achieve good yields depending on their management and environment.
Syngenta Agro marketing support manager, Mr Tawanda Mangisi said the seed prices were comparatively at their lowest in US dollar terms post-2010. He, however, said the macro-economic dynamics were beyond seed producers as retailers determine pricing regimes. Although the Government is regularly sponsoring input schemes such as the Command Agriculture programme as well as the Pfumvudza initiatives, which are already distributing inputs like seed and fertiliser to communal farmers or small holder farmers across the country, these alone are not enough.-herald.co.zw
