Zimpapers Logo

Dr Sibanda

Business Reporter
ZIMBABWE’s largest cooking oil manufacturer, Pure Oil Industries, has asked Government to provide 150 000 hectares of farmland to enable the company to produce soya beans. Already, the company said it had identified farmers to be supported under contract farming, with a total 2 000 ha expected to be put under the soya bean crop this season. An estimated $2 million will be invested in equipping and capacitating contracted farmers.

Pure Oil Industries, a 40 percent associate company of National Foods Limited, accounts for 70 percent of Zimbabwe’s monthly cooking oil requirements amounting to 10 million litres, but relies on crude imports to meet its production needs.

Demand for locally produced cooking oil, which now accounts for 95 percent of retail sales, increased dramatically after Government restricted the quantity of imports that could be produced locally.

Pure Oil, which is operating at 40 percent of crushing capacity and 85 percent processing potential, commands the largest local market for cooking oil at 60 percent. Cooking oil imports commanded 85 percent of the market before their share drastically fell after Government introduced import tariffs regimes and import duties.

Head of operations Ron Musiiwa said Pure Oil has asked Government for access to farmers and land to increase production and supply of the critical input in its production. He said the company intends to participate in the whole value chain; from farming to processing.

Mr Musiiwa said this after the tour on Thursday of Pure Oil, Trade Kings and Chloride, all of which have benefited from import control measures put by Government, by a delegation from the Office of the President and Cabinet.

The delegation was led by Chief Secretary to the President and Cabinet, Dr Misheck Sibanda who was accompanied by his deputies, Retired Colonel Katsande and Dr Ray Ndhlukula as well as several other senior officials from the President’s office.

“We are saying, going forward, can we have access to farmers and direct participation in farming to try and secure our key raw material, soya beans. Because of shortage of soya beans, we have to import crude cooking oil,” Mr Musiiwa said.

“This crude cooking oil is coming through South Africa or Mozambique and requires foreign currency. We are always busy engaging the Reserve Bank to make sure that we get enough foreign currency, but that is temporary. Our long term view is that we must be able to grow our own soya beans in the country,” he said.

Oil Expressers Association of Zimbabwe chairman Sylvester Mangani earlier this year said raw material shortages were presenting a challenge, forcing the industry to import crude oils.

Pure Oil Industries, which produces 7 million litres of refined cooking oil per month, imports most of its crude cooking oil for further processing in Zimbabwe. Mr Musiiwa said increasing production of soya bean can serve Zimbabwe scarce hard currency.

“We are importing over 80 percent of our raw materials. We can produce 7 million litres of cooking oil per month, which works out to about 8 million litres of crude oil,” he said. This year, Mr Musiiwa said Pure Oil Industries will support farmers with all the inputs they require to produce soya beans and also guarantee a ready market for the produce.

Next year, the company will seek to participate directly in the growing of the soya beans. “In the second year, we are saying with Government or any of its institutions, we want to partner and go into direct farming; where we produce at large scale.”