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Martin Kadzere Senior Business Reporter
OILSEED processors in Zimbabwe are bracing for a serious shortage of raw materials following poor yields in cotton and soya beans, an official said yesterday. Only 40 000 tonnes of soya beans and 50 000 tonnes of cotton seed are expected, against the processors’ annual requirement of 350 000 tonnes, Zimbabwe Oil Expressers Association secretary Mr Busisa Moyo said.

In 2014 /15 season, cotton production declined to its lowest level in three seasons due to a reduction in inputs support to farmers resulting from speculation of poor industry compliance on side marketing.

Output fell 7 percent to 135 000 tonnes from 145 000 tonnes in the proceeding season. Besides low input support, production was negatively affected by changes in the rainfall patterns while many farmers also shifted from cotton to tobacco.

Similarly, initial indications were that soya beans production might register a 42 percent drop this year following the decline in financial support to farmers and the late rains.

Output is expected at 40 000 tonnes of soya beans, down from 70 000 tonnes produced last year.

“It is a very bad situation which will force seed crushers to import crude oil (for refining) or oilseed from other markets such as Zambia and Malawi to augment local supplies,” said Mr Moyo.

Major oil seed processors in Zimbabwe are Bulawayo based United Refineries Limited, Olivine Industries, Surface Investments and Export Trading Group.

“We are now looking at programmes to rebuild the agro sector, particularly the primary sector; iron out contract farming and extension service issues to ensure we have adequate stocks for local companies, say in the next five to seven years,” said Mr Moyo, who is also Confederation of Zimbabwe Industries president and chief executive of URL.

Meanwhile, Mr Moyo said Government should speed up the process of issuing import permits to oilseed processors to avoid disrupting production.

He also said the permits should be based on capacity and flexible to allow companies to import from any dealer unlike the current situation whereby permits specifically prescribes the seller.