‘Rising input costs eroding profitability’ Mr Paul Zakariya

 

Edgar Vhera

Agriculture Specialist Writer

 

FARMERS’ hopes of recovering from last season’s drought are at stake, as prices of basic inputs keep rising rendering them incapable of maximising on the early rains for higher yields.

 

Zimbabwe Farmers Union (ZFU) secretary general, Mr Paul Zakariya yesterday said the viability of most crop enterprises had been compromised after input prices shot up to a new high compared to last season.

 

“The prospects of farmers recovering from last year’s drought are fading, as some input prices have risen, thus increasing cost of production against constant output prices.

 

“Farmers will only break-even or even fail to break-even, thereby missing out on the promising good rainfall season,” he said.

 

Mr Zakariya said the price of a 25-kilogramme pack of seed maize enough to cover a hectare used to sell at US$80 but had shot up to between US$100 and US$150 depending on variety. This marks a 25 to 88 percent increase.

 

The Herald can also confirm that some stockists were selling maize seed and compound D fertiliser exclusively in United States dollars. Agro-dealers accepting the local currency (ZiG) had inflated both the United States dollar price and the ZiG exchange rate, The Herald noted.

 

On October 10, a 50-kilogramme bag of compound D fertiliser cost US$30 or ZiG840 at the exchange rate of one United States dollar to ZiG28. However, by October 28, the same 50-kilogramme bag of compound D was selling at US$46 or ZiG1 610 at an exchange rate of one United States dollar to ZiG35.

 

Zimbabwe National Farmers Union (ZNFU) president, Mrs Monica Chinamasa concurred saying input prices had risen defeating the concept of treating farming a business.

 

“Inputs are very expensive and farmers are not making money. Government should take time to compare agro-input prices in in shops and take corrective action. Due to the high cost of production, farming is currently not profitable,” the ZNFU president revealed.

 

The same sentiments were echoed by Zimbabwe Commercial Farmers Union (ZCFU) president, Dr Shadreck Makombe who said the high prices were compounded by high interest rates on loans from financial institutions.

 

“Input prices are high and the loans are also expensive at interest rates of between 30 and 40 percent, which is making farming unviable,” Dr Makombe noted.

 

Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe said the high cost of production was affecting agricultural production and productivity.

 

“The high cost of production is compromising tobacco cultivation and this is chiefly a result of surrogate companies, which are putting premiums on prices accompanied by lack of cheap financing to retool,” he viewed.

 

The Crops, Horticulture, Fisheries and Livestock Summer Plan for 2024/2025 is targeting to increase production of cereals to 3 274 200 tonnes from 744 271 last season signalling a 340 percent rise.

 

Overall production volumes of major crops are expected to increase by 347 percent from 914 848 tonnes last season to 4 093 700 this time around.

 

 

 

 

 

 

 

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