THE African Development Bank (AfDB) has warned that Zimbabwe may fail to meet its projected grain output during the ongoing summer cropping season due to costly seed and an imminent shortage of fertilisers.
REPORT BY BERNARD MPOFU CHIEF BUSINESS REPORTER
Zimbabwe requires 1 384 000 tonnes of grain for human consumption and 350 000 tonnes for livestock and other uses.
In its economic monthly report on Zimbabwe for last November, the regional bank said the country may not meet its grain output despite adequate seed supply as a result of working capital constraints confronting fertiliser-making companies.
The government owes fertiliser-manufacturing firms millions of dollars for fertilisers provided during previous farming seasons.
Official figures show that the country has a surplus of maize seed supply with the seed industry holding a combined 64 000 tonnes against an annual demand of 45 000 tonnes.
Much of the seed has already been dispatched to retailers at provincial and district levels for easy accessibility by farmers.
However, the seed up-take has remained low with suppliers and retailers blaming it on cash shortages, according to seed houses.
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A 10kg bag of seed is selling at prices ranging from $23-$28, while a 25kg bag is selling at between $60-$101, depending on the variety.
“Such prices, however, remain very high for ordinary farmers who are likely to reduce their crop hectarage or use untreated seed. On the other hand, Zimbabwe faces a possible fertiliser deficit of 400 000 tonnes for the 2012/2013 season.
“The country needs at least 700 000 tonnes of both Ammonium Nitrate (AN) and Compound D for a successful season. The fertiliser companies are owed close to $50 million by the government for last season’s supplies, hence incapacitating them to meet current fertiliser demand in the country,” reads the AfDB report in part.
“The pricing system has also not been favourable to the producers.
“Some retail outlets have been selling fertiliser at $41 and $48 per 50kg bag of Compound D and AN, respectively.
“This is above the agreed prices of $31 and $35 for Compound D and AN, respectively.
“The high prices are likely to present a big challenge to most farmers as they would not be able to afford the fertilisers, especially where they have not received payments for their grain deliveries from the Grain Marketing Board.”
Presenting the 2013 National Budget in parliament last November, Finance minister Tendai Biti undertook to pay all debt to seed and fertiliser suppliers.
Biti said as of November 1 2012, government had paid off $28 million to seed houses and fertiliser companies, leaving an outstanding amount of $30 million.
