United Refineries Limited (URL) chief executive, Busisa Moyo has revealed that his company is looking for a partnership to own farms for growing oilseeds.
Moyo told the Southern Eye Business that they have lost a lot of money trying to support farmers whom they had contracted to produce oilseeds.
“We want a joint venture where there is joint management with various institutions and own farms like the Tongaat Hulett model,” he said.
Moyo revealed that they have applied for land and have engaged some institutions about soya and oilseed cropping.
He indicated that local farmers were struggling to grow output, with only 30 000 metric tonnes (mt) projected for 2025, compared to the highest figure of 180 000mt recorded in the late 1990s.
He added that they have been forced to import soya beans from South Africa.
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Moyo, who is also the Oilseed Expressers Association of Zimbabwe (OEAZ) chairperson, reviewed the general state of the oil industry and expressed concern over high borrowing rates, stating that these micro-lending rates negatively impact their operations.
The OEAZ is the primary industry body representing cooking oil manufacturers and oilseed crushers in the country.
The association coordinates the edible oils sector, spearheading initiatives to boost local soya bean production and achieve national self-sufficiency.
It represents the interests of oil expressers, stock feed manufacturers, and processors.
It also collaborates with the government and agricultural stakeholders to reduce foreign currency expenditure by minimising crude oil and seed imports.
It also facilitates contract farming schemes, providing inputs and a ready market for local self-financing soya bean farmers.
“We need working capital; banks are not lending much, and interest rates are high. Farmers are also borrowing at 18% to 30% per annum; this is too high.
“The ZiG is now stable; we need borrowing rates that are reasonable,” Moyo said.
“We need 600 000mt of soya beans to meet the stock feed needs and 1 200 000mt to meet crude soya oil needs.”
Meanwhile, reports indicate that over 90% of the cooking oil on local retail shelves is locally produced by the association’s members.