The Sunday News
Dumisani Nsingo Farming Reporter
THE Government will soon enact a legal instrument that guides parties on contract farming as part of measures to deal with inherent disputes that have been associated with the arrangement.
Agriculture, Mechanisation and Irrigation Development Deputy Minister responsible for cropping and irrigation development Cde Davis Marapira said contract farming remained the only viable funding and marketing solution for farmers who are unable to secure bank financing and enter the marketplace on their own.
“We are working on a Statutory Instrument on contract farming and we are going to complete it soon and this legal document is expected to address any shortcomings between the two parties (farmer and contractor) and create a win-win situation.
“The mayhem has been caused mainly by farmers’ failure to realise optimum yield thus there is a need for good crop management if one enters into this arrangement. The other thing has to do with side marketing, which is not acceptable under this arrangement,” Cde Marapira said.
Apart from complementing Government and banking sector financing initiatives, contract farming also enables contractors to influence the production process by, for instance, providing yield-boosting inputs. However, for crops such as wheat, soya beans and seed maize, it appears that the contract farming model still has a long way to go before it can reach the lofty production and marketing heights scaled by the tobacco industry, if recent developments in those sub-sectors are anything to go by.
“Contract farming is the way to go because most of the farmers don’t have adequate funds to finance their agricultural enterprises.
“It is being practised in most countries throughout the world and as Government we are fully supporting it,” Cde Marapira said.
The Department for Agricultural Technical and Extension Services Matabeleland North provincial agronomist, Mr Davison Masendeke said there was a need to promote contract farming so as to ensure optimum crop yields.
“In contract farming both parties tend to benefit with the farmer having the inputs, market and being assured of good returns due to the fact that one is aware of the prices.
“The contractor will have a steady flow of the product and can plan his or her cash flow well with also the product readily available as opposed to going to the market where the prices fluctuate,” Mr Masendeke said.
Some companies have already shown signs of engaging contract farmers as a way of guaranteeing product supply.
Botswana listed retail firm Choppies Enterprises intends to engage farmers in Matabeleland region into contract farming following the ban of farm produce imports by Government.
The company is expanding its foothold in Zimbabwe after coming into the country in November last year.
“We are looking at mostly fruits and vegetables and obviously livestock is also part of it because we have some meat in our shops. Our board of directors in our sister company said that’s the way they run the situation in other countries so they advised us to go forward with this and to come up with the best solution,” said Choppies’ operations manager Mr Viresh Naik.
