‘Zim needs $300m for new cane plantations’

ZIMBABWE will need at least $300 million to develop 15 000 hectares of sugarcane plantations to be irrigated using water from the Tokwe-Mukosi Dam, an expert has said.

In an interview, former Tongaat Hulett Zimbabwe agriculture director Mr Farai Musikavanhu said the costs are for agricultural purposes, although a further $400 million to 500 million would be required to set up a mill for either ethanol or sugar production.

Developing a single hectare of virgin land for sugarcane production, he said, would require at least $20 000.

Mr Musikavanhu said such massive projects required unity between Government, sugarcane milling companies and dedicated farmers.

“If we talk of the development of new sugarcane plantations to be irrigated by Tokwe-Mukosi, this would be totally new projects needing all of these to sing from the same hymn book, there needs to be total collaboration.

“We are talking of new canals, land development to suit the preferred irrigation type among other things and from experience, we might need between $15 000 and $20 000 to fully develop, plant and monitor that crop till milling for the first season,” he said.

Mr Musikavanhu gave reference to the Mpapa Irrigation Scheme, where sugarcane farmers had to be assisted by Tongaat Hulett to develop their plots until they became stable.

“The Mpapa farmers had their land developed from the late 1980s up until 1990, with the miller building their houses, was involved in crop establishment, land development, provision of subsidies including electricity among other things.

“These farmers are doing very well even now.”

The agricultural expert said the millers would be interested more in production of more sugarcane rather than prevailing circumstances where yields are dropping.

He said if farmers in Mkwasine Estates were producing less than 82 tonnes of sugarcane per hectare, they would be operating at a loss.

“The cost of producing sugarcane on a hectare in Mkwasine, which is 75km away from the mill, is about $4 500. So if our sugar price is $570 per tonne, when we calculate the division of proceeds using the 77 percent/23 percent, the farmer receives $439 after deductions,” he said.

Mr Musikavanhu added: “Now that we need about eight tonnes of sugarcane to produce a tonne of sugar, with a production cost of $4 500, the farmer must produce 82 tonnes of sugarcane to break even.”

Farmers in Mkwasine are producing an average of 54 tonnes per hectare, which translate into a loss.

He said farmers in Mkwasine should target at least 110 tonnes per hectare to be viable.

“Although Zimbabwe is targeting at producing one million tonnes of sugar, declining yields could hamper the projections.

Some farmers have also been accused of being heavily in debt, with some diverting subsidised inputs from Tongaat Hulett Zimbabwe to the parallel market.

The farmers also face garnishee orders from Zimbabwe Revenue Authority and the National Social Security Authority.