Horticulture set to surpass $143m
THE Government initiative to return the horticulture sector to its former glory as one of the leading export earners is achievable if challenges bedevilling the sector are addressed, an expert has said.
Zimbabwe Commercial Farmers Union (ZCFU) director Jeremiah Tevera, said surpassing the $143 million mark was achievable given the abundance of resources in the country as well as the industrious labour force.
The comments by Mr Tevera follow recent statements by Lands, Agriculture and Rural Resettlement Minister Perrance Shiri that the Government was extending Command Agriculture to the horticulture sector as a strategy to revive it with the aim of generating much needed foreign currency.
Minister Shiri said the Government next year expected the sector to breach the $143 million export earning mark attained during the 1999 to 2000 cropping season.
“The $143 million mark is a possible achievement in a scenario whereby we address the underlining challenges which have bedevilled the sector since then,” said Mr Tevera.
Mr Tevera said capacity utilisation was below 50 percent as it was curtailed by high production costs coupled with uncompetitive interest rates for loans.
He said interest rates that banks offered could go as high as 23 percent per annum making it difficult for Zimbabwe to compete with neighbouring countries which offer lower interest rates. This, he said, had also put a strain on relations between financial institutions and farmers.
“Taking a comparative analysis with our regional peers, they have got access to one digit figure interest loans in the range of three to five percent per annum which means whatever is produced at high cost is not as profitable, which makes it difficult to compete with them.”
Mr Tevera said while banks accused farmers of failing to repay loans, it was not their fault as the banking structure was flawed in terms of availing loans due to unreasonable terms and conditions.
He noted that the cost of agriculture inputs and services in the sector were high and should be reduced as they were hindering profits.
Zimbabwe’s good climate and soils, along with its willing labour force should be leveraged to bring investment to the country as the abundance of resources was conducive to making the horticulture sector a success, he said.
He said horticulture was part of a bigger value chain in which challenges affecting all elements including farmers should be addressed so as to reach its maximum potential.
Mr Tevera added that questions surrounding the land issue should also be addressed to remove any misconceptions.
“All lingering or other remaining grey areas pertaining to the land question should also be promptly addressed so that the parties in contest should reach an amicable solution on the compensatory mechanisms and compensation should also start in earnest,” he said.
He, however, said some of the challenges that the horticulture sector was facing were not peculiar to it but to agriculture as a whole and should be addressed to ensure the viability of the industry.