Seed Co muscled out of Pfumvudza
GOVERNMENT has reportedly muscled out Seed Co Limited, a regional certified seed producer and marketer, from its list of suppliers as the state has opted for another firm.
Well-placed sources said Seed Co was ejected from the Presidential Input Scheme — commonly referred to as Pfumvudza — while efforts are underway to remove the company from Command Agriculture altogether.
e development comes amid reports that Zimbabwe is facing a serious shortage of seed ahead of the 2022/23 farming season .
“Seed Co used to be the biggest seed supplier to the government, but that is no longer the case as that contract has since been awarded to other players linked to senior officials in government. Seed Co is still supplying, but the numbers have since dwindled," a source close to the developments said.
“ere are also indications that there are individuals now buying seed from Seed Co and supplying the government, meaning that this standoff has created a middle man.”
When contacted for comment, Seed Co International chief executive Morgan Nzwere referred questions to the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development.
“I cannot comment on that matter. I cannot comment on issues to do with government procurement; so you need to communicate with the Ministry of Agriculture,” Nzwere said.
Agriculture ministry permanent secretary John Basera asked for written questions.
“Send me questions and I will respond,” said Basera, who had not responded by the time ongoing to print.
Meanwhile, sources have indicated that there was anxiety among Zanu PF political leadership as the country prepares for the summer agricultural season as the government has stopped payments to local suppliers.
“Seed companies do not prepare in anticipation of payment or a good rainy season but we are in September and they have not
even started delivering seed to the shops. The seed companies are waiting for orders and then payments so that they start preparing for the season,” the sources said.
“The industry is stuck due to currency volatility. The situation has been affected by the government’s move to stop payments to suppliers,” the sources added.
Outlining the situation ahead of the 2022/23 agricultural season, the sources said the government through the Presidential Input Support Scheme increased the number of households from 1,8 million to 3 million leading to more demand for both cereals and traditional grains seed.
“The challenge is that availability and processing is determined by the government's ability to pay in US dollars both for domestic sourcing and imports.
“On the other hand the competition is between seed houses and stock feed processors especially on millet and sorghum. Stock feed processors are buying open pollinated varieties (OPVs) normally processed for standard grade seed due to the shortage of raw materials and their ability to pay for the product in USD,” the sources said.
The implication of the situation, the sources said, is that the government will find it difficult to meet the three million households targeted as recipients of seed from the presidential scheme.
“This will lead to a limited supply situation given the demands of the political calendar ahead of the 2023 harmonised elections. Procurement and distribution to respective wards will be undermined by the time factor.
“Seed availability triggers agricultural activities. The amount of fertilisers and other inputs to be used in a season is determined by the availability of seed,” the sources added.
Cabinet this week announced that Zimbabwe is expecting to receive normal-to-above-normal rainfall during the 2022/23 season.
“Farming is about timing. The government might get the money to buy the seed and other inputs considering the political environment but the challenge is that they are competing with stock feed companies.
“The stock feed companies plan for the next six months and that is why they are buying aggressively, especially sorghum, millet and maize,” the sources said.
Meanwhile, Zimbabwe is facing a serious challenge from other southern African countries which are buying seed from traditional markets.
According to sources, Angola has come into the market and is buying large quantities of OPV maize, sorghum, millet, beans, soya bean and cowpeas.
“The total purchases made by Angola are in the region of 5 000 tonnes. The Mozambican government has purchased beans and cowpea seed for their programmes.
“Mozambique is in discussion with the Food and Agriculture Organisation (FAO) requesting that the UN agency put out a tender for a large quantity of seed for them,” sources said.
The sources said the Zambian government has bought seed for its farming programmes.
The sources added that there was a shortage of good quality bean seed throughout the Sadc region while South Africa still has some seed for the market
“The situation with groundnut seed is that there is definitely going to be pressure in the South African market for certified seed as our crop has come up somewhere in the region of 30% short this season,” the sources said.