The Sunday Mail
Herbert Zharare
Assistant Business Editor
Zimbabwe’s fertiliser demand has reached levels reminscent of the country’s Africa’s breadbasket status and manufacturers say the spike has seen them raising capacity to meet national requirements.
Farmers, both commercial and communal, required close to half a million tonnes of fertilisers when the country was at its agricultural production zenith.
However, supply side bottlenecks at the turn of the millennium, coupled with recurrent drought, saw the sector contracting.
In addition, lack of expertise among new farmers, particularly those who took up production of cash crops such as tobacco, had negatively affected the industry.
But recent Government-sponsored programmes such as Command Agriculture and the Presidential Inputs Support Scheme hve seen fertiliser requirements significantly rising.
Apart from the Government schemes, the private sector has also supported demand for fertiliser through various contract schemes.
The tobacco sector made a dramatic comeback.
Prior to the land reform programme, tobacco farming was a preserve of large-scale commercial farmers with negligible numbers of black farmers.
Zimbabwe Fertiliser Manufacturers spokesperson Mr Tapiwa Mashingaidze told The Sunday Mail Business said that with the steady support of foreign currency following the unveiling of the US$600 million Nostro Stabilisation Facility from Afreximbank, fertiliser production was expected to increase before the onset of the rains.
“When we were the breadbasket of Africa, the country was using about half a million tonnes of fertiliser. Buoyed by Command Agriculture, we produced about 400 000 tonnes of fertilisers the previous season (2016-17).
“There is high optimism that the demand will be over 400 000 or close to 500 000 tonnes this farming season, the figure produced when Zimbabwe was enjoying Africa’s breadbasket status,” said Mr Mashingaidze.
The manufacturers said they were confident of meeting demand during 2017/-18 summer cropping season on improved foreign currency support from the Reserve Bank of Zimbabwe as pledged by Governor Dr John Mangudya.
The sector has 120 000 tonnes in stock and is currently working with the central bank to improve production.
About 250 000 tonnes of compound and 250 000 tonnes of top dressing fertilisers are needed this season.
“There are so many determinants of demand for fertiliser that include how much confidence the people have with the rainfall patterns and price.
“As for capacity, there is more than 100 percent physical capacity but the only challenge is foreign currency to buy raw materials. There are so many blending plants that have been installed in the country. Capacity is there.
‘‘I can assure the country if the foreign currency is made available before the end of October, there will be no problems at all as far as fertiliser is concerned.”
Mr Mashingaidze said the demand for fertiliser is likely to be better than the last farming season.
He said the supply of materials to process fertilisers in Zimbabwe is not going to be a challenge, adding that there are tens of thousands of finished fertilisers and raw materials that are being held under management consignment in bonded warehouses in Zimbabwe and Beira, Mozambique; only waiting for duty to be paid.
This makes logistical systems easier for local firms once payment in foreign currency is made.
Mr Mashingaidze paid tribute to the RBZ for making frantic efforts to avail foreign currency to fertiliser companies.
‘Ever since the availing of the US$600 million Nostro Stabilisation Facility, there has been an increased allocation of foreign currency to the fertiliser companies and we hope that is going to be sustained.”
The main buyer of fertiliser from local suppliers is Government under the Command Agriculture Scheme, the Presidential Input Support Scheme and some private tobacco contractors.
Private firms such as Delta are also major financiers for grain.
It also emerged that the exact statistics for fertilisers in stock are quite difficult to tell given that there are private importers of the commodity and donations from other countries that augment local supplies.
Besides the half a million supplied by local fertiliser firms, there are undocumented thousands of tonnes that also find their way into the market.
Key fertiliser manufacturers in Zimbabwe are Windmill, Zimbabwe Fertiliser Company, Omnia and Sable Chemicals.
Government has accelerated preparations for the 2017-18 summer cropping season after securing almost US$500 million for inputs, some of which are already on the ground.
Government is targeting 350 000 hectares under Command Agriculture, of which 290 000ha will be under maize, while 60 000 ha will be under soyabeans.
Seed companies have assured enough seed for the country.
