Groundnuts rake in US$1 million

21 Dec, 2014 - 00:12 0 Views
Groundnuts rake in US$1 million Groundnuts

The Sunday Mail

Groundnuts

Groundnuts

Over 600 metric tonnes of groundnuts were delivered at the Mbare commodities market in Harare between January and September, this year with farmers pocketing US$1,022 million.

Of the 46 724 buckets sold at the market during the review period, the bulk of the produce was from Mutoko, Murehwa, Buhera and Mt Darwin.

A 20-litre bucket of groundnuts costs on average US$21,85.

The highest estimated revenue was recorded in April and May, at US$317 809 and US$177 273, respectively.

Just like other locally produced commodities, groundnuts face competition from imports mainly from Malawi and Zambia as these are relatively cheaper at US$15 for a 20-litre bucket.

According to Knowledge Transfer Africa (KTA), an agribusiness firm that provides data on agriculture, some farmers now shun the formal markets involving big companies due to mistrust, which emanated from disagreements on payment terms and grading issues.

While big companies prefer to use calibrated scales so that they deal in kilogrammes, farmers prefer using buckets.

“Farmers also tend to mistrust weighing scales which they think are manipulated by buying companies,” said KTA in their monthly review.

In this regard, farmers have devised their own grading system in form of counts, which is count five, six and seven all depending on size.

Count five is the biggest size and is often used for peanut butter production, while count seven comprises the smallest groundnuts, usually used for seed.

“Traders usually sale counts five and six. Interestingly the prices are just the same when selling a bucket,” said KTA.

Groundnuts remain a major source of livelihood, sustaining many families directly through farming and indrectly via peanut butter-making.

Lack of knowledge on cross-breeding, varieties ideal for different climatic regions and extension services remain a challenge for small holder farmers.

“Farmers plant different varieties on the same piece of land, resulting in massive cross-pollination,” said KTA.

But farmers and consumers have devised numerous coping mechanisms to sustain the production and marketing of this cash crop.

For instance, the tradition of exchanging seed varieties is still strong among farmers. Common varieties in Zimbabwe are Kasawaya, Chinzungwana, Tumbe or Chimhandara with another rare variety from Buhera called White Bob.

When in season, farmers also resort to barter trade for groundnuts.

In Mutoko, a 20-litre bucket can fetch one pair of school shoes, while others exchange with groceries.

Farmers are yet to realise the full potential of groundnuts. Irrigation facilities in dry areas could boost production while more value addition initiatives would also improve revenue generated from the crop.

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