The Sunday Mail
Dr Jackqeline Mutambara
A country’s policies and institutions are internal mechanisms that provide an incentive structure for economic actors to behave in certain ways and thus are critical in determining economic outcomes.
The exceptionally poor performance of the maize sector in Zimbabwe relative to comparable regional countries with similar natural environment implies existence of problems in Zimbabwe’s internal mechanisms that are working against progress and diminishing performance to lower levels than in other countries.
Historically, the country used to be the bread basket of Southern Africa, therefore, effective policy reforms to restore the good performance in the country will not only be borrowed from models outside the country and theoretical evidence but from model experiences in the past.
The main policy and institutional challenges that have adversely affected Zimbabwe’s maize sector and agriculture in general have been lack of agro-ecological specialisation in maize production, poor adaptation to climate change, land uncertanities, limited support services (training, research and extension), lack of finance, use of redundant technologies and inefficient post-harvest management. Alternative strategies for a high growth maize sector in the country would include revisiting some of the past strategies and reforming them in such a way that desired results are achievable.
This study came up with strategic policy recommendations that will result in a high growth maize sector if well implemented.
These are as follows:
Specialisation of maize production in areas of comparative advantage: Agricultural policy should have a strong emphasis on identifying areas with comparative advantage in production of the various strategic crops and livestock commodities, specialising production of commodities in areas of comparative advantage and facilitating exchange across its regions given the agro-ecological diversity.
In line with agronomic requirements, production of maize is best suited in Natural Region II which is concentrated in areas in the Mashonaland region.
Therefore, the country should focus its resource for maize production in the Mashonaland region to ensure efficient and effective production while facilitating trade within the country.
Alternatively, given the availability of maize in the world market and the country’s poor competitiveness in maize production, resources could be committed to other higher value crops than maize such as export horticultural like flowers, Irish potatoes, vegetables, fruits etcetera and tobacco that would have an even greater benefit for the country if grown and to generate more income that will be used to imports all its maize needs.
Provide secure and bankable titles to all A1 and A2 farmers: Government, through the Ministry of Lands and Rural Resettlement, should consider resolving the uneasiness of the resettled, displaced and remaining large scale commercial farmers by addressing security of land tenure particularly on A2 and A1 farming models, effecting use regulations, valuation and compensations, dispute/conflict resolution and management capacities.
This will go a long way towards enhancing investments on land, land utilisation, rural infrastructure development and sustainable management of natural resources.
Furthermore, to attain an agrarian reform, Government, the private sector and developmental agencies, should complement land reform with productivity enhancing supply and market-related interventions as articulated below. Establish appropriate co-management structures in irrigation schemes for climate resilience: To sustain agricultural production and food security in the face of climate change in Zimbabwe, climate resilient development will be the way to go. Government, farmers and developmental agencies need to establish appropriate co-management structures for the now commonly managed irrigation infrastructure to ensure rehabilitation and modernisation of already established irrigation schemes that were formally private owned and are now under common resource property.
Research institutions will need to develop innovative and appropriate irrigation models suitable for smallholder farmers such as micro-irrigation to ensure full utilisation of irrigation facilities by farmers.
Insurance-based social protection strategies should be explored by the private sector as an alternative risk management option to cushion farmers against climatic disasters particularly for a strategic food security commodity such as maize.
Provision of agricultural finance: Finance is key to enabling effective demand for improved inputs that can enhance performance of agriculture such as infrastructure, machinery, fertiliser, seeds, chemicals etc.
Zimbabwe thus will need to unlock finance for farmers from internal and external sources to enhance use of advanced inputs in agriculture.
Government and the Bankers Association of Zimbabwe should facilitate offering bankable permits and leases to enable farmers to access finance as earlier alluded.
Given the strategic importance of maize, Government should prioritise access to subsidised finance first to commercially viable maize farmers based on farmer type and regions with comparative advantage in maize production.
An alternative to alleviate shortage of credit for maize farming is through input-output market-linked (arrangements) such as processor-farmer agreements, where inputs are provided against future output at guaranteed price in a contract farming arrangement. However, this can only be successful if (a) a regulatory environment exists for mutually-beneficial contract farming arrangements and (b) agro-processing firms have an incentive to engage in contract farming activities through special loans and an assurance by Government of a stable policy environment.
Strengthening agricultural support institutions: The Government needs to provide adequate resources to improve service delivery and performance of public support institutions. The Maputo Declaration of 10 percent of national budget to agriculture should be respected to support public services in agriculture by strengthening institutions for better service delivery.
Agricultural training, research and extension services require critical human resource, funding for operations, infrastructure and equipment for effective service delivery.
There is need to reform these institutions to service the agricultural sector under the emerging environment, for instance, the dominancy of smallholder farming sector and climate change.
The co-ordination among institutions of training, research, extension, farmer representative bodies and developmental agencies that are interlinked should be cemented through creation of common platforms and information and communication strategies.
Strengthening farmer capacity to manage farming as a business: Traditional smallholder farmers have been oriented towards subsistence and mixed farming models which may not be appropriate for a high growth maize pathway. Smallholder farmers and policy-makers will need capacity development in good agronomic practices, economics of production, intensification of agriculture and maize farming as a business to ensure commercially viable maize production systems.
Promoting mechanisation: In order to ensure farmers capitalise on economies of scale for commercially viable maize enterprises, mechanisation will be the way to go. Recent efforts to improve farmer access to mechanisation services have gone a long way towards improving agricultural productivity. Given the limitations in resources, initiatives such as the More Food International Programme should be prioritised towards commercially viable entities instead of spreading them across the whole country.
For effective use and maintenance of equipment, community-based artisanship in repairs and maintenance will be needed, targeting farmers and local artisans.
Reconsidering GMO technology: In terms of bio-technology, the critical challenge is the context of the GMO free policy in line with global GMO trends, the globalisation of world economies, porous border posts and inability of the country to separate GMO and non-GMO finished products.
This is posing unfair competition on local industry as the country is promoting GMO tolerant industries outside by allowing finished products with GMO ingredients.
It is recommended that Government reconsider its GMO position based on sound scientific analysis to ensure the country is not penalising itself in the process.
Reforming maize factor and product marketing strategies for effectiveness and efficiency: Market and pricing interventions such as input subsidies, product pricing support and trade controls should be remodelled to ensure they are efficient, effective and work for the development of the sector.
The following considerations are proposed: (a) Targeted input subsidies through a special loan facility targeting commercially viable entities in regions with comparative advantage in maize production; and (b) A more liberalised maize marketing and trade to encourage competitiveness.
Effective post-harvest management: Post-harvest food losses are a global issue of growing concern to governments, farmers, food processors and handlers, as well as consumers, because it is terminal and includes loss of all the other resources that would have gone into production of the food such as fertilisers, pesticides and labour, among others.
There is a need for the Agriculture Ministry to revisit agricultural policy documents and provide an emphasis on post-harvest management that will form the basis for developing a strategy for effective post-harvest management. Agricultural research institutions should research and develop innovative approaches for effective post-harvest handling such as hermetic containers and user friendly pesticides.
Dr Jackqeline Mutambara wrote this article for The Sunday Mail as an independent agricultural consultant for Strategic Economic Research and Analysis-Zimbabwe. She is a senior lecturer at the University of Zimbabwe’s Department of Agricultural Economics and Extension. Collaborative insights and comments on this report were obtained from Professor A Chakravarti, Dr D Ndlela and Mr R Chizema of SERA, as well as stakeholders in the maize sector in Zimbabwe
