Cabinet okays $440m special agric package

Elita Chikwati Senior Agriculture Reporter—
CABINET has approved a comprehensive special agricultural package amounting to $440 million for livestock, fisheries and wildlife production, a senior Government official has said. About half the amount, $200 million, will be reserved for the beef and dairy sectors.

Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made yesterday said the package, which falls under the food security cluster of Zim-Asset (Zimbabwe Agenda for Sustainable Socio-Economic Transformation), will see some farmers, depending on their sector, being supported for not less than five years. The facility will cover beef and dairy sectors, piggery, sheep, goats, small poultry and any other form of stock that a farmer might be willing to produce. Full details of the package and procedures to be used for applying and accessing the facility will be announced in due course, said Dr Made.

“Overally, on behalf of the farmers who want to produce livestock, fisheries and wildlife, this brings in an opportunity, alongside with farmers who also produce crops, to utilise land and be major contributors to the agrarian reform to clearly defend our gains,” he said.

“Livestock, fisheries and wildlife programme, in terms of potential foreign currency earnings, indeed will come equal to tobacco, cotton and horticulture. The programmes will also benefit rural households and all classes of farmers, both small stock and livestock producers.” Dr Made said the package will have concessionary interest rates that do not exceed 4 percent. The broad programme will see the beef and dairy sectors being supported to the tune of $200 million, poultry to the tune of $42 million, goat and sheep $11 million and piggery $30 million,” he said.

“Fisheries will be supported to the tune of $34 million, while wildlife will be supported to the tune of $31 million. Infrastructure for all classes of livestock and wildlife budget is $95 million.” The new programme will have positive spin-offs for both upstream and downstream industries by boosting crop production for stock feeds, resuscitating the leather industry, production of tallow for soap and bone and blood meal. The bulk of such products are being imported. Government’s five-year economic blueprint, Zim-Asset, which was unveiled in 2013, is premised on achieving food security and growing exports.

A $1,5 billion resource envelope has since been reserved for the 2017/2018 summer cropping season. Banks are forecast to pump in $1,1 billion in loans, while Government will weigh in with $487 million. Government is doubling down on its investments in agriculture after the recent success in grain production. Zimbabwe expects to harvest four million tonnes of food crops from the 2016-17 agricultural season.The food crops include maize, sorghum, millet, roundnuts, groundnuts, sweet potatoes, Irish potatoes, cowpeas, squash, sugar beans and pumpkins.

Following the success of the special maize programme during the 2016/17 agriculture season, Government embarked on a special winter wheat production programme similar to that of maize in an endeavour to reduce wheat imports. Increased agricultural production is resulting in huge cost savings for the Government. It is estimated that $300 million will be saved through substituting maize production, while $400 million will be saved by improving soyabeans and wheat production. In addition, localised rice production is projected to save $150 million.