Zimbabwe: Us$550 000 Tobacco Rots in Fields As Funding Dries Up

Source from:  The Herald (Harare) February 8, 2007 02/13/2007

OVER 130 hectares of tobacco, worth about US$550 000, grown under contract farming in Mashonaland Central, is rotting in the fields after the contractor failed to release money for harvesting to nine large-scale farmers. Reaping is the most critical stage of tobacco production and the nine A2 farmers contracted by Gold Driven Investment had been expected to harvest 260 000 kilograms of the golden leaf. Zimbabwe this year projects a yield of about 80 million tonnes of tobacco from about 53 000ha planted countrywide. Yesterday the farmers said they had already lost half of their crop as a result of the contractor's failure to release working capital as agreed. Asked for comment, GDI confirmed that it had contracted the nine farmers and maintained that it had disbursed all the promised funds to the farmers but that the value of the money had been whittled down by inflation. GDI director Mr Doesmatter Muvimbi urged them not to despair, saying the company was drawing up a rescue package. "We are now working out some package. The money we gave them was eroded by inflation. They should not panic," he said. One of the farmers, Mr Reuben Pashani, said he had put 40ha under tobacco on his Pines Farm in Mvurwi after he and GDI signed a 100 percent inputs support contract. Mr Pashani said gauging from the good condition of the crop, he had expected to harvest over 120 tonnes but this was increasingly turning into a pipedream. He said GDI forwarded limited inputs like chemicals and fertilizer. "They were supposed to give me working capital of $30 million but so far I have received only $7,8 million. The problem is that we are now failing to pay workers and some of my employees have had to go for two months without pay. "Others have since left after losing patience yet I need labour to reap. I had a complement of over 72 workers but I am now left with 35 only," he said. He said GDI had promised to supply enough fertilizers for the entire 40ha under tobacco but he had only managed to secure an amount for 20ha. However, GDI director Mr Muvimbi said they had not abandoned the farmers at the critical reaping stage as it was in the company's interest to achieve the targeted yield. Enditem