Tobacco Contract Farming Progresses Well - Farmers

Source from:  The Herald (Harare) 01/20/2005

TOBACCO contract farming, which is in its second season, has progressed well so far, with a sizeable number of farmers having benefited from the scheme. Stakeholders in the tobacco industry could not give exact figures on the total hectarage under the crop or the number of farmers who have benefited as these were still being finalised. One of the leading contracting firms in the 2004-05 tobacco season is power utility company Zesa Holdings, which is expected to earn billions of dollars in foreign currency from a partnership with tobacco growers across the country. Tobacco contracting is in its second season, having been launched during the 2003-4 season. Despite teething problems, the contract system has largely been a success, contributing more than 15 percent of the tobacco produced last year. Zimbabwe Commercial Farmers* Union president Mr Davison Mugabe acknowledged that many farmers had benefited from contract farming in the current season. "There is likely to be an increase in the amount of tobacco produced through contract farming as a result of growing confidence in the system. "Fears which were raised when the system was introduced last year have been allayed and we have seen new players coming into the fold," said an official from one of the farmers* organisations. Contract farming remains one of the major pillars of the anticipated rebound in tobacco production. The scheme is expected to complement efforts being made by financial institutions and Government. Tobacco production is expected to increase almost threefold to 160 million kilogrammes this season, up from 65 million kg last season. Vision 160, a programme involving Government, Reserve Bank of Zimbabwe and financial institutions, is the pillar on which the rebound is being built. However, Vision 160 appears to have failed to raise the required funds to realise the 160 million kg and this is where contract farmers come in. Farmers had projected that increased production in the country would require around $900 billion but only $230 billion was raised last year. Apart from Zesa Holdings, TeleAccess, the prospective second fixed line phone operator, has also assisted tobacco farmers under the contract system. The majority of the contractors who formed the backbone of the programme at its inauguration are part of the scheme this year, with the exception of Farmers* World, who have pulled out. Enditem