THE Agricultural and Marketing Authority (AMA) has released the full list of contractors registered for the 2022/23 agricultural season with maize topping on 32.
According to the list, maize is on pole position boasting 78 percent of the contractors that have been registered to fund crop production while soya beans come second on 71.
Financial institutions, oil expressers, stockfeed manufacturers, grain millers and poultry producers among others have contracted farmers for their raw material requirements in conformity with the Government’s call for industry to fund at least 40 percent of their needs from local production.
In terms of the Agricultural Marketing Authority Act (Chapter 18:24), as read with enabling regulations, all person or entities involved in financing of agricultural production are required to register with AMA.
To fulfill its role, AMA is focused on the creation of structured markets that promote efficiency in the marketing of agriculture produce through creation of linkages and market access.
AMA acting Chief Executive Officer Mr Peter Mudzimiri said contract farming was a regulated area and any person/entity intending to contract farmers for producing any agricultural produce outside tobacco must register with AMA.
“Contractors are required to provide, as part of the registration requirements, proof that they are able to support production through input vouchers and other supporting documentation. “Annually, in consultation with stakeholders, AMA develops a minimum input package for each crop that must be provided by contractors to farmers,” said Mr Mudzimiri.
He disclosed that maize, soya bean, cotton, wheat and barley are controlled products, which can only be marketed or delivered to GMB or a registered contractor.
“It is a criminal offence for anyone or an entity to contract farmers without being registered. The offence attracts a fine of up to level four or a maximum of three months’ imprisonment.
“In addition, AMA is also authorised to invoke civil penalties in terms of the Agricultural Marketing Authority (Grains, Oilseed and Products) Regulations, Statutory Instrument 140 of 2013,” added Mr Mudzimiri.
Mr Mudzimiri revealed that currently penalties range from US$100 to US$1 000 including blacklisting of entities that would have failed to comply.
It is also important to note that the same applies to misuse of inputs and side marketing on the part of the farmer, continued Mr Mudzimiri.
Contracting arrangements have benefits such as the provision of inputs and production services, access to credit, introduction of appropriate technology, skill transfer, guaranteed and fixed pricing structures as well as access to reliable markets for contracted farmers.
On the other one hand, it can also expose farmers to vices such as manipulation of quotas, quality specifications, indebtedness and overreliance on advances thereby increasing risk.
Contractors have over the years bemoaned side marketing as their greatest undoing in their dealings with farmers whom they accuse of diverting inputs and committing less quantities to crop production with the resultant low harvest.
Meanwhile, AMA has also advised farmers that the Zimbabwe dollar fuel facility was still available and accessible through Petrotrade.
In a twitter post, the authority urged farmers are to approach their respective unions/associations to access the facility with fuel usage being subjected to periodic audits to determine the impact on production.
Mr Mudzimiri said this was not a new facility, as it had been there since 2021, though some farmers may not have been aware of it.
“To access this facility a farmer must be registered with a local farmers’ union. The farmers will then make their requests through their unions, which in turn will forward all fuel needs to AMA. Farmers will then get their fuel from Petrotrade branches nationwide,” said Mr Mudzimiri. – The Herald
