THE Government has commended National Foods Holdings Limited for heeding the call for processing industries to participate in primary production of the raw materials they need to reduce the country’s imports burden while smoothing farmers’ transition from being subsistence to commercial producers.
Lands, Agriculture, Fisheries, Water and Rural Development permanent secretary Dr John Basera expressed his gratitude to the company for their contribution to food security through their contract farming scheme when he toured its Aspindale unit in Harare recently.
“Contract farming is an important aspect of the development process, as it provides manufacturers with a guaranteed source of raw materials,” said Dr Basera.
The private sector’s participation in the production of raw materials is beneficial to the commercial viability of agriculture for both farmers and the agro-processing industry, as the country moves to expand the food crops value chain.
“It is crucial to treat farming as business and in turn create market linkages for farmers who are willing to produce that which is consumed by industries,” said Dr Basera.
The Zimbabwe Stock Exchange (ZSE) listed food processing giant supported the production of 40 000 hectares of maize and soya beans for this summer season.
In their annual report for 2022 the company’s chairman Mr Todd Moyo hinted that the company was continuing to support contract farming for strategic crops such as maize, soya beans and sorghum.
“The various products grown under the contract programme now constitute a significant portion of the group’s raw material requirements,” said Mr Moyo.
The development comes at a time the Government is calling on companies to source 40 percent of their raw materials locally in a move that will support the country’s primary production sector.
Mr Moyo further highlighted how the group produced around 12 000 hectares of winter wheat, representing a significant portion of the contracted crop.
One of the key points in the National Development Strategy 1 (NDS1) and Vision 2030 is to encourage the participation of the private sector in the primary production process.
“National Foods Holdings is set to invest US$30 million into new projects that include the likes of a new flour mill, a second breakfast cereal product and a substantial reinvestment into the stock feeds plant in line with the expansion being witnessed in the agriculture industry,” said Mr Moyo.
The Ministry of Lands, Agriculture, Fisheries, Water and Rural Development is pleased with companies’ involvement in primary production, which is feeding well into the country’s push to achieve food self-sufficiency.
The Government, through its policy of binding the private sector to meet 40 percent of the production costs of its raw materials locally, has been able to motivate contract farming from key industry players. – The Herald
