AFC Land and Development Bank has confirmed surpassing its initial targeted wheat hectarage of 10 000 by 14 percent to end up financing production of the cereal on 11 409ha in the 2022 winter wheat season.
This was revealed by AFC Holdings group head strategy, marketing and corporate communications, Ms Caroline Mozhendi during an interview with this publication yesterday.
“The bank was targeting to put 10 000ha under winter wheat but ended up contracting farmers to do 11 409ha after injecting over $3, 8 billion (Zimbabwe dollars) into the programme.
“This milestone achievement is attributed to the Government’s support on timely availability of inputs as well as resuscitation of irrigation scheme across the country with AFC rendering support in the form of working capital,” said Ms Mozhendi.
At an average national yield of 4, 5 tonnes per hectare, the contribution of the bank in terms of wheat harvest is approximately 51 341 tonnes, which is about 14 percent of the national total, added Ms Mozhendi.
Taking the conservative figure of US$200 and $243 680 paid for standard grade, wheat output from AFC contracts is valued at over US$10 million and $12, 5 billion.
Ms Mozhendi further revealed that the bank would double the funded hectarage in next year’s winter wheat season.
A beneficiary of the AFC winter wheat contracting arrangement, Mr Charles Sithole of Montecristo Farm in Marondera said he was planning to also increase his hectarage to complement Government’s efforts to ensuring wheat self-sufficiency.
“I have been doing wheat farming for the past three seasons. Last season I was contracted by AFC to produce 20ha. I was given a complete input package together with the working capital. AFC’s loan processing time is short. They look at one’s records in terms of product sales at the Grain Marketing Board (GMB) before visiting the field to get an appreciation of what the farmer does.
“I managed an average yield of five tonnes per hectare and I have since delivered the produce to GMB, though I have not yet been paid,” said Mr Sithole.
Mr Sithole revealed that next winter season he was going to expand the hectarage to 32ha after completion of land clearings underway as well as the 32ha centre pivot installed.
He commended AFC’s interest rates, saying they were reasonable and he would start repaying as soon as his delayed wheat payments were released.
The Government had set a target of 75 000ha for the 2022 winter wheat as part of the country’s import substitution drive and agenda to ensure wheat self-sufficiency from local production.
“The loan interest rates from AFC are reasonable and I don’t fear an increase on the amount of loan I am going to repay due to delayed receipt of funds from GMB as they are aware of the delay,” added Mr Sithole.
As an import substitution drive and the determination to ensure wheat self-sufficiency from local production the Government set a target of 75 000ha under wheat production from different players. Several players within the wheat industry set the following targets for 2022: CBZ Agro-Yield – 36 500, AFC – 10 000, Food Crop Contractors Association (FCCA) – 23 000 and Presidential Input Scheme (PIS) – 5 500 a cumulative total of 75 000 hectares.
This target was overshot after 80 885ha were planted under wheat with AFC being one of the success stories. – The Herald
