eBusiness Weekly
Michael Tome Business Writer
FARMERS have raised concern over the increase in agriculture inputs price as preparations for the 2022 to 2023 summer cropping season draw closer.
Large and small-scale standalone farmers in production have indicated that the surge of inputs prices encompassing diesel, seed, fertilizers as well pesticides are likely to impact the viability of the sector in the coming season.
Production costs continue to intensify thereby interfering with efforts being made by the Government to transform the sector as overheads continue to squeeze producers’ margins.
According to farmers, the situation has been compounded by growing financing costs given the increase in loan interests, which is likely to limit production in the preparation and during the season.
Farmer organizations indicated that growing production costs are likely to be worsened by the obtaining high price of hiring draught-power given the limited number of tractors amongst small-scale farmers.
Food and Agriculture Organization (FAO), in June, highlighted that the worldwide rise in costs for farm inputs like fertiliser could deter growers from expanding production and worsen food security in poorer countries facing record import bills.
Zimbabwe Commercial Farmers Union (ZCFU) president Dr Shadreck Makombe said as it stands costing per hectare is likely to price out farmers given the soaring producer price.
He however noted that agriculture inputs retail shops should desist from profiteering to enhance farmer’s viability.
“There is need for right pricing of inputs, not to charge exorbitant prices like we are seeing right now, where farmers are charged exorbitant prices, that limits production. If we look at farming as a business right now, there is no breakeven considering the prohibitive input costs and the producer prices on the table, coupled with high loan interest rates.
“There is a need for collective responsibility so that those who sale inputs realise that if they suffocate farmers by hiking input prices, they are killing the hen that lays the egg,” he said.
Further indicating that the local agriculture sector had great potential, thus implored the government to look closely at some of the barriers limiting maximum production by standalone farmers.
Women Farmers Association Trust president Dephina Nkomo highlighted that input prices should be constantly checked so that they are commensurate to the obtaining producer prices on the market to maintain farmer viability.
“Procurement prices for inputs from seed and diesel are going up coupled with those hiring out tractors, they are taking advantage of us small scale farmers, which is highly unsustainable, this is going to ultimately reduce hectarage under production if it goes unmonitored.
“These inputs are critical to food production, and rising prices are worrying, producer price compared to input costs are not matching,” she said.
The agricultural sector has lately been exposed to supply limitations due to rising input costs, in particular for fertilizers and fuels that could spur further food price rises.
Mounting input costs have been linked to high energy prices and supply challenges on account of the Russia-Ukraine conflict.
In his midterm budget remarks, Finance and Economic Development Minister Mthuli Ncube indicated that the government had allocated a total of $100, 7 billion for preparations for the forthcoming season, grain procurement, and dam construction to mitigate the impacts of climate change.
In view of the soaring input prices, concerns have also been raised about the volatile weather patterns across the world.
