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Funding lowers coffee farming

25 Jun, 2014 - 00:06 0 Views

The ManicaPost

Ngoni Dapira
ZIMBABWE used to be famous for its “super-high-quality” Arabica bean coffee. The coffee belt in the Eastern Highlands, Vumba in particular, has perfect growing conditions with high mountain peaks and a cool climate.
In the 1990s, Zimbabwe produced some of the best coffee in the world. This did not only generate crucial foreign currency from exports, but also sustained many livelihoods for both commercial and small-scale farmers.

Presently the industry is in decline with many of the mills shut down and like the Zimbabwe Coffee Mill in Mutare, moribund.
According to Zimbabwe Coffee Mill manager, Mr Josephat Rushinga, production plummeted owing to various challenges over the last decade, coupled with the transformation of farming models and liquidity crunch in the country.

Most banks that offer agricultural loans give to short-term projects like tobacco farming rather than long-term projects like growing coffee which matures in four years.

Mr Rushinga said most new land owners could not secure bank loans to buy fertilisers or repair ageing infrastructure, which greatly affected production.

Last year the country produced about 450 tonnes, but Zimbabwe has a milling capacity to handle about 50 000 tonnes of green coffee annually.

Mr Rushinga said coffee farming is a very profitable venture but currently most farmers are in debt and need Government policy interventions to rejuvenate the sector, especially on funding.

“As Zimbabwe Coffee Mill we required at least 4 000 tonnes of coffee to operate profitably, but we were receiving just about 300 tonnes annually.” However, while Zimbabwean coffee growers are struggling, elsewhere the industry is booming.

“This is why there is need for speedy intervention by Government and both local and global partners to boost coffee farming which has great money-making potential in Zimbabwe,” said Mr Rushinga.

Ten years ago the average cost of a tonne of coffee was US$1 400, but now it can fetch up to $4 000, according to the International Coffee Organisation.

Last Friday, The Manica Post toured the DTZ-OZGEO coffee plantation in Vumba.
The farm manager, Mr Peter Buttress, said he believes that if the coffee industry is allowed to stabilise and become self-sustaining, there will be tremendous opportunities for growth.

He also echoed the same sentiments that funding remains a major constraint that Government should step in to assist both commercial and smallholder farmers in rejuvenating the country’s coffee farming, which has great export potential.

“As DTZ-OZGEO coffee plantation we are currently in the process of turning around our operations to be self-sustaining, but our major constraint has been funding.

“Because coffee farming is long term with profits being realised over four years, most banks have not been forthcoming to give loans given the liquidity crisis in the country. Of late we are, however, also extending partnership arrangements with interested financiers,” said Mr Buttress.

On the other hand, the Minister of Agriculture, Mechanisation and Irrigation Development, Cde Joseph Made, last month announced that his ministry is currently working on a national coffee strategy which will require a more all-inclusive intervention strategy to revitalise the critical sector.

“My ministry will provide the  necessary policy support to enable the growth of the coffee sub-sector.
“In order to achieve this task a coffee policy document that will guide the development of the sector in line with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZIM-ASSET) and the Zimbabwe Agriculture Investment Plan, is being developed with a view to ensuring that farmers get reasonable returns from their investments,” said Minister Made.

 

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