HARARE Zimbabwes cash-flow crisis is impacting negatively upon the heavily agro-based industry as harvested crops cannot be bought because of the shortage of cash. (Pictured: Finance Minister Tendai Biti)Most farmers have just finished harvesting their products and the selling season has reached its peak this month. But sources in the industry revealed that although farmers are rushing to sell their crops, companies lack the capacity to pay for crops like soya beans, maize and paprika. Some companies are said to have sought an audience last week with Finance Minister Tendai Biti to negotiate for a financial package to buy crops.
My company buys soya beans in large quantities for processing. But following the dollarisation of our economy this year, cash has been a really challenge. We are unable to buy as much as soya beans as we want, said Jairos Dlomo the Managing Director of Soya Beans Africa. Dlomo said the price of Soya beans was becoming very expensive and most companies are finding it difficulty to buy the crop.
Soya bean output was projected at more than 70 000 tonnes last season, with the crop selling at between $US300 and $US500 per ton. Companies buying paprika face similar problems. Although officials from Paprika Zimbabwe and Cairns could not be reached for comment, a buyer with Paprika Zimbabwe, who spoke on condition of anonymity, said his company was buying the crop but would pay farmers later.
But farmers also desperately need cash to prepare for the coming season. The cash crisis has also affected the state-run Grain Marketing Board (GMB) which is also failing to pay farmers in time for crops delivered. The maize price is $265 a ton.
Post published in: Mining