CZI’s past president and Tanganda Finance
Director, Henry Nemaire, said lack of finance, wage pressures and the high
cost of production were major challenges crippling the sector.
Nemaire said from a peak of 23, 000 tonnes annually, the tea industry
was currently producing only 15, 000 tonnes of made tea, translating to
65 percent of capacity utilisation.
He said that only about 4, 000 tonnes was value added for
the local and regional market and the balance of 73 percent was sold as
primary produce.
He said coffee production was decimated during the 2000 to 2008 land
grab period.
According to
Nemaire, production has plummeted from 7, 000 tonnes annually 
to less than 500 tonnes, mainly due to lack of expertise.
“Industry players are currently trying to replant and increase the
hectarage with limited expertise. There will be no revenue from
coffee for the next 24 months until current plantings start yielding
in the third year,” said Nemaire, adding that the coffee industry alone
employs over 10,000 people.
He said the production of bananas had also plummeted to about 80, 000 metric
tonnes from 120,000 metric tonnes annually.
“However, capacity building of small communal producers in Honde
Valley is paying dividends as quality and returns
have improved,” he said.
The timber industry has not been spared. It suffered illegal land occupation, with more than 1000 families living illegally on 5, 000 ha of standing timberland.
According to CZI, the timber industry is losing close to $18 million due
to illegal occupation of the forests.
Nemaire underscored the need for long term funding for farmers
through monetary institutions such as the PTA Bank and other
international financial institutions.
Nemaire said erratic and expensive power at 12.77 US cents/KWA was
making the agro-industry unviable. He said there was need for the Zimbabwe
Electricity Supply Authority to unbundle and charge industry direct
costs of power generation.
Post published in: Agriculture