Volume 4 / Issue 5 ZMW 29.50/US $ 5.30
January- March 2017
Zambia, Tanzania to post maize surplus again ISSN
Inside
ZAMBIA’S LEADING AGRIBUSINESS MAGAZINE State announce plans to boost goats, sheep stock 9 www.agribusinesszambia.com
Dialogue policies with stakeholders, Katambo told 20
Government urged to actualise diversification in 2017 26
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Zambian AgriBusiness Magazine | January - March 2017
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Contents
ADVERTISER INDEX
Agrico IFC
Editorial Comment
Goodbye El Nino Drought!
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State announce plans to boost goats, sheep stock : .......................................................................
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3
News Briefs
ETG 7
Cover Story
Zam Force
Reliance Poultry Chiefs
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BHBW 23 Knigth Frank
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Husqvarna 31 John Deere
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JTI 34 DAB Water Technology DAB Water Technology 4
IBC BC
Zambia, Tanzania to post maize surplus again Cassava collection made easy in Mansa
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Companies & Markets
Central bank’s call to abolish subsidies opposed : ....................................................................... 12 FNB advise farmers to exploit new pricing system : ....................................................................... 13 Identify strategies to improve agriculture output - expert : ....................................................................... 14 NCZ looks to PPPs to prop up production : ....................................................................... 15 NATSAVE injects financial support in Namwala district : ....................................................................... 17
General News
$200m hybrid power plant for Shangombo : ....................................................................... Tourism players ignite collaborations for Zambia, Israeli farmers : ....................................................................... Dialogue policies with stakeholders, Katambo told : ....................................................................... More extension workers needed : ....................................................................... Incentivise large-scale farmers, WB tells government : ....................................................................... Zambia needs poultry farmers training -Association: ....................................................................... Smooth roll-out anticipated, as e-voucher cards activation begins : ....................................................................... Subsidies inadequate to fight poverty - Zulu : .......................................................................
Zambian AgriBusiness Magazine | January - March 2017
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Insight & Analysis
Government urged to actualise diversification in 2017
International News
Meatco, Brukkaros ready to supply Norway Export market for Tanzania’s cassava sourced
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New Farming Technology Husqvarna continues pioneering approach to chainsaws, lawnmowers
Farm Equipement
Barloworld, BayWa AG signs farming equipments deal: ....................................................................... 32
Publisher Evans Mumba
Jeffrey Sinkamba Sam Phiri
General Manager Anorld Chinyemba
Graphics and Productions Merlin Wilson (Pty) Ltd Rekai Musari Mutisi– Layout
Editor Andrew Maramwidze Associate Editor Andrew Miti Editorial Contributor(s) Esnala Banda Potipher Tembo Obert Simwanza www.agribusinesszambia.com
Advertisement Sales Precious Chimbuchimbu Agnes Mumba Chilopa Majorie Kasoma Doris Likonde Dowell Sichitalwe Don Chulu Nkosilathi Mudiyi Musa Chigiji
Joseph Nyirenda Michael Chiku Mondoloka Joshua Chibwe LUSAKA Suite 113-114, First Floor, West Wing Compensation House (Cusa) Cairo Rd (Southend). P.O.Box 50333, Ridgeway, Lusaka Mobile: +260 211 224 475, | +260 966 340 988 Fax: +260 211 220 128 Kitwe 16 Mayfair Crescent, Parklands, Kitwe
Zambian AgriBusiness Magazine | January - March 2017
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Editorial Comment
Editor : Andrew Maramwidze
Goodbye El Nino Drought! become a reality. Above all a healthy harvest comes with several spin offs not only for the farming community but the food industry too which will buy its inputs at affordable market rates. However, farmers be warned. As we welcome the new season, improved food security coupled with lessening burden on countries with good harvest, the insect and pest are also breeding and threatening the golden harvest. Farmers should be on the lookout for the armyworm, it has potential to taint ‘our celebration’ and see Zambia and the continent back to the dreaded drought. As efforts to exploit opportunities in the agriculture industry continue, we wish to applaud active roles being played by both private sector and government.
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he dreaded El Nino climate phenomenon that had been driving the droughts across Africa has weakened and given way to La Nina, a phenomenon associated with normal to above normal rains, and even flooding. Forecasts indicate that Zambia and Tanzania are likely to record bumper harvest.
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FEWS NET projection says most southern African countries are expected to have maize deficits due to the El Niño-induced drought suffered in the previous farming season. The good news is Zambian producers could enjoy a favourable market rate for their produce, not only that, poultry producers could also see a reduction in feeds, once the bumper harvest
Zambian AgriBusiness Magazine | January - March 2017
One of them is announcement of government’s intentions to revise maize grain standards and going all-out to scale up small livestock breading to improve the country’s capacity to export. Also an economic effort by Nitrogen Chemicals of Zambia (NCZ) to reduce reliance on government is a welcome decision. Government cannot do it alone public private partnership is the future for our agriculture.
www.agribusinesszambia.com
News Briefs
Government revise maize grain standards
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he Zambia Bureau of Standards (ZABS) has partnered with various stakeholders to revise maize grain standards.
ZABS has also put out a call to the public to send comments and suggestions on the proposed draft standards. Lee Haamunji , ZABS Public Relations Officer said the revised standard should address the safety and quality aspects of the commodity. According to Haamunji the revised standards will apply to maize intended for human consumption. “The standard covers requirements and the methods of sampling and analysis for shelled maize grain or their hybrids,” Haamunji said, adding that the standards do not apply to processed maize.
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Zambian AgriBusiness Magazine | January - March 2017
The proposed standards are expected to encourage farmers to add value to grain, guarantee quality and food safety. Meanwhile ZABS has warned publics not to use the draft standards, as national standards yet. Some of the key stakeholders to actively participating in crafting the standards are Competition Consumer and Protection Commission, Food Reserve Agency, Kamano Seed Company, Lusaka City Council, National Food and Nutrition Commission and National Milling Corporation. In addition, ZABS has extended invitation to University of Zambia’s department of food, science and nutrition, Zambia National Farmers’ Union, Zambia Rice Federation, Zambia Agricultural and Research Institute and the Seed Control and Certificate Institute. www.agribusinesszambia.com
News Briefs
State announce plans to boost goats, sheep stock
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overnment intends to scale up small livestock breading to improve the country’s capacity to export.
He further said Saudi Arabia has shown interest to import one million goats and sheep annually.
A team of livestock experts from the ministry will soon tour the country to assess the quality and numbers of sheep and goats.
So far, several markets on the continent are on target, ahead of the breeding boost plan.
The ‘ripe and ready’ markets have moved government to start exploring ways to increase small livestock.
“We have put a task force in place, which will go around the country to determine the national baseline of the total number of goats in the country,” Dr Shamulenge said.
Recently President Edgar Lungu launched programmes to empower youth and women in small livestock breeding.
He urged youths and women to take advantage of various programmes under the Ministry of Livestock and Fisheries to empower themselves.
“We want to see youths and women participate actively in goat rearing. We want to link them to Saudi Arabia, DRC and Angola markets,” said Dr David Shamulenge, permanent secretary in the Livestock and Fisheries.
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Zambian AgriBusiness Magazine | January - March 2017
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Cover Story
Zambia, Tanzania to post maize surplus again However, Zambia, which played an important regional role during the 2015/16 marketing season, will have limited volumes of exportable surpluses.
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he latest grain forecast from Famine Early Warning Systems Network (FEWS NET) indicates that Zambia and Tanzania are expected to record bumper harvest.
However, Zambia, which played an important regional role during the 2015/16 marketing season, will have limited volumes of exportable surpluses.
The two southern African countries are expected to have a surplus in the 2016/17 marketing season, the research institute has predicted.
The region’s performance during the 2015/16 rainy season was among the worst in 30 years for many countries and was the second consecutive season which recorded below average maize production.
FEWS NET forecast says most southern African countries are expected to have maize deficits due to the El Niño-induced drought in the previous farming season.
Meanwhile Tanzania is expected to export the majority of its maize surpluses to neighbouring countries in east Africa.
“Every country in the region is expected to have a deficit during the 2016/17 marketing season, except Zambia and Tanzania.
FEWS NET said the east Africa bloc’s harvest is not going to be adequate to meet requirements and a typical supply gaps is anticipated.
South Africa, the main regional maize exporter, will have a deficit,” said FEWS NET latest update.
The maize prices are also expected to increase, as the lean season approaches and will be more
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Zambian AgriBusiness Magazine | January - March 2017
variable than usual, due to unusual thin markets in the region. FEWS NET said maize prices are expected to remain well above average throughout the 2016/17 marketing season. The research institute says market monitoring should focus on the volumes and distribution of international imports by government interventions, and food assistance programming. “Export parity prices and export volumes from South Africa and Zambia should also be monitored closely,” FEWS NET said. The network said opportunities for local and regional procurement of maize for in-kind assistance programmes are limited www.agribusinesszambia.com
Companies & Markets
Cassava collection made easy in Mansa
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“Zambia Breweries has received two new utility vehicles that will go a long way to boosting the supply of cassava, as well as supporting small-scale farmers based in Mansa,”
ambia Breweries has received a shot in the arm from Musika, the non-profit organisation stimulating private sector investments across the country.
Two trucks under a grant scheme were offered to the brewer to boost cassava supply chain in Mansa. The vehicles will transport cassava sourced through GroAfrica from farmers to depots. Chris Nicolle Zambian Breweries’ Agricultural Manager revealed the deal was sealed following lengthy discussions with Musika, highlighting that the expectation is to improve transportation of cassava. The arrangement is part of the cassava project aimed at promoting commercialisation of the crop in Mansa by providing a reliable market, encouraging farmers to cultivate more. “Zambia Breweries has received two new utility vehicles that will go a long way to boosting the supply of cassava, as well as supporting smallscale farmers based in Mansa,” Nicolle said. Musika believes the initiative has potential to ease challenges in transporting cassava from aggregated points to depots and alleviate farmers out of poverty.
www.agribusinesszambia.com
Zambian AgriBusiness Magazine | January - March 2017
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Companies & Markets
Central bank’s call to abolish subsidies opposed “What we need is to ensure that any agricultural subsidies increase productivity, efficiency and global competitiveness.
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mall scale farmers want government to restructure the agriculture subsidy scheme - farmer input support programme (FISP).
The central bank has advised government to cancel farming input subsidies, citing that the facility is unsustainable and an obstacle to the country’s economic growth. However, the National Union for Small-scale Farmers Association of Zambia (NUSFAZ) says the programme should be reengineered to target the intended beneficiaries. Statistics indicate that most small-scale farmers benefit from FISP. Dr Frank Kayula, NUSFAZ President says eliminating the programme will negatively affect the country’s agricultural productivity and food security. He called upon government to cautiously design an effective and sustainable programme.
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“What we need is to ensure that any agricultural subsidies increase productivity, efficiency and global competitiveness. “Government must ensure that the programme is redesigned, especially with the current challenge of inequitable targeting of fertiliser distribution, low crop-response rates, and crowding of commercial farmers as the programme is meant for small-scale farmers, who are the major producer of food in the country,” Dr Kayula said. The Union’s view is that scrapping the subsidies could plunge agriculture performance, currently one of leading sector of the economy. Dr Kayula said if well-handled, FISP could help build a stronger agricultural sector, feed the hungry, produce surpluses for export and pull millions of the rural poor out of poverty
Zambian AgriBusiness Magazine | January - March 2017
www.agribusinesszambia.com
Companies & Markets
FNB advise farmers to exploit new pricing system
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armers have been urged to utilise fair market price opportunities offered through the Zambia Agriculture Commodity Exchange (ZAMACE).
President Edgar Lungu recently announced that government will no longer dictate market price for cereals. Cheyo Mwenechanya, Senior Agri-Business Manager at First National Bank of Zambia (FNB) said ZAMACE can help address perennial market imperfections that besiege Zambia’s agriculture sector. Mwenechanya said the defects limit the potential of small-scale farmers who predominantly produce maize stocks. www.agribusinesszambia.com
“With the agriculture sector high on government’s agenda as a potential engine for economic diversification, it is important that aspects of the sector such as commodity prices and stocks are managed to the benefit of farmers,” Mwenechanya he said. He said the introduction of the warehouse receipting system (WRS) at ZAMACE has created a platform for farmers to deposit maize (post-harvest) in secure warehouses in any part of the country. “If a farmer feels the market price for maize is too low at the time of harvest, he would rather not sell the produce at that moment but can take their warehouse receipt to a participating bank
and offer it as collateral,” said Mwenechanya . He said WRS empowers the farmers to retain ownership of their produce and only sell it if market conditions improve. Mwenechanya said the participation of FNB Zambia on the ZAMACE has allowed for a secure and efficient payment system through the bank’s digital banking platform. The platform has facilitated the payment processes and improved grain trading on the commodity exchange.
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Companies & Markets
Identify strategies to improve agriculture output - expert
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frica should discover strategies to improve food security, experts at the Indaba Agricultural Policy and Research Institute (IAPRI) have said.
Dr. Chance Kabaghe, Executive Director at IAPRI said evidence-based strategies should be identified to stabilise supplies, access to food, and livelihoods, in respond to increasingly variable climates. The Institute said the strategies should be adapted and feasibly adopted by low-resource farmers and communities. With wide range of micro-climates conditions found in sub-Saharan Africa, Dr Kabaghe said the private sector, governments and development partners need to partner on climate adap-
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tation and resiliency efforts. “It is unfortunate African farmers, consumers and the agricultural food systems are, particularly, vulnerable to climate-related shocks due to the region’s reliance on rain-fed agricultural production systems.” Dr Kabaghe said unless the continent identify, adopt and adapt strategies, terms like ‘climate-smart agriculture, market-smart development and sustainable intensification’ will remain talk-show topics. He said strategies should effectively guide governments and donor policies and programmes, adding that multi-sectoral cooperation will require framing, adaptation and mitigation plans that are climate-resilient.
Zambian AgriBusiness Magazine | January - March 2017
Dr Kabaghe further said identifying existing knowledge gaps in various sectors is critical in addressing cross cutting issues affecting agricultural productivity. Meanwhile IAPRI has partnered with two regional organisations to hold a regional sustainability summit to discuss available research evidence that may assist African governments put in place strategies to promote sustainable agricultural productivity. Experts and policy-makers in the southern African region and the international community will gather from March 16-17 in Lusaka to deliberate on research findings, highlight promising response strategies, and identify unresolved issues for future research. www.agribusinesszambia.com
Companies & Markets
NCZ looks to PPPs to prop up production
N
itrogen Chemicals of Zambia (NCZ) is mooting plans to reduce reliance on government.
The company has signalled intentions to venture into public-private partnership (PPPs), as the parastatal seek independence. According to Zuze Banda, NCZ Chief Executive Officer, the company’s intention is to increase production and move into the regional market.
www.agribusinesszambia.com
“We are also looking at expanding our product range to start producing Nitrogen and Oxygen gases to other products which we expect to start offloading on the market,” Banda said. The NCZ products have mostly been distributed through the farmer input support programme (FISP). Last December, the company through FISP distributed 87,500 tonnes of compound D fertiliser to farmers to 62 districts.
The NCZ products have mostly been distributed through the farmer input support programme (FISP).
Zambian AgriBusiness Magazine | January - March 2017
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Companies & Markets
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Zambian AgriBusiness Magazine | January - March 2017
www.agribusinesszambia.com
Companies & Markets
NATSAVE injects financial support in Namwala district F
armers in Namwala district have started receiving credit facilities from the government owned financial institution - National Credit and Savings Bank (NATSAVE).
that will be used in preparing stock feed and maker grapple tractor,” said Sakala, highlighting that applicants under the Bunjimi Asset Plus attach quotation of implements to be bought to qualify for the scheme.
The scheme provided under the banner ‘Bunjimi Asset Plus’ has been applauded by Zambia National Farmers Union (ZNFU).
“The other beneficiary wants to buy irrigation machinery at a cost of K15, 000 while the other two intend to use the finances to acquire hammer mills at K28, 000 each.”
The loan facility offers over K65, 000 to farmers to buy agricultural equipment and enhance productivity. Kalondwe Sakala , ZNFU Namwala office representative said from 16 applications received last year, one beneficiary has received the funds while three others are yet to. “The loan is worth K65, 184.70 and is meant to help the farmer buy the forage chopper www.agribusinesszambia.com
ZNFU currently support about 1,000 farmers in Namwala district, though only 300 are active. The Union also facilitate the supply of inputs under the Lima Credit Scheme to about 150 farmers in the district. However, ZNFU will not giving out inputs due to some challenges, this year.
Zambian AgriBusiness Magazine | January - March 2017
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General News
$200m hybrid power plant for Shangombo
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innish-based renewable energy firm Nacart has been awarded a contract to design, construct and install a US$200 million hybrid power plant at Shangombo sugar plantation in the Western province. The PADIC sponsored project is expected to produce over 800,000 tonnes of sugar per annum. According to Nocart Chief Executive Officer, Vesa Korhonen, the first phase of the project consists of 30 to 40 megawatts (MW) solar, diesel plants. On completion, the power plant will have a total production capacity of 100MW.
“We operate in those geographic markets in which the growth potential is great and market nearly untouched.
“With these plants, we can produce enough electricity for a 30,000 hectare sugar plantation and for the needs of modern sugar production facilities...,” Korhonen said. Nocart country representative Sid Kabaso the plant will be developed over the next two to four years for total value of over US$200 million. Kabaso said the company’s projects utilise solar, wind and bio-energy, among other sources to
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Zambian AgriBusiness Magazine | January - March 2017
produce high quality electricity. Installed with proprietary power management units (PMU), Nocart power plants utilise technology which controls energy production, storage and distribution of electricity. Korhonen said Nocart focuses on bringing distributed, renewable-based energy solutions to people with limited or no access to quality electricity. “We operate in those geographic markets in which the growth potential is great and market nearly untouched. “The electrification of rural areas outside the national grids is one of the business opportunities Nocart is recognised for.” He said the company uses a combination of cutting-edge technology and local resources including human resource. “ Nocart improves the quality of life and environment in the markets we operate in,” Korhonen.
www.agribusinesszambia.com
General News
Tourism players ignite collaborations for Zambia, Israeli farmers
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lendo Travel Tours and Car Hire have partnered with an Israeli-based company, Vered Hasharon Travel Tours to kick start knowledge transfer exchange programme between local farmers and Israeli farmers. The project is expected to promote agriculture synergies for the two countries and develop a sustainable farming sector for Zambia. Maria Phiri, Alendo Travel Tours and Car Hire Director said the scheme should benefit Zambia whose agricultural development remains low. Phiri said most small-scale farmers lack the know-how to manage their business. She said the nation should take advantage of vast international market opportunities by growing various surplus crops that have high demand in the region. “In Zambia, we are blessed with all the natural rewww.agribusinesszambia.com
sources and good climatic conditions, but when you look at Israel, which is a desert, with no good soils and with little water, it has a well-established agriculture sector.� Phiri said linking the farmers should enable sharing of knowledge and skills. She believes Zambia has the potential to produce food for the entire southern African region and globally with a well-managed and exploited agriculture sector supported by strong linkages. Naama Vered of Vered Hasharon Travel Tours tour operator told Zambian Agribusiness that the project will work to address some of the challenges Zambia is facing to develop through the transfer of knowledge and skills. Vered is also optimistic that the partnership will help boost Zambia’s agriculture sector as Israel has a number of well-established and experienced farmers in various sectors.
... the project will work to address some of the challenges Zambia is facing to develop through the transfer of knowledge and skills.
Zambian AgriBusiness Magazine | January - March 2017
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General News
Dialogue policies with stakeholders, Katambo told
S
mall Livestock Association of Zambia (SLAZ) wants government to engage stakeholders before formulating policies.
The Association says engagement will ensure statutes do not negatively impact the various small livestock players. Martin Mukuka, SLAZ Chairperson said government should consult key players on various economic issues to avoid decisions that dent the economy.
“We are calling upon the minister to engage all stakeholders and come up with affordable service fees that will encourage farmers to seek veterinary services.”
Michael Katambo, Fisheries and Livestock minister, last year signed a statutory instrument (SI) number 105 of 2016 that came into effect on January 1, 2017 to revise upwards the veterinary fees with verbal consultations pegged at K50 while farm visits will cost K125 per hour, a move that irked the Association. Under the SI meat inspection per animal increased from K10 to K50 with fertility testing per animal pegged at K250 while blood test per sample now cost K150. The veterinary services scheduled fees for permits, licences and services, animal branding registration will cost K100, slaughter permit per pregnant animal is pegged at K200 with post-mortem per animal costing K250, among other fees.
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Zambian AgriBusiness Magazine | January - March 2017
Mukuka said the increased livestock veterinary service fees will seriously affect productivity, as most farmers face challenges in having their animals vaccinated. “The Association understands the challenges Government is facing to raise required funds for service provisions, however, the increase has come at a wrong time. Government should have consulted all stakeholders before coming up with this increase.” He said the hike will affect production, affecting the high demand for beef, pork, village birds and goat meat. “We are calling upon the minister to engage all stakeholders and come up with affordable service fees that will encourage farmers to seek veterinary services,” Mukuka said. He said the move is against government’s policy of diversification from the major source of revenue (mining) into other key sectors such as agriculture, tourism, construction, and manufacturing, among other areas. “To build capacity in terms of high productivity we need favourable and affordable services…We trust our government shall certainly revise the fees,” Mukuka said. www.agribusinesszambia.com
General News
A farmers.
More extension workers needed
s part of efforts to increase information access among farmers, minister of agriculture has approached cabinet seeking authority to employ more extension
Dora Siliya, Agriculture minister believes engaging additional officers should mitigate the shortage facing her ministry. Some of the country’s agricultural challenges have been attributed to the slim portfolio of extension workers. “There is one extension officer on average to 1,000 farmers, while in some places on the Copperbelt, there is one agricultural officer to about 1,500 farmers,” Siliya said. She said extension officers should be increased to acceptable standards to effectively address and communicate to government the challenges farmers face. www.agribusinesszambia.com
“When a new pest comes around as is the case with the army-worm and the stalk borer which nobody has seen before. It is very difficult for the farmer to quickly send information to the extension officers who should then bring it to the attention of government because this one officer has so many farmers to attend to,” said Siliya. The minister is yet to take a memorandum to Cabinet office seeking authorisation to employ a given number of extension officers.
“When a new pest comes around as is the case with the army-worm and the stalk borer which nobody has seen before.
Siliya said the ministry envisage employing extra extension workers until reaching equilibrium to effectively service farmers. Annually government spends almost K20 million on emergency funds to buy 51,000 litres of pesticide for the control of army-worm across the country. Zambian AgriBusiness Magazine | January - March 2017
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General News
Incentivise largescale farmers, WB tells government
W
orld Bank says Zambia should stimulate large scale farmers to increase production, as a solution to reduce food security risks.
The bank said incentivising farmers has multiple benefits such as boosting export, contributing to wealth and jobs creation. “Zambia needs to, alongside supporting poorer farmers, ensure that large-scale commercial farmers using irrigation have incentives to produce for domestic needs and export,” said Ina Ruthenberg, World Bank country manager.
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She said enhancing agricultural productivity is ‘essential, but it requires budgeting for more than just subsidised agricultural inputs’. Ruthenberg told parliament that farmer input support programme (FISP) and the Food Reserve Agency (FRA) suffer from high-levels of inefficiency and wastage. “There are large arrears associated with the FRA and the FISP as the levels of expenditure grew beyond what the government could afford in 2015 and 2016. The current target of FISP and FRA does not sufficiently support the poor,” said Ruthernberg.
Zambian AgriBusiness Magazine | January - March 2017
Ruthenberg said government should focus on clearing arrears attributed to the FISP and FRA to help farmers prepare and invest for the next season. She however applauded that 2017-18 farming season implements for FISP are being provided via an e-voucher system to curb wastage. “The roll-out needs to be closely monitored so that the inevitable challenges can be overcome, especially in remote areas. Also government should review the FRA mandate and its role in the market,” Ruthenberg said. www.agribusinesszambia.com
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General News
Smooth roll-out anticipated, as e-voucher cards activation begins
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ctivation of the electronic voucher cards enabling farmers to access subsidised inputs from agro-dealers for this farming season is ongoing, Zambia National Farmers Union (ZNFU) has announced. The e-voucher system, implemented by ZNFU in partnership with government under the Farmer Input Support Programme (FISP) scheme reduces excessive overheads and wastage associated with the manual system.
“We are on the ground and we are working tirelessly to ensure that all farmers receive their e-voucher cards and that they have them activated to enable them receive their inputs.”
Now farmers will get any agriculture input other than maize seeds and fertiliser. Reports have emerged that some district agricultural officers are delaying submission of names to ZNFU for activation of the cards, as the electronic system remove loopholes for creating ‘ghost farmers’ associated with the manual system. However, Coillard Hamusimbi, ZNFU head of membership service and agri-business attributes the activation delays to late distribution of e-voucher cards, especially to newly-registered farmers. “The roll-out of the e-voucher cards for the 2015-
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Zambian AgriBusiness Magazine | January - March 2017
16 farming season intended to cater for 241,000 cards and 234,000 cards were distributed with about 211,000 cards activated. “But for this farming season, we have added 26 new districts, with 368,832 cards intended to be distributed making the total number of cards to be distributed to 602,521 in 39 districts around the country,” Hamusimbi said. So far, cards totalling 346,497 have been distributed and farmers who have already received the cards are required to deposit the K400 contribution on time if their cards are to be activated. Hamusimbi also urged district agricultural officers to urgently submit the details of farmers who have deposited contributions to ZNFU to have their cards activated. “We are on the ground and we are working tirelessly to ensure that all farmers receive their e-voucher cards and that they have them activated to enable them receive their inputs." This season's activation target to smoothly incorporate both old and new farmers into the system. www.agribusinesszambia.com
General News
Subsidies inadequate
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to fight poverty - Zulu
he Indaba Agricultural Policy and Research Institute (IAPRI) have bemoaned the agricultural subsidies’ failure to address rural productivity and poverty. www.knightfrank.com
Ballard Zulu, Acting Executive Director at IAPRI, speaking before the parliamentary committee on budget and estimates said government support remain inadequate ‘no matter how properly implemented’. He called upon government to invest in agricultural growth drivers. Zulu said rural infrastructure - roads, rail, and telecommunication coupled with agricultural research and development can spur the industry. Government statistics indicate that K20 billion has been spent on farmer input support programme (FISP), FRA, electricity and fuel subsidies. Zulu urged government to embrace institutions that foster the development of effective markets, and complementary services such as agricultural extension and credit. He also said complete government withdrawal from the market is neither realistic nor desirable. “However, government must avoid policies that crowd out private sector participation, and should instead seek to facilitate market growth as well as make every effort to leverage private sector investments,” Zulu said. Meanwhile Zulu said the Food Reserve Agency (FRA)’s role should be limited to purchasing strategic reserves at market prices and should stick to prescribed quantities and areas of purchase.
www.agribusinesszambia.com
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3,532 hectares/8,730 acres
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Approximately 920 hectares / 2273 acres under irrigation
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Approximately 674 hectarea / 1666 acres uncleared arable land
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Approximately 1322 hectares / 3266 acres uncleared arable land
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Approximately 616 hectares / 1525 acres non arable land
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Storage sheds, silos, fuel storage tanks, three phase Zesco mains, gravel internal roads
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Staff housing.
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Water rights and pump stations on and from the Lusemfwa River
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Excellent cattle grazing lands.
Guide Price: On Application Contact: +260 96 6 751203 / +260 -211 250683/538 tanya.ware@zm.knightfrank.com
Zambian AgriBusiness Magazine | January - March 2017
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Insight & Analysis
Government urged to actualise diversification in 2017 “Therefore, Government needs to scale up budgetary appropriations towards creation of heavy manufacturing for machinery and components used in agro-processing and agro-extraction, and engineering and foundry for metal casting and wire processing so as to add value to agriculture and mining.�
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By JOSEPH SIMUMBA & CAESAR CHEELO AMBIA is struggling to accelerate economic diversification. This challenge calls for serious policy action as there is now only 13 years to go before the due date for the Zambia Vision 2030. Economic output, employment and foreign trade are all concentrated among a few sectors and over a narrow range of products and firms. It is imperative that the country should accelerate the process of expanding the sources, range, and markets of its goods and services and shift
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output and employment composition into economic sectors that are resilient to external shocks.
exports of unprocessed and semi-processed timber products and maize.
The 2017 National Budget has several measures to influence economic diversification that fall into three broad categories:
The last set of measures aims to boost availability of affordable long-term capital to industries. It includes the US$55.4 million Cashew Nut Infrastructure Programme in Western Province, US$50 million allocation for credit expansion among small and medium enterprises (SMEs) and the introduction of the K20 million agriculture and industrial credit guarantee scheme. Government also announced its commitment to support the development of the newly-created Kafue Iron and Steel Economic Zone although there is no specific financial allocation.
The first relates to measures that directly protect domestic industry using a five percent surtax levied on imported items that are also locally-produced and subjecting semi-processed edible oils imports to customs duty. The second category has measures that safeguard domestic value addition by discouraging exporting of raw materials. It imposes duty on
Zambian AgriBusiness Magazine | January - March 2017
www.agribusinesszambia.com
Insight & Analysis
Producers in aquaculture can now enjoy duty-free imports on equipment until 2019. Fittings used for irrigation and machinery used in lifting, handling and loading in the shoe industry can also be imported duty-free. This menu paints the picture of economic diversification in the 2017 budget. The count of measures and the corresponding value has increased more substantially, than in 2016. However, the flavour of economic diversification has not changed; the 2017 budget still champions diversification that heavily emphasises agriculture, mining and forestry with slight industrial manufacturing. It is extremely weak on laying a foundation for heavy industrial production, which has failed to recover since privatisation in the early 1990s. The failure to develop a class of heavy industries and restructure manufacturing towards catching up in production of machinery, electronics and transport equipment is responsible for excessive dependence on imported manufactures that are draining foreign currency reserves and negatively affecting the trade balance. Coupled with imports of petroleum and heavy oils, chemicals, pharmaceuticals and to a lesser extent, iron and steel products, they drain tenfold the value of foreign currency earned on exports of agriculture and agro-processed food and beverages. www.agribusinesszambia.com
Therefore, the first step to accelerate economic diversification requires restructuring manufacturing towards the creation of large-scale, capital and technology intensive industries. It’s this type of strong manufacturing that can buttress the discovery, creation and building of products that are sold in the region and all over the world. In manufacturing, size-economics of scale matters and it is the crucial factor for value and industrial resilience. For example, the study by Nolan, P. (1996) , “Large firms and industrial reform in former planned economies: the case of China,” in the Cambridge Journal of Economics shows that China formed a ‘national team’ of large enterprises that plugged it into international competition in the 1990s. `The team had eight firms in electricity generation, three in coal mining, six in automobiles, 10 in electronics, eight in iron and steel, 14 in machinery, seven in chemicals, five each in construction materials, transport, and pharmaceuticals and another six in aerospace. AVIC International, which is constructing several roads in Zambia, is a clear demonstration of this initiative. The World Bank equally recounts how the weight of “export superstars”, that is the big one percent companies that export, individually shape the volume and patterns of trade which are significant determinants of trade balance performance and hence foreign currency reserves.
Therefore, Government needs to scale up budgetary appropriations towards creation of heavy manufacturing for machinery and components used in agro-processing and agro-extraction, and engineering and foundry for metal casting and wire processing so as to add value to agriculture and mining. This is a sure way to plug local manufacturing into high value and resilient regional and global value chains which can overcome adverse swings in prices of metals and maize. It is undeniable that a great challenge for the budget is the limitation on funds. Industrial reform is also likely to face deeper challenges than those witnessed by recent catch-ups like South Korea, Malaysia, Singapore, Thailand and China. However, the opportunities’ offered by emerging arrangements under the public private partnerships are equally massive and need effective exploitation. Government basically, needs to establish better balance between creating heavy industries and the demand for investment in infrastructure including transport and ICT, support to SMEs and initiatives to stimulate further private sector investment. Of course, big industries require healthy, productive workers and good jobs begin with a good education that also stimulates innovation. *The authors are researchers at ZIPAR.
Zambian AgriBusiness Magazine | January - March 2017
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International News
Prospects glitter in Rwanda’s agriculture sector
Meatco, Brukkaros ready to supply Norway
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amibian companies have vowed to meet the allocated 1600 tonnes Norwegian supply quota for 2017.
This comes despite the country suffering a severe drought last farming season and a depleted cattle herd. The beef players - Meatco and privately-owned Brukkaros Meat Processors have been allocated to share the quota by the Ministry of Industrialization, Trade and SME Development. The parastatal Meatco received 1 400 tonnes, while Brukkaros Meat Processors received 2000 tonnes quota. According to Namibian Meat Board both organizations indicated ability to utilize the quotas and are to issue updates reports by 30 June.
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wanda’ agriculture is blossoming with opportunities, as both government and development partners support the sector.
Reports also show that agriculture not only has a great impact on the livelihoods of Rwandans but also provides a solid foundation for investment.
In addition, the country’s statistics indicates an incredible development and a profitable business opportunity.
Last year, agriculture was the second biggest contributor to GDP growth in the third quarter of the year, according to the latest National Institute of Statistics of Rwanda (NISR) report.
Meanwhile, Meatco expects herd recovery phase to take at least another 2 to 3 years.
“By conceptualising an agriculture programme that has the securing of land rights and the consolidation of land use at its core, Rwanda has not only enhanced agricultural productivity but also harnessed economies of scale and improved market access and incomes,” said Andrew Mold, Acting Director of UN Economic Commission for Africa (ECA) in Eastern Africa.
In addition, the company hopes to see other challenges affecting the meat industry addressed during the course of this year..
Agriculture in Rwanda today employs 70 percent of the country’s labour force and accounts for a third of the country’s GDP.
The Norwegian market is a small but very lucrative market for Namibian meat producers that increase the profitability.
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Zambian AgriBusiness Magazine | January - March 2017
Recently Rwanda received accolades for its land governance, it was chosen as one of the six pilot countries to implement the African Union’s Comprehensive Africa Agricultural Development Programme (CAADP). The programme aims to build the capacity of African countries to better address land governance concerns and support agricultural investment plans.
www.agribusinesszambia.com
International News
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Export market for Tanzania’s cassava sourced he Tanzania Agricultural Export Processing Zone Limited (TAEPZ) and Epoch Agriculture from China have sealed an out-grower scheme.
The deal will ensure cassava farmers in Tanzania have access to reliable export market while tapping into the country’s potential. With a US$1 billion budget, the agreement’s target is to commercialise cassava farming and processing. The project’s first phase consist of industrial park of factories to produce - cassava flour, cassava starch, animal feeds, organic fertilizer and paper pulp is to start in three regions of Mtwara, Lindi and Coast. According to the Chinese firm, the next phase will include production of industrial sugar and ethanol. Meanwhile Tanzania Private Sector Foundation (TPSF) proactively participated in the structuring of the agreement. www.agribusinesszambia.com
“We had to intervene in the project for the purpose of ensuring that it is fast-tracked and given its potential in spurring inclusive economic growth. We facilitated the assessment whereby our country can conform to Chinese standards,” Godfrey Simbeye, Executive Director of TPSF said. According to Simbeye, the agreement has secured a market of two million metric tonnes of dry cassava chips per annum with increase of five per cent for subsequent year. Current statistics indicate that Tanzania produces 5.5mn tonnes of cassava every year, while TAEPZ will consume 2.5mn tonnes of dry cassava every year. Government has described the partnership agreement as a big boost towards industrialisation.
Government has described the partnership agreement as a big boost towards industrialisation.
Dr Adelhelm Meru Permanent Secretary in the Ministry of Industry, Trade and Investment said once fully implemented, the agreement will transform living standards and industrialise the economy. Zambian AgriBusiness Magazine | January - March 2017
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New Farming Technology
Husqvarna continues pioneering approach to chainsaws, lawnmowers
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ith the most innovative and powerful range of machinery and tools for forest, agricultural, garden, park, construction and stone industries, Husqvarna continues to lead the way. Sold in over 100 countries worldwide, Husqvarna’s robust and reliable machines have been tried and tested in Africa’s harsh working conditions and have delivered consistently successful results. The company says for over 327 years has applied ‘out of the box’ thinking, which is well exemplified by the development of Husqvarna’s first chainsaw. Despite the fact that the company’s pioneer chainsaws caused problems with noise pollution, this was later fixed by using motorcycle muffler technology, which was developed in-house. As a result the noise level of the Husqvarna 90 was cut down to half that of the contemporary competition. Throughout the years, Husqvarna has proved its technological leadership by introducing ground-breaking and award-winning solutions and products for the forestry industry, such as: X-Torq® engine technology, LowVib®, Air InjectionTM , TrioBrake® , AutoTuneTM and Husqvarna Battery Series. X-Torq® is the revolutionary technology developed for two-stroke engines delivers more power while cutting fuel consumption by up to 20% and emissions by up to 75% (compared to similar, traditional engine technology). Good for the environment as well as the user. LowVib® is Husqvarna’s anti-vibration technol-
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ogy is designed to make the operator’s experience a more comfortable and ergonomic one. Air InjectionTM is Husqvarna’s centrifugal air cleaning system results in reduced wear and longer operating time between filter cleanings.
allows you to collect, mulch (BioClip®) or eject grass clippings. • Robotic Mowers Husqvarna Automower® silently tackles even the most complex lawns, navigating narrow passages and slopes up to 45% and offering immaculate results. • Lawn Tractors Husqvarna lawn tractors offer the versatility of three cutting systems – collecting, mulching (BioClip®) and ejection and thanks to a wide range of attachments, your lawn tractor will serve as a powerful and versatile work partner all year round. • Riders The front-mounted cutting deck reaches almost everywhere and the unique articulated steering provides unsurpassed manoeuvrability and a small turning radius. • Zero Turn Mowers With an extremely high capacity cutting deck and the ability to turn on its own axis, the Husqvarna Zero Turn Mower makes short work of tall grass and speedily dispatches of large mowing areas. • P525D Front Mowers Husqvarna’s front mowers have the smallest uncut circle in the industry. That means you’ll spend less time trying to get out of complex areas or going back and forth to mow in tight spaces. A wide range of attachments make this mower even more versatile, all year around.
TrioBrake® This chainsaw safety system allows the chain break to be activated automatically by the inertia release mechanism or mechanically by the operator’s right hand. AutoTuneTM is a technological and environmental breakthrough in professional chainsaws, which minimises exhaust emissions and optimises engine performance, by compensating for different fuels, altitudes, humidity and temperatures and omitting the need to spend time on carburettor adjustments. Husqvarna Battery Series have recently added a new chapter to our pioneering history – the Husqvarna Battery Series, which includes chainsaws and top handle saws and offers all the power, performance and intuitive design you expect from Husqvarna – without the need for petrol and refuelling. On the other hand, Husqvarna’s diverse range of mowing solutions further illustrates the company’s commitment to technological advancement: • Push Lawnmowers Our versatile cutting system
Zambian AgriBusiness Magazine | January - March 2017
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Farm Equipement
Barloworld, BayWa AG signs farming equipments deal
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armers in Southern Africa are soon to enjoy new agriculture and material handling equipment following a joint venture established by South Africa’s Barloworld Limited and BayWa AG of Germany. The new company BHBW Holdings’ target is to address the long-term demand within this region and spur productivity and economic strength of agricultural sector in the region.
The new deal is the second JV between Barloworld and BayWa. In 2015, the two companies established another r 50/50 partnership in Zambia.
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“This JV offers us the opportunity to further expand in a growth region of main strategic importance for global agriculture,” said Klaus Josef Lutz, Chief Executive Officer at BayWa AG. “We are pleased to do this with our local based partner Barloworld,” adds Lutz. Adding his sentiments of the deal, Clive Thomson, Chief Executive Officer, Barloworld Limited, said: “We see good opportunities for agriculture and materials handling in southern Africa and look forward to working with BayWa to combine the core competencies of both companies to build a bigger and more successful business while also creating jobs and improving food security in the region.”
Zambian AgriBusiness Magazine | January - March 2017
In the 50/50 partnership, BHBW will have distribution rights for AGCO brands Massey Ferguson and Challenger in agriculture, and Hyster-Yale brands Hyster and UTILEV on the materials handling equipment side. However, management, staff and infrastructure remain in place, as does the existing Barloworld Agriculture dealer network. The new deal is the second JV between Barloworld and BayWa. In 2015, the two companies established another r 50/50 partnership in Zambia. According to the two companies the agreements highlights the strong synergies and shared vision for supporting food production in sub-Saharan Africa. BHBW will build on the expertise of the joint JV to grow its offering to the agriculture value chain, with a view to provide a full line of integrated solutions that will aid farmers’ productivity, sustainability and profitability. Additional products and solutions around mechanisation equipment, digital farming and agronomy are set to be introduced over the course of the first 12 months of operation. www.agribusinesszambia.com
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Zambian AgriBusiness Magazine | January - March 2017
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CONTACT
dab@sandyscreations.net +260 21 127 8220/ +260 96 744 3470 Sandy’s Creations is located along Kafue Road next to Baobab College, in Lilayi, Lusaka
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MALE ADAPTORS • Mechanical compression ttings are designed to withstand working pressures of up to 16bar.
WET-END • Base and upper support in technopolymer with build in non-return valve. MOTOR • Tesla 4OL submersible motor made in AISI 304 stainless steel for parts in contact with water. • Complete with removable lead out cable.
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CONTACT
dab@sandyscreations.net +260 21 127 8220/ +260 96 744 3470 Sandy’s Creations is located along Kafue Road next to Baobab College, in Lilayi, Lusaka
Sandy’s Creations Zambia Ltd is proud to have recently been appointed Sole Distributor of DAB Pumps in Zambia. DAB Zambia head office is situated at Sandys Creations in Lilayi, Lusaka. 2017 will see DAB Pump outlets open up all over Zambia bringing the best Italian water pumps to the consumer. Sandy’s Creations will be appointing agents in all towns and interested parties should contact us.We guarantee to supply the best quality Italian pumps at the lowest prices in Zambia. For over 40 years, DAB has been a main player in the sector of the technologies for the movement and management of our most precious resource, water. DAB offers technological solutions capable of ensuring reliability and efficiency, and to optimise energy consumption in residential building service, commercial building service, agricultural and irrigation applications. DAB puts people at the centre of every action, strategy and development plan.
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