Posts tagged as: production

Mozambique:PM Hopes for "historic Levels" of Cashew Production

Maputo — Mozambican Prime Minister Carlos Agostinho do Rosario declared on Friday that the country will soon be able to harvest 200,000 tonnes of cashew nuts a year, thanks to the level of investment under way in this sector.

Speaking in Meconta district, in the northern province of Nampula, Rosario noted that this would be a “historic level” of cashew production. 200,000 tonnes or more was reached in the colonial period, but not since Mozambican independence in 1975.

Currently Mozambique is producing around 137,000 tonnes of cashew nuts a year. Nampula provides 44 per cent of this total – 60,000 tonnes.

Rosario was speaking to reporters in a field for the intensive production of cashew trees at Nassaruma, as part of the working visit to Nampula that he began on Thursday.

“We are here in a project to promote cashew which is now a reality”, he said. “The productivity of the cashew trees is increasing and our plans are, in the near future, to reach the historic level of 200,000 tonnes of nuts a year”.

The cashew nursery at Nassaruma belongs to the government’s Cashew Promotion Institute (INCAJU). Its key focus is the production of cashew seedlings, and in the 2016/17 campaign it has produced 799,000 grafted seedlings.

Also on Friday, Rosario visited the South African owned company Alfa-Agricultura, which has a land title to exploit 1,080 hectares, 500 of which are now in use. With investment of 8.6 million US dollars, the company is growing cashew trees, fruit trees and vegetables. The company intends to set up a cashew processing plant, and received encouragement from the Prime Minister.

Summarising his visit to Nampula, Rosario told reporters that the main purpose was to attend the Fourth National Religious Conference in Nampula City. “This was an event at which many religious bodies were present, and they converged on the need to cherish peace because without peace there is no development”.

“We also visited economic undertakings, and we were enthused by the commitment of the private sector and of peasant farmers who are responding positively to the presidential initiative on food production”, he declared.


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Nigeria:Firm Challenges Order to Transfer $10.5m to Unknown Third Party

By Joseph Onyekwere

A firm in the telecommunications sector, INT Towers Limited, has frowned at what it called a strange order by a magistrate court, ordering it to transfer $10.5million to the account of a company it does not know or have any dealings with.

Magistrate, Mr. W. B. Balogun, sitting in Igbosere had in his ruling ordered the firm to pay the sum to a company known as Emirates Fuel Exploration and Production Limited, while ruling on application filed by Lagos Commissioner of Police and Managing Director of Emirates Fuel, Akin Jegede.

The police claimed that the money was obtained from Jegede by fraudulent means.

But the firm said it was not a party to the suit, nor does it have any business dealings with Emirates Fuel Exploration and Production and therefore will appeal the decision.

The applicant said failure of the Commissioner of Police and Jegede to join it to the suit breached its right to fair hearing.

It said the police did not also provide any evidence about how it received the money from Jegede and his company.

Besides, INT Towers said the police commissioner and Jegede lacked the locus standi (legal right) to apply to the court to transfer its funds to a third party without affording the applicant the opportunity to be heard, notwithstanding that it would be adversely affected by the order.

The applicant said the amount is in excess of the court’s monetary jurisdiction prescribed under the Magistrate’s Court Law, therefore, the court lacked the jurisdiction to make the order.

INT Towers has, at the meantime, applied for a stay of execution of the order.

It is also praying for an order granting it leave to appeal against the ruling.

The court had on September 19 granted INT Towers’ prayer to be joined as a party, but refused its application to set the order aside.

It is, therefore, seeking the leave of the court to appeal against the decision refusing to set aside the order.

The case will come up on Thursday October 19.


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Agriculture Minister Orders Sacking of Three Officials

By Rehema Matowo

Geita — Agriculture and Livestock minister, Dr Charles Tizeba, has directed the ministry’s Permanent Secretary, Mr Methew Mtigumwe, to sack three officials and suspend three others over corruption allegations.

The minister issued the directive on Sunday during the commemoration of World Food Day, which was held here on Monday, October 16, 2017.

Dr Tizeba said the officials caused the government a loss of Sh29 billion by disbursing agricultural subsidies to unqualified farmers in the 2015/16 agricultural season.

The minister also directed the Prevention and Combating of Corruption Bureau (PCCB) to launch investigations against the officials.

Those who face the axe following the minister’s directive are deputy director of Agricultural Subsidies Shenal Nyoni, agriculture officers Michael Mayabu and Frank Kamhabwaa.

Those who will be suspended are director of Crop Production Twahir Nzallawahe, director of Procurement And Extension Services Burhan Shaban and acting director of Agriculture Subsidies at the ministry Canuth Komba.


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Maize Flour Prices to Hit Sh120 as Subsidy Ends

By Gerald Andae

The cost of a two-kilogramme packet of maize flour is expected to rise by a third to Sh120 in November following the end four-month import subsidy and the government, setting the price at which it will buy the grain from farmers.

Millers say the cost of buying the grain is set to average Sh3,400 a 90-kg bag, forcing them to increase flour prices by Sh30 from the current Sh90.

“Obviously the cost will go above the current subsidy price to sell at an average Sh120 for a two-kilogramme packet. Our buying price will obviously be above what the government is buying at to attract stocks from farmers,” said a miller who requested anonymity for fear reprisals from the government.

This looks to put pressure on inflation, which fell to 7.06 per cent in September, from 8.04 per cent a month earlier, pushed by a fall in some food prices.

The staple has a big effect on the cost of living measure and food index, which has a 36.04 per cent weight in the goods used to calculate inflation.

Kenya on May 16 announced Sh6 billion subsidy on maize imports to help lower the cost of flour which had shot up due to drought and poor planning.

The subsidy lowered the price of a 90-kg bag of maize to Sh2,300 from above Sh4,000 with taxpayers offering importers a rebate or the difference of about Sh1,700.

This has kept the cost of the two-kg packet of flour at Sh90 from a high of Sh153 in April.

Record prices

The record prices turned into a political headache for President Uhuru Kenyatta as he sought a second term in the nullified August elections.

Nasa leader Raila Odinga has used the high cost of living to portray Mr Kenyatta’s government as inept and uncaring.

The subsidised flour prices was backed by a Kenya Gazette notice that criminalised the sale of the product above Sh90.

The Treasury will today end the subsidy with imports brought in recent days expected to steady the flow of Sh90 flour to the end of the month.

Millers will now revert to the market price of maize, which will influence by the purchase of the grain by the government to replenish the strategic reserves.

The government will buy a bag from farmers at Sh3, 200 in a Sh6.7 billion plan. Millers say the cost of getting the bag from the farmers to mills will rise to Sh3, 400 when transport costs are factored in.

The situation might worsen if government give in to pressure from farmers pushing for a higher price well aware of the bargaining power in an electioneering period.

Farmers claim the cost of production is higher and at Sh3,200 per bag they would be making losses on their produce.

“We had many challenges this year and farmers were forced to incur extra cost in controlling Fall Armyworms. We sent a letter to the Ministry of Agriculture two weeks ago showing them the cost of production, which was as high as Sh4,000 per bag in some areas,” said Anthony Kioko, chief executive officer Cereal Growers Association.


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Zimbabwe: Fertiliser Crisis Looms

By Tinashe Kairiza

Zimbabwe is facing a serious fertiliser shortage, amid revelations that an additional US$60 million is required for importation of raw materials to manufacture adequate stocks outside the US$56 million the country recently secured through an arrangement with the African Import and Export Bank (Afreximbank), an industry representative has revealed.

Last week, the Reserve Bank of Zimbabwe announced that it had negotiated for a US$156 million loan facility with Afreximbank to import fertiliser among other key commodities before this summer cropping season gathers momentum. But the Afreximbank support facility is not adequate to meet local fertiliser demand.

Battling an acute foreign currency shortage and mounting economic challenges, the country has perennially struggled to mobilise sufficient financial resources for importation of adequate fertiliser for its farmers.

Zimbabwe requires an estimated 400 000 tonnes of fertiliser for a successful summer cropping season.

Zimbabwe Fertiliser Manufacturers’ Association chairperson Alvin Mashingaidze said, as a production cost-cutting measure, and in light of the prevailing liquidity crunch, the industry would import raw materials and manufacture locally.

The association is constituted by firms such as Windmill, Zimbabwe Fertiliser Company, Omnia and Sable Chemical.

Most of the companies are struggling to mobilise sufficient foreign currency required to import raw materials.

“The truth is that we are not getting enough foreign currency to import raw materials. For the production of 400 000 tonnes, the country requires about US$120 million. So, we still require US$60 million to meet that demand,” he said, noting that the industry was targeting to mobilise the outstanding resources within the next month to avert fertiliser shortages.

The fertiliser industry, Mashingaidze said, was sitting on stocks estimated at about 100 000 tonnes. “At the moment the industry is sitting on 100 000 tonnes of fertiliser. An additional 100 000 tonnes has been distributed in the market already,” he said.

“We only have about a month to mobilise resources to meet fertiliser demand through the importation of raw materials.”

Over the last nine months, Mashingaidze said fertiliser manufacturing firms had significantly increased their production capacity by setting up new blending plants.

In the last two years, fresh capital investments have been made into additional blending plants which have increased Zimbabwe’s capacity to manufacture fertilisers to about 1,2 million tonnes, depending on the availability of raw materials.

However, fears are mounting that without the much-needed raw materials, the blending plants would turn into white elephants.

“Most companies have set up several blending plants to increase production of NPK and basal fertiliser demand. All you need are the raw materials,” Mashingaidze said.

As part of preparations for this summer cropping season, the central bank has been allocating foreign currency to fertiliser manufacturing firms for the importation of raw materials.

Zimbabwe Farmers’ Union executive director Paul Zakariya also expressed fears that the country could face fertiliser shortages, derailing the success of the summer cropping season.

He, however, said seed manufacturing companies had sufficient stocks to meet demand. “In terms of seed, the companies have adequate seed to meet demand. They have more than enough. The only hitch will be on fertilisers, even last year we had some challenges with top dressing fertilisers around December,” Mashingaidze said.

“It is on the top dressing that we have a problem.”

Over the years, Zimbabwe’s crop output has sharply declined due to fertiliser shortages, among other challenges.

Zimbabwe:CEO Says Miner Safe From 15% Levy Requirements

By Simbarashe Zishiri

Zimplats says it is already compliant with Zimbabwe’s beneficiation requirements and will not be affected by the imposition of the punitive 15 percent levy on unprocessed platinum exports from next year, according to chief executive Alex Mhembere.

The southern African country proposed the levy in 2013 in a bid to push platinum miners operating in the country to establish smelting and refining facilities locally. The tax was supposed to come into effect in January 2015 but was pushed to 2018 to allow the miners time to set up the facilities.

Mhembere told The Source on Wednesday that Zimplats produces white matte, which is refined from concentrate, as such the company will be exempted from the levy, he said.

“Zimplats produces a product that is different from concentrate, we produce white matte which goes from a concentrate, we take it through the smelter and then through another stage that produces this white matte, which is an import. So the regulations as they stand at the moment, are looking at a product that is not an import,” he said.

Zimplats has to date invested $30 million in upgrading its smelter to improve its product, he added.

Last month, Gerhard Potgeiter, group executive for growth projects at South Africa’s Impala Platinum (Implats) said the miner could shut down its 50 percent owned Mimosa mine near Zvishavane if government goes ahead with plans to impose the levy which he said will make the mine unviable.

Implats co-owns the mine with Sibanye, another South African miner.

Mhembere also said Zimplats had made ‘tremendous’ progress on its Mupani mine project which is scheduled to come online in 2025.

Output from the mine will replace the Rukodzi and Ngwarati mines whose resources are expected to deplete in 2022 and 2025 respectively.

“We have already progressed quite tremendously… . in 2025 we will be in full production,” Mhembere said.

“Mupane mine is a very important project that we have embarked upon. So for us to maintain the same level of production, we have to (be) ready when the lifespan of those mines comes to an end.”

Preliminary work on the Mupani Mine project started in June last year.


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3.5 Million Face Starvation Amid Prolonged Drought

By Silas Apollo and Boniface Mwangi

At least 3.5 million Kenyans are facing starvation due to the prolonged drought and erratic rains.

The figure is an increase from the 2.6 million projected by the government at the beginning of the year.

Agriculture Cabinet Secretary Willy Bett on Thursday said the majority of those affected are from arid and semi-arid counties in northern Kenyan.

This comes even as Mr Bett said the country expects an increase in the amount of maize that will be harvested by the end of this crop year, a situation he argues will help ease the food shortage currently bedevilling the country.

Besides families, millions of domestic and wild animals are also suffering the effects of delayed rains in the Coast and Rift Valley.


In a report on the current national food situation that was released on Thursday, Mr Bett says the ministry has projected a harvest of about 37.9 million bags of maize by the end of 2017, up from 36.9 million bags harvested in the same period last year.

The figure is, however, a drop of about 4.4 per cent of the 40 million bags the ministry had expected at the beginning of the year.

“Of the counties facing starvation, Wajir, Turkana, Marsabit, Samburu, Tana River, Garissa, Mandera and Baringo, as well as parts of Kitui and Kajiado, have been listed as the worst hit,” said the CS. The armyworm, which destroyed maize in the country’s food basket areas of Rift Valley, has also been blamed for the drop in production.

“The decline in overall production of maize was attributed to a reduction in the area under maize by 5.1 per cent, the late onset of rainfall, coupled with long dry spells mid-season and fall armyworm invasion,” Mr Bett told journalists at the ministry’s headquarters in Nairobi.


At the same time, production of beans and Irish potato will decline by about 29 per cent and 17 per cent respectively due to inadequate certified seeds and poor rainfall.

According to Mr Bett, there will be a slight drop in the production of other food crops such as bananas, sorghum, cowpeas and green grams.

To avert a possible shortage, Mr Bett said the ministry plans to buy all the maize offered by farmers from the 2017 crop.

The purchase will begin on Monday, with farmers offered Sh3,200 per 90-kilogramme bag.

Elsewhere, the government has doubled the food ration being given to starving Kenyans as it seeks to mitigate the effects of the drought.

Devolution CS Mwangi Kiunjuri said his ministry has been giving out a ration of 15 kilogrammes of cereals and cooking oil every two months but will now give the same quantity each month.

He said the increased allocation will run until mid-next year.


“We are aware a few counties are still facing food and pasture shortage. My ministry has already supplied cereals in these counties. The food is enough to last till mid-next year,” he told the Nation.

Herders in counties hit hardest by drought have suffered huge losses after their animals died. Others have had to sell their weak animals at a throw-away price of as little as Sh500 a cow.

Mr Kiunjuri said no Kenyan would be denied food due to their political affiliation. “I am warning chiefs and their seniors not to discriminate or deny any person food due to his or her political affiliation. This food is for any Kenyan facing hunger,” he said.

Weather reports received by the Devolution ministry from the Metrological Department indicate that normal rains will resume in early March.

Angola: ANAVI Strives to End Egg Imports

Cachiungo — The National Association of Poultry Producers of Angola (ANAVI) intends, in the medium term, to stop egg imports and is therefore committed to increasing production levels.

Speaking to Angop on Wednesday in Cachiungo municipality in Huambo province, where the President of the Republic, João Lourenço, opened the agricultural campaign, the deputy chairperson of the association, Maria José Victorino, defended for joint efforts with cereal producers to feed chickens.

She argued that, due to lack of animal feed, the country produces only 743.000 eggs per day, despite having an installed capacity of four million, which forces it to resort abroad to meet the demand for eggs in the domestic market.

She admitted that the lack of animal feed results from the low production capacity of cereals, mainly main, soybeans and sunflower seeds, which are essential for adequate feeding of chickens.

Maria José Victorino said that ANAVI is currently in close partnership with different national producers, essentially to help them to dispose of their products, taking into account the needs of the poultry sector of 400.000 tons of grain for the production of eggs and chicken meat.

She praised President João Lourenço in paying special attention to the agriculture and livestock sector as a way to reduce food imports and, at the same time, leverage the national economy.

Maria Jose Victorino pointed out that the organization, with 118 producers, also intends to produce 20.000 tons of chicken meat each year.


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Angola:ANAVI Strives to End Egg Imports

Cachiungo — The National Association of Poultry Producers of Angola (ANAVI) intends, in the medium term, to stop egg imports and is therefore committed to increasing production levels.

Speaking to Angop on Wednesday in Cachiungo municipality in Huambo province, where the President of the Republic, João Lourenço, opened the agricultural campaign, the deputy chairperson of the association, Maria José Victorino, defended for joint efforts with cereal producers to feed chickens.

She argued that, due to lack of animal feed, the country produces only 743.000 eggs per day, despite having an installed capacity of four million, which forces it to resort abroad to meet the demand for eggs in the domestic market.

She admitted that the lack of animal feed results from the low production capacity of cereals, mainly main, soybeans and sunflower seeds, which are essential for adequate feeding of chickens.

Maria José Victorino said that ANAVI is currently in close partnership with different national producers, essentially to help them to dispose of their products, taking into account the needs of the poultry sector of 400.000 tons of grain for the production of eggs and chicken meat.

She praised President João Lourenço in paying special attention to the agriculture and livestock sector as a way to reduce food imports and, at the same time, leverage the national economy.

Maria Jose Victorino pointed out that the organization, with 118 producers, also intends to produce 20.000 tons of chicken meat each year.


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Zimbabwe:Differences Between Farmers’ Calling, Career Opportunity

opinionBy Charles Dhewa

There is no shortage of training courses and capacity building programmes for farmers, SMEs and other value chain actors in Zimbabwe. However, while all these activities and strategies are necessary, nothing trumps calling. Farmers with a calling do not need a cheering crowd. They do not feel entitled to receive awards for their farming prowess but they feel compelled to make a difference in their communities. They do not measure their excellence by the number of awards or yields per hectare but their influence on other farmers.

Instead of rewarding individual farmers on the basis of their yields, in the new economy, we should recognise farmers and other value chain actors for their leadership and capacity to persuade more young people into agriculture. In a changing climate, it makes sense to reward farmers for their resilience in difficult environments than achievements under easy circumstances where resources are abundant and dormant.

How much value are you adding?

With a new farming season already underway, it is important to continue revisiting key elements of agricultural success. Value addition is supposed to happen at each stage of product development. In the agriculture sector, such stages include: Production, Harvesting, Storage, Packaging, Transportation, Processing and Marketing. From production to harvesting, a farmer should add value to each product or service. The moment you begin thinking about seed, you need to start answering questions around what soil, land, water, fertiliser and other requirements are needed. Entertaining such questions is already part of adding value.

Unfortunately, most new farmers think farming is just about getting a piece of land. It is important to look at the cost of value addition from seed to harvesting. Each farmer should ask himself/herself whether s/he really wants to be a farmer or someone else. Do you have the requisite knowledge and resources for farming? Each value chain node has its barriers to entry. Some farmers have been in business for more than 30 years. Others have superior climate, soil and water. How much do you measure yourself against these actors?

Farmers and value chain actors who ignore the above factors are often surprised when invisible answers emerge from the market. After getting a loan, some farmers rush to produce any crops yet the customers they are targeting are already being saved. A key question is: What is going to be unique about your farming and commodities that will enable you to lure customers from existing suppliers? When you have harvested, packaged and ready for the market, who are you producing for, how much and what are their expected standards and specifications?

More production does not always mean more consumers

Almost all consumers are already being served. It doesn’t follow that more production creates more consumers. That is why market research is fundamental. Most value chains have serious barriers to entry. What is more important is understanding market trends. Markets don’t have the same levels of security. Sometimes doors can be opened through the right timing. In fact, timing can reduce barriers to entry and once you get in you can start building your niche from within. Do not be a farmer who shows up once and disappear. That is how you lose your customers. Markets do not want to relate with you in that manner. Consistency in supply and participation in the market is crucial. Customers you are saving can easily become yours but once you take a break you can easily lose them.

Unfortunately, most of our farmers tend to be seasonal actors who open and close their businesses in line with seasons. It means they are always re-starting. A telling example is small scale poultry producers who take three months producing chickens, one month selling and the next three months producing, during which time they will not be participating in the market. Only one month is used for operations and the business is closed for three months. There are also high chances that by the time you go to buy chicks for the next round, costs will have increased and all profits are eroded. This is a self-created and self-defeating barrier to entry.

The power of consistency and different models

Consistency ensures specialisation. Farmers who run from one commodity to another always lose a lot of resources including knowledge. Producing two or three commodities keeps your niche market active and increases your knowledge base. As you work on your chosen commodities you intensely understand the behaviour of commodities on the market. That is how you ensure you don not lose your 20% customer base. There are cases where continued participation by the same farmers creates barriers for new entrants unless when one regular participant pulls out for whatever reasons.

Different models enable you to compare working with intermediaries with connecting directly with end-users. Most farmers are losing their credibility in the eyes of consumers or end-users to traders who are the final suppliers yet original producers like farmers should connect with end-users. In a fragmented market environment, intermediaries can continue receiving credit that is due to farmers.

That is why it is important for farmers to build their own brands which identify them at an acute level. Farmer unions should facilitate this process so that consumers can directly talk to people who produce what they eat rather than continue engaging with intermediaries.

Another way for easy entry into a new market is through bringing a new product. Reducing price is not the best way of competing because it can lead to cut-throat competition which can completely destroy new entrants, especially those who will have borrowed to finance their first production. In most cases, new entrants are always price takers. One way of defending your proposal in front of financial institutions is explaining how you will deal with barriers to entry. What are your key strategies for breaking or navigating barriers to entry?

Investing in knowledge gathering

Experience is critical. You can partner with actors already in the market while you learn the ropes or you can farm on a lease basis with other farmers. Unless you ride on existing traders, some customers can identify and exploit you as a new entrant. At least three crops can enable you to insert yourself in the market. That is the same amount of time one needs to earn a university degree. It’s the same amount of time needed to build a concrete market and knowledge base. If you are a new farmer, do not just be a resource-provider. Learn about the commodities you are financing as well as about the market. As a farm owner, don’t leave everything to workers. Value chains are made up of different nodes but the most important asset is understanding the markets.

Most farmers may not remember knowledge they used to produce commodities last season because there have not been intentional efforts to capture what happened. Conducting knowledge surveys can reveal what communities are probably forgetting and cases where wheels are re-invented unnecessarily. When value chain actors or community members are assisted to identify their critical knowledge, they become empowered to spend most of their resources on the most valuable knowledge unlike chasing every suggestion.

With the right capacity building initiatives, every community can identify 20% of its knowledge that can make 80% of the difference in terms of community development outcomes and better livelihoods. They can be able to figure out circumstances where rapid learning is needed as well as kinds of knowledge that already exist among all community members, only requiring sharing as opposed to creating from scratch. For instance, if almost every farmer knows how to grow maize, there is no point in wasting time and resources on field days that focus on maize production. On the other hand, where old knowledge needs to be standardised into community routines, ways of standardising such knowledge should be cultivated.

For instance, knowledge on traditional basketry, livestock breeding and pottery can be lost to the future generation if not standardized and introduced into formal education systems. Where local experts like herbalists or black smith are not able to share their knowledge because of its intensely tacit nature, young people should be identified and incentivized to under-study these experts.

High value commodities are often associated with high value knowledge that has to be managed in different ways from low value knowledge. An important part of filtering critical high value local knowledge is identifying barriers to knowledge sharing and devising ways of over-coming such barriers. Some of the barriers can be invisible to local people but outsiders can be able to see those barriers and provide the necessary solutions. Communities in many developing countries need skills in identifying what they need to know in order to avoid mistakes that if solved can move them out of physical and mental poverty.

Charles Dhewa is a proactive knowledge management specialist and chief executive officer of Knowledge Transfer Africa (Pvt).

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