Zimbabwe has been hit hard by foreign currency shortages, affecting various sectors of the economy, leaving some companies on the brink. The fertilizer industry has not been spared by the shortages. NewsDay (ND) reporter Freeman Makopa, recently caught up with chairperson of the Zimbabwe Fertiliser Manufacturer’s Association,Tapuwa Mashingaidze (TM) to discuss the state of affairs in the industry.
ND: What is the fertilizer situation like in the country at the moment?
TM: Demand for fertilizer this year was subdued by a combination of late or below normal rainfall coupled with poor liquidity among farmers. Basal fertilizers such as compound D are currently readily available from the local manufacturers and from their depots, stockists, retailers and agro-dealers countrywide. Some limited volumes of top dressing AN are now available from some of the companies but have generally been in short supply.
The fertilizer companies faced challenges with top dressing fertilizers such as AN, which was and still is physically available at the companies’ warehouses but in bond (CMA *Consignment Management Agreement *) requiring foreign currency payments to be made to the foreign suppliers before the product can be accessed. The fertilizer industry made arrangements to bring the top-dressing fertilizers into the country before payment to avoid logistical bottlenecks. Every effort is being made in collaboration with RBZ (Reserve Bank of Zimbabwe) and the banks to establish effective lines of credit to settle the forex payments and improve supplies in future. The shortage of top-dressing fertilizers could negatively affect yields and overall agricultural output. Engagements to unlock foreign currency and all efforts necessary to effect payments are ongoing. Forex has always been a challenge for this country and this is one reason why it is so important to build up and support local production capability to reduce high dependence on imports in a forex- starved economy.
ND: How much AN and basal fertilizer does the country require this season?
TM: The country now requires about 600 000mt including the volumes for the government’s presidential input and cotton schemes, as well as for the command agriculture programme which were a major part of the market in the last few seasons.
Basal compound fertilizers are about half of this demand, while AN and Urea top dressing constitute the other half.
ND: How many tonnes are required to plug the shortages?
TM The market requirements for basal fertilizers are fully available, but many farmers have inadequate purchasing power and were dependant on the government schemes to secure fertilizers. Some farmers were also reducing on planted area due to the risk of the El Nino-induced drought, with late and erratic rainfall evident in many areas. For top dressing supplies perhaps 50% of the demand is not being met due to the supply constraints.
