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United Refineries eyes farming partnership
2 hrs ago |
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United Refineries Limited (URL) says it is seeking strategic partners to acquire and jointly manage farms for oilseed production as part of efforts to secure raw material supplies and reduce reliance on imports.
Chief executive officer Busisa Moyo said the company is pursuing a joint venture model after suffering losses through contract farming arrangements with local producers.
"We want a joint venture where there is joint management with various institutions and own farms like the Tongaat Hulett model," Moyo told Southern Eye Business.
He said the company has already applied for land and is engaging various institutions to establish soya bean and other oilseed production projects.
Moyo attributed the move to declining domestic oilseed production, noting that Zimbabwe is projected to produce only 30,000 metric tonnes of soya beans in 2025, a sharp decline from the peak output of 180,000 metric tonnes recorded in the late 1990s.
The shortfall has forced processors to import soya beans from neighbouring South Africa to meet demand.
Moyo, who also chairs the Oilseed Expressers Association of Zimbabwe (OEAZ), expressed concern over the high cost of borrowing, saying expensive financing is constraining both farmers and manufacturers.
"We need working capital; banks are not lending much, and interest rates are high. Farmers are also borrowing at 18% to 30% per annum; this is too high," he said.
"The ZiG is now stable; we need borrowing rates that are reasonable."
He said Zimbabwe requires approximately 600,000 metric tonnes of soya beans annually to meet demand from the stock feed industry and about 1.2 million metric tonnes to satisfy crude soya oil requirements.
The Oilseed Expressers Association of Zimbabwe is the country's principal industry body representing cooking oil manufacturers, oilseed crushers, stock feed producers and processors.
The association works with Government and other agricultural stakeholders to increase domestic soya bean production, promote self-sufficiency, reduce foreign currency expenditure on imports and support contract farming through the provision of inputs and guaranteed markets for farmers.
Meanwhile, industry reports indicate that more than 90 percent of cooking oil available on Zimbabwean retail shelves is produced locally by members of the association.
Chief executive officer Busisa Moyo said the company is pursuing a joint venture model after suffering losses through contract farming arrangements with local producers.
"We want a joint venture where there is joint management with various institutions and own farms like the Tongaat Hulett model," Moyo told Southern Eye Business.
He said the company has already applied for land and is engaging various institutions to establish soya bean and other oilseed production projects.
Moyo attributed the move to declining domestic oilseed production, noting that Zimbabwe is projected to produce only 30,000 metric tonnes of soya beans in 2025, a sharp decline from the peak output of 180,000 metric tonnes recorded in the late 1990s.
The shortfall has forced processors to import soya beans from neighbouring South Africa to meet demand.
Moyo, who also chairs the Oilseed Expressers Association of Zimbabwe (OEAZ), expressed concern over the high cost of borrowing, saying expensive financing is constraining both farmers and manufacturers.
"We need working capital; banks are not lending much, and interest rates are high. Farmers are also borrowing at 18% to 30% per annum; this is too high," he said.
"The ZiG is now stable; we need borrowing rates that are reasonable."
He said Zimbabwe requires approximately 600,000 metric tonnes of soya beans annually to meet demand from the stock feed industry and about 1.2 million metric tonnes to satisfy crude soya oil requirements.
The Oilseed Expressers Association of Zimbabwe is the country's principal industry body representing cooking oil manufacturers, oilseed crushers, stock feed producers and processors.
The association works with Government and other agricultural stakeholders to increase domestic soya bean production, promote self-sufficiency, reduce foreign currency expenditure on imports and support contract farming through the provision of inputs and guaranteed markets for farmers.
Meanwhile, industry reports indicate that more than 90 percent of cooking oil available on Zimbabwean retail shelves is produced locally by members of the association.
Source - newsday
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