Zambia likely to produce three-fold maize outputproduce between ‘one and 2.5 metric tonnes of maize per hectare although they have access to seeds that have a yield potential of

Zambain AgriBusiness Magazine | July - September 2016 1www.agribusinesszambia.com

ZAMBIA’S LEADING AGRIBUSINESS MAGAZINE

Volume 3 / Issue 2 ZMW 29.50/US $ 5.30 July - September 2016

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BRIEFS

Tobacco Can Strengthen Local Currency 10

COMPANIES & MARKETS

Zambia Sugar Sees Poten-tial Growth 16

GENERAL NEWS

African Development Bank Approves Over K15m Grant for Zambia 26In

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maize output

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4 Zambain AgriBusiness Magazine | July - September 2016 www.agribusinesszambia.com

ContentsEditorial CommentIs Zambia ready to make agriculture its new main stay? : ...................................................... 6

Cover Story Zambia likely to produce three-fold maize output : ...................................................... 8

Briefs Bayer increases offer for Monsanto : ...................................................... 10Mozambique aims to establish special economic zones for agriculture : ...................................................... 10SA white maize harvest delayed : ...................................................... 10Tobacco can strengthen local currency : ...................................................... 10CEEC buys 32 percent shares in Mumbwa Ginnery : ...................................................... 14

Companies & Markets FRA’s move to buy more maize commendable : ...................................................... 15Rice development project in USD3.6m JICA fund : ...................................................... 16Lubambe Copper Mine sets up fish farm : ...................................................... 17NCCL sets aside USD8.9m for expanded coffee cultivation : ...................................................... 18Zambia Sugar sees potential growth : ...................................................... 20Zanaco issues debit cards under FISP : ...................................................... 21

General News African Development Bank approves over K15m grant for Zambia : ...................................................... 22Agro-stakeholders support scrutiny of livestock exports : ...................................................... 23

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Irritech IFCBMG (Pg 3)Buhler (Pg 7)Hardy Sulky (Pg 9)Mount Meru Miller (Pg 11)Agriscience (Pg12-13) Dumilist Sprinkler (Pg 15)EML (Pg 17)Formex (Pg 18)Proplast Ltd (Pg 19)SA Plastikor (Pg 23)Bonnox (Pg 24-23)Spruceland (Pg 26)GSI (Pg 27)Fabulous (Pg 27)Status Hitech (Pg 29)Zambesi Roofing & Steel (Pg 35)Rearers Ltd (Pg 35)Laprovet (Pg 37)Zambesi Roofing & Steel (Pg 39)Tavish Exports (Pg 46)Zambesi Roofing & Steel (Pg 46)African Modular (Pg IBC)Maersk Zambia (BC)


Dairy sector to benefit from boost : ...................................................... 26Besides crops, farmers urged to also plant trees : ...................................................... 28State pursues empowerment for farmers : ...................................................... 29Zambia can feed SADC, says JSE : ...................................................... 30A new workhorse from Massey Ferguson : ...................................................... 31New harvesting solutions by Geringhoff : ...................................................... 33

Farm & Equipment X Concept tractor by Fendt : ...................................................... 34

Insight & Analysis Veterinary students on a mission to uplift veterinary education throughout Africa : ...................................................... 36

International News China and Brazil well positioned to boost agriculture in Africa : ...................................................... 38Kenyan company plans bio-organic fertiliser plant : ...................................................... 40Mozambique Beira Port to Get More Corn for Drought-Hit Areas : ...................................................... 41Walvis Bay Corridor Group chief executive officer, Johny Smith, : ...................................................... 42Poor yields reported across SA’s summer crop production region : ...................................................... 43Sugar industry confident of production despite drought : ...................................................... 44Tanzanian Dairy industry on chokehold despite producing quality milk : ...................................................... 45

Corporate ProfileQuantum Foods – Africa’s partner in poultry trade : ...................................................... 46 RUFEP gears to link rural areas to financial services : ...................................................... 48

PublisherEvans Mumba

General ManagerAnorld Chinyemba

Editor Hicks Sikazwe

Associate EditorAndrew Miti

Editorial Contributor(s) Esnala BandaPotipher TemboObert Simwanza

Jeffrey SinkambaSam Phiri

Graphics and Productions Merlin Wilson (Pty) Ltd Rekai Musari Mutisi– Layout

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Editorial Comment

Editor : Hicks Sikazwe

Mining has been the main stay for the Zambian economy for ages. The di-versification of the economy due to its dependence on copper mining has

been on the cards for a few years now and, al-though government has shown great support in driving alternatives – the agriculture sector to be specific – the question is: is Zambia ready for it?

Since government embarked on economic diver-sification, agriculture has come under the spot-light and positioned as the number one priority because it is the only sector that will ‘assuredly alleviate poverty’. Thanks to the vast arable land

and abundant water resources, there is immense potential for agriculture. While it may be the most sustainable resolution, there are obviously considerations for its efficiency. Over and above investment, international partnerships within the industry and policy, one of the important factors is productivity.

Along with the support received from interna-tional bodies, excellent policies and initiatives, there is an impending need to increase produc-tivity in agriculture, especially among small scale farmers. The vast majority of smallholder farmers produce between ‘one and 2.5 metric tonnes of

maize per hectare although they have access to seeds that have a yield potential of over 10 metric tonnes per hectare’. Government is encouraging farmers to increase productivity levels to reap the benefits of agriculture and alleviate poverty.

Government has invested, and continues to in-vest, great efforts into broadening the landscape of economic benefits for Zambia through agri-culture. On the horizon, the vision is that Zambia can become an agricultural giant. The question remains: is Zambia ready to realise the potential of agriculture as the country’s new main stay? Because that will require consistent productivity.

Is Zambia ready to make agriculture its new main stay?Along with the support received from international bodies, excellent policies and initiatives, there is an impending need to increase productivity in agriculture, especially among small scale farmers.

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Cover Story

Zambia has the potential to increase its an-nual maize production to 10 million tonnes from three million if Government policies re-main consistent, according to the insights of

a South African commodities expert. JSE director for commodities and key client manager, Chris Sturgess said that once Zambia achieves the 10 million-tonne mark, it will determine whether the country has suc-ceeded in building the sector.

Sturgess said in a statement, made available to the media recently, that the world needs food and Zam-bia has the potential to make it happen.

“I am very optimistic about the future of agricul-ture in Zambia. It is true that we require consistent Government policy to build a futures market – but the opportunity for Zambia to go from a three- to four-million tonne grain-producing nation to a 10-million tonne grain-producing country will be the true test to decide whether we have succeeded in building the sector,” he said.

Sturgess called on Zambian commercial farmers to use the opportunities of futures and options, which are contracts that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on, or before, a certain date. Unlike traditional equity traders, futures traders are ‘hedg-ers’ and ‘speculators’. A hedger is a producer of the commodity (e.g. a farmer, an oil company, a mining company) who trades a futures contract to protect himself from future price changes in his product.

“Futures and options may sound complicated but you [farmers] should use every opportunity to learn more about these well-established products that will expand your marketing opportunities and remove price risk from their business,” he explained.

Mr Sturgess added that farmers need to sign up with a broker who can provide them with access to the JSE derivatives market and start hedging against investment risk, which means using instruments in the market strategically to offset the risk of any ad-verse price movements.

“Farmers should start off small and understand the difference between hedging and speculating on the market to gradually build their own confidence in these new instruments,” he said.

JSE is in a position to offer the Zambian community a full range of exchange products through Zambian Commodity Exchange, following its ability to license warehouses that will soon be able to provide a spot exchange for price discovery on the day and with the JSE through its clearing house.

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Briefs

Bayer increases offer for Monsanto

Bayer AG has upped its takeover offer for Monsanto to about US$65 billion in a bid to overcome the US seed company’s re-sistance to the deal.

In May, Bayer AG made an offer of US$122 per share, which has now been increase to US$125.

A Bayer spokesperson in South Africa declined to comment on the proposed takeover.

“More role-players create healthy competition, which is good for producers. Fewer competitors are normally not good for producers. In some instances such transactions could lead to innova-tion in technologies that are combined.

Because of this seed prices would probably not be influenced,” Corné Louw, senior economist for inputs at Grain SA said.

Monsanto is a major player in seed and herbicide sectors, while Bayer, an agrochemical market leader has only recently entered the seed mar-ket, Louw said.

“Bayer AG comprehensively addressed Monsan-to’s questions concerning financing and regu-latory matters and is prepared to make certain commitments to regulators, if required, to com-plete the proposed acquisition of Monsanto,” a Bayer AG press release said.

It is expected that the deal will be financed by the Bank of America, Credit Suisse, Goldman Sachs, HSBC, and JP Morgan, the release said.

Mozambique aims to establish special economic zones for agriculture

Minister for Agriculture and Food Safety, José Pacheco declared that Mozambique has identified 24 de-velopment poles with the potential

to create special economic zones (SEZs) for ag-riculture, with a view to promote investment and increase farm production.

The 24 development poles include the districts of Manhiça and Moamba in the Maputo corri-dor; Xai-Xai, Chókwè and Massingir in Limpo-po – South Africa; Nhamatanda, Caia, Báruè, Sussundenga, Mossurize, Macate and Vanduzi in the Beira corridor; Namacurra, Mocuba and Angónia in the Zambezi Valley; Malema, Ribáuè, Cuamba, Mecanhelas and Mandimba in Nacala;

and Balama, Namuno, Montepuez and Nguri/Namacande in the Pemba/Lichinga corridor.

Minister José Pacheco told the Maputo daily Notícias that the establishment of special eco-nomic zones for agro-business was being co-ordinated with the Ministry of Economy and Fi-nance and that operators may eventually benefit from some exemptions with respect to taxes.

The agricultural development corridors were determined based on agro-climate conditions, strategic location vis-à-vis markets, existing or planned infrastructures and the need to diversify farm products.

Opportunities in the value chain for products such as potatoes, wheat, beans, maize, soy, rice and others deriving from poultry, cattle and forestry activities have been identified in the six corridors.

The newspaper reports that Mozambique’s ex-perience with SEZs is relatively recent, dating to Government Decree no. 75/2007, which estab-lished the Office for Accelerated Economic De-velopment Zones.

Five SEZs have been established to date: Naca-la Special Economic Zone in Nampula province, Manga/Mungassa in Sofala, Crusse e Jamali in Nampula, Beluluane Industrial Park in Maputo and Mocuba in Zambézia.

SA white maize harvest delayed

The 2016 white maize harvest has been delayed because of late plantings and the fact that crops are taking longer to dry off because of the shorter days and

lower temperatures, according to Grain SA.

The delivery rate of yellow maize is much faster, Petru Fourie, Grain SA research co-ordinator and production cost analyst, said in a statement.

However, factors such as direct sales and on farm retention of grains needed to be taken into ac-count when comparing producer deliveries with the final 2016 crop estimate.

Future deliveries, including supplies still on farms in silo bags, grain dams, bags and farm silos should also be considered.

SAGIS statistics show that 56% (1 673 707t) of the expected 3 067 475t white maize harvest, including an expected 80 000t budgeted for on farm retention, had been delivered by the sec-ond week of July.

Yellow maize deliveries went much faster and 79,4% (2 887 086t) was delivered by 13 July,

compared to the 5th national yellow maize crop estimate of 3 986 900, including 3 500t expected to be retained on-farm.

White maize is planted mainly in the western parts of the summer grain production area, yel-low maize mainly in the eastern parts.

The yellow maize planting season is about one month ahead of the western region’s planting season.

Tobacco can strengthen local currency

Zambia’s tobacco sector has the potential to increase production levels and earn the country the much needed foreign exchange to help strengthen the local

currency. In the recent past, the Kwacha suffered a setback as demand for the United States Dollar characterised the foreign exchange market, put-ting pressure on it.

Tobacco Association of Zambia (TAZ) president, Antony Ford, shared the sector’s export earnings showing a steady increase from about USD49.5 million in 2007 to over USD100 million in 2014. In this context, Ford said that currently, Zambia’s tobacco subsector produces about 24,000 to 30,000 tonnes annually and provides a livelihood to over 20,000 growers as well as their depen-dents.

“As a country, we can do more to increase pro-duction levels, employment and export earnings; however, it is important that we work as team under the International Tobacco Growers Associ-ation (ITGA) and be able to speak with one voice against various forces affecting the industry,” he said at the ITGA regional meeting recently.

The meeting intended to open and discuss issues to find the best way forward on various chal-lenges affecting the sector, both locally and in-ternationally. Ford said that the resolutions from the meeting will contribute to the growth of the sector and its economic contribution to various countries in attendance.

The meeting was attended by delegates from South Africa, Malawi, Zimbabwe, Tanzania, Uganda and Geneva.

Ford explained that the sector also significantly contributes to Zambia’s gross domestic product at about two percent. The subsector creates em-ployment for over 450,000 people through its value chain and, by 2015, about 26,000 growers were registered by the Tobacco Board of Zambia, of which 98 percent are small-scale farmers.


Briefs




CEEC buys 32 percent shares in Mumbwa Ginnery

Companies & Markets

The Citizens Economic Empowerment Commission (CEEC) has partnered with the Mumbwa Cotton Ginnery, following the approval of a K16 million loan for the

project.

CEEC head of public relations and communica-tion, Glenda Masebe, said in an interview that the commission has acquired 32 percent shares in the ginnery.

“We have acquired shares in the cotton ginnery as our act allows us to have equity so that we safeguard the investment, taking cognisance of the amount that we have put into the project,” Masebe said.

Masebe added that the ginnery is adding value to the country’s economy in terms of job cre-ation, and has so far created over 17,000 jobs

per year. The ginnery has also helped in reviving Mukuba Textiles on the Copperbelt by supplying them with lint, which is used in the production of various textile materials.

“We need to take note of the fact that the cotton ginnery has created jobs for the Zambian peo-ple and also that they have helped revamp the Mukuba Textiles, which was almost going under by supplying them with lint,” she said.

In addition, Masebe said that the cotton ginnery had also helped put the enthusiasm back into the cotton farmers in Mumbwa by buying off the cotton. This has motivated them because they know that they have a readily available market.

“The revamping of the cotton ginnery has helped motivate the cotton farmers in the district because, at one time, the cotton growers did not

know what to do with the cotton but now they are happy because they know where to take the cotton once it is harvested,” Masebe continued.

The ginnery had created significant business trends on the local market since one of the major buyers was the hotel industry.

Ms Masebe explained that the ginnery was in-volved in the entire cotton development value chain, from growing the cotton seed to the fin-ished product, and all this was being done at the plant in Mumbwa. Other shareholders include the Cotton Association of Zambia (CAZ) with 28 percent shares, Zambia National Farmers Union (ZNFU) with 25 percent and Mumbwa Farmers District Association who have 15 percent of the shares.

“We need to take note of the fact that the cotton ginnery has created jobs for the Zambian people and also that they have helped revamp the Mukuba Textiles, which was almost going under by supplying them with lint,”


Companies & Markets

The move by the Food Reserve Agency (FRA) to increase the tonnage of maize, to be bought from farmers this year, by over 40 percent is indeed a positive leap

in ensuring food security in the country.

The FRA executive director, Chola Kafwabulula, says that the agency has increased the tonnage of maize to be bought from 596,000 tonnes last year, to one million metric tonnes this year. The agency, which started buying maize from farm-ers at K85 per 50-kilogramme bag, is expected to spend a substantial K1.7 billion.

To ensure a smooth buying exercise, the FRA has employed over 6,000 school-leavers who are stationed at 1,200 depots countrywide, which has created much-needed jobs.

In accordance with the legal requirement to have accurate measuring instruments, the FRA has procured 32,000 scales for weighing the bags, which have all been approved by the Zambia Weights and Measures Agency. This is critical to securing fair trade between both parties, where farmers get agreed value for their products while the agency gets value for money.

In line with its mandate, FRA is targeting an ac-quisition of agricultural crops from smallholder farmers who are mostly located in economical-ly-disadvantaged areas in the country. The pres-ence of FRA depots across the country provides rural farmers with the readily available market for their produce. It also aids in reducing, if not elim-inating, transportation costs for farmers since the depots are located within their regions.

The agency has signed contracts with various banks through which transactions will be facili-tated to ensure that the payment is processed within the stipulated 14 days. The intention is for the banks to honour their agreements by paying farmers timely because their income is essential to start planning for the next farming season.

Early payment will also help motivate farmers to increase their production in the next farming season while attracting new entrants in the sec-tor, which is good for the country in its efforts to position itself as a breadbasket for the region.

The fact that most farmers received their pay-ments on time last year is commendable. The hope therefore, is that the standard that has been set will be maintained by all stakeholders. As farmers receive their payment, they should avoid getting too excited by engaging in unpro-ductive, social vices such as excessive drinking and shopping. Instead, the income that they re-ceive should be used to plan for the next farming season by buying farm inputs to improve their household economies.

The fact that the FRA will be buying 2,100 tonnes of rice should be seen as an opportunity for farmers to diversify into growing rice and, as a matter of fact, other crops. This will not only help them increase their revenue but also ensure food security both at family and national level.

As the FRA buys the one million tonnes of maize from farmers this year, it is expected that, by now, the agency has prepared adequate stor-age facilities to ensure the safety of this grain. Past mistakes should not be repeated, where grain bought using taxpayers’ money has gone to waste due to lack of proper storage facilities. The efforts to enhance food security do not only entail purchasing more maize but also storage to ensure availability at the critical time of need.

There is an expectation that the FRA has put in

place all the necessary measures to secure and safeguard the grain from the hands of smugglers as was the case a few months ago. At the peak of illegal exports, a number of trucks laden with subsidised maize from the FRA were intercepted on their way to neighbouring countries. It is vital that the FRA ensures that the subsidised maize benefits only Zambian citizens through afford-able mealie meal.

While the FRA cannot buy the entire 2.8 million metric tonnes produced by the farmers this year, the agency can help by finding the market for them – especially since the demand for maize is very high in the region. Zambians can be proud that they do not only produce enough staple food for consumption but also for export.

FRA’s move to buy more maize commendable

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The Japan International Cooperation Agency (JICA) is expected to disburse a total of USD3.6 million to support the implementation of the rice development

project (RDP) in the next five years. The Zambi-an government has since launched the second national rice development strategy (SNRDS) with the objective to increase local rice production by 2020.

The Japanese government, in partnership with other stakeholders, formed the Coalition for Af-

rican Rice Development (CARD) initiative with a goal to double Africa’s rice production by 2018. Speaking at the launch of SNRDS recently, Jap-anese Ambassador to Zambia, Kiyoshi Koinuma said that in order to capitalise on the successes of the previous Japanese projects in the country, RDP will focus on the distribution and growth of rice production.

“Japan intends to play its part in implementing projects in Zambia and, early this year, JICA launched the RDP, which is expected to run until

2019. The agency will disburse a total of USD3.6 million during the duration of the project,” Koi-numa said.

At the launch, Koinuma expressed that the aim of the SNRDS is to increase sustainable rice pro-duction and to develop a value chain for crop diversification.

“This strategy will not only enhance rice produc-tion but increase food security and also contrib-ute to the overall development of the Zambian economy,” Koinuma added.

Officiating at the same event, Minister of Agri-culture, Given Lubinda said that the expansion of rice production has been increasing its impor-tance from the perspective of promoting crop diversification as a food security initiative being pursued by Government.

Mr Lubinda also said that, in view of this devel-opment, it has become important for Govern-ment to develop a specific strategy that will facil-itate the increased production of rice across the value chain.

“I would like to recognise JICA for the technical support towards the rice strategy development process, the World Bank and the International Fund for Agriculture Development for the finan-cial support which they are offering through var-ious projects in promoting the rice value chain,” he concluded.

Companies & Markets

Rice development project in USD3.6m JICA fund


Companies & Markets

In an effort to empower farmers with a di-versified source of income in Chililabomb-we, Lubambe Copper Mine has constructed a fish farm with a capacity to stock up 3,000

fingerlings bream, representing a market val-ue of K60,000. Bream is one of Zambia’s most sought-after fish and a money-maker.

Lubambe’s corporate social responsibility man-ager, Joel Bwalya, said that the mining company partnered with a local farming co-operative in Kasapa village to build the fish farm near Kebum-ba stream. According to the most recent news-letter on mining in Zambia, an initiative by the Zambia Chambers of Mines, the implementation has proved to be a success and, as such, the mine intends to build another fish farm.

Lubambe added that the enterprise is a good source of revenue for most farmers in the area and far exceeds what they would get by selling maize.

“We reckon that this time, we will be able to seed the fish farm with 4,000 fish and that means a bigger harvest. The villagers are clearly excited by the potential of fish-farming and its ability to help them diversify,” said Bwalya.

The fish farm is a partnership between the mine and farmers.

Bwalya is hopeful that fish-farming of this sort will evolve into a fully-fledged business with

huge commercial potential for the entire coun-try. Commenting on the development, Kasapa village headman, Langson Pensulo confirmed that the fish farm has already helped improve the livelihood of the villagers in the area.

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The Northern Coffee Corporation Limited (NCCL) has set aside about USD8.9 mil-lion to acquire land in Zambia’s North-ern Province for the cultivation of coffee

to help revive the sector. NCCL is a fully-owned subsidiary company of Olam International Lim-ited and already owns four estates, which it has refurbished into large-scale irrigated Arabica coffee plantations.

Under the project, the agricultural activities will start with the cultivation of annual crops such as wheat, maize and soya in an initial rotation cycle to raise the poor soil fertility discovered through the soil analysis done on the farm.

This will enable NCCL to establish, in the medi-

um-term, large Arabica coffee plantations under the central irrigation systems, according to the environmental impact assessment (EIA) report submitted by the firm to the Zambia Environ-mental Management Agency and obtained by the Daily Mail recently.

“NCCL intends to expand further its operations by acquiring a fifth farm in Mbala. In addition to the coffee fields and central irrigation pivots… infrastructures, which are crucial components to manage the estate will be built such as housing compound, warehouse and workshop as well as the coffee wet mill,” the report reads.

The EIA indicates that, to support the irrigation, a couple of pumping stations and a water reservoir

will be established. The project will involve set-ting up the nursery for the production of enough coffee seedlings to plant the total hectarage planned for the cultivation, among others.

The implementation of the project will result in the general improvement in local community livelihoods, increase in revenue to local author-ities and institutions from communications, land rates, licences and personal levy.

Other benefits include the increase of foreign currency for the economy from the export of ag-ricultural products and the creation of employ-ment opportunities during the construction and operational phases.

Companies & Markets

NCCL sets aside USD8.9m for expanded coffee cultivation

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Zambia Sugar sees potential growth

Companies & Markets

Zambia Sugar Plc has revealed that the raising of the entire USD90 million to fi-nance its expanded refinery plant within Zambia underlines the country’s con-

tinuing growth potential.

Stanbic Bank head of corporate and investment banking, Helen Lubamba, said that Zambia Sug-ar should be commended for its strong commit-ment and focus on expansion programmes over the years that have created economic benefits in the country and regionally.

Speaking after President Lungu commissioned the product alignment and refinery project re-cently, Illovo Group managing director, Gavin Dalgleish said that the company, through its subsidiary (Zambia Sugar), has confidence in the Zambian economy as demonstrated through the incorporation of local commercial banks to raise funds.

“The USD60 million syndicated financing agree-ment for the refinery project was sourced locally with Stanbic Bank and Barclays Bank appointed as lead arrangers, while Citibank and Zanaco were incorporated as financing partners.

“The total cost of the project amounted to USD90 million and the balance of funding was sourced from Zambia Sugar’s own available cash resources. These local banking institutions enabled us to finance the project completely within Zambia’s borders, thereby underlining the country’s continuing growth potential,” Dalgleish elaborated.

Lubamba added that the successful completion of a modern refinery that will increase the annu-al refined sugar production capacity to around 90,000 tonnes and increase annual sugar pro-duction capacity from 420,000 to an expected new capacity of 450,000 tonnes is a positive de-velopment.

“Zambia Sugar has remained committed to their strategy of expanding their operations which has firmly consolidated them as Africa’s single big-gest cane sugar producer, not only in Zambia, but in the region.

“We can see the value addition of Zambia Sug-ar’s expansion programmes to our economy through creation of employment opportunities during construction as well as raising demand to the cane out-growers for supply of cane and the entire agriculture value chain,” said Lubamba.

Stanbic supports and prioritises agriculture as a critical sector to the growth of Zambia’s econ-omy.“We have the capacity to finance the out-grow-ers’ long-term investment in equipment and machinery to enable them to meet the demand of cane by Zambia Sugar,” concluded Lubamba.

“Zambia Sugar has remained committed to their strategy of expand-ing their operations which has firmly consolidated them as Africa’s sin-gle biggest cane sugar producer, not only in Zambia, but in the region.


Companies & Markets

Zanaco Bank Plc has issued over 77,000 debit cards to farmers under the Farmer Input Support Programme (FISP) to en-able them to access farming inputs on

time and efficiently, company head of corporate affairs, Joy Sata has announced.

Sata explained that the bank is working with Government and the private sector because they are key strategic partners in its operation.

“As a bank, we have partnered with Government under the FISP through the issuance of over 77,000 debit cards last year for them to have ac-cess to the 2015/2016 farming inputs,” she said.

Sata was speaking in an interview immediately after the 52nd Zambia International Trade Fair in Ndola. She further elaborated and shared that the bank had tailored products to meet the re-quirements of various ministries through the pro-vision of online banking and online processing of the government payroll. Additionally, the bank offers teller implants to expedite the revenue col-lection effort by Government.

Through the bank’s various initiatives to Govern-ment and the public sector, Sata said that the bank has given support to Nitrogen Chemicals of Zambia to turn around its operations with a loan of K54 million two years ago; funding to Mongu-Kalabo road of K200 million counter-part funding; and maize financing to the Food Reserve Agency of up to K400 million in the last marketing season.

Other support was allocated to health post construction by the Ministry of Health, retirees financing for the University of Zambia and robust personal loans to the civil service loan scheme, among others, including the National Airports Corporation for the rehabilitation of Livingstone Airport.

The bank has also disbursed over K60 million to smallholder and emergent farmers under the tractor financing product.

Zanaco issues debit cards under FISP


General News

The African Development Bank (AfDB) has approved a K15.7 million (1.4 million Euros) grant to enable the Zambian gov-ernment to undertake feasibility studies

on 25 smallholder irrigation schemes that have been identified countrywide.

Meanwhile, Minister of Agriculture Given Lub-inda expressed satisfaction that the successful harvest of 189 hectares of cane sugar at the K30 million-Manyonyo smallholder farmer irrigation scheme is a demonstration of how public private partnership works if implemented effectively.

Speaking at the Manyonyo cane harvest in Chikankata recently, the AfDB programme of-ficer, Lewis Bangwe, said that the Bank remains confident that nurturing Zambia Sugar and other corporate entities will enable smallholder irriga-tion farmers to become effectively engaged in commercial business.

“The Bank, through the Africa Water Facility, has approved funding to enable Government to un-dertake feasibility studies on irrigation schemes countrywide. This is contribution to the country’s

desire to scale up investments in climate smart irrigated commercial agriculture,” said Bangwe. “This initiative is expected to prepare bankable proposals and tender documents to facilitate mobilisation of investments and open up 9,560 hectares of land to irrigation and benefit 4,800 smallholder irrigators countrywide.”

Earlier, Zambia Sugar managing director, Rebec-ca Katowa, said that the project is one of the best approaches in backwards linkages.

“These schemes provide the best entrepreneurial development initiatives that assure real empow-erment – not only for farmers but also for their families and nearby communities that benefit from the multiplier effect,” she said.

At the official launch of the cane harvest, Lub-inda added that Government is committed to developing the agriculture sector with a focus on uplifting the livelihoods of smallholder farmers.

“This scheme is successful and it’s a clear demon-stration that Zambia Sugar is committed to its strategy of alleviating poverty by supporting ru-

ral communities in which the company operates,” he said.

The Manyonyo scheme was established in 2013 as a PPP initiative between Government, small-holder farmers and Zambia Sugar Plc. It was co-financed by the government of Finland and the AfDB.

The project, which covers 595 hectares where only 210 hectares is being utilised, planted its initial seed cane in November 2013 and only re-cently marked the first cane harvest that is esti-mated at 189 hectares of the crop.

African Development Bank approves over K15m grant for Zambia

“The Bank, through the Africa Water Facility, has approved funding to enable Government to undertake feasibility studies on irrigation schemes countrywide.


Government and various agro-stake-holders have concluded that it should be mandatory for exporters of fish and livestock products to be inspected,

certified and registered annually by Ministry of Livestock and Fisheries to ensure sanitary com-pliance.

The Ministry of Fisheries and Livestock recently facilitated a one-day stakeholders’ consultative meeting on the importation of fish, processed meat and mechanically-deboned poultry to identify opportunities and address various chal-lenges that are affecting the two sectors. The meeting observed that most livestock exporters do not meet the required standards, which poses health hazards for consumers.

The meeting was attended by the Minister of Fisheries and Livestock – Greyford Monde, his deputy – Evans Lawrence and permanent sec-retary – David Shamulenge. The Poultry Asso-ciation of Zambia, Beef Association of Zambia, Small Livestock Association of Zambia and the Zambia National Farmers’ Union who observed, were also in attendance to discuss that Govern-ment should come up with an inter-disciplinary inspectorate unit to carry out in-country inspec-tions of imported livestock products for sanitary compliance purposes.

“Foreign establishments that export livestock products to Zambia will be inspected, certified and registered annually by a Zambian govern-ment multi-disciplinary team to ensure sanitary compliance as well as adherence to set stan-dards,” they said.

The cost for certifications will be borne by the private sector because of the commercial inter-ests.

Other stakeholders in attendance were the Aquaculture Development Association of Zam-bia, Capital Fisheries, the Indaba Agricultural Pol-icy Research Institute (IAPRI), Zambeef Products, commodity associations and traders from the private sector who import and process livestock

products.

A consortium agreed that Government should regularly meet with stakeholders to share infor-mation and exchange ideas on matters relating to imports of livestock and livestock products.

The meeting resolved that there is a need for an agreement that IAPRI works with the Gov-ernment on generating reliable livestock and livestock trade statistics that all stakeholders can reference. The research institute volunteered to carry out the task.

General News

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Agro-stakeholders support scrutiny of livestock exports


General News

In partnership with Nicol Anderson Farming Limited, Lackstars Agriculture Limited has set aside over USD490,000 to support increased production levels of dairy milk products and

irrigated agriculture in the country. The compa-ny was prompted to undertake the project as a result of the enabling environment created by Government in the agriculture sector. It intends to maximise the potential by expanding the pro-duction levels.

According to the environmental impact assess-ment (EIA) report that was submitted by the firm to the Zambia Environmental Management Agency (ZEMA), and obtained by the Daily Mail recently, the project will be implemented in Serenje District.

The report states that the objective of the project is to produce dairy cow milk and grow agricul-

tural crops throughout the year with the help of centre-pivot irrigation system to meet the ev-er-increasing demand for soya, wheat, oat and maize products.

“The two sister-companies, Lackstars Agriculture Limited and Nicol Anderson Farming Limited, as a joint venture intend to invest in dairy farming and irrigated agriculture to be supported by a new dam. The project activities will involve land clearing, levelling and construction of a dam, and an irrigation system to provide the necessary water required for crop production and dairy an-imal watering,” the report reads.

Preliminary indications of expected costs asso-ciated with the proposed development are esti-mated to be USD495,000. The project is expect-ed to be implemented immediately, following receipt of the necessary approvals from ZEMA.

The implementation of the project will create about 75 sustainable jobs for the local commu-nity, of which 40 percent will be females and 60 percent, males. The focus will be on the youth and their development.

It says that irrigation will help by ensuring that full potential yields are achieved and, in addition, winter cropping will be carried out, which will re-sult in getting continuous fresh feed for the dairy cows throughout the year.

The EIA also declares that the proposed project is in line with national policy, which promotes increased crop and livestock production and di-versification from a copper-dependent economy to agriculture as the mainstay for national eco-nomic development.

Dairy sector to benefit from boost

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General News

Minister of Agriculture, Given Lubin-da, has urged farmers to embrace and undertake afforestation (plant-ing trees where there were no trees)

alongside the cultivation of crops, if climate change is to be mitigated. In an interview re-cently, the Minister said that Government is im-plementing various interventions that will result in the agriculture sector becoming the mainstay of the country’s economy.

“Of course, there are challenges such as depend-ing on the rains for production and devastating effects of climate change. We are implementing irrigation programmes in Mufulira, Chisamba and Chirundu that will also be rolled out coun-

trywide, and we also have programmes being funded by the World Bank.

“Our farmers should realise that climate change is here to stay, so we need mitigation and ad-aptation measures. Let us look at various alter-natives, including afforestation such that we can have trees planted alongside crops,” Lubinda said.

He added that 100,000 hectares of land will be opened up as farm blocks in each province.

“We already have the Luena farm block in Kawambwa and soon, we will be commissioning the Nansanga farm block in Serenje. In opening

up the land for agriculture, we intend to use the national service and the correctional services,” elaborated Lubinda.

There is however, a need to change the mind-set of people as it relates to how they perceive agriculture.

“We cannot live on potential alone but we need to turn it into reality. This country has arable land, abundant water and good climate… so, we can feed Africa if we put our heads together to de-velop the resources we have,” Mr Lubinda con-cluded.

Besides crops, farmers urged to also plant trees

There is however, a need to change the mind-set of people as it relates to how they perceive agriculture.


The Zambian Government is searching for effective ways that will help empow-er smallholder farmers and producers because most of them are still living in

poverty.

Minister of Agriculture, Given Lubinda expressed how unfortunate it is that, despite smallholder farmers being the major producers of food in the country, most of them are still living in poverty, which should not be the case.

Mr Lubinda received a formal submission of the Food Reserve Agency (FRA) price setting study from the Consumer Unity and Trust Society. He pointed out that Government and other agro stakeholders see smallholder-led agricultural growth as the most viable solution to food prob-lems, as long as interventions are based on pro-duction technology and market development.

According to the Minister, the agriculture sector is characterised by a large number of poor small-holders contributing most of the agricultural output with low yields, limited commercialisation and few signs of rapid productivity in addition to population-land ratios that are not fully ex-ploited.

Zambia’s agriculture sector, which is largely driv-en by rural farmers, needs a structural trans-formation if it were to grow the economy and reduce poverty on a broad national scale, espe-cially among smallholder farmers who are the main producers.

“As Government, we are trying to figure out what it is that we can do to ensure that the main pro-ducers of food are elevated from poverty,” said Mr Lubinda.

He expressed that this will need to change for Zambia’s agriculture sector in particular and African agriculture in general to yield optimum results.

Mr Lubinda stated that the productivity of small-holder agriculture and its contribution to the economy, food security and poverty reduction depends on the services provided by well-func-tioning agro-producers and smallholder farmers who need to be empowered and elevated to well-improved living standards.

General News

State pursues empowerment for farmers

Minister of Agriculture, Given Lubinda


General News

Zambia can feed the SADC region if the country’s agriculture potential is turned into reality, as stated by Johannesburg Stock Exchange (JSE) director of com-

modities, Chris Sturgess.

While presenting an update on the JSE and Zam-bian Commodity Exchange (ZAMACE)’s cooper-ation on guaranteed derivatives, trading and clearing, Sturgess revealed that this is an exciting time for the Zambian agricultural community be-cause of the opportunities to market and man-age price risk of grain.

“We are finally in a position to offer the Zambian community a full range of exchange products. Through ZAMACE, we have the ability to license warehouses according to the Zambian Agricul-tural Credits Act.

“And we will soon offer a spot exchange for price discovery on the day and, with the JSE through its clearing house, to offer guaranteed deriva-tives trading and clearing for market participants

to manage future price risk,” he announced.

Sturgess expressed optimism about the future of agriculture in Zambia.

“Yes, the future is bright and we require consis-tent government policies to build a futures mar-ket, but the opportunity for Zambia to go from a three- to four-million tonne grain producing na-tion to a 10-million tonne grain producing coun-try, will be the true test if we have succeeded in building the sector.

“The world needs food and Zambia has the po-tential, let us make it happen! Our mes-sage to farmers is for them to embrace price risk manage-ment tools since futures and options may sound compli-cated but farmers should use every op-

portunity to learn more about these tools,” Mr Sturgess explained.

He advised farmers to embrace established products that will expand their marketing oppor-tunities and remove price risk from their business.

“They should sign up with a broker who can pro-vide them access to the JSE derivatives market and start hedging. They have to start small and understand the difference between hedging and speculating on the market and build own confi-dence in the new instruments,” Mr Sturgess con-cluded.

Zambia can feed SADC, says JSE

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Farm & Equipment

Massey Ferguson staged the most im-pressive display of its products in Africa for years at the recent ‘Vision of the Future’ mechanisation event at

the AGCO Future Farm in Lusaka. This was the first appearance of the MF 5700 tractor series on the continent.

Farm mechanisation as a key driver for growth in African agriculture was the theme of AGCO’s ‘Vision of the Future’ held in Zambia recently.

With about 100 machines on show, this was the largest display of Massey Ferguson (MF) farm machinery staged in Africa for many years, according to Thierry Lhotte, the company’s vice-president of marketing for Europe, Africa and the Middle East.

“Our emphasis is firmly on the new generation of farmers, farm workers and agribusinesses and their vital role in advancing the future of African farming,” Lhotte said at the opening.

MF 5700 Series One of the highlights of the event was the first appearance of the new 69kW and 76kW MF 5700 Series on the continent. This completes the Massey Ferguson Global Series of non-cab tractors, which now provides a full range of trac-

tors from 62kW to 98kW.

“The MF 5700 Series offers a strong workhorse across a full range of applications, providing greater performance in a modern, straightfor-ward design, low cost of ownership and en-hanced reliability, attributes already proven with the MF 4700 Series and flagship MF 6700 Series,” said parent company AGCO in a statement.

Dependable powerThe MF 5700 Series provides dependable power, enabling it to be the primary cultivation tractor for crop-growing, while offering the versatile transmission and operator comfort required for haulage operations such as transporting sugar-cane. Key features include:

A completely new four-cylinder, 4,4-litre turbo-charged AGCO Power engine. Massey Ferguson has been benefiting from the reliability, high per-formance and low fuel consumption of AGCO Power engines for more than 25 years. The basic MF 5700 engine shares many features with the unit used in the MF 4708, but is designed for the greater output required for this power sector, while complying with Tier 2 emissions levels. De-veloping high torque, these low-revving engines provide high performance with low noise and enhanced fuel economy.

The MF FD4-28 disc plough.The versatile 12F x 12R synchromesh gearbox. This follows the same principles encapsulated in the design of the 8F x 8R transmission used in other Massey Ferguson tractors, with good gear spread, simple, logical gear selection and effi-cient transfer of power. The 12 speeds are laid out over two ranges, giving six gears in each. “This is of particular benefit in haulage tasks as it reduces the requirement to change range between field and road when pulling away with a laden trailer, further enhancing output,” the company notes.

The MF TD30- 26T tandem disc harrow.(Image)An optional power shuttle. This makes the MF 5700 tractors ideal for applications requiring constant changes of direction. Optional facto-ry-installed creep gears provide forward speeds as low as 200m/h.

Flexibility. Designed to work with a range of im-plements and attachments, the MF 5700 Series offers 540rpm independent power take-off oper-ation and a 35mm x six-spline output shaft.

A new rear axle installation. This incorporates larger, heavier-duty castings to cater for the in-creased loads demanded of tractors in this pow-er sector, and includes electro-hydraulic differen-

A new workhorse from Massey Ferguson


Farm & Equipment

tial lock engagement for easy operation.

The MF TT12 trailer.Available with a 2WD or electro-hydraulically en-gaged 4WD front axle with centre drive shaft and hydraulically locked differential.

A maximum lift capacity of 4 300kg and Massey Ferguson Electronic Linkage Control system. These make the MF 5700 the perfect partner for high output tillage and seeding implements.

170l fuel tank.Ergonomic operator station with side-mounted gear levers and clear floor area.

ISO-mounted flat floor platform accessible from both sides.

New Massey Ferguson Implement rangeTo offer its customers a ‘one stop shop’ for all their machinery requirements, Massey Ferguson launched a complete range of implements at the event. The company’s new line consists of a range of more than 100 agricultural implements for a variety of requirements, and complements the company’s existing range of planters and drills. The implements are ideal partners for the MF 35, MF 200, MF 300, MF 400, MF 5700 and other tractor series.

Among others, the range comprises:• A disc plough (fixed and reversible) with

two to five discs.• A mouldboard plough (fixed and revers-

ible) from two to four furrows.• A disc harrow (mounted, trailed or tan-

dem version) with a working width from 2m to 3,5m.

• A tine cultivator with up to 17 tines.• A subsoiler with up to five legs.• A chisel (up to 3m).• Trailers from 3t to 12t.

“The implements are designed and constructed to the same high standards as the Massey Fergu-son tractors,” said Lhotte. “They’ve been carefully selected not only to match the range of tractor power available, but meet the farming needs of agricultural business-es in Africa and the Middle East.”

The MF S5 sub soiler

MF 5700SL-GALLERY5

MF5709 MFFD4 28 5F DISCPLOUGH SA

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Farm & Equipment

Geringhoff has introduced two new maize headers and a flex draper that make it easier to handle multiple planting con-figurations and harvesting on hillsides.

The new Independence line from Geringhoff in-cludes two headers that enable maize growers to plant in any configuration without having to worry about how to harvest the crop.

Freedom headerThe Freedom maize header’s angled, two-chain system optimises crop feeding, maximises yield retention, and reduces crop loss and plugging. Its radical gearbox design can handle row spac-

ing in various planting configurations, while its Rota Disc technol-ogy offers excellent residue processing – crucial for maize crops with a high plant pop-ulation.

Patriot headerThe Patriot maize header was designed specifically to harvest twin row planting configu-rations; its double sprocket gathering chain sys-tem eliminates the whipping effect that occurs

when conventional maize headers are used to harvest twin row crops. Optional end-row augers improve feeding and crop retention.

New harvesting solutions by Geringhoff


The idea of driving implements by electrici-ty generated by the tractor engine, rather than the power take-off, is decades old. Now, at last, a small number of imple-

ments are available to match the concept, says Joe Spencer.

Fendt introduced the X Concept tractor at Ag-ritechnica 2013, claiming to open up a new di-mension of ultra-efficient solutions for agricultur-al work processes. Electrical power is transmitted to the implements by 700V DC supply via the powerbus. The powerbus also supplies power to internal tractor drives such as the electric fan and coolant pumps.

Based on the Fendt 700 Vario series, the X Concept is powered by a 147kW AGCO Power four-cylinder diesel engine with an integrated high-performance alternator.

The compact engine leaves plenty of room to place the components required for electrical technology, such as the alternator, the power electronics and the specialist heat exchanger. The alternator is positioned between engine and transmission.

With high-voltage interfaces at the back and front of the tractor, a robust 130kW can be de-veloped, providing plenty of drive for electri-

cally-powered implements. Using only one ex-tremely compact power socket, it is also possible to supply power to any number of drives. The insulation and status of all lines and systems are monitored continuously. In the event of a mal-function, the system shuts down the power sup-ply almost instantaneously.

Rotary rakeAt Agritechnica 2015, Fendt presented a rotary hay rake featuring an innovative electrical drive, where the motor is directly integrated into the rake socket. This presents numerous benefits for the operation, adjustment and servicing of the rake.

John Deere 750 E Premium logo.Here in South Africa, John Deere introduced a tractor with electrical power output back in 2007. The 7530 Premium E has a 20kW AC generator in place of the flywheel on the engine. The aim was to develop a more efficient tractor by using the generator to power the internal systems, but JD engineers were also said to be looking to use the generator power to drive implements such as sprayers, spreaders and compressors and fans on air seeders. Few local farmers have adopted the tractor, however.

Rauch spreaderCurrently, the Rauch AXIS- EDR spreader is

one of the few electrically powered implements available in this country. Rauch claims that the award-winning spreader employs innovative technology to provide precise spread patterns from 12m to 50m wide, accurate spreading rates as a result of electronic mass flow and regulation, remote controlled boundary and border spread-ing on both left and right sides, and precise spreading on irregularly shaped lands.

The rear high-voltage interface of the X Concept tractor.

An obvious alternative, yet limited optionsElectrically driven implements are more environ-mentally friendly than hydraulically- or PTO-driv-en ones, and capable of providing a more ef-ficient operation with lower fuel costs. Yet the choice available is extremely small. It seems to be a classic ‘chicken or egg’ scenario – very few electrically powered implements and even fewer tractors have available electrical power

X Concept tractor by Fendt

Farm & Equipment


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Insight & Analysis

“Vet Books for Africa” is a truly unique, stu-dent-run initiative that was established in 1993. The project aims to distribute veteri-nary text books, journals and other educa-

tional tools to veterinary faculties in countries in southern and central Africa. The team consists of 8 veterinary students from the Onderstepoort Faculty of Veterinary Science of the University of Pretoria, undertaking a six week road trip during November and December 2016 to Zimbabwe, Zambia, Tanzania, Kenya, Uganda, Mozambique and Malawi.

Making this trip a reality is not an easy task. It takes two years of intense fundraising, planning and dedication. The project is completely depen-dent on sponsorship and donations from various companies and institutions, and the itinerary is massive. In addition to visiting the universities, Vet Books also volunteers resources and time to

several charities along the way. Among others, the team aims to animal rehabilitation centres, sanctuaries and SPCAs. It is their aim to provide each visiting point with as many vital resources as they are able to. It includes resources like medi-cine, school clothing and stationery, clothes and simply their time and knowledge, all of which are necessary for the continued operation and suc-cess of these charities/organisations.

Through their actions, Vet Books for Africa hope to promote education and conservation and to unite veterinary students across Africa in order to achieve the goal of creating a sustainable envi-ronment for animals and humans alike, one that future generations can still enjoy.

Over the last year and a half the project com-mittee has slowly been gathering the financial resources they need to make this the biggest trip

yet, and recently this was given a huge boost; after an intense meeting with Ascendis Health – Phytovet Division, the company agreed to make a very substantial financial contribution to this initiative. This has allowed the Vet Books for Afri-ca committee to expand the scope of the project to include Uganda. Not only did the company contribute financially but has provided the option of using additional transport means. It allowed the students to take even more resources com-pared to previous trips and to focus their efforts on resource collection for the rest of the year.

Collection of resources will be dealt with in a number of ways. Funds obtained from events such as the 94.7 cycle event and the biennial OP dodge ball event will be used to buy equipment and textbooks at reduced prices. In addition, the Vet Books team will be holding a book drive to collect second hand text books at the OP Faculty

Veterinary students on a mission to uplift veterinary education throughout Africa

{Vet Books for Africa initiative}


Insight & Analysis

of Veterinary Science which will run from 18 July to 1 August 2016.

The committee will continue to look for spon-sors – in particular for medical equipment – to enable them to take as many donations as pos-sible on this African trip. “We have been given a huge opportunity by our sponsors to extend the footprint of Vet Books this year, so join us on our journey and help make this the most impactful trip yet”, Ayla Newmarch of Vet Books for Africa said.

For more information please contact Ayla New-march at [email protected] or [email protected] and 060 432 8090 or alternatively Wian Bester (2016 Chairperson) at 072 908 9712 or [email protected] . You can also visit their website at http://vetbooks-forafrica.org/


International News

China and Brazil are two countries that are well positioned to boost agriculture in Africa, whose growth sector is seen as vital for the continent’s development,

according to analysts.

An article published recently by the Institute for Development Studies gave the recent opening of the Novo Banco de Desenvolvimento bank’s Johannesburg office as an example of the “in-creasing influence of China and Brazil in Africa”. The bank, previously known as the BRICS De-velopment Bank, is expected to start providing loans soon.

Agriculture, the article said, is a “major area of in-volvement for China and Brazil in the continent,” and both countries are “particularly well placed to help African countries develop their agricul-tural sectors.”

“China provides favourable partnerships for both sides with unparalleled pragmatism, which are very well received as an alternative to an increas-ingly obsolete aid industry. Brazil offers tropical technology, which is reputed to be well adapted to the climates and soils of Africa,” it said.

The involvement of both countries in the agri-cultural sector in Mozambique was covered by

researchers Kojo Amanor and Sergio Chichava in an article published in February, affirming that South-South cooperation is increasingly seen as able to “facilitate and complement other sources of assistance,” creating conditions for increased “multilateral and multipolar” cooperation.

“Agricultural development is an important com-ponent of China and Brazil’s relations with Af-rican states. Both countries are among the five largest agricultural producers in the world (…), they have powerful agro-business sectors op-erating in global markets and are expanding through mergers and acquisitions,” they said.

The involvement of both countries in Mozam-bique has been extensively studied, given the importance of some of the support provided – a soft loan of US$50 million (2010) for construc-tion of three processing plants (cotton, rice and corn) and a long-term credit line from the Export and Import Bank of China (Exim – US$60 million dollars, 2012) for a farming complex in Chokwe district.

According to the researchers, Chinese coopera-tion uses “two avenues” – the Umbelúzi Centre for Research and Transfer of Agricultural Tech-nology (CITTAU), created in 2011, which tests and adapts seeds, as well as providing training and

supply contracts between Chinese companies and local farmers.

The main companies involved are Wanbao Africa Development Agriculture Limited (WAADL), con-sidered by the China Development Bank to be the Chinese company most involved in Africa, Li-anhe Africa Agriculture Development Company, China-Africa Cotton Mozambique Ltd. (CACM), Sunway International, China Africa Co Agricul-ture, Agricultural CCM and Hubei Lianfeng.

“Based on long-term involvement, cooperation for development and agro-industrial investment in Mozambique has expanded in recent years. Taking care of old state farms, encouraging planting of various crops, to address local food shortages, is a priority. This has had strong Chi-nese support and the expansion “should contin-ue” they said.

The Brazilian initiatives in Mozambique, as in Ghana, are “structured around social protec-tion, technology transfer and export of Brazilian agro-industrial products.”

According to the researchers, Mozambique fa-vours large-scale investments and a greater openness to land acquisition by Chinese and Brazilian companies.

China and Brazil well positioned to boost agriculture in Africa


International News

K705* K1015* K1110*K795**All prices are VAT inclusive & subject to change without prior notice


International News

Two Philippine-based companies have en-tered an agreement with Kenyan start-up, Wanda Organic, to establish bio-organic fertiliser manufacturing plants in Nakuru

and Laikipia counties by the end of the year. Un-der the tripartite agreement, ELR Family Trading Inc. and Richfund International Company Ltd will provide technical support to Wanda Organic to produce fertiliser branded: Plantmate Bio-Or-ganic.

The fertiliser is a result of more than 40 years of biotechnology research in Southeast Asia, Aus-tralia and the Middle East. Wanda Organic stated recently that the product has been successful-ly tested in Machakos and Makueni counties, where farmers reported up to 30 percent yield increases.

“Manufacturing it locally means saving on im-

portation costs of the microbes and these are the benefits we will be passing on to the farmers,” said Marion Moon, the founder and chief execu-tive of Wanda Organic.

Moon added that the fertiliser will sell at between Sh2,000 and Sh2,500 per 50-kilogramme bag when the plants begin producing commercially. The fertiliser also contains nitrogen, phospho-rous, potassium, calcium, micronutrients, probi-otics, enzymes, amino acids and growth promot-ing substances.

“Our product works on the soil’s physical, biolog-ical and chemical properties. making it a unique solution in the Kenyan market,” Moon said during the signing of the pact. Additional trials of the organic fertiliser have been carried out in Nyeri, Kirinyaga, Nakuru and Laikipia counties with sup-port from the Kenya Climate Innovation Centre.

Agriculture Secretary, Willy Bett, witnessed the signing and asked farmers to access the soil sur-vey report from their county offices.

The upcoming fertiliser plant is the latest one after the Japanese conglomerate, Toyota Tsu-sho Corporation, signed an agreement with the government in 2014 – paving the way for the construction of a Sh103 billion fertiliser plant in Eldoret.

The ministry has targeted the first production of Nitrogen Potassium Calcium (NPK) from the plant whose location was selected based on the high quantities of the fertiliser consumed in the North Rift region.

Bett added that the factory is set for completion in August this year.

Kenyan company plans bio-organic fertiliser plant

The upcoming fertiliser plant is the latest one after the Japanese conglomerate, Toyota Tsusho Corporation, signed an agreement with the government in 2014 – paving the way for the construction of a Sh103 billion fertiliser plant in Eldoret.


International News

Mozambique’s second-biggest port is readying to get more corn ship-ments as southern African countries order record amounts of the grain

from overseas to plug regional demand after a drought decimated local harvests.

Beira, in the center of the country’s coastline and about 300 kilometers (186 miles) from the closest town in Zimbabwe, “is preparing to re-ceive a large quantity of maize in the weeks and months to come” for the landlocked country and neighboring Malawi, said Jan de Vries, the com-mercial manager at Cornelder de Mocambique Sarl, which manages the facilities. “This cargo is a business opportunity, but due to the humani-tarian nature, the port has agreed special con-cessional rates for maize,” he said, using another term for corn.

Ports throughout southern Africa are prepar-ing for record imports of corn, used to make a staple food, after an El Nino weather pattern obliterated crops in the region. About 50 million people face hunger in the east and south of the continent, the United Nation’s humanitarian af-fairs agency said. Countries in the area will be forced to import as many as 9 million metric tons

of the grain this year, said AGRI SA, the biggest representative of farmers in South Africa, where white-corn prices have more than doubled since the start of 2015.

Sixty thousand tons have been announced “and shipments are expected to increase from July on-ward and especially from August,” De Vries said by e-mail. Most of the corn is either from Ukraine or Mexico, he said.

South Africa, the continent’s biggest corn pro-ducer and traditionally a net exporter of agricul-tural products, may need to import 3.8 million tons of of the grain this year to supplement domestic supplies after it got the lowest rainfall since 1904 last year. It has declared a state of di-saster in eight of its nine provinces, while Ma-lawi and Zimbabwe have done so nationwide, which enables international financial assistance. Botswana has run out of corn and is banking on imports from neighbors to meet its needs.

Transnet SOC Ltd., South Africa’s state-owned ports and rail operator, is prepared to offload and rail as many as 7 million tons of corn this year. It has readied its port at Richards Bay, used mainly to export coal and chrome, to receive as

many as 1.5 million tons, Chief Executive Officer Siyabonga Gama said last month. It will also help rail 600,000 to 700,000 tons of corn from the port of Maputo in Mozambique through South Africa to Zimbabwe, he said.

Miss TargetsThe port at Nacala in northern Mozambique is expecting to get more than 300,000 tons of corn destined for Malawi, Portos do Norte SA said last month.

Beira handles cargo for Zambia and Democrat-ic Republic of Congo, which are the continent’s biggest sources of copper, as well as Mozam-bique, Africa’s largest producer of coking coal used to make steel. Given the drop in demand for and prices of commodities these nations produce, the port doesn’t expect to reach 2016 targets and sees volumes “dropping slightly,” De Vries said.

“In the first four months of the year, overall vol-umes have dropped by around 10 percent com-pared to the record” last year, De Vries said. “It will be a challenge to turn this around and end 2016 with positive growth.”

Mozambique Beira Port to Get More Corn for Drought-Hit Areas


International News

More than 30 000 tonnes of cargo was transported through the Walvis Bay corridor in Namibia by March 2016 as the corridor positions itself as a stra-

tegic port for Zambia’s trade.

Walvis Bay Corridor Group chief executive offi-cer, Johny Smith, said that the volume imports into and exports from Zambia have continued to increase over the years as a result of the easy connectivity to the trans-Atlantic market.

Smith added that the cargo transported through the corridor includes copper, second-hand ve-hicles, agricultural products, equipment, paper products, consumables, frozen fish, chicken, meat and furniture.

“Being land-linked, Zambia has many alternative routes but the Walvis Bay corridor is a reliable route, due to efficiency. The construction of the Sesheke Road in Western Province will further enhance efficiency as transit time between Na-mibia and the Copperbelt Province will reduce,” he said.

The corridor remains key to the advancement of Zambia’s economic diversification because it provides easy connectivity for the transportation

of agro-produce to the region and beyond as well as transportation of equipment to advance manufacturing.

Mr Smith continued stating that the Walvis Bay Corridor Group is undertaking various expansion initiatives to enhance efficiency. The projects in-clude the establishment of dry ports in Zambia, Botswana, Democratic Republic of Congo and Zimbabwe. Others involve the completion of rail-way links to neighbouring countries, truck stops and port expansion.

“The Group is also looking for investors to invest in transport and logistics firms as it aspires to be-come the most preferred logistics and distribu-tion hub,” Smith concluded.

Over 30 000 tonnes cargo passes through Walvis Bay corridor

Walvis Bay Corridor Group chief executive officer, Johny Smith,

Mr Smith continued stating that the Walvis Bay Corridor Group is undertaking various expansion initiatives to enhance efficiency.

International News


International News

The majority of lands planted to sunflow-er in the summer grain production areas have been harvested, according to Grain SA economist Petru Fourie.

She said in a statement that between 60% and 90% of sunflower in the North West had been harvested by the last week of June.

“The sunflower planted early in the 2015 mar-keting season yielded very poor harvests. The sunflower planted later realised better yields,” she added.

Joseph du Plessis, a grain producer from Sch-weizer-Reneke, said that most sunflower planted before Christmas 2015 in the North West had yielded less than 1t/ha.

Sunflower planted shortly after Christmas yielded about 2t/ha, while yields realised on sunflowers planted closer to the end of January 2016 were down to considerably less than 2t/ha.

“We had on average no more than 300mm rain for the 2015/2016 production season and can’t expect good harvests,” said Du Plessis.

“The problem now is that the moisture levels of the sunflower lands are completely depleted and we’ll need very good rains in the next season to be able to plant.”

Grain producers were nevertheless spared a to-tal disaster by the fact that frost had occurred so late in the season, he added. The first frosts appeared only in June this year; by then all the grain in the province had ripened sufficiently to withstand the frost.

About 60% of the sunflower in the north-west Free State had been harvested by the end of June, said Fourie. The early planted sunflower achieved very poor yields, while somewhat im-proved yields were realised from later plantings.

The sunflower harvest in the eastern Free State had also been completed with far below-aver-age yields. Some 80% of the Limpopo sunflower harvest has been completed, but yields are be-low average here too.

The maize harvest in the western parts of SA’s summer grain production region commenced in about mid-June, while the harvest in the eastern parts has practically been completed.

Below-average yields and poor kernel develop-ment have generally been reported in the east-ern production area, said Fourie.

The soya harvest was completed by mid-June, also with poor yields.

Poor yields reported across SA’s summer crop production region

“We had on average no more than 300mm rain for the 2015/2016 pro-

duction season and can’t expect good harvests,”

International News


International News

Despite the severe drought in several sugar-growing regions, South African Minister of Trade and Industry, Rob Da-vies, recently said that the sugar indus-

try is confident that it can produce enough sugar to supply the local market in 2015-16.

According to the Minister, there was sufficient raw sugar in stock at the sugar terminals in addition to a small surplus for export, although special measures had to be taken to ensure more pro-duction of refined sugar.

"Due to the unexpectedly high demand for re-fined sugar, especially by the soft drinks manu-facturers — due to the hot summer period — the industry experienced low stocks of some grades of refined sugar. At the beginning of March, the sugar industry met to implement a strategy to restore supply of refined sugar into the domestic market," the minister said in a written reply to a parliamentary question by Democratic Alliance (DA) trade and industry spokesman, Geordin Hill-Lewis.

Hill-Lewis wanted to know whether the minister was considering the temporary removal of du-ties on imported sugar to assist consumers and alleviate food price inflation in the context of a significant shortage of locally produced sugar.

Davies responded that the two biggest refiner-ies, Noodsberg and Hullets, had agreed to open early for refining purposes as the industry was off season, in addition to working over the public holiday period during March. The rest of the re-fineries were meant to open in April because the new sugar season commenced 1 April.

"The figures received from the sugar industry regarding 2016-17 production estimates, current available supply and carryover stock into the new season from the 2015-16 crop, indicate suffi-cient supply into the local market going forward.

"Noting that the supply to the local market con-sists of South African production, Southern Af-rican Customs Union production (Swaziland),

Southern African Development Community quota and duty paid imports, as well as imports from the rest of the world, we are confident that supply will be sufficient to meet local demand.

"In the event of a supply shortage, the depart-ment will engage with the industry and Interna-tional Trade Administration Commission (ITAC) to initiate a rebate facility to counter the effects of the duty on imports, subject to statutory re-quirement of the process," Davies elaborated in his response.

Replying to a question from DA MP Dean Macpherson on the extension of the manufactur-ing competitiveness enhancement programme beyond its 2017-18 expiry, Davies indicated that negotiations with Treasury about securing addi-tional funds for this were continuing.

Sugar industry confident of production despite drought

“In the event of a supply shortage, the department will engage with the industry and International Trade Administration Commission (ITAC) to initiate a rebate facility to counter

the effects of the duty on imports, subject to statutory requirement of the process,”


Despite being considered producers of quality milk in the region, the local dairy industry in Tanzania is still struggling to survive under stiff competition from for-

eign imports.

Dr Sinare Yusuf Sinare, Board Chair of Agricultur-al Council of Tanzania (ACT) told Smart Money that the government should meet with stake-holders to come up with regulations for the dairy industry. Unfortunately, the dairy industry still suffers under the pressure of milk imports which are flooding domestic supermarkets and retail outlets, consequently undermining the competi-tiveness of the local industry.

“A visit to supermarkets in Nairobi, Kampala and Kigali will reveal that Tanzanian dairy products are rarely, if at all, on sale,” Sinare said.

He explained that although Tanzania has more than 25 million herds (the second largest in Afri-ca after Ethiopia), there have been complaints by Tanzania Milk Processors Association (TAMPA) in the past few years of imports from South Africa, Kenya, Uganda and even Saudi Arabia. Accord-ing to Sinare, Kenya processes about three mil-lion litres of milk per day while Tanzania process-es only 115,000 litres per day.

Currently Kenya is estimated to produce 5.2 bil-lion litres of milk annually, with the national aver-age per capita milk consumption standing at 47 litres per year. Tanzania processes an estimated 2 billion litres of milk per year.

Dr Sinare raised concern that the situation caus-es milk surpluses, which could result in a cut in the quota by dairy producers. The quota cuts are the last resort by farmers, and that these could finally have negative repercussions for the indus-try. He emphasised that if no urgent solutions are sought, then shrinking the dairy industry and a significant loss of jobs is inevitable.

Local dairy producers say Tanzania is the only country in the Eastern African Customs Union (EACU) that has fully deregulated its dairy sec-tor, making the country a single free market. ACT boss also pointed out that Tanzanian milk is hormone-free and of better quality because it is produced without the use of banned feed sup-plements and antibiotics.

The regulatory framework in South Africa and other countries allow producers to utilise hor-mones, feed supplements (rumen sin), antibiot-ics and certain vaccines, which improve animal

health and milk production per cow.

Tanzanian consumers favour ultra-heat treat-ment (UHT) milk over fresh milk, mainly because of its lower retail price, availability and longer shelf life.

However, stakeholders told the media that the government should put a ban on all imported dairy products from flooding the local market because they negatively affect the growth of the sector. The government should instead, start supporting the local sector to boost production.

“The government should ban all dairy imports because they are impacting on the growth of the country’s sector. Local farmers should be sup-ported so that they can boost production,” said Peter Mlegulah, one of the stakeholders in the dairy industry.

Mlegulah said that the farmers are an agro-based economy and so they cannot continue to import milk, adding that they need to support local commercial and small scale farmers who are engaged in livestock-keeping and dairy pro-duction.

Tanzanian Dairy industry on chokehold despite producing quality milk

International News


Quantum Foods – Africa’s partner in

poultry trade

Corporate Profile


JSE-listed Quantum Foods is a diver-sified feed and poultry business that provides quality animal protein to selected South African and African

markets. Established in 1997 and head-quartered in Wellington South Africa, the company’s vision is to become the leading feed and animal protein business in Africa,

Dawid Koen, Managing Director Quantum Foods Zambia Limited.

Corporate Profile

while delivering sustainable returns with an annual estimated turnover of ZMK 85 mil-lion for the Zambian entity.

While its core business focus is on eggs and layered livestock, broilers and animal feeds, the Group established operations in Zambia that covers the full layer value chain from feeds to eggs, including parent rearing, parent laying, hatchery, feed mix-ing and commercial layer facilities.

Since investing in Zambia, some of the ma-jor achievements for Quantum Foods have been the increase in the Breeder farms ca-pacity to twice its original size. In 2013, the Group acquired Mega Eggs in Chingola and in 2015, launched a new Commercial Laying farm in Chipata. The greatest achievement to date has been gaining Board confidence in Zambia.

One of the major challenges in the poul-try industry in Zambia has been that the

current supply exceeds the demand in the country according to Dawid Koen the Man-aging Director of Quantum Foods Zambia Limited. Due to the soft commodity price, feed became expensive and the demand for poultry products decreased. To com-pete locally and internationally, Quantum Foods focuses its value proposition on the smallholder farmer with Layer and Broiler chicks. The Group offers value through the knowledge and skills of its highly compe-tent employees who are capable of assist-ing farmers in making their chickens prof-itable.

Quantum Foods is an active, responsi-ble corporate citizen of Zambia. Its pro-grammes are centred on schools in villages surrounding its operations.

For more information, contact: General Manager, Lusaka, Wynand Nortje (m): +260 97 779 0840


RUFEP gears to link rural areas to financial services

Corporate Profile


Lack of access to financial services in the ru-ral areas is one of the challenges for Zam-bia’s fight against poverty. With the rural population accounting for 60% of the total

population (CSO, 2010) largely dependent on agriculture for livelihood, other challenges such as climate change, poor infrastructure, low levels of technology adoption negates various efforts to overcome poverty in rural areas. Increased poverty levels in rural areas is compounded by rural-urban migrations as the people migrate from rural areas to seek personal advancement opportunities in urban areas. With the swelling urban population at 40%, Zambia is one of the highly urbanized countries in Sub-Saharan Afri-ca.

To arrest the increasing poverty levels in the rural

areas, the Government of the Republic of Zam-bia has been involved in various interventions to increase the quality of life of the rural population. One of the interventions has been the focus on the need to increase access to financial services by the rural population. Government initiated the Rural Financial Expansion Programme (RUFEP) co-financed with the International Fund for Agri-culture Development (IFAD) to promote financial inclusion in rural areas. RUFEP aims to increase access to and use of sustainable financial services by the poor rural men, women and the youth.

A recent Finscope (2015) Study commissioned by the Bank of Zambia, in partnership with Finan-cial Sector Deepening Zambia (FSDZ) and with advisory support from FinMark Trust, indicated that Zambia currently has over 15,000 access points for financial services. However, these fi-nancial services are highly concentrated in urban areas. Linking rural areas to financial services will require RUFEP to work with various partners such as existing banking and financial institu-tions, micro-finance institutions, mobile network operators and Community Based Savings Group Promotors. Within the principles of synergy and complementarity, RUFEP hopes to work with var-ious strategic partners and implementing part-ners to deliver the programme’s objectives.

Access to financial services is much more than geographical proximity to banks and financial in-stitutions. Provision of financial services to rural areas is a wasted effort if the rural population fail to make use of the services provided by financial service providers. It is one thing to open a bank or financial institution in a rural area but there is also a challenge to ensure rural areas make use of the services provided. Lessons drawn from

the Rural Finance Programme (RFP) successfully implemented from 2007-2013, provides impetus for RUFEP to ensure this pitfall is avoided. Pro-moting demand driven services from the rural areas by implementing partners of RUFEP is one way of ensuring financial services are relevant to the needs of the rural people. Demand driven financial services and products targeted for rural areas should meet the specific needs of the rural communities.

Building on the successes of the RFP, the Ministry of Finance through RUFEP will have to work with the Bank of Zambia (BOZ) and other regulators of the financial sector in Zambia to provide the policy framework to support the extension of fi-nancial services to rural areas. The Development Bank of Zambia as a specialized development bank provides a framework of growth for the agriculture and financial sectors. With specialized experience in providing affordable finances for Small and Medium Enterprises (SMEs), RUFEP will leverage DBZ’s mandate as a catalyst for rural transformation. RUFEP identifies Strategic Partnerships as one of the three key pillars of its implementation strategy focusing on forging alliances with key stakeholders in the financial sector. Strategic partnerships with stakeholders such as BOZ, Association of Microfinance In-stitutions in Zambia (AMIZ), SaveNet and DBZ, will require entering into Memorandums of Un-derstanding (MoU) to provide a framework of collaboration. MoUs with strategic partners are critical milestones for the successful implementa-tion of RUFEP’s objectives. The other pillars of the programme are Innovation and Outreach Facility (IOF) which is implemented through a Matching Grant and Knowledge Management and Pro-gramme Implementation.

Corporate Profile

P.O Box 37069, Plot 7438 katanga Road, Off Mungwi Road, Light Industrial Area, Lusaka, Zambia, GPS: S15º23’47”, E28º15”

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Events

1. Agribusiness Opportunities in Africa to Be Revealed At 4th Commercial Farm Summit2. A comprehensive discussion focusing on latest opportunities in Africa's commercial farming -- across palm oil, cassava, cocoa, grains, sugar, soybean,

fruits & vegetables as well as investments, PPPs, value-added products and modern technologies -- is expected at 4th Commercial Farm Africa in Lusaka, Zambia on 7-9 October, 2015.

3. The summit organised by Centre for Management Technology brings together ministerial representatives, technology providers and leading agri-business players from around the world aiming to grow the African agribusiness value chain. Held in Zambia, an opening address on 'Diversification Strategy to Grow Zambia's Agri Sector' will be delivered by Honorable Given Lubinda, MP & Minister, Ministry of Agriculture and Livestock, Zambia.

4. Corporate Sponsor SGS Precision Farming Services and Networking Reception Sponsor AGCO Corporation will also be sharing insights on 'Use Of Drones For Farmland Surveys & Crop Monitoring' and 'Modernization & Mechanization of Farming Practice' respectively.

5. Valuable information on Zambia's commercial farming will be further provided by Zambia Sugar and Zambeef Products, with two separate sessions 'Developing Outgrowers' Program For Sustainable Agriculture' and 'Challenges of Agribusiness Investment in Zambia' respectively.

6. Featured speakers also include Uganda's Connie Magomu Masaba, Project Manager, Ministry of Agriculture, Animal Industry and Fisheries sharing the opportunities and challenges of public-private partnership in the country's agri sector and Dr. John Mususa Ulimwengu, Senior Advisor, Agricul-ture & Rural Development to Prime Minister of Democratic Republic of Congo and Senior Research Fellow, IFPRI speaking on 'Transforming DRC's Land into Profitable Commercial Farm'.

7. Additionally, two country-focused sessions on 'Developing Commercial Fruits & Vegetables Farm in Ethiopia' and 'Investing in a Sustainable Oil Palm Plantation in Cote D'voire' will be addressed by Horizon Plantations Ethiopia and DekelOil/ Director of Agribusiness, AXYS Consulting DMCC, respectively.

8. Other notable sessions include:9. Demand/Supply & Price Trends in Soft Commodities -- Groupe Ecobank10. Future of Bioenergy & Value-Added Investments in Sub-Sahara Africa -- Sunbird Bioenergy11. Infrastructure Development to Strengthen Agri Value Chain -- COMESA Secretariat12. Healthy Soils, Profitable Farms: How Soil Conservation Techniques Lead to Success in Large-Scale Farming -- Soil Capital13. Panel Discussion: Funding Agri Projects in Africa -- African Development Bank Group, SwissRe14. Panel Discussion: Local Sourcing & Building a Sustainable Supply Chain -- Diageo15. Attendees can also sign up for an optional site visit to Zambia Sugar Plantation & factory in Mazabuka on 7 October 2015.16. For more information, visit website or contact Ms. Grace at [email protected] or +65-6346-9147

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Documents

Zambia likely to produce three-fold maize outputproduce between ‘one and 2.5 metric tonnes of maize per hectare although they have access to seeds that have a yield potential of