St Peters UMC Agriculture Committee

Date: Tuesday 03 November 2020

DISCUSS THE IMPORTANCE OF AGRICULTURE IN THE ZIMBABWEAN ECONOMY

PRESENTED BY TADIWANASHE BETERA SECTION 9

Introduction

The agriculture industry comprises of both the production and processing of agricultural
produce. As part of the primary type of industry, agriculture is a fundamental player in the
economies of most third world countries, Zimbabwe itself included, as it involves the production
of raw materials for export to more developed countries.
Agriculture covers the following areas:
Crops: Cash crop production, cereal crops and horticulture produce (Fruit production
Vegetables, Flowers, Spice and Herb production)
Animals: Livestock production
Though Zimbabweans are aware of the importance of agriculture in the country’s economic
situation, there has been a drastic reduction in production since the 2001 Fast Track Land
Reform Programme. Back in the day Zimbabwe used to be an extensive beef producer exporting
to Europe through the Cold Storage Commission. It was also known as the bread basket of the
SADC community, exporting grain to most of the countries in Southern Africa.
Since then many farmers have been producing just enough crops for their own consumption yet
they occupied large farms which were originally meant to fill the national basket for both export
and local consumption, hence the shortages in wheat, soya beans, maize, sunflower and many
other commercially important crops, and the closure of many agriculture based industries for
instance The CSC, David White Head Textiles etc.
Agriculture sector
The agricultural sector plays an important role in the development of the
Zimbabwean economy, through its impact on the overall economic growth,
households’ income generation and food security (Mlambo and Zitsanza,
2001). It provides income and employment for about 70 percent of the
population, 60 percent of the raw materials required by the industrial sector
and is the largest export earning sector, by contributing about 45 percent of
total export in most years (Bautista et al, 2002). The sector accounts for 25
percent of the total workforce in formal employment while contributing an
average of 17 percent of Gross Domestic Product .The composition of the
agricultural exports is highly diversified ranging from
crops, cereals to horticultural and meat products. The major agricultural
exports include tobacco, cotton, tea, coffee, beef, sugar, horticultural products
and maize depending on the rainfall pattern. Tobacco is the single largest
foreign currency earner, accounting for about 50 percent of total agricultural
export earnings.
The Zimbabwean agricultural sector is dualistic, comprising large and small
scale-farmers. Until recently, the large scale sector comprised about 4000 large
scale farmers with sophisticated production systems and occupying 11 million
hectares of land primarily located in the areas of high agricultural and economic
potential (Tekere and Hurungo, 2003). The communal and small-holder farmers
on the other hand occupy areas of lower natural potential in agriculture in
terms of rainfall, soils and water for irrigation (Sithole, 1996). Generally, the
communal farmers produce mainly for home consumption while the large-scale
farmers produce for commercial purposes. As a result, while the main
agricultural produce from the communal or small holder farmers include the
staple maize, groundnuts, cotton, beans, vegetables, meat and milk, commercial
farmers concentrate on cash crops such as tobacco, horticultural products
particularly cut-flowers, coffee, maize, groundnuts, sorghum, sugar, soybeans,
sunflower, cattle for slaughter, pigs, goats and sheep.
Based on the dualistic nature of agriculture in Zimbabwe and the 1991 micro
SAM, the sector was divided into two sub-sectors; large scale and small-scale
agriculture. The large-scale agriculture consists of crops, livestock and forestry
activities and small-scale agriculture consists of the same activities, but carried
out by small holders, mostly for home consumption. These production activities
contributed immensely to export earnings in Zimbabwe. The sub-divisions in the agricultural sector
helped to identify the agricultural activities that contribute more to growth in income generation and
economy-wide production.

Zimbabwean economy is agriculture based and the following are some of the important benefits
agriculture provides:

1. Food security: If local farmers produce enough maize, wheat, soya beans, cotton, fruit
and vegetables this would ensure that every household becomes food secure, lower
prices of the products from these crops and also save the scarce foreign currency, for
example, Zimbabwe currently produces onions for only one quarter of the year, for the
remaining three quarters we import onions.
2. Creation of employment(both direct and indirect)
Farm production would provide employment to a large Zimbabwean population in and
around farms. People can also start livelihood projects and be self-employed. Agriculture
has also been included in the school curriculum and this has a direct impact as it results
in the employment of teaching stuff and those employed to run the school agricultural
projects.

a) Creation of processing industry

Agriculture would result in the rise in a wide range of manufacturing industries, directly
creating employment. National Foods, Blue Ribbon etc. Process wheat into flour, maize
into mealie meal soya beans and sun flower into cooking oil. While companies like
Insccor, Lobels and Mitchell would then process flour into confectionaries.
We also have companies that specializes in stock feed production eg Feedmix, Profeeds
and National Foods
Kadoma textiles process cotton into textiles and manufacture socks, bed linen and
fabrics.
Breweries use sorghum in production of Chibuku, hopes in producing beer and sugar and
fruits in fruit juice production, grapes are also used in wineries.
In areas of the eastern highlands, companies like Wattle Company, Allied Timbers and
Boarder Timbers process wood into roofing timber, manufacture of furniture, ceilings
and other decorative finishings.
Dairy companies such as Dairyboard, Dendairy, Keffaloes and Nestle process milk into
milk products such as cheese for export, ice cream and yoghurt.
b) Agriculture Equipment Companies
 Agriculture Equipment Companies. Farmec, Bain, Puzey and Payne are mainly centered
on agricultural equipment.

c) Agricultural Financial Institutions

There are also companies that specialized in financing the agricultural sector. The
government through the AgriBank, Presidential input scheme and the newly introduced
Command Agriculture has sought to finance farmers and promote commercial farming
even at small scale level.

d) Companies that manufacture agricultural inputs

The National Fertilizer Company, Windmill and Agricura: manufacture fertilizers and
crop chemicals.
SEEDCO, Prime Seeds and National Tested Seeds, these are the leading seed producers
and research on how to grow crops and thus improve the quality and quantity of yield.

e) Production and Processing of Animal Products

Extensive beef production in Matebeleland hence companies like surrey, CSC and
Irvines produce and sell animal products (beef, chicken etc.)
Animal skins and hides are used in manufacture of leather.

f) Fuel Production

Sugarcane grown in the low veld is used in the production of ethanol that is mixed with
petrol to produce blend.
3) Generation of Foreign Currency
 Every year tobacco is a major foreign currency earner and auction floors employ a
lot of people.
 Companies like SEEDCO, Wattle and Tanganda export regionally and so earn the
country forex.
 Export of flowers, fruits, vegetables, herbs and spices (horticulture produce)
internationally brings in the much needed forex.
Factors affecting Agricultural Production
 Climate change
Reduced rainfall amount and distribution due to global warming there is now need
to irrigate in order to get good yields. However irrigation is expensive to install.
 Land degradation.
 Unfair distribution of inputs in the Command Agriculture Scheme.
 Corruption resulting in illegal sale of inputs.
  Lack of knowledge on production practices resulting in stream bank cultivation.
Hence need to plough across slope and contour ploughing.
 Lack of interest in agriculture by vibrant young youth.
 Poor housing strategies and local polices leading to conversion of fertile arable
land into residential stands.
In conclusion, let me end by saying addressing issues in the Agriculture sector would place the
country’s economy back in its prime condition and revive the local industry. This would ensure
adequate employment, foreign currency generation and food security.