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MAIZE PRODUCTION UP BY 27%

29/12/2022 10:42:00 Mhlengi Magongo

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MBABANE – Weather conditions were adequate as they contributed to an incline observed in maize production this year.

The agriculture sector has, in the past three years experienced financial challenges posed by the ever escalating cost of farming inputs. This year, the country realised an increase of 27 per cent in maize production according to the Ministry of Agriculture. The annual assessment report revealed that 127 315 metric Tonnes were achieved during this season while 100 042 metric tonnes were harvested in the previous one. This brings us closer to the national requirement of 140 000 metric tonnes.

Cost

The high cost of farming inputs has negatively affected production, which led to the decrease in performance, thus affecting the profit margin. The agriculture business segment performance has been stagnant in the current reporting period due to challenges in production and market accessibility. Production was low owing to the high cost of farming inputs and the market was slow due to the decrease in quality of produce and the European Union (EU) imposed changes. Maize was also not spared in the challenging period as profits generated from both local and outbound sales contracted by 27 per cent. Maize profits stood at E3 695 000 in 2021 and decreased to E2 695 000 in 2022. This was mentioned by Lwazi Mamba, the Executive Director of Eswatini National Agricultural Union (ESNAU), during the horticulture innovation platform workshop.

Mamba said the decline in profits was because the supply chains were disrupted, mainly because of the shortage of farming inputs. He said inefficient tractor hire service and shortage of implements, plus the high cost of electricity further contributed to the performance. “Some farmers apply less fertilisers and chemicals so compromising yields and quality standards. Double application of fertilizers due to excessive rains,” he said.

Review

The executive director added that the regulated price review processes were not responsive. And profit margins were low as they stood at E2 695/ha for maize, cotton E264/ha and BT cotton E2 640. Mamba said the delayed payments to farmers for produce, reduced profitability, thus farmers failed to pay loans on time. “Most farmers exit farming, arable land remain unproductive or converted to non-agricultural activities, which contributes to high reliance on imports for food and agriculture become less attractive to financiers,” he said. When asked how the performance of the sector could increase in order for Eswatini to reduce imports, he said farmers need to utilise idle arable land and produce at scale and protect arable land by developing a policy. He added that improving tractor service provision and strengthening extension services would also contribute to production upscale. Minister of Agriculture Jabulani Mabuza said their focus was to deliberate and come up with strategies on how to improve resilience of the horticulture sub-sector in the midst of skyrocketing farm input costs with fertiliser taking the lead.

Excessive

Mabuza said over and above the excessive costs, these inputs have also become very difficult to source. The minister said in the planting season of 2021, their suppliers in the agro-industry faced challenges in getting fertiliser and by the time they had access, the price had escalated tremendously. “This predicament was firstly caused by the COVID-19 pandemic, where factories around the world had to suspend operations in respect of health protocols. As we are all aware that the SADC region purchases most of its fertiliser from various sources outside the region. These sources were affected by the war and as such the price continued to increase to the current levels,” he said. The minister further mentioned that Eswatini needs to continue eating and Government looks up to agriculture to come up with solutions. Eswatini Water and Agricultural Development Enterprise (ESWADE) Chief Executive Officer Sam Sithole, also said their objective was to discuss the possible strategies for reducing agricultural production costs such as fertilisers and seeds with the aim of achieving profitable farming.

Enterprises

He said most agricultural enterprises and horticultural in particular are now below break-even, productivity is low, produce quality is compromised and post-harvest losses are on the rise and, therefore, there was an urgent need as a country to address the problems.