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Oil industry urged to support local farmers

Precious Manomano

Herald Reporter

GOVERNMENT has urged oil industry firms to contract local farmers for the cultivation of soyabeans, sunflowers, and cotton to enhance the country’s cooking oil production.

The initiative aims to bolster agricultural output and reduce dependency on costly crude oil imports.

The Crops, Horticulture, Fisheries, and Livestock Summer Plan for 2024/2025 outlines an ambitious goal to increase the production of these key crops and produce 97 692 kilolitres of oil, although the national requirement stands at 180 000 kilolitres.

Speaking after touring Surface Wilmar and Olivine Industries in Chitungwza yesterday, Lands, Agriculture, Fisheries, Water, and Rural Development Permanent Secretary Professor Obert Jiri said local production for both feed and oilseed security is vital.

“We are really focused on feed security as well as oilseed security and we encourage farmers to produce these three products locally so that the country saves foreign currency,” he said.

Prof Jiri said cotton and soyabean have been identified as major feed security crops, with cooking oil being a significant by-product.

Currently, the Government imports over US$300 million worth of crude oil, primarily from India.

Prof Jiri is advocating for greater participation from the private sector in the production of these crops to ensure value addition and increased yields in the coming years.

Despite facing challenges, farmers are beginning to recover in cotton production.

However, soyabean yields have suffered due to drought conditions.

“The best we have done is to produce maybe about 200 000 tonnes of our soya, and we still need to grow our soybean production base,” Prof Jiri noted.

With a national requirement of nearly 400 000 tonnes of soybean, the urgency for local production is apparent.

Sunflower production, largely concentrated in smallholder farming areas, has seen a dip in the past few years.

 Yet, participation from the private sector has sparked a recovery in the 2022-2023 season.

Currently, private sector companies utilise around 300 tonnes of raw materials, particularly soybean and cotton seed.

Prof Jiri encouraged these firms to pursue vertical integration to bolster local raw material production. To this end, the Government mandates that companies must produce at least 40 percent of their raw material needs locally.

“We are going to see an increased impetus for local production and support from these companies and by 2028, local production will surpass the current 40 percent threshold”, Prof Jiri said.

Surface Wilmar and Olivine Industries Group Corporate Affairs Executive Mr Silvester Dendere said they are contracting between 6 000 to 8 000 hectares, with financing already in place.

However, he acknowledged that they are still far from meeting the required 40 percent due to various constraints, including drought.

“The Government has put heavy tariffs in place to control illegal imports and ensure that local products remain in demand. We need local support to continue our business effectively,” Mr Dendere said.

With these collaborative efforts, the Government aims to strengthen local agriculture and reduce reliance on imports, paving the way for a more self-sufficient future.

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