By Cliff Chiduku
Agriculture has historically been a backbone of the Zimbabwean economy. The sector contributes significantly to the country’s Gross Domestic Product, employment creation and food and nutrition security.
Over the years, Zimbabwe’s agriculture has been highly productive and at some point, the country was known as the “breadbasket of Africa”, exporting significant quantities of maize, tobacco, and other crops. To consolidate this position the Government has embarked on a trajectory that seeks to transform small scale agriculture production into commercial business entities that will contribute significantly to economic development.
Transitioning to a business-focused agricultural model has the potential to transform the sector, improving productivity, profitability, and sustainability. The Government, agencies and partners have initiated a number of programmes that farmers adopt a business approach to their farming enterprises to help boost production and profitability.
To complement government efforts, the Agricultural Marketing Authority (AMA) has also rolled out training programmes where villagers at irrigation schemes, village business units, school business units and youth business units are trained on taking farming as a business and marketing.
Market-led production refers to an agricultural strategy where farmers produce crops and livestock based on market demands rather than traditional or subsistence farming practices. This approach requires farmers to have an appreciation of market trends, consumer preferences, and price signals, allowing them to adjust their production plans accordingly.
By aligning production with market demand, farmers can get better prices for their produce. For example, if there is a high demand for vegetables at mass markets, farmers who focus on producing these can command premium prices, leading to higher incomes.
Market-led production helps farmers diversify their crops and livestock based on market trends, reducing the risks associated with mono-cropping or post-harvest losses. Diversification can protect farmers from price volatility and market saturation of a single commodity.
Farmers engaged in market-led production are often seen as lower risk by financial institutions, making it easier to access loans. Financial institutions are more willing to lend to farmers with clear market linkages and production plans that promise profitability.
Market-led production can lead to the establishment of thriving businesses thereby creating jobs and boosting rural economies. For instance, the demand for value-added products like dried fruits or dairy products can spur rural entrepreneurship and employment opportunities. This leads to rural industrialisation and ultimately rural development.
By producing according to market demand, farmers can ensure a steady supply of diverse and nutritious food products. This contributes to improved food and nutrition security at both household and national levels. For example, a shift towards cultivating high-demand, nutrient-rich crops like legumes and vegetables can enhance dietary diversity and nutrition.
Market-led production encourages efficient use of resources such as water, land and energy. Farmers who adopt latest agriculture technologies usually optimise inputs, reduce waste, and increase overall farm efficiency, leading to cost savings and environmental benefits.
Development of production models that are market oriented is the hallmark of transitioning from subsistence farming to farming for surplus and commerce. Farming these days does not necessarily entail land size, it’s now about productivity and profitability.
Adopting a business approach to farming entails viewing and managing farms as enterprises. Farmers are encouraged to develop comprehensive business plans that clearly outline production schedules, financial projections, and market strategies.
Investment in latest technologies is also paramount. Utilising modern agricultural technologies such as irrigation systems and high-yield crop varieties can enhance productivity.
Farmers should also establish financial systems that provide affordable credit and insurance products tailored to their needs. This is also meant to ensure farmers are financially literate.
One of the successful business-oriented farming models in Zimbabwe is contract farming. Contract farming has emerged as a successful model in Zimbabwe, particularly in the tobacco, cotton, wheat, maize, sunflower, beans and horticulture sectors. Companies provide inputs and technical support to farmers in exchange for a guaranteed supply of produce. This model reduces market risk for farmers and ensures steady incomes.
Cooperatives and clusters are also crucial in pushing for market-led production. Clusters allow farmers to pool resources, share knowledge, and access markets collectively. Such arrangements enable members to negotiate better prices as a collective for their produce and invest in shared infrastructure.
The horticultural sector in Zimbabwe provides a successful example of market-led production model. Farmers producing for export markets have adopted high-value crops like flowers, fruits, and vegetables. By meeting international standards and market demands, these farmers have accessed lucrative markets in Europe, Asia and the Middle East, significantly boosting their incomes.
There are emerging organic farming initiatives in Zimbabwe targeting niche markets locally and internationally. Farmers involved in these initiatives produce organic vegetables, herbs, and spices that cater for health-conscious customers. These market-led efforts have not only increased farmers’ incomes, but also promoted sustainable agricultural practices.
Market-led production presents a transformative opportunity for local farmers to enhance their economic viability. By aligning agricultural practices with market demands, farmers can increase profitability, mitigate risks, create jobs and improve food security. Transitioning from subsistence to commercial farming will no doubt boost agriculture production in pursuant of attaining an upper middle-class economy by 2030.
Word from the market is a column produced by the Agricultural Marketing Authority (AMA) to promote market driven production of agricultural produce. Feedback cchiduku@ama.co.zw or WhatsApp +263781706212.
