Zim's Oil Producers Venture Into Farming

Zimbabwe's cooking oil producers will venture into corporate farming to minimise the importation of crude oil currently estimated at 20 million litres annually.

A proposal to Government has already been made and the new farming venture is expected to reduce crude oil imports by 60 percent a move which will reduce the country's trade deficit.Zimbabwean cooking oil producers have for the past two years registered a dramatic rebound by increasing production levels while they have benefitted from import controls on the product.

The biggest challenge has however been raw material supply which has seen producers resort to crude oil imports.

"The agricultural sector has to be geared towards producing more seed for us to crush and reduce our reliance on crude oil imports," said Oil Expressers Association president and Surface Investments chief executive Sylvester Mangani.

Zim's Oil Producers Venture Into Farming

He said cooking oil producers will establish model farms to boost soya beans production.

Previously the country used to produce an upward of 200 000 tonnes of soyabeans but only about 25 000 tonnes is being produced at the moment.

"We made a representation to Government and hopefully we will get a positive response over the matter.

"This basically means we will venture into farming but in Zimbabwe farming has been a sensitive issue. Therefore there is need for us to set up model farms.

"The idea of venturing into farming will stimulate the local production of soya beans. We are importing close to 200 million litres of crude oil annually. After developing the farmer I am sure we can import at least 40 percent and that is a huge saving," said Mr Mangani.

"Government has done a great job in protecting the cooking oil industry because in 2014 before the import restrictions, supermarket shelf space was dominated by imports at about 85 percent. Today it is less than five percent. The price of cooking oil from has also fallen down from $4, 20 to almost $2, 60 at present.

"This dispels the notion that imports are better and cheaper. The minute imports left, the price of cooking oil came down.

"Due to measures introduced by Government some companies which brought cooking oil into the country have actually decided to come and invest in the country," said Mr Mangani.

"Currently we have capacity to produce 20 million litres of cooking oil monthly which is double the national requirement and basically that is a ready market for all our farmers to produce soya beans for us.

"We have more than enough capacity to supply the local market," he said.