Fertiliser costs threaten agric sector
STAFF WRITER
Zimbabwe’s food security quest in the coming years is facing serious threat amid high fertiliser costs which constitute over 40% of the total production costs resulting in production cost.
This is causing very few farmers to take farming as a business as it is now a capital intensive business due to the expensive nature of inputs like fertiliser.
Speaking at the high-level engagements focused on revitalising the Africa Centre for Fertiliser Development (ACFD) — a continental facility with the potential to transform Africa’s fertiliser systems, Lands, Agriculture, Fisheries, Water and Rural Development permanent secretary Professor Obert Jiri said plans are underway to reduce fertiliser costs as the country plans to localise production.
“Our farmers are innovating, our government is supporting production, but fertiliser remains the biggest cost factor. Reviving ACFD as an AU-recognised centre will help us innovate around cost, quality, and access — issues at the heart of productivity,” Prof Jiri said.
Last week, AU Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment, Vilakati Moses Malindane, visited Zimbabwe for high-level engagements focused on revitalising ACFD.
“We cannot achieve food security if our fertiliser systems are weak. Farmers deserve inputs they can trust,” — Commissioner Vilakati
The visit marks a major step in efforts to reposition ACFD as a strategic AU agency — driving policy harmonisation, quality control, and capacity building across the continent.
The engagement forms part of the AU Commissioner’s 100-Day Plan, prioritising fertiliser reform — from local production and blending to independent quality verification and policy alignment.
As the AU advances its Soil Health & Fertiliser Roadmap, Zimbabwe’s leadership and vision of “production in every village” position it at the heart of Africa’s push for agricultural self-reliance.
Africa’s path to food security starts with stronger, trusted, and affordable fertiliser systems.
In Zimbabwe, where fertiliser costs contribute up to 40% of production expenses, officials see ACFD’s revival as key to reducing costs and boosting yields.
This comes as the government is concerned about lack of progress on the localisation of the production of key farming inputs amid indications that the fertiliser constitutes an average of 35% of the total crop production costs.
The authorities believe that if the country ramps up fertiliser production, the cost per hectare could be significantly reduced.
Little was done to increase local fertiliser production.
“Localisation of the production of key farming inputs, such as fertiliser, which constitutes 30 to 40% of the production cost per unit area, has not progressed at the desired pace, making farming more expensive than other jurisdictions.
This matter deserves more urgent attention,” Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Masuka said.
Experts said the fertiliser industry requires about US$135m per year in foreign currency to operate at 60% capacity or more so that it meets current demand.
The industry requires 800 000 tonnes of fertiliser per year.
The industry believes that foreign currency utilisation can be optimised by ensuring that only those players with adequate sourcing and quality control capacity are given licences and permits to import fertilisers.
This, experts said, will also reduce the risk of substandard products being brought into the country with grave consequences for unsuspecting farmers.
It was advised that the licence would be preferable if these were issued to registered manufacturers with the requisite expertise and commitment to product support.
The industry relies on the firm demand for fertilisers generated by an efficiently operating agricultural sector, with well-funded farmers supported by effective funding structures and fair producer prices and other factors that make farming viable.
Fertiliser players said adequate government support for special programmes such as command agriculture also boosted demand and made the fertilizer business viable.
They said good management was key to the viability of the industry’s operations.
The country’s fertilisers industry has been hit by low-capacity utilisation amid revelations that companies in the sector can only satisfy less than 25% of the national demand.
The low capacity was largely attributed to a number of challenges including power cuts, limited working capital, limited foreign currency to import critical raw materials and high interest rates which discourage the companies from borrowing, among other problems.
Experts said the other major problems are non-availability of key raw materials in bulk quantities in the local market, smaller profit margins and non-availability of fertiliser endowments.
On average, actual annual production is about 120,000mt which only satisfies 20% of annual national demand.