Ministry justifies policy on new contract farming

Ministry of Agriculture has justified its policy shift to empower State entities on contract farming, saying it guarantees off-takers in agricultural production not to compete with independent megafarms players.

The sentiments follow the decision to allow Agricultural Development and Marketing Corporation (Admarc) and National Food Reserve Agency (NFRA) to engage farmers in contract farming.

Minister of Agriculture Sam Kawale said government has set aside K40 billion for NFRA and Admarc to engage farmers in contract farming.

“This is contract farming where farmers produce and supply NFRA and Admarc, just like what happens in tobacco,” he said.

NFRA and Admarc through contract farming model will involve smallholder farmers, cooperatives and commercial farmers to grow various crops under contract.

But in an interview on Tuesday, agriculture extension expert Leonard Chimwaza said the shift means both NFRA and Admarc will be linked with production of crops through the contracted farmers’ leaving other megafarms players with an unstable domestic market.

He said: “On food security aspect I think it is a good approach to allow Admarc contract farmers but there are a lot of interesting areas.

“We are currently mobilising private sector players to invest in megafarms which means if the objective materialises these investors will produce enough for institutions like NFRA and Admarc to buy.”

Kawale yesterday said the new model, saying it will complement megafarms and that it essentially looks at providing funding to farmers that are failing to venture into megafarms.

“NFRA and Admarc provide different funding options and off taker markets. We have a lot of farmers who are going into megafarms but they need funding, coming in of these two institutions will help absorb most of them,” he said.

Mega Farms Unit director Alfred Mwenifumbo said the two firms will continue buying grain from megafarms because even with contracted farmers the