Govt pushes farmers into value addition drive

LIVINGSTONE MARUFU

Government has intensified calls for farmers to move beyond primary production and embrace value addition, warning that failure to beneficiate agricultural output is entrenching poverty among growers despite record harvests.

Zimbabwe’s farmers have in recent seasons broken production records in key crops such as wheat, tobacco and maize. Yet many remain trapped in low-income cycles, weighed down by depressed prices triggered by oversupply and limited downstream processing.

Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, Professor Obert Jiri, said the time for a strategic shift is now, as primary production alone can no longer sustain farmer incomes or build a resilient economy.

“It is now imperative for farmers to shift their focus from mere production to value addition,” Jiri said.

He warned that exporting raw agricultural commodities exposes farmers to volatile global markets while inflating logistics costs for low-value goods.

“Beneficiation has a strategic impact. Failing to value-add leaves the farmer vulnerable to market fluctuations and high transport costs for low-value raw goods,” he said.

“By embracing rural industrialisation, we unlock the targeted 3–5% GDP growth necessary for national prosperity. This is not just a farming strategy; it is a national imperative for a climate-smart and economically sovereign future.”

The renewed push comes against the backdrop of mounting discontent among tobacco farmers, who recently protested low prices at auction floors, highlighting structural weaknesses in the marketing and value chain system.

Jiri said the tobacco sector, long regarded as Zimbabwe’s agricultural crown jewel, holds immense untapped potential if properly beneficiated.

Currently, the country value-adds less than 5% of its tobacco exports, a gap authorities say is costing the economy billions in lost revenue.

Zimbabwe has the potential to generate more than US$60bn from processed tobacco exports, yet is currently earning only about US$1.6bn annually from largely raw exports.

“We are exporting almost all the tobacco leaf we produce, and in the process deriving very little value. That is the concern we have as a Ministry,” Jiri said.

“Our thrust now is to attract investment into value addition and beneficiation of tobacco. We must move away from exporting raw leaf and begin with partial processing, cut rag and related products.”

He added that the long-term goal is to build a fully integrated tobacco manufacturing industry, including cigarette production, which would significantly boost export earnings.

“We are beginning to see some movement, with a few cigarette manufacturing companies coming on board. But we need to scale this up,” he said.

“If we achieve full-scale manufacturing, Zimbabwe could export up to US$60bn worth of tobacco products.”

Jiri acknowledged that reaching such ambitious targets would take time, sustained policy support and significant capital investment, particularly in infrastructure.

“This will not happen overnight. It requires dedication and commitment, as well as strong investment flows, both domestic and international,” he said.

He stressed that attracting foreign capital remains critical, particularly for capital-intensive infrastructure across the tobacco value chain, from curing facilities to processing plants.

“This is why engagement and re-engagement efforts are important. Agriculture cannot transform in isolation, we need a whole-of-government approach,” Jiri added.

The government’s push is anchored in the Tobacco Value Chain Transformation Plan, which seeks to turn the sector into a US$5 billion industry by enhancing productivity, increasing local financing and accelerating value addition.

The plan also prioritises retaining more value within Zimbabwe by promoting exports of semi-processed and finished tobacco products rather than raw leaf.

Encouragingly, Jiri noted that local investors have begun responding to the call, with some establishing cigarette manufacturing ventures.

“We are seeing local players coming together to invest in cigarette manufacturing. That is the direction we must take as a country,” he said.