ZCF in K 7.5billion fertilizer deal with Nyiombo Investments

While the vision of recapitalizing the coorporative movement is gaining momentum ZCF has scored big in a fertilizer distribution deal.

THEZambia Co-operative Federation (ZCF) has signed a US$ 1.5million (K7.5bn) deal with Nyiombo Investments on Fertilizer Distribution amongst small holder farmers country wide. The deal signed on December, 7, 2011 will see the federation utilize its infrastructure dotted across the country to distribute Urea and D-Compound fertilizer to it’s over 4,500 members.

ZCF Director General James Chirwa says this further increase the contribution that small holder farmers make to the country’s agriculture sector beyond the current 80percent. Mr. Chirwa adds that the project will be a form of supplement on the existing Farmer Input Support Program (FISP) by government. “Farmers have remained small in the country despite having started benefiting from FISP in 2002…we want to avert this situation as a federation through this deal with Nyiombo Investments,” said Mr. Chirwa.

He said the deal provides for a competitive price by Nyiombo to ZCF which will in turn be passed on to beneficiaries across the country with three provinces namely Northern, Western and Southern earmarked in the first phase which commenced on December, 8, 2011. The prices will not go beyond the existing market price of K 200,000 per 50kg bag. Mr. Chirwa was however quick to mention that co-operative members who have already made their K 50,000 contribution toward the recapitalization program from among the federation’s over 4,500 members will be given the farming input at a good price as part of incentives.

“We want to recognize the role that our members have played in the recapitalization program hence we will award them with a good price for the fertilizer so that they can increase on the yield,” stated Mr. Chirwa.

Meanwhile speaking at the same occasion which was held in the ZCF Boardroom, Nyiombo Investments Limited Operations Manager Kwazi Dlamini said his firm was happy with the deal entered into with ZCF. He is optimistic that the fertilizer will reach its targeted beneficiaries the small holder farmers who are the drivers of the country’s economy.

“We are confident that farmers in the rural areas will greatly benefit from this program so that they can be motivated to increase their yields owing to availability of the farming input,” he said. Mr. Dlamini further revealed that Nyiombo Investments is looking at going beyond supplying of fertilizer but also other farming inputs.

The US$ 1.5million between ZCF and Nyiombo Investments will continue beyond the current farming season. Market analysts are expectant that ZCF’s active participation in developing the small holder farmers will further enhance their contribution toward agriculture development making Zambia a regional food basket through successive bumper harvests.