Producers dangle carrot in Calle’s face

Ogone TlhageWINDHOEK

The Agronomy Producers Association (APA), affiliated to the Namibia Agricultural Union (NAU), has proposed a public-private partnership (PPP) deal to agriculture minister Calle Schlettwein for government’s northern green scheme projects.

APA is eyeing the production of wheat, saying in 2021 alone the country imported approximately 85% of its wheat demands - or 104 847 tons. Locally, 18 459 tons were produced, representing 15% of demand.

Government is winding-up the Agricultural Business Development Agency (Agribusdev), which used to manage its green scheme projects. Schlettwein had previously announced that green schemes would be up for PPPs with the private sector.

Government plans on winding up Agribusdev over a period of three years and has budgeted N$229 million for its day-to-day operations during the process.

According to the association, the primary aim will be to utilise some of the existing green scheme irrigation projects in the north to produce wheat in the 2022 production season.

Planting will have to be done from middle of May to middle of June, while harvesting will take place during the first two weeks of November.

“The APA would like to facilitate the process for producers/groups of commercial farmers and the agriculture ministry to enter a PPP. The principal guidelines would be two different profit share proposals, depending on the available machinery, implements and infrastructure. Producers will finance all inputs like diesel, fertilisers, seeds, and chemicals,” it said.

Profit share

In terms of profit split, capital expenses, repairs and replacement of fences, variable speed drives, pumps, centre pivots or parts thereof, and any repairs to machinery and implements, these would be initiated and financed by producers. These capital costs will be subtracted from the ministry’s final profit share and be reimbursed to the producer.

The association also proposed a 50/50 profit share system, where existing machinery and implements and labour force at the green scheme projects are used, or a 70/30 profit share system, where producers provide all machinery, implements and labour.

To keep track of project expenses, on project kick-off at the producers’ elected green scheme farm, a joint, detailed stock taking is proposed.

“This initial stock taking report is then submitted to the [ministry] for record. At project completion, the closing stock taking report is again submitted, which will reflect all initial recorded items as well as improvements and additions,” the association said.

Under the arrangement, the association said green scheme farms which were utilised in these projects will then be in an improved operational state for the next planting seasons.

“If no successful tenders are awarded for the following six months, the above business plan could be extended for another six months for summer crop production,” it said.

Wheat shortage

In a proposal to Schlettwein, seen by Namibian Sun, APA said the Russia-Ukraine conflict gave rise to an acute shortage of wheat worldwide, saying it believed it could produce sufficient wheat to supplement local demand while the conflict rages on in eastern Europe.

“The world is experiencing low levels of wheat quantities. The war between Russia and Ukraine, as well as increases in fuel prices, is worsening the situation, causing prices of items such bread, pasta and flour to increase, as seen recently.

“The APA believes that the domestic agronomy sector can play a crucial role in these trying times by expanding local production with the help of the ministry,” it said.