The Government has rejected claims by the Zimbabwe Seed Association (ZSA) that it owes seed houses a total of US$61 778 000 for seed supplied to various programmes for the 2022/23 and 2023/24 seasons.
ZSA on 18 November 2023 issued a statement in which it cited 11 association members, ARDA, Easiseeds, Farmbiz Genetics, Intaba Trading, Klein Karoo Seed Marketing, Prime Seeds/Seed Co vegetables, Quton, Reapers, Seed Co, Tocek, Zimbabwe Technology Solutions, as being owed millions by the Government for seed that they supplied under the Presidential Inputs Programme (PIP).
ZSA claimed that on average, seed houses were owed payments below 50 per cent of the seed supplied in the 2022/23 season, and nearly all the seed supplied this season, covering field, horticultural and fodder crops.
However, in an interview with <a href="https://www.manicapost.co.zw/govt-reads-riot-act-to-seed-houses/">The Manica Post</a> on Thursday, Lands, Agriculture, Fisheries, Water and Rural Development’s Permanent Secretary, Obert Jiri said the Government does not contract all the 11 companies listed by ZSA.
Jiri stated that ZSA should separate what seed houses owed each other and what is owed to the company contracted by the Government. He said:
<blockquote>
The Government does not contract all the 11 companies (listed). Ask them who has a contract for seed who has not been paid. They should indicate which companies and avoid blanket statements.
I have read that statement, and it is unfortunate because it blankets everything as if the Government is contracting all the 11 seed houses when we are not.
It needs to be contextualised — they need to state how much each company is owed; and which companies are owed by the company (contracted by the Government).
We need to avoid where they trade between themselves and ascribe that to the Government.
The correct position is that the Government does not contract 11 companies, so that statement is misleading.
If you go back to the originators of that statement, they should be able to segregate to you, first, which company is contracted by the Government, second, segregate what they trade between themselves and then ascribe what exactly is owed to the company contracted by the Government.
That should give you a clearer picture. As it is that blanket statement is misleading.
</blockquote>
The Government is reported to be the biggest buyer of seed, which it distributes to hundreds of thousands of smallholder farmers across the country under programmes such as Pfumvudza/Intwasa.
But with no payment from their biggest customer, seed companies are defaulting on bank loans, laying off staff, and planning to scale back on production.
As a result, experienced growers are refusing to sign new contracts with seed companies because they have not been paid for 2023 deliveries.
Seed producers are unable to secure the foreign currency they need for imports such as hybrid seed of sunflower and sorghums and parental seed, which they say helps localised certified seed production.
ZSA said that a request to the government for US$15.5 million from six seed producers “so far got no response”.
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Govt Denies Owing Seed Companies US$62 Million

The Government owes seed companies more than US$60 million, the Zimbabwe Seed Association (ZSA), a grouping of seed companies, has said.
ZSA said that its members are owed almost half of the payments for seed supplied to the Government last season, while “nearly all” of the seed supplied this year has not been paid for.
A ZSA memo, dated 18 December 2023, seen by <a href="https://newzwire.live/seedy-business-govt-owes-seed-companies-us62m-leaving-industry-in-crisis/">newZWire</a> reads in part:
<blockquote>
As an illustration, a total of US$61,778,000 is owed to eleven members of the association (Arda, Easiseeds, Farmbiz Genetics, Intaba trading, Klein Karoo Seed Marketing, Prime Seeds/Seed Co vegetables, Quton, Reapers, Seed Co, Tocek, Zimbabwe Technology Solutions).
</blockquote>
The Government is the biggest buyer of seed, which it distributes to hundreds of thousands of smallholder farmers across the country under programmes such as Pfumvudza/Intwasa.
But with no payment from their biggest customer, seed companies are defaulting on bank loans, laying off staff, and planning to scale back on production.
As a result, experienced growers are refusing to sign new contracts with seed companies because they have not been paid for 2023 deliveries. Said ZSA said:
<blockquote>
Relationships with banks are now at their lowest level; seed companies cannot be trusted and hence are failing to access favourable credit facilities including the productive sector facility.
</blockquote>
Seed producers are unable to secure the foreign currency they need for imports such as hybrid seed of sunflower and sorghums and parental seed, which they say helps localised certified seed production.
ZSA said that a request to the government for US$15.5 million from six seed producers “so far got no response”. It added:
<blockquote>
Such financial distress is unsustainable and results in the scaling down of operations, and closing of seed companies and Zimbabwe will soon lose its status of a well-developed seed sector which has over the years ensured national seed security.
</blockquote>
The hectarage put under maize in the current 2023/24 season is far less than last season due to the El Nino-induced drought.
According to Government data, by 10 December, farmers had planted just 95 156 hectares of crops, a steep fall from 465 707 hectares on the same day last year.
Meanwhile, Seed Co, the country’s largest producer and the main supplier of government seed, has reported a 22% drop in maize seed sales in the half-year to September.
Zimbabwe experienced a prolonged drought from late October into early December and this is expected to negatively impact farm output as the majority of farmers are into rain-fed agriculture.
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Govt Owes Seed Companies US$62 Million

The Zimbabwe Republic Police (ZRP) and Pan African seed company SEEDCO have launched a joint operation to combat the proliferation of fake maize seed ahead of the 2023/24 summer cropping season.
In a statement released this Monday, 16 October, ZRP spokesperson Assistant Commissioner Paul Nyathi said they have recorded cases of some shops and individuals selling counterfeit maize seed. Said Asst Comm Nyathi:
<blockquote>
The forthcoming farming season has started with a flurry of activities as farmers, seed houses, agricultural experts and traders prepare for related activities.
The Zimbabwe Republic Police has recorded cases of traders and individuals who are openly selling fake and counterfeit maize seed to unsuspecting potential farmers. Some of the maize seed is being sold through informal markets and hardware shops in various parts of the country.
SEEDCO has also been affected as unscrupulous syndicates are selling fake and counterfeit maize seed packaged with material and logo resembling the company’s trademark and brand, obviously, this being done to lure customers.
Some of the traders are even offering prices that are lower than the original certified seed normally found in established outlets and hardwares.
The Zimbabwe Republic Police has therefore seen it fit to embark on a joint operation with SEEDCO agronomists to identify fake or counterfeit maize seed throughout the country.
The police will enforce provisions of the Seed Act, Chapter 19:13 and ensure that the law takes its course on individuals, syndicates and traders found selling fake or counterfeit maize seed.
Farmers are urged to cooperate with Police and SEEDCO officials and assist in the identification of fake seed during the forthcoming agricultural season.
The public should feel free to report suspects who are packaging and selling counterfeit maize seed on the following numbers Police General Headquarters Complaints Desk 0242 703631, Harare Operations 0242 748836, Bulawayo Operations 0292 885479, WhatsApp number 0712 800 197.
</blockquote>
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