Lack of credit
The banks in country do not provide agrarian credit if so is very law, nevertheless the demand is very higher. Thus the farmer cannot get loans which, they could use to support the input cost, for fertilizer, tractor rents, pesticides, seeds and establish an irrigation scheme if there is a need. This is very a complex problem if considered that the solution for this will involve different agencies and adequate measures and policies, so that could guaranty of return fund. Those measures should include, a choice of appropriated crop, consideration of agro-ecological area in order to minimize losses, a cost-benefit analysis should be done in advance and the need of effective monitoring system, during the production process.
Lack of market Rural Infrastructures
In rural areas the farmers face many problems deliver their products. The roads, if exit, in many cases are not in good conditions and there is no connection to railways.
They also face problems keep their products and lack of power this problems increase the losses production.
High costs of agriculture inputs
The costs of agriculture inputs compare with neighboring countries are very higher and most farmers cannot afford it for production of large areas. Apart of labour, the pesticides, fertilizers, seeds are very expensive including the prices to rent a tractor, and this contribute for very low income of the farmers given fact that the technology is not the best.
“Liria (1999), has developed a study about the Analyze of comparative economic advantage of tomatoes and beans has shown that the cost of production of tomatoes is total about 6. 684.855 Mts and the revenue is 12 500 000,00 therefore the net benefit is 5 815.145, 00 Mts and for cost production of beans is about 4.870.800 Mts/ha and the revenue is 8500 000 Mts therefore the net benefit is about 3 629 200 Mts.”
This study shows that the production of both crops is profitable, in addition tomatoes has comparative economic advantage than beans. The studies demonstrated that for the production of tomatoes the farmer pay more for the spend 54,6% for inputs such as fertilizer pesticides and seeds of all production costs including the percentage for soil preparation and tendering the culture.
“ Banguine (2000), developed study about the feasibility study of production of ion and cabbage in Massaca and shown that the total cost for production of cabbage is 4 475 846, 00 Mts and the revenue is 12 187 500, therefore the net benefit is about 7 711 654, 00 Mts for ions the cost of production is about 5 572 742, 00 Mts and revenue is 17 185 500, 00 Mts therefore the revenue is 11 614 758,00 Mts/ha.”
This study shows that the production of both cultures are profitable but onion is more profitable than cabbage. With improvements of technology, the profit would be more. However to develop agriculture in Mozambique, is necessary to much money for inputs and small farmer, even from private sector hardly can afford it, and if they can they get very tangible profit. As an example in Boane district, we can see a very extended areas where before people where developing agriculture before but now they abandoned. A comparative study of the agriculture production between Mozambique and neighboring countries is needed.
Water Bills
Recent studies done in Massaca and Mafuiane irrigations schemes, revels that the war bills in irrigations schemes are very expansive both for association and small farmers. Those irrigations schemes buy water from a Water Authority, however the price is already subsidised. Nevertheless the association is supposed to pump water from the river to reservoir at irrigation schemes and later deliver it to the users. They do it using power electricity, which is very expensive and many times the associations can not afford it.
Final remarks
As mentioned before with peace agreement and economic reform led to high interest to invest on agriculture. Therefore the demand of land is growing and in some regions land are becoming scarce and expensive. In addition this led to change on land market in the country specially in rural areas and many of people still do not have registered their land if so, there are very few of them with have title. This means that we are in initial stage of land title market, but will become more intensive and dynamic in near future, considering that currently people are becoming aware of the need to register their land, and the demand is increasing.
The process of buying land rights should be accomplished with the valorization of the same rights or title and its very important to identify mechanisms which can allow local community have mutual beneficial partnership with investors
For those who bought land rights still fill problems related with lack of conditions to develop the agriculture activity mainly because of lack agrarian credits and higher input costs. Still there the need to design an effeciente policies in order to improve agriculture productivity and income.
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