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Farmers Farmers Farmers Farmers in Zimbabwe: A Case Study of in Zimbabwe: A Case Study of in Zimbabwe: A Case Study of in Zimbabwe: A Case Study of HwedzaHwedzaHwedzaHwedza District.District.District.District.

Presentation to the Centre for Civil Society at the University of KwaZulu Natal, South Africa

20 November 2015

University of KwaZulu Natal

Introduction• This article examines how primitive capital accumulation carried out through the re-

financialisation of monopoly capital is altering rural accumulation in the context of achanging agrarian structure in Zimbabwe, 15 years after the initiation of the FTLRP in2000.

• The FTLRP of 2000 was aimed at land redistribution, poverty alleviation, food securityenhancement, economic development and the decongestion of communal areas(Matondi 2012; Mhanda 2009, 55).

• The conjuctural moment: the formation of the MDC in 1999 - the consequentincrease in state power contestation on policy and ideological grounds: nationalismand redistributive vs democracy and liberties making sober debate problematic

• The paper argues that the primitive capital accumulation is shaping ruralaccumulation owing to internationalization of production and re-financialisation of capital, achieved through a shift towards export cash crops(tobacco and sugar) under contract farming.

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Introduction cont...

� The introduction of rural peasants to unfavorable domestic and global commodity circuits accentuates accumulation by dispossession following intensification of commodification through contract farming for cash crops.

� The evolving role of industrial, commercial and finance capital has been assisted by unequal exchange and super-exploitation by monopoly capital under the neo-liberal denationalization agenda.

� Using Zimbabwe’s emerging agrarian structure and examining how peasants are linked to capital, it is crucial to reveal the nature of capital and labour relations in the post Fast Track Land Reform Program (FTLRP) of 2000 and how these are shaping rural accumulation.

�

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Research questions

� The broad research question - What explains accumulation and class

formation for smallholder farmers in Hwedza in post-2000 Zimbabwe,

particularly in terms of land reform and contract farming?

� Sub-questions - How have land reform and contract farming changed the

financing of the agrarian economy, and affected production patterns,

accumulation and class formation for communal and resettled smallholder

farmers in Hwedza district?

� Which financial and commercial circuits of capital accumulation have

emerged to extract surpluses, ranging from transnational corporate tobacco

merchants and commercial banks to small vegetable vendors?

� How have the accumulation and class formation affected broader social

relations in Hwedza district, and are these patterns likely to prevail more

generally in Zimbabwe?

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Conceptual Framinguneven development and primitive accumulation

• Uneven development - based on the world systems: a double dialectic process – production and circulation – centre periphery –articulated vs disarticulated (Shivji 2009; de Janvry 1981)

• The Laws of Uneven Development and dialectical materialism (de Janvry 1981, 7-8; Shivji 2009, 19).

• The Dialectic Between Production and Circulation (de Janvry 1981)

• Accumulation in Articulated and Disarticulated Economies (de Janvry 1981, Shivji 2009)

• Primitive Capital Accumulation (Moyo et al 2012, Harvey 2003, 20015, Lenin 1996, Luxemburg 19688; )))

• Monopoly-finance and export capital (Moyo et al 2013; Amin 2015; Foster 2015)

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Conceptual Framing cont...Surplus extraction

� Market integration and Exchange in disarticulated economies1. Unequal exchange, Unequal trade, and Unequal rewards

� Third form of surplus value1. Super-exploitation of labour through productivity and low wages

2. Functional dualism – semi-proletarianism

3. Suppression of workers’ demands

4. Internationalization of value

5. Efficient production of wage goods

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Conceptual Framing cont...Paths of Accumulation

�Kautsky (1988) and Lenin (1964) observed that Marx’s deterministic formulations on transitions to capitalism in agriculture experienced in Europe was not a universal truth

�Primitive accumulation does not render petty commodity production archaic, rather peasants co-exists with capital- resulting in semi-proletarianisation. The following paths have been identified...

1. Dominant Junker path – for landlords–turned capitalists – for LSCFs

2. Merchant path – this includes merchant capital, petty bourgeoisies, bureaucrats, military personnel, and professionals – farming into exports and global agro-industries

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Conceptual Framing cont...Paths of Accumulation cont...

3. State path – land appropriated by the state during state building, sometimes face reversal through privatization and concessions to domestic and international capital and conversions into eco-tourism.

4. Middle-to-rich peasant path – petty commodity producers created from rural differentiation and state policies; diversify into off-farm activities, under variegated tenurial arrangements - a target for contract farming

5. Rural poor path – proletarianized and semi-proletarianized peasants on family plot; relying on petty commodity production struggling for re-peasantisation due to de-industrialisation – participates in many struggles

6. Tri-modal – combines numerically dominant FFs, new small to medium sizedLSCFs and few agro-industrial leasehold estates (Moyo 2011), identified in Zimbabwe and SSA Moyo (2014)

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The Zimbabwean settings

� Accumulation from pre-colonial times has been capital-

led (Phimister 1986; Ranger 1978; Moyo and Yeros

2005).

� However, studies such as Marongwe 2008, suggest

power, Alexander 2003, suggest state practise and

Zamchiya suggest politics

� Using empirical data from Hwedza; it is timely to

establish the role of capital in production and exchnage;

financing and marketing in the trimodal accumulation

trajectory to add to existing data and theory and

debate...9

Research Methodology

� Hwedza is 150 km South Harare, in Mashonaland East is the case study area.

� Has three agro-ecological regions IIb, III and IV endowed with sandy soils good for tobacco and cereal crops.

� Has, SSCFs, CAs, ORA and Fast Track farms.

� 250 households from each including A1 and A2 farms in all natural regions

� 20 qualitative; govt officials, traditional leaders, tobacco companies and academics

� Use of IBM and SSPS and PRO

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Emerging Emerging Emerging Emerging Agrarian Agrarian Agrarian Agrarian Structure Structure Structure Structure ----

ZimbabweZimbabweZimbabweZimbabwe

Farm

Category

Farm/households (000s) Area held (000 ha) Average farm size (ha)

1980 2000 2010 1980* 2000* 2010*

1980 2000 2010

No % No % No % Ha % ha % ha %

Peasantry 700 98 1,125 99 1,321 98 16,400 49 20,067 61 25,826 79 23 18 20

Midsized

farms

8.5 1 8.5 1 30.9 2 1,400 4 1,400 4 4,400 13 165 165 142

Large

farms

5.4 1 4,996 0.4 1,371 0.1 13,000 39 8,691.6 27 1,156.9 4 2,407 1,754 844

Agro

Estates

0.296 0.1 0.296 0.02 0,247 0.02 2,567 8 2,567 8 1,494.6 5 8,672 8,672 6,061

Total 714 100 1,139 100 1,353 100 33,367 100 32,726 100 32,878 100 46.7 28.7 24.3

11 Source:Compiled by Moyo and Nyoni cited in Moyo ( 2013)

Increasing tobacco growers and Increasing tobacco growers and Increasing tobacco growers and Increasing tobacco growers and

production trends by sectorproduction trends by sectorproduction trends by sectorproduction trends by sectorIncrease in tobacco Increase in tobacco Increase in tobacco Increase in tobacco

productionproductionproductionproduction

National tobacco trends by National tobacco trends by National tobacco trends by National tobacco trends by

sectorsectorsectorsector

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From 2000-2014

GROWERS BY CLASS AND GROWERS BY CLASS AND GROWERS BY CLASS AND GROWERS BY CLASS AND

PRODUCTION PATTERNSPRODUCTION PATTERNSPRODUCTION PATTERNSPRODUCTION PATTERNS

NO.PER

SECTOR

MASS SOLD

(MT)

USD

VALUE(10000)

HECTARES AVERAGE HA YIELD PRICE

A1 31,487 60,325 17753.1 38,020 1.21 1468 3.53

A2 9,386 74,653 26508.2 8,218 0.88 2280 3.9

Communal

area

39,094 59,181 17178.0 36,494 0.93 1,583 3.49

Small Scale

Commercial

7,199 21,959 7071.8 8,546 1.19 3,518 3.71

TOTAL 87,166 216,118 68511.1 91278.0 1853 3.67

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Maize and tobacco production in Maize and tobacco production in Maize and tobacco production in Maize and tobacco production in

HwedzaHwedzaHwedzaHwedza, Zimbabwe, Zimbabwe, Zimbabwe, Zimbabwe

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Smallholders’ productivity on Smallholders’ productivity on Smallholders’ productivity on Smallholders’ productivity on

the land in Zimbabwethe land in Zimbabwethe land in Zimbabwethe land in ZimbabweMaize yield per hectare per sector

Tobacco yield per hectare per sector

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Hwedza district Family farmers Hwedza district Family farmers Hwedza district Family farmers Hwedza district Family farmers

crop productioncrop productioncrop productioncrop production

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Agriculture Credit developmentsAgriculture Credit developmentsAgriculture Credit developmentsAgriculture Credit developments� In 2011, agriculture received a total of US$461, 1; 16% of

total credit against total requirements of US$2 billion

� In 2014, the sector got US$620, with increased role of merchants through contract farming

� Over 65% of the credit was supplied through agriculture, and is received mostly by estates and larger farms

� Constraints associated with land rights and transferability clauses militate against direct funding

� Government direct support is low and below 9% despites agriculture contribution to GDP and citizens livelihoods

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Share of agriculture in national budget, Share of agriculture in national budget, Share of agriculture in national budget, Share of agriculture in national budget,

1980 1980 1980 1980 –––– 2014 (%) 2014 (%) 2014 (%) 2014 (%)

0

1

2

3

4

5

6

7

8

9

10

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

%

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Contract farming growthContract farming growthContract farming growthContract farming growth

19

17 453

13 569

4 257

2 744

21 641

17 918

5 129

4 455

0% 20% 40% 60% 80% 100%

Communal

A1 Resettlement

A2 Resettlement

Small Scale Commercial

Comparing non-contract and contracted

active growers

Auction Contract

Tobacco contracting and Tobacco contracting and Tobacco contracting and Tobacco contracting and

merchants companiesmerchants companiesmerchants companiesmerchants companies

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Tobacco export destinationsTobacco export destinationsTobacco export destinationsTobacco export destinationsJan Jan Jan Jan –––– Dec 2013 Regional Dec 2013 Regional Dec 2013 Regional Dec 2013 Regional

ExportsExportsExportsExports

Jan Jan Jan Jan –––– Dec 2014 Regional Dec 2014 Regional Dec 2014 Regional Dec 2014 Regional

ExportsExportsExportsExports

AFRICA

15%

AMERICAS

1%

EUROPE

5%

EUROPEAN UNION

28%

FAR EAST

43%

MIDDLE EAST

8%

OCEANIA

0%

JAN-DEC2014

REGIONALEXPORTS

AFRICA

17%

AMERICAS

1%

EUROPE

5%

EUROPEAN UNION

25%

FAR EAST

47%

MIDDLE EAST

5% OCEANIA

0%

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Uneven global commodity circuits

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Contract farming effect on farmers

October 9,

2014 by ZimSituation

� “Four contract farmers have committed suicide since the last tobacco harvest. They owed Tian Ze several hundreds of thousands of dollars each and they must have decided dying was the only way out for them. Two left suicide notes indicating that they could not bear the debt trap that Tian ze had lured them into,” said a fellow tobacco contract farmer, who declined to be identified.

� Another source said he knew of three farmers who had committed suicide, two from Chinhoyi and another identified as one Kunaka, aged 65. The victims had been served with letters indicating Tian Ze’s intention to attach their properties to offset the debts.

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Conclusion� The FTLRP broadened participation in agriculture by the peasantry and

decongested the CA, providing opportunities for upward mobility through accumulation from below;

� Yield levels remain low for family farmers mainly due to poor agronomic

practice, climatic variations and poor supply of inputs.

� Expansion of irrigation infrastructure in Zimbabwe’s countryside will reduce farmer vulnerability and increase crop productivity, impacting positively on rural accumulation and class formation.

� Agriculture Extension officers need retraining so that they are able to focus on the broad challenges faced by farmers, such as climate change, climate variability and adaptability.

� Re-insertion of finance capital through liberalization and dollarization ignited agricultural production but farmers remain exposed.

� There is need to review contract farming laws to protect farmers from domestic and international capital involved in contract farming, processing, manufacturing and exporting of both processed tobacco and cigarettes and to eliminate side-marketing.

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Conclusion� Contracting companies must provide subsidy inputs for maize, small grains and oil

seeds to reduce sidetracking of inputs to crops other than those for which they are earmarked.

� The farmers must be incorporated into the value chain through co-ownership of the contracting, processing, manufacturing and exporting companies.

� The establishment of the Agriculture Commodity Exchange where instrument such as cash and spot trade for immediate delivery, forward contracts on the basis of warehouse receipts or trade of farmers’ purchases agreements and future markets are feasible must be hastened.

� The Agriculture Commodity Exchange will help in price discovery, price risk management, and facilitation of physical trade, financing, information and communication platform and market development to the benefit of the farmers.

� The small farmers are currently fragmented and unable to provide a voice on key issues affecting capital accumulation at farm level.

� Farmers must be form and strengthen Farmer Associations in order to create a voice that positively impact on pricing of farm inputs and commodity prices.

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