Required Report - public distribution

**Date:** 6/15/2004

**GAIN Report Number:** RH4004

RH4004

**Zimbabwe**

**Oilseeds and Products**

**Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Scott Reynolds

U.S. Embassy, South Africa

**Prepared by:**

Herman Germishuis

**Report Highlights:**

Zimbabwean oilseed production seems to have survived the land reform
process. The \'new farmers\' are set to expand production with cotton
leading the way. Total oilseed production is set to increase to 339,000
tons this year after 316,000 tons were produced in 2002. With the
predominance of cottonseed in the mix, a surplus of cottonseed meal is
looming while plant oils will still be short.

Includes PSD Changes: Yes

Includes Trade Matrix: No

Annual Report

Pretoria \[SF1\]

\[RH\]

**Summary**

Cottonseed is the major oilseed produced in Zimbabwe, recently
accounting for 70% of all oilseed production. The rest is made up of
soybeans, sunflowers and peanuts. Cottonseed production, after reaching
a record of 353,000 metric tons in 1999 (indicating year of planting),
declined to 195,000 tons in 2001 but is expected to show a strong
recovery to 240,000 tons in 2003. The land reform program initially
caused the significant decline in production, but the recovery is due to
the 'new farmers" being assisted by the ginners. Agricultural counselor
recently visited Zimbabwe and various sources suggested that the cotton
success was due to a total lack of government interference. Soybean
production seems to have stabilized at around 50,000 tons per annum.
Peanut and sunflower production is small, with very little reaching the
market.

Total 2003 oil production is estimated at 43,000 tons, well short of
estimated demand of 60,000 to 70,000 tons. Foreign currency constraints
will limit commercial imports, with the shortfall probably supplied in
the form of food aid.

Oil production is the main concern of the crushing industry with the
result that plant meal production traditionally exceeded demand.
Cottonseed meal is used in cattle feed with the surplus exported.
Soybean meal is used in the poultry and swine industries but production
is not meeting demand, in spite of the scaling back in the industries.

Exchange rate:

08.06.2004, USD1=Z\$ 5,831.45 -- Auction rate

USD1=Z\$ 55.00 -- Official rate.

# Total Oilseeds

  ----------------- ----------------- ----------------- -----------------
  Area Planted '000 2002 (MY 03/04)   2003 (MY 04/05)   2004 (MY 05/06)
  ha.                                                   

  Cottonseed        380               390               390

  Soybeans          40                40                44

  Peanuts           240               200               200

  Sunflower seed    30                25                25

  Total             690               655               659

  Production '000                                       
  mt.                                                   

  Cottonseed        205               240               250

  Soybeans          55                55                50

  Peanuts           50                40                45

  Sunflower seed    6                 4                 3

  Total             316               339               348
  ----------------- ----------------- ----------------- -----------------

Total oilseed production for 2003 is estimated at 339,000 tons, up from
316,000 tons in 2002. The main reason for the increase has been the
resurgence of cottonseed production as well as the stability in soybean
production. Both these crops are now grown almost entirely by the 'new
farmers' that have settled on the land formerly used by the big
commercial farmers. Soil fertility, built up over years, allowed the
better yields but nutrients will have to be replenished at some stage.
Cottonseed production also benefited from the increased availability of
inputs, financed by the ginners, and the 2003 crop could even reach
290,000 tons. Peanuts are predominantly grown in the subsistence sector
as a food crop with very little reaching formal markets. Sunflower
production is very small.

  ------------------- -------------- ------------ --------- ---------- --------- ----------
  **Commodity**       **Oilseed,**   **cotton**                                  

  1000 hectare        2002           Revised      2003      Estimate   2004      Forecast

  1000 metric tons    USDA \[Old\]   Post \[New\] USDA      Post       USDA      Post
                                                  \[Old\]   \[New\]    \[Old\]   \[New\]

  **Market Year                      04/2003                04/2004              04/2005
  Begin**                                                                        

  Area Planted        425            380          425       370        0         380
  (COTTON)                                                                       

  Area                330            380          330       370        0         380
  Harvested(COTTON)                                                              

  Seed to Lint Ratio  0              0            0         0          0         0

  Beginning Stocks    0              0            0         0          0         0

  Production          160            205          175       240        0         250

  MY Imports          0              0            0         0          0         0

  MY Imp. from U.S.   0              0            0         0          0         0

  MY Imp. from the EC 0              0            0         0          0         0

  TOTAL SUPPLY        160            205          175       240        0         250

  MY Exports          17             0            20        0          0         0

  MY Exp. to the EC   0              0            0         0          0         0

  Crush Dom.          128            180          140       215        0         225
  Consumption                                                                    

  Food Use Dom.       0              0            0         0          0         0
  Consump.                                                                       

  Feed,Seed,Waste     15             25           15        25         0         25
  Dm.Cm.                                                                         

  TOTAL Dom.          143            205          155       240        0         250
  Consumption                                                                    

  Ending Stocks       0              0            0         0          0         0

  TOTAL DISTRIBUTION  160            205          175       240        0         250

  Calendar Year       0              0            0         0          0         0
  Imports                                                                        

  Calendar Yr Imp.    0              0            0         0          0         0
  U.S.                                                                           

  Calendar Year       22             0            22        0          0         0
  Exports                                                                        

  Calndr Yr Exp. to   0              0            0         0          0         0
  U.S.                                                                           
  ------------------- -------------- ------------ --------- ---------- --------- ----------

  ------------------- -------------- ------------ --------- ---------- --------- ----------
  **Commodity**       **Oilseed,**   **peanut**                                  

  1000 hectare        2002           Revised      2003      Estimate   2004      Forecast

  1000 metric ton     USDA \[Old\]   Post \[New\] USDA      Post       USDA      Post
                                                  \[Old\]   \[New\]    \[Old\]   \[New\]

  **Market Year                      04/2003                04/2004              04/2005
  Begin**                                                                        

  Area Planted        280            240          280       200        0         200

  Area Harvested      240            240          220       200        0         200

  Beginning Stocks    6              0            10        0          10        0

  Production          50             50           45        40         0         45

  MY Imports          4              0            4         0          0         0

  My Imp. from U.S.   0              0            0         0          0         0

  MY Imp. from the EC 0              0            0         0          0         0

  TOTAL SUPPLY        60             50           59        40         10        45

  MY Exports          2              1            3         0          0         0

  MY Exp. to the EC   0              0            0         0          0         0

  Crush Dom.          0              0            0         0          0         0
  Consumption                                                                    

  Food Use Dom.       43             44           41        36         0         40
  Consump.                                                                       

  Feed,Seed,Waste     5              5            5         4          0         5
  Dm.Cn.                                                                         

  TOTAL Dom.          48             49           46        40         0         45
  Consumption                                                                    

  Ending Stocks       10             0            10        0          0         0

  TOTAL DISTRIBUTION  60             50           59        40         0         45

  Calendar Year       0              0            0         0          0         0
  Imports                                                                        

  Calendar Yr Imp.    0              0            0         0          0         0
  U.S.                                                                           

  Calendar Year       0              1            0         0          0         0
  Exports                                                                        

  Calndr Yr Exp. to   0              0            0         0          0         0
  U.S.                                                                           
  ------------------- -------------- ------------ --------- ---------- --------- ----------

**Total oilmeal:**

The annual oilseed crush currently mainly consists of cottonseed and
soybeans:

  ----------------- ----------------- ----------------- -----------------
  Crushing '000 mt. 2002 (MY 03/04)   2003 (MY 04/05)   2004 (MY 05/06)

  Cottonseed        180               215               225

  Soybeans          49                49                44

  Total             229               264               269

  Meal production                                       
  mt.                                                   

  Cottonseed        86                105               110

  Soybean           40                40                35

  Total             126               145               145
  ----------------- ----------------- ----------------- -----------------

The biggest portion of the cottonseed and soybean crops are crushed with
only small quantities retained for seed and occasional exports. No
sunflower or peanuts are crushed for oil. Protein meal demand has
declined as a result of the demise of the large commercial farmers.
Total crushing capacity in Zimbabwe is estimated at 350,000 tons per
annum. Millers would prefer to crush 170,000 tons of cottonseed, 110,000
tons of soybeans and 50,000 tons of sunflowers per year to supply the
local demand for oil of about 60,000 to 70,000 tons. With the demand for
cottonseed meal for animal feed limited by the demise of the feedlots, a
considerable surplus is developing which will be available for export.
Soybean meal for the poultry and pig industries, will, however, be in
short supply.

+-------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**     | **Me  | ###   |       |       |       |       |
|                   | al,** | ### C |       |       |       |       |
|                   |       | otton |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| 1000 metric tons  | 2002  | Re    | 2003  | Est   | 2004  | For   |
|                   |       | vised |       | imate |       | ecast |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                   | \[    | \[    | \[    | \[    | \[    | \[    |
|                   | Old\] | New\] | Old\] | New\] | Old\] | New\] |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Market Year     |       | 04    |       | 04    |       | 04    |
| Begin**           |       | /2003 |       | /2004 |       | /2005 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Crush             | 128   | 180   | 140   | 215   | 0     | 225   |
+-------------------+-------+-------+-------+-------+-------+-------+
| Extr. Rate,       | 0.4   | 0.4   | 0.4   | 0.4   | 0     | 0.4   |
| 999.9999          | 53125 | 77778 | 57143 | 84848 |       | 85714 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Beginning Stocks  | 0     | 10    | 0     | 10    | 0     | 10    |
+-------------------+-------+-------+-------+-------+-------+-------+
| Production        | 58    | 86    | 64    | 105   | 0     | 110   |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Imports        | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Imp. from U.S. | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Imp. from the  | 0     | 0     | 0     | 0     | 0     | 0     |
| EC                |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY      | 58    | 96    | 64    | 115   | 0     | 120   |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Exports        | 5     | 36    | 9     | 50    | 0     | 50    |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Exp. to the EC | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Industrial Dom.   | 0     | 0     | 0     | 0     | 0     | 0     |
| Consum            |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| Food Use Dom.     | 0     | 0     | 0     | 0     | 0     | 0     |
| Consump.          |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| Feed Waste Dom.   | 53    | 50    | 55    | 55    | 0     | 60    |
| Consum            |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Dom.        | 53    | 50    | 55    | 55    | 0     | 60    |
| Consumption       |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| Ending Stocks     | 0     | 10    | 0     | 10    | 0     | 10    |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL             | 58    | 96    | 64    | 115   | 0     | 120   |
| DISTRIBUTION      |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+

**Total plant oils**

  ----------------- ----------------- ----------------- -----------------
  Crushing '000 mt. 2002 (MY 03/04)   2003 (MY 04/05)   2004 (MY 05/06)

  Cottonseed        180               215               225

  Soybeans          49                49                44

  Total             229               264               269

  Oil production                                        
  mt.                                                   

  Cottonseed        29                34                36

  Soybean           9                 9                 8

  Total             38                43                44
  ----------------- ----------------- ----------------- -----------------

It is currently estimated that the domestic demand for oil, which was
about 90,000 tons in 2000 has declined to about 60,000 to 70,000 tons
due to declining disposable income brought about by the high inflation
rate. It is obvious that the estimated 2003 production will be far short
of needs. Even if the cottonseed crop were to reach 290,000 tons
allowing 265,000 tons for crushing, oil production would reach 42,000
tons for a total of 51,000 tons including soybean oil. Commercial
imports will be limited due to foreign exchange and costs constraints
necessitating some food aid. Most table oils sold in Zimbabwe are blends
of the different oils available.

+-------------------+-------+-------+-------+-------+-------+-------+
| **Commodity**     | **O   | ###   |       |       |       |       |
|                   | il,** | ### C |       |       |       |       |
|                   |       | otton |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| 1000 Metric tons  | 2002  | Re    | 2003  | Est   | 2004  | For   |
|                   |       | vised |       | imate |       | ecast |
+-------------------+-------+-------+-------+-------+-------+-------+
|                   | USDA  | Post  | USDA  | Post  | USDA  | Post  |
|                   | \[    | \[    | \[    | \[    | \[    | \[    |
|                   | Old\] | New\] | Old\] | New\] | Old\] | New\] |
+-------------------+-------+-------+-------+-------+-------+-------+
| **Market Year     |       | 04    |       | 04    |       | 04    |
| Begin**           |       | /2003 |       | /2004 |       | /2005 |
+-------------------+-------+-------+-------+-------+-------+-------+
| Crush             | 128   | 180   | 140   | 215   | 0     | 225   |
+-------------------+-------+-------+-------+-------+-------+-------+
| Extr. Rate,       | 0.    | 0.1   | 0.1   | 0.    | 0     | 0.16  |
| 999.9999          | 15625 | 61111 | 57143 | 15814 |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| Beginning Stocks  | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Production        | 20    | 29    | 22    | 34    | 0     | 36    |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Imports        | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Imp. from U.S. | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Imp. from the  | 0     | 0     | 0     | 0     | 0     | 0     |
| EC                |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL SUPPLY      | 20    | 29    | 22    | 34    | 0     | 36    |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Exports        | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| MY Exp. to the EC | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| Industrial Dom.   | 0     | 0     | 0     | 0     | 0     | 0     |
| Consum            |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| Food Use Dom.     | 20    | 29    | 22    | 34    | 0     | 36    |
| Consump.          |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| Feed Waste Dom.   | 0     | 0     | 0     | 0     | 0     | 0     |
| Consum            |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL Dom.        | 20    | 29    | 22    | 34    | 0     | 36    |
| Consumption       |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+
| Ending Stocks     | 0     | 0     | 0     | 0     | 0     | 0     |
+-------------------+-------+-------+-------+-------+-------+-------+
| TOTAL             | 20    | 29    | 22    | 34    | 0     | 36    |
| DISTRIBUTION      |       |       |       |       |       |       |
+-------------------+-------+-------+-------+-------+-------+-------+