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Commercial Agriculture

Commercial Agriculture. Manica Province Mozambique. Competitive. Can Mozambique be Competitive Regionally and Globally ?. Fertilizer Prices. Diesel Prices. Minimum Wage. Labour Costs vs. Inflation. Costs Affecting Competitiveness.

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Commercial Agriculture

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  1. Commercial Agriculture Manica Province Mozambique

  2. Competitive Can Mozambique be Competitive Regionally and Globally ?

  3. Fertilizer Prices

  4. Diesel Prices

  5. Minimum Wage

  6. Labour Costs vs. Inflation

  7. Costs Affecting Competitiveness • Theft of Goods with Very poor assistance from the Police & No Follow Ups. • Poor EDM supply causing loss of electrical goods and costs of downtime. • Beauracracy tying up the management of the business.(e.g :Made in Mozambique ; Licenses ; Fuel assistance for Agriculture)

  8. Costs Affecting our Competitiveness • Accounting system and advice on IVA and the quality of “Accountants” causes huge losses. • The Biggest Unknown cost is FINES,Companies are terrified of fines.Mozambique's punitive methods need to be changed to educative immediately to give investors confidence.These Fines also encourage CORRUPTION. • Illegal Land occupation affects crop rotations,disease control,soil conservation,seed production etc. etc. etc.

  9. Costs Affecting Competitiveness • Duties on Agricultural Inputs + Transport. • EDM some bills have reached US$1,00 per Kw/Hr. • Chemicals ever increasing prices due to registration and duties etc. • Seed has to be imported at a huge cost. • IVA on Agricultural products.

  10. Costs Affecting our Competitiveness • Labour disputes being entertained by courts when they have clearly NO CASE and the employer incurs all the costs even if he wins or is in the right.Again this uses up endless hours of valuable management time.

  11. EQUALITYDouble Standards • There appears to be two sets of rule books. • A foreign or national Investor appears to have different legislation applicable to him compared with the general population as they are assumed to have money and therefore officials will believe they are able to pay bribes or the fines.=EXTORTION.

  12. All these costs need to be accounted for and end up being added to overhead costs. This seriously Increases our Production Costs and eventually drives us out of the market as is the current case. You will not see fines and inefficiencies being quoted in the overhead column in many Other countries that we have to compete against globally.

  13. Police EDM Police Transito All Public Services & Departments. DPADR & DSPGC Report Numbers Follow Up Information. Fines Contested. Deadlines Set.if Not met goes to Superior. Discipline of staff. Follow the law and remove illegal settlements. Accountability

  14. CAN MOZAMBIQUE BE COMPETITIVE IN THE REGION OR IN THE REST OF THE WORLD ?

  15. THE ANSWER IS YES,PROVIDINGURGENT ATTENTION! AND IMMEDIATE ACTIONS TAKE PLACE ON THE POINTS MENTIONED IN THIS PRESENTATION !

  16. What needs to be done!! • Reduce Taxes/Duties on Inputs. • Remove IVA on Ag Goods & Inputs • Improve Security On Farms & Police Service. • Establish Research Stations(Pvt & GoM). • Water Security & Irrigation. • Agricultural Finance,Land Bank. • Remove Fines & Offer Educative Advice. • Ensure Land Rights Are Respected. • Reduce Diesel fuel costs further to Agriculture • Remove Potencia on EDM for Agriculture.

  17. Investor Farms

  18. Tobacco Grown

  19. Paprika Grown

  20. Beans Grown

  21. Maize Grown

  22. Total Crops Grown

  23. Crop Sales

  24. Employment

  25. Annual Salaries Paid

  26. Maize Production Costs

  27. Production Costs/Ha

  28. Sales Prices

  29. Maize Yield to Break Even

  30. Tobacco Yield to Break Even

  31. Paprika Yield to Break Even

  32. OBRIGADO THANK YOU

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