Service Contract No 2007 / 147-446 NYANYALI ... - Swaziland

‣ Farmers do not have the required expertise on irrigation matters and end up makingexpensive mistakes.‣ Areas that require drainage are difficult to manage‣ The different soil series on which the project is developed has different water holdingproperties and require different irrigation patterns. These are difficult to manage.Operations‣ The late conclusion of loan agreements (seasonal loans) results in the late delivery ofinputs and late application of fertilizers and chemicals, which reduces yields and sucrosecontent, resulting in reduced financial returns per hectare and inability to recoup investedcapital‣ It can be argued that even relatively large reductions in interest rates have not had anysignificant impact on the sustainability of this sector. The sector appears to havedeteriorated to one of a sustained financial crisis.‣ Electricity bill for Nyanyali Farmers Association pump is too high.‣ High Transport costs: A large chunk of sugarcane revenue goes to the transporters andgrowers feel that there is a need to address this issue and look at ways to improve thecurrent situation.‣ High Production Costs: Sugar prices are on a continual downward spiral whereasproduction costs have taken the opposite direction‣ The highest yield received by Nyanyali is 104.7 t/ha and was in 2008. There has been asteady increase in productivity over the yearsNyanyali Farmers Cooperative Report - 2009 Page - 37 -