By Fryzer Gupta Mpofu
While the Chronicle article titled, BCC resumes soghurm production after 5-year hiatus, rightly celebrates Bulawayo City Council’s (BCC) return to commercial sorghum production after a five-year sabbatical, there is a critical need to scrutinise the reported financial projections, particularly the claimed US$45,000 profit from the current 105-hectare crop.
Yield and Market Value Discrepancy
Councillor Mxolisi Mahlangu is quoted stating that the expected profit from selling sorghum to Ingwebu Breweries is around US$45,000, based on a US$20,000 production cost. However, this figure underestimates the actual market value of the crop based on standard agricultural outputs and current market prices.
On this topic
A conservative yield from a well-managed sorghum field is 3 tonnes per hectare, meaning 105 hectares would yield at least 315 tonnes.
At a minimum market rate of US$500 per tonne, which is a modest estimate when private buyers offer between US$870 and US$1250/tonne, the gross revenue from this harvest would be:
315 tonnes × US$500 = US$157,500Even after factoring in more realistic total expenses of around US$65,000 (covering land prep, planting, harvesting, labour, fuel, and overheads), the net profit would still stand at around US$92,500.
This figure more than doubles the projected US$45,000 profit cited in the article.
Transparency and Accountability
This discrepancy raises questions about:
The pricing model used in projecting the US$45,000 profit.
Whether Ingwebu Breweries, as the primary buyer, is purchasing at below-market rates.
If all operational and input costs are being accurately accounted for or if there’s room for inefficiencies and leakages.
Strategic Outlook
If the city council aims to use ventures like Aisleby Farm to reduce reliance on ratepayers, profit optimisation and transparency must be central to its business strategy. Selling 315 tonnes of sorghum at a low price not only devalues the farm’s output but undermines the financial sustainability of the initiative.
BCC’s revival of sorghum farming is commendable, but the stated profit projection does not align with realistic yield and price data. The council owes residents clarity on:
The actual selling price agreed with Ingwebu Breweries.
A breakdown of expenses.
A strategy to maximize returns for the benefit of the city.
As the incoming mayor and an experienced farmer, I think I deserve an explanation lapha ngoba aku make sense lokho (the figures dont make sense).
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