Mr Chairman, allow me to begin by congratulating you upon your election to chair this 32nd Session of the Governing Council. 

The Swazi economy is agrarian in nature and therefore, the performance of the agricultural sector is vital to the overall performance of the economy. It is quite unfortunate that production has been declining in recent years due to a number of challenges including rapid increase of inputs prices, climate change and unpredictable markets. 

While these challenges have adversely affected all farmers, smallholder farmers who are the majority in the agricultural sector, have been the worst casualties. 

Since the Thirty – First Session of the Governing Council in February 2008, fuel prices rapidly increased in the world market thereby leading to high costs of production, in particular transportation and farm inputs. In some instances, prices have doubled squeezing-out of production a number of smallholder farmers. Indeed, this is bound to have negative impact on the yields expected at the end of this cropping season.

Mr. Chairman,

Although we welcome the decline in fuel prices which took place in late 2008, it is unfortunate that the cost of inputs did not follow suit.

Since the 1991/2 cropping season, Swaziland has faced persistent drought and extreme temperatures. These have led to  crop failures, large loses of livestock, rampant soil erosion and aggressive invasion of alien plant species.

The unpredictability of market prices coupled with high costs of agricultural production, has led to the failure of smallholder farmers to service their loans with financial institutions. This has negatively affected their credit profiles with these financial institutions leading to their inability to access the much needed finance. As such, Government has put in place a number of initiatives aimed at curtailing these challenges. These include tractor hire support, extension services, and the establishment of irrigation schemes.

It is worth stating that already two large irrigation schemes are functioning namely Lower Usutu Smallholder Irrigation Project and Komati Irrigation Project with other small to medium irrigation schemes being developed.

Furthermore, the research institution is developing crop varieties that would adapt to the changing climatic conditions. There is also a programme of rehabilitating rangelands by controlling alien invasive plants and encouraging farmers to adhere to the recommended stocking rates.

On some of the initiatives government has partnered with international institutions like IFAD and FAO. IFAD has supported programmes such as the Smallholder Credit and Marketing Project, and the Smallholder Agricultural Development Project which funded the establishment of a number of small vegetable schemes throughout the country.  IFAD is also co-funding together with other donors the Lower Usutu Smallholder Irrigation Project which is currently at the First Phase with the intention to support the Second Phase II as well.

A new IFAD programme which will support Rural Finance and Enterprise Development is being finalized. This programme will enable smallholder farmers to access credit facilities to meet production costs, and also encourage development of agro processing industries.

I thank you, Mr Chairman.