Connect with:
Sunday / April 27.
HomeStandard Blog Whole Post (Page 116)

The Tobacco Board of Zambia (TBZ) has confirmed that 36 million kgs of tobacco has so far been bought this year and has assured Tobacco farmers that all the tobacco grown in Zambia will be bought off from them.

TBZ Chief Executive Officer James Kasongo told the Zambian Business Times – ZBT that the board has put in place a systematic method were all the Tobacco Farmers are registered which enables the industry to plan and ensure all the farmers produce has a ready market.

He revealed that a total number of farmers that were registered to sell tobacco this year was 20,073 out of which 19, 953 farmers have had their tobacco already bought off from them, making the crop very attractive to farmers.

Kasongo expressed happiness that some companies have shown interest in buying the remaining 330, 000 kgs of tobacco which has not yet been bought from twenty farmers who are from Eastern Province out of the total 20, 073 registered farmers.

Speaking in an interview with ZBT, Kasongo said he was hopeful that the remaining tobacco would be cleared by next week so that preparations for the next marketing season scheduled for opening in April can begin.

Kasongo noted that tobacco prices are competitive depending on quality and grades of the final crop. He stated that the average market price for this marketing season for cured tobacco is about $2.67 per kg, though other traders were buying at 20 cents, $1 dollar and upto as high $5 dollars depending on quality with the average price for burley being about $1.67.

He added that some Chinese buyers are offering $2 per kg and Alliance One is offering between $1 and $3 noting that the price is also dependent on the quality and grades of the tobacco, which is determined by professional graders on the Tobacco trading floor.

The Tobacco Board of Zambia (TBZ) has

The Energy Regulation Board – ERB has disputed that there is an impending fuel price hike, stating that there is currently no fuel price review discussion by the regulator.

However, when a fuel price movements review for the past three months is done, it indicates that the new government may have resorted to continue subsidizing the fuel pump prices as the recent Kwacha appreciation which provided the buffer is currently being eroded as the local unit is again on the back foot and continues to depreciate.

Moreover, a temporary tax and duty waiver on petroleum imports which had prevented the upward adjustment  prior to the August 2021 general elections should by now elapse, resulting in price adjustments.

A check on international fuel price movements for the past three months starkly reveals that the price of international crude oil has increased from about US$75.73 per barrel in July to currently about US$83.44 per barrel, an increase of about 10%.

When asked to confirm reports on an eminent upward fuel price adjustment, ERB acting Public Relations Manager Musonda Chibulu stated in response to the Zambian Business Times – ZBT that “ there is no fuel price review under discussion at the moment contrary to rumours of a purported planned fuel price increment”.

ERB however restated that it uses the Cost Plus Model – CPM to determine the price of petroleum products. CPM works on the principle that the final price of petroleum products should cover all the costs in the fuel supply chain.

Chibulu further stated that “ for every price revision, price adjustments are only effected if the proposed change in the price exceeds the 2.5% trigger band. If the proposed change in price is less than the 2.5% trigger band, prices would not be adjusted”.

Prices of fuel were supposed to go up as the elections approached but the government then took a political decision to remove some applicable duties and taxes to compensate for the waive upward price adjustment. In effect, subsidizing the fuel price and forgoing an undisclosed amount of tax revenue.

The Energy Regulation Board - ERB has

The Energy Regulation Board – ERB has exclusively revealed to the Zambian Business Times – ZBT that it will issue a comprehensive statement on the status and fate of the the Cost of Service Study.

The Cost of Service Study was initiated by ERB in 2019 with a contract awarded to Energy Market and Regulatory Consultant – EMRC, a UK based consultancy firm at a total cost of about US$600,000.

The Electricity cost of service study was sanctioned to provide a paper on which to base future electricity policies and plans to be formulated. Electricity Tariffs are among the factors that the study was expected to analyze and propose recommendations.

The ERB which also regulates petroleum imports, one of the highest import bills for Zambia has seen some board members resign with accusations of graft leveled against the new Energy Minister Chibwe Kapala.

When asked to give the status of the study which is key to have an independent, professional and non-politicized view of the electricity cost of service, ERB acting Public Relations Manager Musonda Chibulu told ZBT that “ ERB would advise that a comprehensive statement on the status of the cost of Service Study shall soon by issued through the governance structures of the study. We wish to request for patience as all queries in respect of the study shall be addressed.”

In July 2020, ERB disclosed to ZBT that notable progress has been made on the Electricity Cost of Service Study being undertaken by Energy Market and Regulatory Consultant – EMRC despite the covid 19 pandemic.

ERB then confirmed that EMRC had successfully completed and submitted the Inception Report which outlines the roadmap for the study. But 2021 is ending with no final report issued. EMRC was yet to respond to our query by time of publishing.

Energy experts have urged for technical and professional analysis of the energy sector to ensure quality decision making that would ensure Zambia’s long term interests are safeguarded. Energy remains a key and strategic sector vital for powering Zambia’s development journey. 

See other ZBT articles on electricity cost of service Electricity Cost of Service Study progresses… and Electricity Cost of Service Study to load forecast for next 20 years

The Energy Regulation Board - ERB has

Leading Agro non-governmental organisation Musika says it has not been part of the Farmer Input Support Programme (FISP) in its current form for the past three years, but was in support of the initial electronic voucher FISP (e-FISP).

Musika which was formed following the successful market development interventions achieved under the USAID-PROFIT private sector development programme, which was run in Zambia for more than seven years by a consortium of two USA-based organisations, NBCA-CLUSA and Cardno has stated that they rather supported the e-FISP approach.

Musika Corporate Affairs Manager Pamela Hamasaka noted that the organisation participated actively during the incorporation of the agribusinesses side in terms of agro dealers as it actively participated in the capacity building of the agro dealers so that they could actively participate in the initial design of the FISP programme.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Hamasaka clarified that the Agro NGO the last time they actively supported and participated in the FISP was three years ago, she stated that Musika specifically focused on supporting the E-FISP approach.

The e-FISP approach is different from the traditional FISP approach. Under the conventional FISP, government distributes only seed and fertiliser, but under e-FISP, farmers  chose what they require. Those in livestock can purchase feed while others can get farming implements

Under e-FISP, registered farmers receive the input subsidy through pre-paid bank cards or electronic vouchers as opposed to receiving physical inputs centrally procured by Government. Moreover, the e-FISP improves beneficiary targeting and promotes timely access to inputs by increasing private sector participation.

The FISP ‘E-voucher’ programme has the potential to accelerate diversification of the smallholder sector by allowing farmers to purchase a wide range of recommended inputs such as veterinary drugs, agricultural equipment, livestock, poultry and fingerlings.

The new government led by President Hakainde Hichilema has halted the distribution of inputs which is done under the conventional method and stakeholders are whispering to ZBT that there are plans to scrap the program.

However, other Agro stakeholders say the program has largely been successful a-bait having some areas for improvement such as now switching to the full e-FISP system as the extended mobile network coverage has massively expanded and that mobile money growth also offers the banking side that had posed challenges when conventional banks were initially engaged.

Leading Agro non-governmental organisation Musika says it

The Small Scale Farmers Development Agency (SAFADA) has called on the new dawn government to scrap off the Farmer Input Support Program (FISP) as it is not serving its intended purpose due to challenges in the implementation of the programme.

SAFADA Executive Director Boyd Moobwe said the programme was meant to support vulnerable but viable farmers for three years who would graduate from the programme in order to pave way for other farmers, which has not happened.

Moobwe said government intended to run the FISP programme for a while then gradually withdraw and give leverage to the private sector to work with farmers but that has failed too, noting that the programme could only work effectively when it is depoliticized and run by a private entity owned by the farmers.

Speaking in an interview with the Zambian Business Times-ZBT, Moobwe said farmers have in the past expressed concerns over delays in the distribution of fertiliser, inequality and unknown people benefitting from the programme adding that the problem starts with farmer registration, which was not up to date.

Moobwe however admitted that FISP has been in existence for the past 10 years and has benefitted many farmers and improved some farmers’ way of life despite the various challenges experienced in the implementation as some people who did not qualify for the programme received fertiliser.

He noted that government sets up programs intended to help farmers but the challenge is in the implementation of the programmes, as the target group does not benefit.

“You cannot just register all the people in the village as farmers, just because they are staying in the village automatically they are farmers, there was supposed to be a systematic way of registering farmers and ascertain who exactly is a vulnerable but viable farmer”, he said.

“Instead of getting eight bags of fertiliser, they were getting four, two and in other cases two people were sharing one bag of fertiliser but they have paid a K400 and am happy that government is aware of that”, he said.

Moobwe however said this is not the right time to restructure, audit or scrap off the programme, as it is two months to the rain season therefore government should now focus on distributing fertiliser as the farmers are waiting for the inputs.

He said information going round is that the new government wants to replace the FISP programme with Agriculture Support Programme, which has always been in existence unless the UPND government has a different approach, then they should engage various stakeholders as well as ask farmers how they think they can be assisted.

He emphasized that there should be proper consultations with stakeholders and farmers before deciding what to replace the FISP programme with in order to ensure that the new programme is designed strictly for farmers adding that technocrats in the Ministry of Agriculture may have the knowledge but it is important to ask the farmers how to move forward.

He noted that countries such as Malawi, Tanzania and Kenya have implemented the FISP programme, which is working well.

Some Agro stakeholders have however cautioned the new dawn government to look at how the overall crop output has expanded over the last few years and use the results to just fine tune the program rather than scrapping it. Maize and other crops production has been on an increase with the country now exporting about 1.2 million tons of maize which is expected to earn the country about US$200 million in the latest authorized export quota.

The Small Scale Farmers Development Agency (SAFADA)

Aller Aqua Zambia, a local unit of Denmark’s Aller Aqua group, which is one of Europe’s largest producers of environmentally friendly fish feed has called for more investment in the Aquaculture value chain of Zambia is to close its deficit gap.

An Aquaculture and fish farming expert at Aller Aqua has cited lack of funding,  lack of technical know-how, lack of production of quality fingerlings and the high cost of fish feed as some of the core reasons that Zambia has continued to experience fish deficit.

Emmanuel Nyirenda,  the Technical Advisor at the company’s Zambia unit has disclosed that the lack of funding is one of the major reason why individuals who would like to venture into fish farming have not ventured into the practice. He added that the other hindrances is the price of fish feed which remains high.

Nyirenda said the Zambian government should consider finding ways to cut the price or subsidize the price of feed as producers are having challenges with raw materials, which are expensive, therefore fish feed producers cannot reduce prices, as they would be spending more money to produce the feed than they would be making from their sales.

Speaking in an interview with the Zambian Business Times – ZBT, Nyirenda explained that most of the raw materials used in the production of fish feed such as bone meal, fish meal and other sources of protein are imported from mostly Kenya and South Africa. The landed cost of these imports are high and expensive, therefore making it difficult to sell the feed at a low price.

He confirmed that the company currently sells a 25kg bag of fingerling fish feed at K600, K450 for grower fish feed and K400 for finisher fish feed, noting that it also exports some of the locally produced fish feed to Uganda and Kenya.

The Aller Aqua technical advisor noted that access to feed is a common challenge that fish farmers currently face, noting that choosing feed that is of low quality means farmers will spend more time growing the fish, which also results in spending more money on maintenance and feed in order to grow the fish to the right size.

He said there is need for government to consider introducing a programme similar to the Farmer Input Support Programme (FISP) in the fisheries sector in order to improve the production of fish, as access to funds remains one of the biggest challenges facing fish farmers.

There is also need for establishing well financed outgrower schemes that would entail having companies that provide credit services to fish farmers, supply them with feed and once they harvest, they would pay back adding that government would have to be part of such arrangements and sign a Memorandum of Understanding (MOU) with the private sector.

Nyirenda explained that there are no major or large scale suppliers producing fingerlings throughout the year, which has affected the supply of fingerlings thereby limiting the production of fish. He added that the supply of quality fingerlings is another big challenge.

He said there is need to have more people focusing on hatchery management and that people can be trained on how to produce quality fingerlings, which can help improve the production of fingerlings and in turn increase production of fish.

“Imagine someone travels from Luwingu and they can only get fingerlings from Kasama, we need to have a situation where we have three or four major suppliers of fingerlings in all the provinces of the country”, he said.

Nyirenda said government and stakeholders in the fisheries sector should also intensify training programmes for fish farmers, which can help them with the necessary knowledge on fingerling and fish production as it is a technical practice.

Zambia continues to grapple with a fish deficit despite having extensive fresh water resources in rivers and lakes, as well as a reliable underground water endowment. Zambia continues to spend on fish imports to cover its local production deficit.

Aller Aqua Zambia, a local unit of

Zambia is poised to massively benefit from the announced approval of a long awaited malaria vaccine that is seen as a breakthrough for Africa where the tropical disease is estimated to account for over 400,000 deaths annually.

Faith Leader Advocacy for Malaria Elimination (FLAME) says the just approved malaria vaccine by the World Health Organisation (WHO) will save the country huge sums of money which is spent on various malaria programmes.

FLAME National Advocacy Coordinator Amu Mudenda said government spends a lot of money on malaria drugs, test kits and preventive measures like Indoor Residual Spraying (IRS) and mosquito nets therefore the vaccine would save the country some of those costs.

Speaking in an interview with the Zambian Business Times – ZBT, Mudenda said 7.2 million cases of malaria were recorded last year, which means government bought more than 7.2 million test kits as that number only accounted for positive test kits.

He said the approval of the malaria vaccine by WHO is a step in the right direction to reducing government expenditure on malaria interventions as the vaccine would reduce the number of malaria cases, which in turn reduces how much money government spends on malaria programmes.

Mudenda noted that a reduction in malaria cases would mean government could channel funds that it previously spent on malaria interventions on other developmental projects adding that there will be more productivity in the business community as malaria cases among adults would reduce.

The FLAME leader told ZBT that this would also allow behavioral changes among people as well as improve the use of mosquito nets and increase the number of households willing to have their houses sprayed as a way of preventing malaria. Mudenda said the development would make worker easier for the organisation in terms of sensitisation.

WHO has approved a malaria vaccine that has been developed using some of the technology that enabled the record development of Covid vaccines. The ministry of health in Zambia is yet to do a comprehensive financial and health impact report on this new Malaria vaccine.

The Ministry of health in Zambia has set up the National Malaria Elimination Centre that has been charged with the responsibility for the design, implementation, and monitoring of Zambia malaria activities since 1997. It remains to be seen how it’s programs will be affected.

Zambia is poised to massively benefit from

Financial Analyst Maambo Hamaundu has attributed the continued plummeting of the Kwacha against the US Dollar the high demand for hard currency brought about by Government’s and private suppliers need to meet their obligations and procure farming inputs.

In an interview with the Zambian Business Times-ZBT, Hamaundu said the local currency was being affected by the country’s level of indebtedness and Governments need to procure fertilizer and other agricultural inputs.

He explained that the laws of demand and supply were now kicking in after the local unit showed an appreciation driven by confidence and sentiments after the 12 August 2021 general elections.

“After elections, there was an appreciation sited on confidence, an appreciation driven by sentiments and now the new government is settling in and the laws of demand and supply are kicking in. Of course, the rate had gone in the wave of appreciation to as low as K15 to K16 per dollar and now it is going up and it appears it wants to settle in the K17 range. Therefore, it is demand and supply at play.

“What is causing this demand is our levels of indebtedness, it is our need to procure fertilizer and other agricultural inputs,” Hamaundu said.

He told ZBT that the desire to meet other government obligations also puts pressure on the exchange rate. Hamaundu stated that “On the other hand where is the forex coming from? It is coming in from the exports of copper, it is coming in from, now we have seen that there is some money which has been pledged by USAID.

He said it is really a question of how are the Government is going to juggle or balance the demand and supply. Hamaundu said this would be dependent on decisions that are being made now by the new Government.

“I will not be surprised personally as we go forward to see the Kwacha gaining more strength or indeed stabilizing because ultimately what we need is not necessarily a very strong currency but a very stable currency that will enable people to plan for their businesses easily,” he said.

The local currency has continued to plummet even further as market continues to face supply headwinds.

According to the Zanaco Bank Plc daily treasury newsletter, the Kwacha continued to drift north from Tuesday’s trading session as market continues to face supply headwinds. The local currency opened for trading at K16.6500/16.600 per dollar and plummeted marginally to be quoted at K16.6800/16.7300 per dollar.

Zanaco Bank indicates that market players will keenly watch out for supply flows that filter through the market today, which ultimately will determine the next USD/ZMW levels. However, as of Thursday, the Kwacha had depreciated further and breached the K17 per US dollar trading pair.

Financial Analyst Maambo Hamaundu has attributed the

Zambia’s diary industry continue to grapple with lack of infrastructure investment in refrigerated storage facilities resulting in continued loss of about half a billion liters of locally produced milk going to waste or sold at give away prices annually.

Dairy Association of Zambia (DAZ) had last year 2020 lamented that about half a billion (over 545 million) litres of locally produced milk continue going to waste annually due to lack of refrigeration facilities and the preference for imported milk concentrates by large scale milk processors.

DAZ Executive Manager Jeremiah Kasalo stated that most of the milk produced by local diary farmers is being traded informally as it does not reach the formal trading channels dominated by large diary companies such as Zambeef’s Zammilk, Parmalat now under Lactalis and Trade Kings Diary Gold among others.

And one of the active cooperatives in Southern Province has disclosed to the Zambian Business Times – ZBT that the situation has not changed a year later as there is has been limited to no investment put in place to instal adequate storage facilities.

Hilda Makaye who is managing the Kalomo Day District Milk Cooperative says the centre has a limited storage capacity of 2,500 liters, therefore some milk which is available from local diary farmers remains uncollected due to lack of adequate refrigeration facilities.

She said the centre collects about 3,500 litres of milk per day during the rainy season as there is plenty of water and green pasture which generally results in animals producing more milk as they do not struggle or move long distances to access water and food, adding that 90% of milk is composed of water which is key to increasing production.

Makaye added that some farmers face challenges feeding their animals in the dry season, therefore the availability of green pasture during the rainy season improves milk supply. She revealed that the centre is however currently collecting only 300 litres of milk per day as the volumes reduce in the hot season.

“We collect the milk early in the morning, by mid-morning a truck from Dairy Gold – Trade Kings,  which is the buyer of the milk, collects the milk and this is done every after a day and then after collection we start pouring some more milk in the tank in the afternoon”, she said.

Makaye said the cooperative has one sub centre where all farmers take their milk at 12:00hrs and after testing and determining the quality of the milk, it is taken to the collection centre where Dairy Gold-Trade Kings then collects it.

She noted that Parmalat was also buying milk from the cooperative but stopped doing so in August this year as the volumes of milk reduced, which is the case during the hot season adding that Parmalat would collect the milk one day and the next day Dairy Gold-Trade Kings would collect.

Makaye said in some unfortunate instances, farmers take their milk to the collection centre and find that there is no space in the chiller tank; the farmers would go back with their milk and either sell at an open market at a very cheaper price or store it in their fridges for the few that have.

She mentioned that the maintenance of storage facilities is also another challenge that the centre has. The storage facility the Centre was using is broken and has an internal leakage requiring around K50,000-K60,000 to be repaired, noting that the cooperative bought the machine from India as a cooperative with the help of a non-governmental organisations.

She said the cooperative is currently using a chiller tank, which was provided by Dairy Gold and may be able to procure another chiller tank before the end of next year with the help of cooperating partners. Makaye said the cooperative currently caters for people within the radius of 20km with plans underway for catering to diary farmers within the radius of 35kilometers after procuring equipment.

The Ministry of Livestock and Key Diary Companies such as Diary Gold, Lactalis and Zammilk have been challenged to come together and come up and implement a comprehensive public private partnership infrastructure program that can help the country cut on importing of more expensive milk concentrates and leverage the locally produced milk which is currently going to waste.

Zambia’s diary industry continue to grapple with

The Food Reserve Agency (FRA) has u-turned and now confirmed that they will buy all the white maize that is already delivered at satellite depots. The agency has however asked for more time to deliver empty grain bags which is another fiasco that needs high level attention.

This follows complaints by mostly rural farmers who had travelled long distances to deliver their maize produce to depots only to be told that the agency had stopped buying and that it had met its target.

FRA Public Relations Coordinator John Chipandwe said the agency has noted the concerns from farmers that delivered their white maize to satellite depots countrywide and arising from that, the agency will immediately resume the purchasing of maize. He however did not disclose the quantities and value of funding that has been approved.

Chipandwe said the purchases will be restricted to maize already delivered to various satellite depots countrywide adding that no new deliveries will be bought by the agency as it was not buying anymore maize having reached its target.

According to information made available to the Zambian Business Times-ZBT, Chipandwe said farmers have further expressed concerns that they may have no market for their delivered maize and that if the maize is not bought by the agency immediately with the onset of the rains, this may result in huge crop losses.

Agro Minister Mtolo Phiri announced that government had given a go ahead for an export quota of about 1.2 million tonnes, a move that is expected to encourage private buyers to go back and buy up more maize from the market.

And FRA has further urged farmers to exercise patience concerning the delivery of empty grain bags as the agency has continued delivering them as and when received from suppliers. Chipandwe noted that FRA bags take a bit of time to manufacture as they are special bags specially meant for long term storage of grain hence the seeming delay in the deliveries of the bags to depots.

 

The Food Reserve Agency (FRA) has u-turned