Wheat deficit persists as local production fails to meet demand

The Grain Traders Association of Zambia – GTAZ has disclosed that there is always a deficit of wheat production in the country which is normally supplemented by imports.

The Association has challenged local farmers to increase production to satisfy the local market and make Zambia to become a net exporter of wheat. GTAZ President Chambila Simwinga said local farmers offload the wheat and sell the produce in US dollars.

It is this dollarized trading that results in the fluctuating prices on the local market where produce like flour are then sold in Kwacha. The dollar trading is currently affecting the cost of production and resulted Market prices in Kwacha due to the fluctuation of the exchange rates.

Speaking in an exclusive interview with Zambian Business Times – ZBT, Simwinga said imported wheat tends to become expensive due to import taxes that range from 5% to 15%. There is also transportation and logistic costs that come with imported wheat and wheat products.

“There is always a deficit every year and that’s when we sit and agree to say, let’s allow imports. The importation of wheat has been allowed at the moment but it lands at a higher price and local producers sell it at about US$430 per tonne”,  he said .

Simwinga said there is a reasonable number of commercial farmers that grow wheat but the biggest challenge is the cost of inputs. Most of the inputs that are used are imported into Zambia and as a result of high inflation and depreciation of the Kwacha, the cost of inputs is always a challenge.

“Wheat farming is not like growing maize, it is capital intensive or required higher investment to some extent. This is because most of the wheat is not rainfed, it is irrigated and irrigation of a large farm is not a cheap exercise”, he said.

Simwinga added that there is no stability in terms of fiscal policies to back wheat production, so that also affects wheat farmers in terms of production.

Analysts have called for inclusion of wheat in the strategic and backed crops in Zambia due to the high consumption rate of bread especially in cities and towns of Zambia. If wheat production is expanded and backed by strong Agro policies, the cost of living can be reduced through making bread and other wheat breakfast products cost effective.

The Grain Traders Association of Zambia -

Export of blueberries from Zambia to China resume

President Edgar Lungu says the agriculture industry has expanded and matured to a level where Zambia is able to meet the international phytosanitary standards of trade in Agro products.

The head of state said Zambia has the capacity to penetrate the international market and all that is needed is to increase production and put in place appropriate systems that support exports.

Speaking during the official launch of the export of fresh blueberry fruits to China from Zambia by the Zambezi Berry Company, President Lungu said this project will make Zambia the only country in the SADC region to have access to the lucrative market for blueberries in China.

The Head of State said he was pleased that the country is competing for a larger share of the blueberry market in China and that the blueberry project will raise the profile of the country’s agriculture sector especially in the horticultural subsector.

The President said he was aware that the Chinese market imports significant quantities of blueberries from countries in North and South America therefore he was delighted that even during the current Covid 19 pandemic, the country has managed to export agriculture products to a competitive market.

“For this economy to grow, we have to focus on transforming the agriculture sector and changing our mind to believe that the agriculture sector can be transformed to be export oriented”, he said.

He commended Zambezi Berry Company which has employed close to 2000 people, indicating that it was a significant contribution to government’s thrust of creating more jobs for the people of Zambia.

He also explained that a number of companies and businesses have been engaged to provide goods and services to Zambezi Berry Company which is a perfect demonstration of the economic linkages that can be created by transforming the agriculture sector into a diversifying and export oriented sector.

The President noted that government is focusing on policy and legislative reforms to educate local farmers on the emerging trends and opportunities in the agriculture sector.

“More needs to be done to educate and inform our farmers of the many trends and opportunities in the agriculture sector beyond our borders, he said.” President Lungu assured farmers that government is open and remains committed to working with them and addressing the various challenges that they are meeting in the sector.

Speaking at the same event, Chinese Ambassador to Zambia, Li Jie said the milestone has contributed to the bilateral cooperation between Zambia and China. Jie said that Zambia has been exporting high quantities of honey to China and the two countries have signed a contract of three million United States dollars to continue the honey business.

Lie added that agriculture production in Zambia has further attracted investment from Chinese entrepreneurs.

And Zambezi Berry Company Proprietor Graham Rae commended government for its support to ensure that his company was able to start exporting fresh blueberry fruits to China, indicating that the efforts have helped the private sector to thrive.

Rae applauded government for creating an environment where both large and small scale farmers are able to thrive. He said this will help the country shift its focus from mining dependency to agriculture.

Export of Agro products is seen as having the highest potential to supplement US dollars inflows from the traditional copper exports. The Zambian Kwacha has continued to depreciate owing to low forex inflows, high foreign denominated debt servicing costs as well as a huge local appetite for imports.

President Edgar Lungu says the agriculture industry