Chick production increases as export market opens up

The Poultry Association of Zambia (PAZ) says the production of day old chicks has increased following government’s decision to lift the suspension on the issuance of export permits for day old chicks, stock feed and hatching eggs in March this year.

In January this year, PAZ revealed that the cumulative number of day old chicks that the hatcheries had drowned because of reduced demand for the birds on the market was 1.1 million, a situation that prompted the association to appeal to government to allow exports of day old chicks and hatching eggs to the region.

Association Executive Director Dominic Chanda explained that the opening up of the export market has not affected the availability or prices of day old chicks in any way as all the local players are able to access the chicks on the local market depending on the volumes they want.

Speaking in an interview with the Zambian Business Times-ZBT, Chanda noted that the Democratic Republic of Congo (DRC) remains the biggest market for day old chicks produced in Zambia, with a few parent stocks going into East Africa.

“The situation has gone back to normal in the sense that the market has expanded, production has also expanded, what led to the drowning was the restrictive market to the local players, with government opening up the export market, we are servicing both the local and export market”, he said.

However, the Sub-Sahara African Famers Organisation (SSAFO) said there is a drop in availability of day old chicks on the market adding that it is not surprising as this is something that usually happens during the cold season.

Organisation President Munyaradzi Mulonda said the delivery of orders between 25, 000 and 30, 000 are taking atleast three months noting that there have not been any price adjustments in the last three months.

“Export normally gets priority, the best commodity is exported and the worst commodity is what comes on the local market. Now if you go to these companies they ‘ve got two tiers, this is for export market, this is domestic and all those which have got defects, undeveloped yolks and things like that are the ones on the domestic market, the ones which are perfect are for export”, he said.

Mulonda mentioned that most people are skeptical about rearing chickens during the cold season due to the high mortalities experienced as well as the increased expenses to do with heating.

The Poultry Association of Zambia (PAZ) says

FRA prodded to peg maize price at K250 per 50kg bag

The Small Scale Farmers Development Agency – SAFADA has disclosed that it is confident that the Food Reserve Agency (FRA) will be realistic and increase the maize floor price for the 2021/2022 crop-marketing season to take into account the increased cost of production.

However, the increase in the FRA maize price is feared as it is expected to trigger a domino increase in the price of mealie meal – Zambia’s staple food, a well known and highly charged political issue. But the situation on the ground leaves limited wiggle room for FRA as input costs have increased, some having doubled within the year.

SAFADA Executive Director Boyd Moobwe said SAFADA does not expect FRA to maintain the K150 that it was buying a 50kg bag of maize in the 2020/2021 crop-marketing season as the cost of production for farmers went up last year due to the increase in prices of fertilizer, seed and other inputs.

Speaking in an interview with the Zambian Business Times – ZBT, Moobwe said FRA should raise the buying price for a 50kg bag of maize from the previous K150 to atleast K200 so that farmers can cover their cost of production as well as realize some minimal profit.

Moobwe noted that if the farmers take into consideration everything that is involved in the production of maize besides the inputs, K250 would be a reasonable price for the purchase of a 50kg bag of maize this year.

Analysts say the ministry of Agro also has to be cognizant that farmers will need to use these sales proceeds to buy fertilizers, seeds, chemicals and other inputs whose prices have increased to be able to make their Agro businesses sustainable.

“Our expectations are quite high, we have confidence that FRA will give us a good price, we don’t expect FRA to maintain the K150 per 50kg bag which will be a mockery to farmers, so if they can raise it up to K200 and above, it will be much better”, he said.

He explained that the farmers were buying a bag of fertilizer between K600 and K700 therefore the need for government to raise the buying price to K250, which may not even be enough when the farmers look at how much they spent on seeds, ploughing and weeding among other things.

Moobwe has appealed to government to support other alternative measures of crop fertilization and encourage farmers to use other products such as liquid fertiliser, which has been proven by Mount Makuru research and other organisations as well as farmers.

Government had in 2020 hinted on putting through regulatory mechanism to allow FRA or set up an independent body to act as a marketing agency that would directly buy and export maize so that some of the benefits can trickle down to farmers, but red tape continues to hamper progress.

The Small Scale Farmers Development Agency -

Zambia still struggling to close wheat deficit-MAZ

The Millers Association of Zambia (MAZ) says the country has been experiencing a wheat deficit for the last 10 years, which it has been cushioning through imports to ensure that there is smooth trade on the domestic market.

Association President Andrew Chintala has refuted statements that the country is producing enough wheat for consumption adding that the association is ready to stop importing wheat once there is sufficient increase in production.

Speaking in an interview with the Zambian Business Times-ZBT, Chintala said there is a readily available market for wheat and the millers are the biggest consumers of wheat locally with a huge demand from countries like the Democratic Republic of Congo (DRC) and Malawi, which do not produce much wheat.

Chintala explained that the association engages all the stakeholders including farmers before deciding to bring in any wheat imports noting that the stakeholders establish how much the country needs and how much is available locally then import the difference based on the consensus of all stakeholders in the value chain.

“They may have the potential to be able to increase their production but not until we get to a level or to a time when the country becomes self-reliant, then am sure that argument can start but as it is we do not just import without their consent. It is the farmers, the millers and the traders that sit and deliberate on the matter and establish the requirement in terms of the short fall and that is what we present to government”, he said.

He noted that the association is mindful of the fact that it needs to protect the local industry that is why it is working together with all value chain players so that they create an enabling environment conducive for all stakeholders.

Chintala said the African Continental Free Trade Area (AfCFTA) agreement would open up many opportunities for farmers, producers and all players in the food value chain therefore the country should start positioning itself to take advantage of the opportunities the AfCFTA agreement will bring.

The Association President mentioned that MAZ has so far imported approximately 60% of the total 100, 000 metric tonnes of wheat that government allowed the association to import.

The Millers Association of Zambia (MAZ) says

Edible oil refiners opposes export of 100k tons of soya beans

The Crushers and Edible Oil Refiners Association (CEDORA) has revealed that they oppose the decision made by Oilseed stakeholders to export 100, 000 tonnes of raw soya beans when the country has installed capacity to process all the soya produced this year.

CEDORA Director Aubrey Chibumba said the decision is rushed, as processors have not been given an opportunity to acquire the soya beans needed for processing of cooking oil and other products locally.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, Chibumba said the stakeholders did not consider the fact that of the 411, 000 metric tonnes of soya beans that was produced last season, only 40, 000 metric tonnes was exported which means 371, 000 tonnes of soya beans was consumed locally.

So if last year 2021, 371,000 tons of soya was consumed locally, where has the computation or estimation of the 280, 000 metric tonnes which has now been reserved for domestic consumption this year 2022 come from?. The 280,000 is far less than what was consumed locally last year.

Chibumba told ZBT that CEDORA has written to the Ministry of Agriculture and stated its position that there is a potential of exporting a maximum of 40, 000 metric tonnes of soya beans and the rest should be left for the domestic market.

He noted that the decision to allow the export of initially about 30, 000 metric tonnes of soya beans with a review later on of possibly increasing if the need arises was reached at the last stock monitoring committe meeting adding that it would be wrong for the public to think there is enough soya beans for the country to allow the export of 100, 000 tons.

“You ignore all those things and just simply say that we are going to export 100, 000 tonnes. Some people just want to manipulate the value chain for whatever reasons of their own, so we refused to sign that statement”, he said.

Chibumba said the association members currently has installed capacity of a million tonnes of Soya, so the country can process the whole 475, 000 metric tonnes of  soya beans that has been produced this year, but some people in the value chain need to trade soya beans for their own reasons or interests.

He explained that it is understandable that everyone in the value chain has to benefit but the association members has invested over $500 million to put up crushing and manufacturing facilities in Zambia but people who have not made any investment are trying to dictate what happens in the sector which should not be allowed.

“In every other sector, the emphasis is on value addition so why should this be different, we have got the capacity to process all the produce but we don’t want to look as if we are trying to manipulate the prices, so we understand that a reasonable quantity of beans could be exported”, he said.

Analysts say it’s better for a country to meet its local demand first before exporting the excess especially with the reported looming shortage of food on the back of the Russia – Ukraine conflict. Cooking oil, soya cake and stock feed which are value added products can then be exported to earn the country much more than the projected $63 million from exporting raw and unprocessed soya beans.

The Crushers and Edible Oil Refiners Association