The Zambia National Farmers Union – ZNFA has disclosed that the resent announced purchase price of white Maize by the Food Reserve Agency – FRA is nowhere near the range recommended range by stakeholders of between K130 – K140 per 50 Kilograms of white Maize based on prevailing market price indications.
ZNFU Public Relations Manager Calvin Kaleyi has told the Zambian Business Times – ZBT in a statement that the FRA price of K110 per 50Kg is far below the current maize prices being offered in the main producing areas such as Central and Eastern province.
He said the Union recognizes that the cost of production has increased and continues to escalate while the asset or capital base of farmers has been wiped out by adverse weather patterns which has been prevailing season after season since 2015 and that the price set by FRA is hostile to the farmers.
“ZNFU was invited to a consultative meeting with the Ministry of Agriculture and the announcement by FRA is nowhere near what was suggest by stakeholders in the meeting as the purchased price of white Maize was suggested to be between K130 – K140 and not the K110 that the FRA has set,” he said.
Meanwhile, the Food Reserve Agency – FRA has set the maize purchase price for the 2019 crop-marketing season at k110 for a 50 Kilogram bag and has fixed the price for a 50 Kilogram bag of soya beans at K150 and paddy rice at K70 respectively.
Addressing the media in Lusaka on July 5th 2019, FRA Board Chairperson Jeo Simachela said the Agency in consultation with government and key stakeholders undertook a process of crop price scenario analysis that included a survey of prevailing farm gate and open market prices with key market stakeholders and players in the crop marketing chain under the auspices of the Ministry of Agriculture.
He added that it is anticipated that FRA prices will not disadvantage the private sector who are expected to purchase the larger share of the projected 2,004,398 metric tonnes produced in the case of the maize crop.
Simachela further disclosed that in commitment to the promotion and development of agriculture, government has released a total amount of K74.4 million for payment to farmers on first come first serve basis and that FRA has disbursed the funds to various districts in readiness for payment to farmers.
He said there is further commitment for government to continue releasing farmer payments funds periodically and promptly to ensure FRA meets its purchase target. The FRA board chairman also announced that FRA only intends to purchase 300,000 metric tonnes of white maize, 4, 000 metric tonnes of soya beans and 1,000 metric tonnes of paddy rice.
According to the maize forecast data obtained by ZBT released by the ministry of Agriculture, 95% of Zambia’s maize is grown by small scale farmers while commercial farmers only contribute the remaining 5%. This scenario has emerged due to the heavy control of maize market prices and export bans which commercial farmers are well aware of and avoid getting entangles with.
Some Agro analyst have called on the Zambia National Service to grow the 500,000 metric tones of Maize needed for local food security and national consumption so that the private sector can concentrate on selling into the ready export market such as neighboring Democratic Republic of Congo – DRC and Angola.
