ZNFU welcomes new maize price

The Zambia National Farmers’ Union welcomed the announced Food Reserve Agency (FRA) price for maize at ZMK280 per 50 kg bag. The Union says this signals the beginning of progression towards cost reflective pricing for maize in this country.

They say this will motivate farmers to return to producing maize for national food security and exports.

“Price is a key factor when farmers decide which crops to plant. Over the years, we have seen more and more farmers abandoning maize production for the simple reason that the price incentive was just non-existent as it became impossible to recover the investment put into production.

“To government, we say well done on this one. With right signals, the future looks positive for maize as long as cost reflective prices are sustained.”

The ZNFU is however disappointed that soya beans will not be part of the FRA strategic reserves this marketing season. They say farmers in remote areas have embraced crop diversification and the season promises a record crop of soya beans.

“Here, we propose that government allows regulated exports of soya beans immediately. The ZNFU would like to see a situation where all the soya beans value chain players are sustained in business and not short-changing the farmer. What good will it be to abandon soya bean farmers at crop marketing, having oriented them to growing soya beans as an alternative crop which is also good for the soil in crop rotation?”

The ZNFU doubt the assumption that there is enough crushing capacity for all the beans. The union says historical facts of the dynamics of this value chain show in practice that this is not tenable.

“We invite Government to a constructive consultative meeting on the soya beans value chain so that together we can agree on pragmatic solutions.

“It is a fact South Africa has a huge soya bean crop implying that the demand in the region for value added products will be subdued. This suggests we should also look at exports of the beans itself if the prices are to be salvaged.

The fact that our soya beans is nonGMO will give Zambia an edge in niche markets which traditionally pay premiums on non-GMO commodities.”

The Union also pointed out that the crop marketing window is relatively short and that the government needs to make timely decisions on exports to send the right policy signals to players in the market.

“Finally, we want to reiterate that the Union remains confident that the signal set on maize pricing by FRA, will be sustained and reverse the production curve that has been on steady decrease in the last three years. We are encouraged and believe that it is feasible to realise the dream of being a breadbasket of the region.”

Source: Zambia National Farmers’ Union