Zambia exporting maize at a loss- ZCF
The Zambia Cooperatives Federation (ZCF) has observed that the Zambian government has continued to subsidize maize exports within the SADC region.
ZCF Director General James Chirwa says the country has been exporting maize at a loss despite the country having to incur high production costs.
Mr. Chirwa notes that with last year’s maize floor price of maize pegged at K65,000, FRA was spending about US$ 260 per tonne of maize.
He adds that FRA has however been selling the maize to other countries within the region at a cost of not more than US $170 per tonne.
Mr. Chirwa has since reminded the government that Zambia is not that rich to be exporting maize at a loss and has since called on the government to work towards reducing the prices of the farming inputs.
Mr. Chirwa notes that this will help the country begin to sell the maize profitably.
Last week, the FRA announced that it had signed a contract with a Zimbabwean company to export 300, 000 metric tones of maize at a price of US$ 42.2 million.
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Another donation by UKWA.
I think this is a necessary loss it takes time to develop a sector. Soon it will be efficient and profitable as long as we work on it. GRZ should also look into investing in feed production so it adds value to the maize. ZNS should be able to do that
This is a shame to this government,selling maize at a loss for campaigns for president Mugabe to cheat the people of that country, just to please Mugabe on behave of massive suffering Zambians, Some farmers are not yet paid for the same maize going for campaigns in Zimbabwe. Its a shame bane, this government risks being the most useless if things keep on going at this rate…….. its disappointing.
The BBC reports panic buying in all Malawian cities and towns after devaluation of their Kwacha. We can try and flog it there at a better price possibly. Well, if the government doesn’t maybe some enterprising individuals can try.
ZNFU and other economists and any one who has attempted maize farming with own money has always said this. This in not new.. It has always been like that since KK’s days until FTJ scrapped subsidies. LPM reintroduced them amd we are back to square1.That is why commercial farmers dont grow maize as a cash crop. These fertiliser subsidies and marketing arrangements (add corruption/shady deals and political interference) are TOO COSTLY to sustain. Coaxing people to Change the staple diet to less expense crops like tubers (cassava and sweet potatoes) is a more sustainable method of helping peasant farmers. Other than that scrap the subsidies and let commercial farmers grow maize profitably (at much lower unit costs) and without govt subsidies
Am now wondering whether the wind of change came at the right time!!
The Govt is there to provide a service to citizenry, not to make a profit.Profits are made by business houses,if the govrt makes a loss feeding and empowering its people,then its sustainable. We need to help peasant farmers diversify.
It may be difficult to change the deeply ingrained maize as a staple food culture. What about making other products that add value to maize and selling the maize as those products?
Products such as maheu are selling themselves and need minor marketing – am told Zambian maheu is very popular in Kenya, Tanzania, Uganda and South Africa. Any potential Zambian entrepreneurial billionaires out there? We just need to think outside the box (export maheu to China for instance) for future maize surpluses, as recouping loses on this one may not be that easy.
Export meal mill not grain.
# 3 PF MUTALE is vital to have enough data on a specific subject before you make a comment. The then MMD government politically bought maize from farmers at k65,000./50kg bag for political expendiace. This price was the highest for a 50kg bag of maize in the SADC region. Businessmen went to our neighbouring countries to buy at cheaper prices and resale to FRA pretending to be farmers. So , this maize from outside and the maize from genuine farmers accumulated to 1.7m metric tons against a storage capacity of 1.3m metric tons. its only sensible to sell at an acceptable cheaper price than letting the maize rot because no one around The SADC region can buy at k65,000 or more. A way forward is the govnt not to interfer with FRA mandate of just stocking strategical maize reserve.
Stop growing maize and raise cattle or goats.
Then what will FRA buy next year?
The govt will run out of money to steal.
I would not eat that, or rather the products of it
I prefer rice and Potatoes I think no one cares whether these are going for a loss really, What sends me in a retreat mode is to see people eating Nshima and using their hands (how dirty) I know spoons and forks are expensive how about even chop sticks/and then you talk of illness and why people die young! Answer look in the mirror!
Thanks
I love you too baby. Please don’t let that pubic hair grow – you know how I hate that. Especially when it grows on your chin and around your mouth. DISGUSTING !
I left Zambia to eat potatoes in Scotland and of course sell sex
The Government is not making a loss! The price paid to small scale farmers has a large part of income transfer to the poor. This is done in the USA and Europe as food stamps or income support.
The export price FRA is receiving is the regional price and therefore, we have to increase productivity if we are to remain competitive. Subsidizing inputs is what the government has been doing and it has never been profitable. ZCF benefitted from this subsidy and it did not work! If maize is not profitatble, farmers should shift to other products.
@ 10 Mushota. Which of your three holes do you use the knives and spoons to musticate the rice and potatoes. I reckon its the one on your backside. You are not normal.
Good afternoon
Exporting maize at a loss – what a paradox for a country with enough hungry mouths of it’s own to feed. My plan would be as follows:
1. Halt all maize exports with immediate effect.
2. Focus on maize storage and maize processing plants around the country.
3. Lastly, involve professional agricultural organisations (there are many in Germany) in the investment, planning and realisation of a self-sufficient and diverse industrial policy. Agro-industry is the way forward for a continent where you can grow practically everything from cotton, to sugar cane, rice and groundnuts.
#10 Mushota, nobody ever told you that using your hands to eat is more hygienic than using forks or spoons, which are alien bodies and therefore carry alien substances into your body?
A mushota niye ******** chosilizilako, a coupla years in the UK and she has become more British than the Brits!! Ufonteen. Tunzelu kuchepa.
Mushota, it is alleged that your pubic hair grows on your face !
Please tell us this is not true.
Nick, er sorry Dick – you have made my day !!
Nine Chale
You have made logical recommendations on the maize but unfortunately the reality on the ground is different. I assume you are have been abroad for a long time. Perhaps you may fine tune your recommendations if you consider the following:
1. Halting maize export will throttle the only other substantive avenue of depleting stocks apart from milling for mealie meal and livestock feed
2. After privatisation the former Namboard/National milling grain silos are in a sorry state of disrepair. So storage is major constraint. (millers are not interested in stocking tying up their working capital in huge quantities of maize).
CONT;Secondly, the FRA must start to prepare for the next planting season and the same sheds, slabs and tarpaulins where the maize is now stocked will be need to accommodate the farming inputs. A lot of crop got wasted/soaked last year and halting exports will certainly lead to more wastage due to lack of proper storage
3. Last year I spoke to an agro economist & was told that commercial farmers in RSA produce white Grade A maize at under 160 usd/tonne whilst our Zambian peasant grown grade C maize according to LT,ZCF costs 260 usd per tonne
CONT:4. We are fortunate to sell the grade C maize at 160usd per ton maybe because Uncle Bob is buying on nkongole
5. The value chain for maize in Zambia stops at mealie meal and to some extent livestock feed. The millers make the most gain/profit in the value chain and of late, there has been too many milling plants set up in the country , a glut/over capacity. It is difficult think of an expanded use in the Zambian maize value chain beyond mealie meal (unless we want to subsidise livestock feed production which is politically incorrect). Beef and pork production are being outstripped by demand and cheaper livestock feed may help to boost production.
6. I agree agro industry may be a way forward (and not the only one) BUT we have to THINK OUTSIDE THE BOX. Tell me of a country which grew its economy by giving subsidies to peasants. China has had to relocate/turn peasants into migrant factory workers to maintain its growth. But we have kept trying the same agro subsidy experiment since independence like a broken record. Cheers
So FRA was buying maize at US$260/ton. Govt is now selling 300,000 tons at US$42.2m. The cost this maize was bought at from farmers is US$78m ($260 by 300,000). The loss arising from the sale of 300,000 tons at US$42.2m is therefore US$35.8m. SURELY WE CAN NOT AFFORD TO MAKE THIS LOSS.
Theorotician,
Thank you for the very sensible input. Yes, someone should stop playing that broken record. I suppose politicians keep playing it to stay in power and often quote their “broken record” as signs of a caring regime.
Shifting the scope to agro-industry and doing this on an epic scale of operation is a good outside the box option.
Zambian maize sells for about $170 a ton. Imports into southern Africa in the past decade from as far afield as Canada and Argentina have gone for more than $300 a ton.
Zambian maize is being exported at US$170 per tonne. South Africa is trading its maize between US$270 and US$300 per tonne while Chicago is close to US$200 per tonne, making Zambia the cheapest globally.
Number 1 and mushota are useless.Dont follow them. No jokes or kidding here we are debating a serious issue here. People maize is one commercial product which is cheaper to grow in zambia for the ordinary family.The only thing the government can do in order to promote diversification which is the answer is to subsidise and provide makert for other crops famers. To export surplus is the best thing we can do in oder to prevent wastage. Please dont advocate that government should give maize free to its citizens its wrong. Am ready for this farming season because i have to be productive.
These eyewear not simply have been listed correctly but rock. anyone who see’s me through these eyewear they check with me if we can tell them have been to buy them.