GOVERNMENT will this year export 800,000 metric tonnes of maize, Minister of Agriculture and Livestock Given Lubinda has said.
Mr Lubinda, however, assured that Government will not deplete the strategic reserves as a result of the exportation of the maize.
The minister said this when he paid a courtesy at Eastern Province permanent secretary Chanda Kasolo in Chipata on Thursday shortly before he officially opened a three-day agri-business finance fair.
“This year, we shall export about 800,000 tonnes of maize but we will not allow anyone to export the grain without getting an export permit,” Mr Lubinda said.
He said Government will closely monitor maize exports.
Mr Lubinda reiterated that no citizen will starve despite some parts of the country recording crop failure due to partial drought.
And speaking during the official opening of the agri-business finance fair, Mr Lubinda urged farmers to explore new methods of farming.
He said over eight million people in the world, including Zambia, are threatened with starvation and it is important for farmers to start thinking of taking up agribusiness.
Mr Lubinda also said Government is introducing milling plants in all provinces with surplus maize to help reduce the price of mealie meal.
He said Government will continue providing farm inputs under the Farmer Input Support Programme (FISP) and urged small-scale farmers to work hard for them to graduate from vulnerable to viable farmers within four years to enable others to benefit from subsidised inputs.
AgriProFocus country co-ordinator Claire van der Kleij said this is the second business finance fair to be hosted after the one in Southern Province aimed at supporting development of agribusiness by improving access to financial services and credit facilities.
What Is happening to Gen. Miyanda? The man is just too silent.has joined PF?
NO!!! no money no show. he’s busy implementing last election funding and preparing budgets for 2016 election
yes and he has been appoited to foreign mission
Add value to the maize and export as mealie meal and/or stockfeed. This way both the profits and forex earned are larger
The law of supply and demand dictates that if there is surplus supply, demand will ease and prices will go down. So, the question is:- have the prices of mealie meal in Zambia gone down low enough to open the export gate? Or is it a case of selling to the highest bidder to break even and make money due to high input costs? Which is which? What criteria determines when to start exporting our staple food in our Country?. Any one?
Man, are you a grade 12 economist who just looks at the theory without taking into account the conditions on the ground. Listen, the price of mealie meal in Zambia shall constantly be high because the industry is full of imperfections such as cartels among the millers, no wonder GRZ wants to establish milling plants in each province so that the milling industry is coerced into perfection. Has this helped you to understand why the law of demand is not working on the mealie meal price?
@Truth Hates, (whatever that means).
For you to fail to see that I was just being sarcastic in my comment strongly suggests that your IQ is in single digits. Your demeaning language confirms your low IQ, and your pseudo name says it all about your pea brain.
Both of you are indulging in stoopidity when you could have taken your discourse further. Cactus’s reasoning even if based on sarcasm is well grounded although a govt economist might say he can’t keep such stocks forever risking decay when he can earn returns from it. But Truth Hates response is what is the problem with us presently in Africa. We can’t engage each other progressively if we start off by belittling the other party. And that can be seen by Cactus’s immature response here. I very read his contribution elsewhere and he has been quite progressive.
Both of you are indulging in stoopidity when you could have taken your discourse further. Cactus’s reasoning even if based on sarcasm is well grounded although a govt economist might say he can’t keep such stocks forever risking decay when he can earn returns from it. But Truth Hates response is what is the problem with us presently in Africa. We can’t engage each other progressively if we start off by belittling the other party. And that can be seen by Cactus’s subsequent immature response here. I ve read his contributions elsewhere and he has been quite progressive.
@Higher Taller,
You are right. I am sorry I nearly lost it, and my poor response came right off the bat.
Its just that I am passionate about my Country and trying to stimulate thought and health debate that helps lead to solutions. We are only 13 million, so there has to be a better way than to sell our staple food to neighboring Countries with better storage facilities, only to turn around and buy from them when we run out in 6 months. Yes, there are plans to set up storage facilities in provinces blah blah.. We have hear it before, Govt after Govt. No hard feelings, Truth Hates. Can we shake on that?
The storage capacity for Zambia is not enough to contain the surplus stock hence the need to export. I hope you also understand that storage attracts a lot of money.
to us storagists we consider stock or inventory as a waste. let’s take that waste to neighbouring countries. I hope my economics is profitable competively in the region.
@Dk International,
Stock is waste? Please shed more light and clarify your statement.
I am sure as a Stockist you will agree with me that if you sell and export your staple food to your neighbouring Country, and they store it at different storage locations throughout their Country, three things will have to happen no matter how good a planner you are: –
1.) You will have to have minimum Stock On Hand (SOH) to at least cover logistics, i.e. the period of time it takes for the Stock being moved from your neighbouring Country, or Stores In Transit (SIT) to arrive where you want it for distribution to end users. This can be as much as one month SOH cover, given our traffic on our road network. Can even be more if you use the rail and they go on strike.
2.) kg for kg, it will cost…
Cont’d…
…cost you considerably more to buy back the Stock from your neighbouring Country 6 months after you sold. This is simply because as we all know, the price of a bag of Maize fluctuates, and it is highest towards the end of the year, just before next harvest. So you are selling when it is cheapest, and buying back when it is dearest. I am sure the neighbour loves you for this.
3.) The cost of insurance for moving Stock to and from your neighbouring Country will ultimately be borne by you.
So, in total you will incur the cost of Stock+Insurance +Freight (SIF).
BTW, among other things, I am a qualified and a time served Materials Specialist. Now please explain how your zero stock option works. I am willing to learn.