Friday, June 14, 2024

Maize prices 50 percent down-FEWSNET

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Farmers in Moyo chiefdom of Pemba district found knitting the 50 Kilogrammes bags of maize for sell at one of the Food Reserve Agency depots in the area.
Farmers in Moyo chiefdom of Pemba district found knitting the 50 Kilogrammes bags of maize for sell at one of the Food Reserve Agency depots in the area.

The Famine Early Warning Systems Network (FESWNET) says maize marketing activities are slower than usual due to low local and regional demand.

It states that Maize prices range from around K40-K50 per 50 kg bag in most districts, which is causing concern among farmers.

It says current maize prices have dropped by more than 50 percent in comparison to last year.

“In a few districts, e.g. Monze and Mkushi, maize prices are slightly higher at K55-K65 per 50 kg bag, however this may be temporary,” FEWSNET said in a report.

Meanwhile, the Food Reserve Agency (FRA) announced on July 25th that the buying price for the season will be pegged at ZMK 60 per 50 kg bag.

FEWSNET said this price is disappointing for farmers that were anticipating a better price from the FRA.

It noted that the FRA is likely to purchase 500,000 MT of maize for the strategic grain reserves starting in August. 

“Formal maize exports to mostly Tanzania continue, but at a slow pace despite the removal of the export ban and 10 percent export duty. Drivers of this may include the limited regional market and the logistical challenges of exporting to Kenya. Additionally, the recent appreciation of the local currency will make Zambian maize more expensive and less competitive,” it noted.

“In contrast, substantial levels of informal maize continue to be exported to the Democratic Republic of the Congo (DRC) and Tanzania. Meanwhile, the tender by the FRA to sell 100,000 MT of last season’s maize to potential exporters closed and it is in the process of awarding the successful bidders.”

3 COMMENTS

  1. In simple Case of demand and supply. This implied it’s justified to have mealie meal expensive

    Thanks

    BB2014,2016

    • Mushota, your English might be better and your mail more intelligible if you had waited for another 2 hours to be more fully awake.

      Thanks!

  2. This year maize set at 60kr per 50kg bag which is 1200kr tonne or approx us $136 tonne. We are selling 100000tonnes for us $13 million which equates to us $130 tonne so we are losing $6.00 per tonne., BUT wait there is more we are selling last seasons maize which was bought at 85kr per 50kg or 1700kr tonne which today works oit at $197.36 per tonne. Now we are losing $67 per tonne… before you all say the exchange rate was over 10 last year it doesn’t come into it because it was BOUGHT in KWACHA…….7

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