Maravi

Economist predicts stable prices of mealie-meal

Economist predicts stable prices of mealie-meal
By Joan Chirwa in Mkushi
Monday May 12, 2008 [04:00]

MEALIE-MEAL prices will soon stabilise since commercial farmers have commenced the sale of early maize, Ministry of Agriculture principal economist for trade and entrepreneurship Anayawa Mutemwa has said. Mutemwa, in an interview after a tour of some commercial farms in Mkushi said milling companies were currently building up on maize stocks considering that most commercial farmers had started selling the early crop from the last season.

The Ministry of Agriculture and Co-operatives in collaboration with the Zambia National Farmers Union (ZNFU) is establishing maize stocks currently held by farmers in view of the rising prices of maize and mealie-meal on the local market, further pushing up the cost of living for an average citizen.

“Maize is available and the millers are now buying from commercial farmers. Maize stocks for milling companies have been going down and this justifies the reason why prices of mealie-meal have gone up,” Mutemwa said. “But now, commercial farmers are harvesting their early maize and this maize is being supplied to the millers. This is therefore expected to ease pressure on the market.”

So far, more than 7,000 tonnes of early maize have been sold to milling companies, with Chimsoro Farms committing a total of 10,000 metric tonnes for sale to the millers.
Maize stocks for milling companies tremendously reduced this season, a situation that contributed to increasing the prices of mealie-meal. Most millers however did not release the maize. With the beginning of early maize sales, milling companies will soon have enough maize stocks for their normal capacity.

According to this season’s crop forecast released last week by the Ministry of Agriculture, maize carry-over stocks stand at 390,350 metric tonnes compared to 433,031 metric tonnes recorded in the previous season.

Maize production from the 2007/2008 farming season has posted 11.32 per cent reduction to 1,211,566 metric tonnes compared to 1,366,158 metric tonnes gained the corresponding agricultural season, falling below the country’s annual maize requirement of 1,458,916 metric tonnes.

Therefore, the country’s estimated maize surplus is recorded at 143,000 metric tonnes in contrast to last years’ surplus of 250,000, representing a 42.80 per cent reduction. Adding this years’ maize production, the total available maize for the country to cater for the 2008/2009 marketing season amounts to 1,601,916 metric tonnes compared to 1,799,188 metric tonnes last season, representing a decrease of 10.96 per cent in total maize availability.

When total maize requirements of 1,458,916 metric tonnes are netted out of total maize availability, the country remains with a surplus of 143,00 metric tonnes. This includes an anticipated government strategic reserve stock of 157,000 metric tonnes for the Food Reserve Agency (FRA).

And Mutemwa – who is in charge of export and import permit issuance – said maize exports would only be allowed once the sanitary and phytosanitary committee established the country’s food requirement this year.

“At the moment, we cannot allow maize exports because that can only be done once the sanitary and phytosanitary committee advises the government to do so,” said Mutemwa.

Labels: ANAYAWA MUTEMWA, INFLATION, MAIZE, MEALIE-MEAL

posted by MrK @ 3:44 AM