ZACA questions govt’s move to export maize

COMMENT - Perhaps it is also time to get off maize and into cassava and sorghum.

ZACA questions govt’s move to export maize
By Fridah Zinyama
Mon 09 Nov. 2009, 04:00 CAT

ZAMBIA Consumer Association (ZACA) executive director Muyunda Ililonga has questioned the government’s decision to export 100,000 metric tonnes of maize to Kenya when it has not yet established reliable strategic food reserve.

But the Zambia National Farmers Union (ZNFU) has said the government consulted widely before allowing the 100,000 metric tonnes of Maize to Kenya.

Meanwhile, Zambia Commodity Exchange (ZAMACE) executive director Brian Tembo said no more maize exports would be allowed once the 100,000 metric tonnes that stakeholders agreed upon is met.

Zambia, in the 2008/09 farming season produced about 1.9 million metric tonnes of maize, whilst its consumption is about 1.6 million metric tonnes of maize annually.

Stakeholders have expressed concern over the government’s decision to allow maize exports because there are fears that if the 2009/10 farming season does not go well, the country would be required to spend huge sums of money to import maize to meet local demand.

In an interview, Ililonga advised the government to learn from past mistakes as it was earlier this year when the country had to import maize to meet its local demand.

“Previously, we exported maize to Zimbabwe, only to start importing when we had a shortfall on the local market,” he said. “The Zambian consumer was made to pay heavily for this mistake and we would not like a repeat of the same next year.”

Ililonga said much as government had other obligations to help its neighbours, its first priority was its own people.

“We do not want to end up with another deficit with which the Zambian people will be made to pay heavily again,” he said.

And ZNFU executive Ndambo Ndambo said the government had met with stakeholders in the maize sector to consider what decision to make on the surplus maize in the country.

“As farmers, we had been asking the Food Reserve Agency to increase the floor price so that farmers could get a good return on their product as prices had crashed due to excess maize supply on the local market,” he said.

Ndambo explained that stakeholders in the Stock Monitoring Committee met and looked at local consumption which is now standing at about 1.6 metric tonnes and realised that there was a surplus of 300,000 metric tonnes.
“Once this was done, everybody agreed that the country could afford to export 100,000 metric tonnes of maize,” he said. “This was done to help farmers get a favourable price for their produce which had really crashed due to maize surplus on the market.”

Ndambo said traders were using the surplus to get very low prices from the farmers and this prompted the Food Reserve Agency to also get onto the market to help push up prices for farmers.

“As you well know, prices are determined by the law of demand and supply. If there is more supply on the market, prices are automatically pushed down and the farmers lose out,” he explained.

Ndambo said farmers were also allowed to export maize but could not take advantage of the allowance in maize exports as it is very costly to export maize from Zambia.

“Transport costs incurred are very high, hence anyone else who could afford to export was allowed to do so,” he said.

Ndambo said Zambia was a small market which could not manage to absorb any excess maize at a good price for the producer.

“If the agriculture sector is to grow, farmers should be allowed to export any excess product so that they can get good prices for their products and produce more,” he said.

And Tembo said no more maize exports would be allowed once the 100,000 metric tonnes are met, unless the government announces anything to that effect.

The Stock Monitoring Committee consists of different stakeholders like farmers, millers, traders and the Ministry of Agriculture, who met to decide what, should be done with the surplus maize on the market.
“Anyone right now can get a permit to export maize,” he said. “But exports have been slow due to the unique conditions in Zambia.”

Tembo said transportation costs are very high in Zambia, as it costs the same to transport maize from Mkushi to Lusaka and from South Africa to Congo.

“Our transport sector is not well developed and the costs of production are high for farmers hence making Zambian products uncompetitive in the region,” he said.

Tembo further said the Ministry of Agriculture was having a more holistic approach to the whole maize issue.

“All the stakeholders met and decided on the maize export issue,” said Tembo. “The stakeholders are providing government with adequate information, hence helping government in its planning and implementation process.”