Maravi

Export-led maize production

Export-led maize production
By Editor
Tue 06 Apr. 2010, 04:00 CAT

WE are almost coming to the close of another rainy season, a firm signal of the end of the 2009/10 agriculture season.

We firmly state that it is the end of the agriculture season because the bulk of the local farming sector is rain-fed as off-season activities are very minimal – a preserve of a few commercial farmers.

The agriculture sector is crucial to Zambia, not only because of its significant contribution to the country’s Gross Domestic Product at about 18 per cent, but is also a major employer of rural dwellers. Latest indications are that at least 75 per cent of the population is involved in some form of agriculture.

If well managed, the sector has the potential to make a dent on the high rural poverty levels estimated to be around 80 per cent.

Whereas the country produces a variety of products in the agriculture sector, we want to draw ourselves to maize, our staple food – the most politicized crop.

Maize production is a major source of employment, especially in rural areas and at the same time, the commodity is a useful buffer zone to shield our fragile earnings from inflationary pressures.

According to latest indications from the ministry of agriculture, positively, the country should be able to go over last year's production.

Last year, Zambia harvested 1.9 million tonnes of maize which resulted in the country having a surplus and exporting about 100,000 metric tonnes.

Naturally, the upbeat preliminary indications for this year’s harvest should call for celebrations as the country is headed for another bumper harvest.

Amidst this seemingly comfortable situation, the Zambia National Farmers Union (ZNFU) president Jervis Zimba raises some very interesting comments regarding the current happenings in the agriculture sector with specific emphasis on marketing.

“FRA has to export this maize as quickly as possible,” Zimba says. “If they do not, it will affect their participation in this year’s crop marketing season, as they might come onto the market late and go against regulations which require them to enter the market in July every year.”

He adds that the government should export maize and prevent local farmers from being subjected to the whims of opportunistic buyers who profiteer on hard-earned maize.

“This is unacceptable and government, through FRA, should not allow such a thing to continue, as it might demoralise farmers from growing maize,” Zimba adds.

The ZNFU chief is calling for export-led maize production as a way of enabling local farmers to get a good return for their investments.

The problems in the maize sector are not entirely new. The same can be said about the solution.

The maize sector is prone to “boom bust” cycle. We produce enough during good season to the extent of exporting some marginal surpluses, and any negative changes in the weather, we are doomed and back to deficit.

We want to draw the nation to policies and decisions needed to be undertaken to achieve sustainability in developing an export-led agriculture.

It is the principle of “let’s produce for the world.” Looking at monthly consumption of about 60,000 to 80,000 metric tonnes of maize, we feel, if efficiently managed, two provinces can produce maize to take care of the country’s domestic needs.

Our country’s maize production sector is dysfunctional. Although the country has in recent years achieved some levels self sustenance in maize production with some minimal surpluses, in real terms, there has not been any growth.

We say so because what has moved the country from deficit to surplus is simply perennial government subsidies in terms of inputs and also the good acts of God - healthy rainfall patterns recently.

Zambia’s maize production costs are very high compared to its peers in the region.

We strongly submit that this is not the correct way to sustainably develop an export-led growth in maize output.

There is need to revolutionalise maize production in the country and correct policies and actions need to be taken.

We feel international economic fundamentals are ripe to support this path. But as a country, we need to make our position very clear on things like investing in technology, financing for maize production, subsidies, developing the peasant farmers who form the bulk of production base…

Money for infrastructure to open up rural areas should be put in place as a matter of urgency. What is the role of Foreign Direct Investments in the maize production sector? All these things need to be clearly stated. But sadly, we seem to be very far from achieving or attempting to achieve that level of preparedness.

If not properly planned, opening the country’s staple food to exports can be disastrous.

Despite the risk associated with developing an export-led maize sector, we submit that the benefits of taking this route by far outweigh the demerits.

Zambia’s small population compared to the quantity of the arable land means that there should be no serious barriers to its continuing exploitation of agricultural land for rapid export-led growth.

But is the external economic environment we are emphasising so much likely to remain conducive to support continued export-led growth?

A number of countries within the region still face challenges of feeding themselves owing to different dynamics.

Underdevelopment in their agriculture sector and unpredictable weather patterns would certainly continue to provide that much needed hand to propel regional demand for our maize. But only if things are correctly done at home.

And besides, there are no obvious limitations in the external environment that would prevent the continuation of this process for some time to come.

But all the benefits and achievements of embarking on growing maize for the export market can only be achieved with correct and well-done cocktail of policies and decisions.

Labels: MAIZE, NEOLIBERALISM

posted by MrK @ 2:47 PM