ZNFU accuses millers of profiteering
ZNFU accuses millers of profiteeringBy Chiwoyu Sinyangwe
Tue 18 May 2010, 07:20 CAT
THE Zambia National Farmers Union (ZNFU) has accused the Millers Association of Zambia (MAZ) of profiteering in the pricing of mealie meal.
ZNFU president Jervis Zimba warned that bumper harvests achieved in the country in the last two seasons risked being reversed for as long as millers continue to benefit at the expense of farmers.
Zimba claimed that net profits for millers in the country were as high as 78 per cent of total cost and that was exceptionally high by any standards, especially in the milling industry.
“When price sensitivities are run for all maize byproducts, a 10 per cent profit margin can be realised with breakfast meal trading at K35, 000 per bag, roller meal at K22, 000 per bag and bran at K6, 000 per bag,” Zimba said. “Under these conditions, it is evident that current maize marketing arrangements do not benefit the farmer or consumer.”
Zimba, who said ZNFU still believed in liberalised maize marketing mechanism, however, said there was need to review the entire maize marketing programme in the country.
“The farmer is faced with a producer price below the cost of production while consumers are exploited as the retail price do not fall in line with the drastic drop in the producer price paid to the farmer,” he said. “Who benefits then? This begs for a total review of the maize marketing policy environment.”
And Zimba who likened the role of millers to that of ‘briefcase maize buyers’ said the current price imbalance was a threat to recent successes recorded in both seasonal and off season maize output.
“When there is such irresponsible behaviour in the markets, it’s imperative that some regulatory mechanisms are introduced with full participation of all players in the industry,” said Zimba.
“Should this situation remain unchecked, maize production will drop drastically next farming season and the country risks to return to importing maize when the country is best placed to grow more of its kind for exports.”
Labels: JERVIS ZIMBA, MAIZE, MAZ, ZNFU
posted by MrK @ 2:48 PM
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