ZNFU urges reintroduction of maize marketing board
ZNFU urges reintroduction of maize marketing boardBy Chiwoyu Sinyangwe
Tue 08 June 2010, 08:20 CAT
ZAMBIA National Farmers Union (ZNFU) has called for the reintroduction of the marketing board to oversee the purchase and eventual sale of agricultural commodities.
The farmers body has since suggested that millers and grain traders be banned from directly purchasing maize and other agricultural commodities from small scale farmers as they often bought the crops at below production cost price.
ZNFU president Jervis Zimba said there was need for the creation of one institution, such as the defunct National Marketing Board (NAMBOARD), that will solely oversee the purchase of maize from farmers in the country.
Zimba explained that the country needed to adopt a system like in Malawi and Zimbabwe where a single institution was responsible for buying all the maize in the country and also executed the marketing functions.
He said the firm to oversee the maize marketing exercise needed to be modeled along the lines of the defunct NAMBOARD. Zimba said the deregulation in maize marketing had proved that it could never work to better the lives of poor farmers and mealie meal consumers.
“What we really need at the moment is to reform the maize marketing sector because it is clear that the market forces of demand and supply have failed to work in this country,” Zimba said.
“This equation of demand and supply has failed to work because not only is it benefiting few people…the millers, while the farmers and the government are both losing out. And the rate at which we are going, the farmers will need an institution like NAMBOARD. A similar arrangement is happening in Malawi and Zimbabwe and in both countries it has proved to be a huge success.”
Formed in 1985, Namboard was the monopoly buyer of maize at prices set by the government and the cooperatives were merely agents.
The establishment of Namboard was based on the belief that centralised agricultural marketing would streamline the operations, while the promotion of cooperative unions was viewed as a way of protecting the peasant farmers from exploitation.
In mid-1989, the government announced the dissolution of Namboard and transfer of its agricultural marketing and related functions to ZCF, including fertilizer importation, maintenance of maize strategic reserves, importation and distribution of empty grain bags, and provision of fumigation services. The main justification for the decision was the further streamlining of the agricultural marketing system by avoiding duplication of responsibilities and double handling.
Zimba said there was need for a strong government insofar as maize marketing was concerned.
“In the absence of very serious government intervention, which normally happen world over, as staple food and if we want to maintain consistence in production, government needs to intervene,” he said.
“We are aware that the millers, grain traders and briefcase buyers do nothing in a surplus situation. All we are saying is that ‘can we have a serious intervention’ by the government. I think we have taken too long to react to these unscrupulous market forces. What we should have done…What we really need to do now is total reform programme for agriculture. We have discovered that this equation of demand and supply does not work in small markets like Zambia. So, the farmers’ call right now is that they are thinking that the only choice we have is revert to the old system of FRA buying the crop and traders and millers should buy from FRA. And then we can start discussing on pre-plant prices…before the farmers grow the crop. The current problem we have now…we need government intervention by buying the crop and exporting it under a subsidy programme.”
Zimba said owing to the dysfunctional maize marketing arrangement in the country, efforts of the government to provide subsidised inputs and fertilizers to farmers were not paying dividends.
“The government provides empowerment to the farmers in pre-planting season,” Zimba said.
“…and at the same time provides them with the necessary inputs but what happens is that when it comes to the marketing time…because the farmers are selling at below-price-production, the government initiative of supporting farmers only accumulates to the briefcase buyers and millers who get the final product at ridiculously low prices.”
Zimba said there was need for the government to lower the cost of production in the country to enable the farm products to become competitive locally and internationally.
“The cost of production in Zambia is too high; therefore in the next budget, he has to address,” said Zimba.
Labels: GRAIN MARKETING BOARD, JERVIS ZIMBA, MAIZE, MARKETING BOARDS, NAMBOARD, ZNFU
posted by MrK @ 4:55 PM
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