Govts must address policies that create imbalances, advises GTAZ
By Kabanda Chulu in Addis Ababa, Ethiopia
Sun 29 Nov. 2009, 04:00 CAT
GRAIN Traders Association of Zambia (GTAZ) executive director Jacob Mwale has advised regional governments to address policies that create imbalances in the marketing of agriculture commodities.
And Southern African Confederation of Agricultural Union SACAU chief executive director Ishmael Sunga has said food security will be difficult to be attained if certain basic fundamental are not addressed.
Giving a regional perspective from a traders' point of view during the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) second stakeholders meeting on Friday, Mwale said the prevailing mistrust between governments and traders should not be allowed to continue.
“We have to harmonise and find ways of working with governments and these imbalances should be addressed through good policies so that import and export restrictions are carefully planned. For instance, some governments can just wake up and say ‘don't import or export such and such a commodity’,” Mwale said.
“Actually these imbalances are creating instability in the market as you know traders react to conditions prevailing in the market hence the need for harmony among the stakeholders.”
He said it becomes difficult to operate in an environment which is not predictable.
“In some countries, government will just wake up and say we have entered the market buy such and such commodities and as traders, you are forced to sit on the fence and watch because governments should just create an enabling environment for the private sector to operate,” said Mwale.
And Eastern and Southern Africa Farmers Association representative Stephen Mushili said many farmers lack the capacity to position themselves to gain from the emerging market opportunities.
“Just last week the East African Community signed a customs union to result in a bigger market but farmers will not respond favourably since they lack capacity and they will not be in a position to influence the dynamics in these markets,” said Mushili.
And Sunga said in some instances, the marketplace was not fair to farmers due to lack of transparency in the value chain.
“The motivation for farmers is not necessarily to feed the nation but themselves and make income out of the surplus which they expect to realise good returns.
But sometimes the market is not fair and if the lack of transparency is not addressed in the value chain, then food security will not be attained,” said Sunga. “In this value chain, farmers are always in the receiving end due to low prices which are offered by other players.”
Labels: FOOD, GTAZ, HUNGER, JACOB MWALE
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GTAZ’s targeted maize purchase dependent on govt settling debt
Written by Florence Bupe
Wednesday, July 15, 2009 4:19:58 PM
THE Grain Traders Association of Zambia (GTAZ) has disclosed that it will not be able to purchase the targeted 300,000 metric tonnes of maize during this year’s marketing season if government fails to liquidate the debt owed to the association.
In an interview, GTAZ chairperson George Liacopoulos said the association was currently engaged in negotiations with the government aimed at recovering the money owed by the Food Reserve Agency (FRA).
“This year we intend to purchase 300,000 metric tonnes of maize grain valued at US $75 million (about K390 billion), but meeting this target really depends on government settling the debt that is owed through FRA,” he said.
Liacopoulos expressed hope that the negotiations would be concluded within the next two weeks.
He said the association’s participation in this year’s grain purchasing exercise had so far remained limited due to financial constraints.
“The GTAZ participation in this year’s marketing exercise has been limited this far. This is due to financial constraints experienced by the members of the association arising from the outstanding amounts owed to GTAZ for maize supplied under the subsidy programme earlier this year,” he explained.
Liacopoulos said it was imperative for the ministry of agriculture to ensure that the debt owed to the association was settled hastily to allow for the association’s enhanced participation in the grain purchasing exercise.
FRA public relations officer Mwamba Siame confirmed that FRA owed the association, but declined to disclose the amount.
“We are unable to tell you how much we owe as at now because there are certain procedures that need to be followed,” said Siame.
This year’s grain purchasing season has so far been marred by criticism by various stakeholders, including small-scale farmers.
Last week, the Zambia National Farmers Union (ZNFU) complained that the K20 billion released to FRA so far for the maize purchasing exercise was inadequate, adding that there was need to allow other players in the market purchase more maize.
ZNFU president Jervis Zimba further observed that the 110,000 metric tonne that FRA intends to buy this year, out of the estimated harvest of 1.8 million metric tonnes was too low.
Labels: GEORGE LIACOPOULOS, GTAZ, MAIZE
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Let’s stop this rot
Written by Editor
If the statement by the Grain Traders Association of Zambia (GTAZ) chairman George Liacopoulos that there is no shortage of maize in Zambia is correct, which we know it is, then Rupiah Banda’s government has a lot of explanations to make as to why there is this artificial shortage of maize in the country, resulting in shortages of mealie-meal.
In November last year, agriculture minister Dr Brian Chituwo announced that Zambia would import 100,000 metric tonnes of maize from South Africa in order to stabilise the supply of the commodity on the market. This importation would lead to an outflow of over US $40 million, at a cost of around US $420 per tonne.
However, we are told that the genetically modified maize that was returned to South Africa by the Food Reserve Agency (FRA) last week was fetching far higher than the expected US $420 per tonne. The main reason for this importation was that Zambia did not have sufficient stocks and therefore, this shortage was pushing up the price of mealie-meal because maize had become expensive on the market owing to its scarcity.
Last week, FRA imported close to 35,000 metric tonnes of maize from South Africa, which were later discovered to be genetically modified. This maize was rejected and sent back.
Therefore, maize shortages are expected and consequently mealie-meal shortages or price hikes for the commodity because the government says the country has insufficient commodity to adequately supply the millers.
But George Liacopoulos says reports or statements that there is no maize in the country are misleading because his association, the GTAZ, has in excess of 90,000 metric tonnes of maize available for sale. He says this maize is held in Eastern, Southern, Northern, Central and Luapula provinces by his members.
George Liacopoulos further says this maize has been available for sale to all millers in the country since August last year and that quantities were recently counted and confirmed by officials from Dr Chituwo’s ministry.
George Liacopoulos says the millers have not come forward to buy this maize because they have an agreement to buy subsidised maize from FRA. This Zambian non-GMO maize was offered to the government and FRA at a market price as early as November last year but FRA has not availed itself of this offer.
George Liacopoulos also observes that if this locally grown maize was bought by FRA under the current subsidy programme, then the shortage of subsidised maize experienced by the millers would be immediately alleviated due to his association members’ maize stocks being strategically located around the country. If millers accessed this maize, they will resume full production of mealie-meal and in the process relieve pressure on the ever-rising prices of mealie-meal.
Since Dr Chituwo yesterday said FRA board chairman Costain Chilala would today be making a comprehensive statement on the maize situation in the country, we challenge him to give satisfactory answers to all the issues raised by the grain traders.
If our local traders have in stock 90,000 metric tonnes of maize to sell at a cheaper price, why should the Zambian government decide to import from South Africa at a higher price? Worse still, why import genetically modified maize? Why is the government not willing to buy from its local suppliers? Who is benefiting from this decision not to buy from local suppliers?
It cannot be denied that this maize transaction has been stinking from the word go. Someone is getting kickbacks. That is why they would rather import than buy from local traders because the benefits will be less if the government buys from local suppliers. It will be less lucrative for them to buy from local suppliers.
You see, because of the undercurrents, FRA and Dr Chituwo are failing to tell the nation who the suppliers of the genetically modified maize at a very high price are. Why? The simple answer is that James, President Rupiah Banda’s son, is connected to one of the suppliers. That is why Chituwo and FRA have difficulties in disclosing names of the suppliers of this condemned maize which unsuspecting Zambians were going to consume.
And because Dr Chituwo is either avoiding to be caught up in the mess or clean up the mess he didn’t create, he has pushed Chilala to be the one to explain the maize situation in the country. FRA is just Dr Chituwo’s agent so we cannot allow our government leaders to run away from responsibility. But this is what usually happens; when a mess has been created by invisible powerful hands, junior civil servants have to be thrown in the firing line to clean up the mess; they are sacrificed.
We urge all Zambians to stand up and demand proper accountability from Rupiah and his servants. Were tender procedures followed in the acquisition of this maize? Was the awarding of this contract to supply maize competitively done? If not, why? We hope the excuse of urgency will not arise because George Liacopoulos has told us that 90,000 metric tonnes have been lying untouched all over the country since August last year and yet FRA only sought to import 70,000 metric tonnes of the grain.
In any case, the government itself had earlier in November told the nation that over 90,000 metric tonnes of maize were available locally. After that, the government has not explained why it has shunned purchasing maize from local traders and farmers. This explanation has to be made today as Chilala addresses the press.
And why proceed to import at a higher price when the commodity is readily available in the country at a cheaper price? Is this the economic empowerment of citizens that Rupiah’s administration sings about?
FRA is using taxpayers’ money to pay for this maize. If suddenly their suppliers have been classified as top secret for Rupiah, then FRA should use Rupiah’s private money to pay for that maize. For as long as public resources are used to purchase this maize, Zambians will have the right to know who the suppliers of condemned maize are.
For sure, someone is making a killing from this confusion in the maize business, at the expense of 12 million Zambians. Today, we are talking about mealie-meal shortages in some parts of the country. And where this commodity is available, its price has been inflated due to the artificial crisis created by a few selfish and greedy individuals, especially those in power and those connected to them.
Yes, Frederick Chiluba once said Zambians are docile people. Maybe that is why these few selfish individuals have now gone to town trying to enrich themselves within a very short period of time. If indeed Zambians are docile people, this blatant theft of public resources, this banditry will continue unabated.
We call upon our people to rise and strongly reject this abuse of power and office by these selfish people. So many wrongs have come to the fore in the last three months of Rupiah in office. Suddenly, we are seeing some of the business people erect structures in places where they were stopped during Levy Mwanawasa’s time. That is why someone can have the guts to import GMO stuff even when they know that doing so is contrary to the government’s policy. We will not be surprised to hear very soon that the ban on GMOs is officially lifted by Rupiah’s administration.
Zambia is not Rupiah’s farm. So Zambians should not let Rupiah run the affairs of this country as he pleases. Let us stop this rot before it is too late. By the way, we are waiting to hear what Rupiah will say or do about Dora Siliya’s defiance of the Attorney General on the intended partial privatisation of Zamtel.
Or should we abolish the office of Attorney General since lay people like Siliya can ignore with impunity sound legal advice from the learned Attorney General?
Labels: CORRUPTION, FRA, GEORGE LIACOPOULOS, GTAZ, JAMES BANDA, MAIZE, MEALIE-MEAL, RUPIAH BANDA
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