Tuesday, August 13, 2013

Zambeef burns imported meat
By Mwala Kalaluka in Chisamba
Thu 25 July 2013, 14:01 CAT

ZAMBEEF yesterday burnt all its imported beef products following the government's findings that some of them contained aromatic aldehyde.

And Zambia National Farmers Union president Jervis Zimba described yesterday as a sad day for Zambeef but that the company management had learnt their lesson.

Meanwhile, the government has commended Zambeef for destroying the contaminated meat. In his opening remarks, Zambeef public relations manager Justo Kopulande explained that the burning conducted at its Chisamba Huntley Farm around mid-day was simple and straightforward.

"We can just say that events of the last three months have brought us together and our programme is very simple and straightforward," he said. "We will move from the high table. We will move across to what we have prepared to torch over there."
Zambeef board chairperson Dr Jacob Mwanza said following the events of the last month the company had taken a clear and unequivocal decision to return to its roots and deal exclusively in Zambian beef products only.
"I would like to make it clear that the products that we are going to destroy this afternoon represent those products which have been fully approved by the Ministry of Health," he said. "We are drawing a line; a very clear distinctive line between what we have been doing in the past and what we are going to do in future. We are going to stop all imports to ensure that we focus our business on purely Zambian beef."

Dr Mwanza said the disposal of all imported beef products was done in consultation with the Ministry of Health and that it has been done to give the Zambian public the company's unwavering commitment to selling locally-bred and produced beef.

"Since June 20, 2013 and from this day forward, only Zambian beef products will be on offer in our outlets," Dr Mwanza said. "We thank the Ministry of Health for their guidance and advice on this matter."
Asked about the exact quantity of imported beef products that were going to be torched, Dr Mwanza said he could not expressly indicate the quantity because some of the seized products were still with the Ministry of Health.

"They haven't given us the details yet but it should be a very small proportion," he said. "We have a job to do and we have a company to run."

Dr Mwanza said there was need for foreclosure on the matter so that Zambeef continues its contribution to the growth of the agriculture sector and the Zambian economy.

And Zimba said he was forced to forego the long speech that he should have delivered at the event because he had realised that it was a sad day for Zambeef.

"I would like to congratulate Zambeef for taking a very bold decision to voluntarily destroy all imported meat products," Zimba said. "What has happened in the last one month should be put behind us and I would like to appeal to consumers to trust Zambeef as all the beef and meat products currently in retail shops is 100 per cent local."

He said it was a trying moment for the company that employs over 5, 000 people.

"I would also urge you to put this behind you as management as some lessons have been learnt," said Zimba.

Zambeef chief executive officer Francis Grogan pledged the company would maintain its 100 per cent Zambian brand.

"Zambeef is 100 per cent committed to Zambia," said Grogan.

Meanwhile, Ministry of Health spokesperson Dr Kamoto Mbewe said the enforcement of the Public Health and Food and Drug laws was not meant to persecute traders but to safeguard public health.

He said the ministry was delighted to be part of the process where Zambeef was complying with the law.

"We thank Zambeef for having complied with the law," said Dr Mbewe.
Following the speeches, Kopulande directed the gathering to an open ground where a pile of firewood was heaped with boxes of offals and kidneys placed below the stack.

"At this time we are going to stand down from the high table and take a short walk across to where we will be torching…the chairman and Dr Kamoto Mbewe are going to torch the products. We are torching, there we go," said Kopulande as the stack of firewood got engulfed by flames and the gathering headed towards some tables where there was roasted beef and salads.

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Sunday, July 08, 2012

Farmers now being used as 'slaves' for raw materials - ZNFU

Farmers now being used as 'slaves' for raw materials - ZNFU
By Joan Chirwa-Ngoma
Sun 08 July 2012, 13:22 CAT

ZNFU says farmers are now being used as 'slaves' for raw materials following failed negotiations over cotton pricing for this marketing season.

During a full meeting facilitated by Vice-President Guy Scott which was attended by agriculture minister Emmanuel Chenda, ginners, the Cotton Association of Zambia and the Zambia National Farmers Union (ZNFU) at Cabinet Office on Friday afternoon, ginning companies only moved an inch higher from an initial offer price of K1,600 per kilogramme of seed cotton to K1,700, way below last year's price of around K3,200.

"Government's effort to intervene in the cotton price impasse has totally
collapsed in the face of the Republican Vice-President Dr Guy Scott and the
Minister of Agriculture and Livestock Honourable Emmanuel Chenda," said ZNFU president Jervis Zimba who has strongly advocated for a better price for the crop which will benefit both the farmers and the out-grower companies.

"…The ZNFU and CAZ in good faith were ready to come down on their demands
considerably in order to safeguard the future of the cotton industry. However, the ginners only moved their position from K1, 600 to K1,700 per kg. Last year's price was K3,200 per kg. Farmers felt this was an insult."

He said the farmers were now been used "as slaves for raw materials in
Zambia, which is extremely unfortunate".

"With the negotiations having collapsed before the Republican Vice-President
and the Minister of Agriculture, farmers feel there is nowhere to run to resolve the price impasse," said Zimba. "Our advice to farmers is that at this stage there will be no further negotiations and farmers are expected to fend for themselves."

Farmers last year promised better prices during this marketing season compared to K3,200 offered in the previous season, a move that further increased the number of farmers around 300,000.

Several meetings have been held among stakeholders to resolve the differences which have, however, not yielded any positive outcome.

But ginning companies have been purchasing the crop at K1,600 per kilogramme despite the stalemate.



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Saturday, April 07, 2012

Farmers urge decentralisation of animal testing centres

Farmers urge decentralisation of animal testing centres
By Gift Chanda in Namwala
Sat 07 Apr. 2012, 13:29 CAT

FARMERS have called for the decentralisation of animal testing centres to boost the livestock sector growth. During the first ever livestock field day held in Namwala on Wednesday, farmers condemned the current situation where testing of animals for diseases is only done in Lusaka.

They observed that since the outbreak of the contagious bovine pleuropneumonia (CBPP) animal disease, the testing of blood samples for disease screening before cattle is moved from one district to another is still done in Lusaka at Balmoral, a situation they said was hampering the growth of the country's beef sector.

"There has been some progress in disease control but at a huge cost to the farmers," said Zambia National Farmers Union president Jervis Zimba, who spoke on behalf of farmers.

"Farmers have to bring their blood samples at their own cost to Lusaka for testing…this has been a major cost and hurdle. But going forward for the livestock sector to be vibrant, there is need to decentralise the testing of animals to bring the services closer to the farmers in the districts or regions as a matter of urgency."

Zimba further noted that livestock theft was another challenge hampering the growth of the sector, especially the beef industry.

"Our farmers continue to live in fear of losing animals, which is their main source of livelihood and store of wealth, not to mention that even their lives are at the mercy of cattle rustlers," Zimba said.

"We would like to appeal to the government to put in place legislation which should make cases of cattle rustling to become non-bailable offence. The government should introduce stiffer penalties such as ‘any vehicle caught with stolen carcass' should be forfeited to the state. This would go a long way in deterring cattle theft."

He said the sector was still in its infancy and required support to develop and grow.

Zimba also noted that the increased maize bran exports had pushed up stock feed prices.

"The farmers are facing difficulties in accessing maize bran for supplementary feeding of animals. If this situation is not addressed, Zambia could become a net importer of beef instead of increasing local production…this problem requires a permanent solution from the government," said Zimba.

"The farmers are also concerned that there is little support towards research for the livestock sector development."

And agriculture deputy minister, Brigadier General Benson Kapaya said his ministry had formulated a draft Livestock Development Policy to guide effective implementation of priority programmes and activities needed to fast track the development of the sub sector in Zambia.

Brig Gen Kapaya said the government had embarked on programmes to establish livestock service centres in all districts to improve service delivery and establish breeding centres to increase stock at affordable prices to farming communities.

He also explained that the livestock development policy would provide a secure and conducive environment for production, marketing and trade.

Brig Gen Kapaya said the policy would also promote diversification of livestock production base, build and maintain national capacity to deal with adverse climatic variations, disease outbreaks and other emergencies.

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Thursday, October 20, 2011

ZNFU hails govt policy on agriculture sector

ZNFU hails govt policy on agriculture sector
By Gift Chanda and Chiwoyu Sinyangwe
Thu 20 Oct. 2011, 08:20 CAT

ZNFU says President Michael Sata's pronouncement that he will make a dent on weak infrastructure in water harvesting should help to exhume the much touted K37 billion irrigation fund which sunk into oblivion four years ago. Jervis Zimba said the Zambia National Farmers Union (ZNFU) was happy with the number of positive pronouncements made by President Sata in his inaugural address to Parliament last Friday.

During his address to Parliament, President Sata announced sweeping policy reforms to help boost the performance of the domestic agriculture sector as the PF government attempts to prioritise investments in appropriate water harvesting technologies to make water available to farmers for irrigation all year round would, reducing the cost of borrowing in the country and transforming the maize tailored FISP.

Reacting to the Presidential speech, Zimba said President Sata's address focused on fundamental issues which, if implemented, would chart the course of the performance of the agriculture sector to greater prosperity for all Zambians.

"The union welcomes the fact that government will promote pro-poor growth and that agriculture development will be one of the four core development programmes earmarked to deliver this growth," Zimba said.

The government had in the past attempted to establish the irrigation fund with initial seed money of K37 billion which could not be distributed via commercial banks.

The fund was later transferred to Citizens Economic Empowerment Commission despite protests from local farmers before it died a natural death.

Zimba, however, said benchmarks should be set to frequently monitor and evaluate progress on policies the PF government has pledged to implement.


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Monday, January 10, 2011

ZNFU calls for Cottan’s arrest

ZNFU calls for Cottan’s arrest
By Chiwoyu Sinyangwe
Mon 10 Jan. 2011, 04:01 CAT

ZAMBIA National Farmers Union says Peter Cottan should be arrested over his “irresponsible and unfortunate” statement that bread prices are expected to surge this week due to ‘artificial shortage’ of wheat in the country.

Cottan, who is Millers Association of Zambia (MAZ) chairman, complained that National Milling Corporation (NMC) and other millers were finding it expensive to access the wheat owing to the surge in market prices.

He said MAZ would pass on the cost of the high cost of wheat to final consumers of bread. Cottan, who accused ZNFU of hoarding the wheat prices despite the bumper harvest, called on the government to ban wheat exports being driven by high international wheat prices.

Currently, wheat prices have surged to US$530 per tonne from US$320 at its lowest ebb.

But ZNFU president Jervis Zimba said Cottan’s claims were callously dangerous, irresponsible and aimed at undermining the government’s efforts and those of farmers in ensuring food security in the country.

Zimba said the country had sufficient wheat stocks after the harvest two months ago, and there was no shortage to warrant NMC’s proposal for a 60 per cent hike in flour prices.

He said Cottan’s statement was “very dangerous to the peace of the country” as it was capable of creating anxiety and fear among the public.

“The union is therefore calling for the Inspector General of Police to arrest Mr Cottan for inciting the Zambian consumers and the general public to rise against the farmers and the government on grounds that there is going to be acute shortage of food and imminent unprecedented food price increases,” Zimba said.

“We also demand that Mr Cottan tenders a public apology to the Zambian Government, ZNFU and the farmers of Zambia and withdraw the statement henceforth.”

He also challenged Cottan to make public the minutes of the meeting where all millers met and resolved to increase the price of flour by 60 per cent starting today.

“The Union is desirous to know and establish as to whether this is a general position of all millers or it is Mr Cottan’s personal agenda,” said Zimba.

“The Union would like to warn that it will not sit idle and watch the farmers of Zambia being maligned as a greedy group of people in the public eye. It does not matter whether that person or institution is so powerful or well known…”

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Thursday, November 25, 2010

ZNFU calls for reversal of GMO policy

ZNFU calls for reversal of GMO policy
By Chiwoyu Sinyangwe
Thu 25 Nov. 2010, 04:00 CAT

THE ZNFU is proposing that Zambia should embrace genetically modified organisms (GMOs) to improve productivity of certain crops.

Zambia National Farmers Union (ZNFU) president Jervis Zimba said calls for a stark reversal of the stance taken by the country a few years ago follows low competitiveness of the local agriculture sector.

“Nearly four years ago, the government made a strong stance against GMOs. We, however, now believe that time has come to open the discussions on GMOs more so now that bio-safety regulation board has been set up under the Ministry of Science and Technology where ZNFU is ably represented,” Zimba said during the launch of the 2010/2011 agricultural planting season held at Mweetwa farm in Mumbwa on Tuesday.

“While cautiously mindful of the public perception about GMOs, as a country we must not be left out particularly in exploring production-enhancing technologies which can be tried in Cotton production to start with.”

Zimba said GMOs could also help to improve productivity of small-scale farming and make a dent on rural poverty.

“In other countries where bio-technology, especially for cotton, has been used, our small-scale farmers are able to produce 10 times more than our current levels of production with less inputs, implying less production cost leading to huge profits to our small-scale farmers,” said Zimba.

The government banned the production and consumption of genetically modified crops, saying this would impact negatively on the country’s agricultural potential.

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Friday, November 12, 2010

Poor grain storage worries ZNFU

Poor grain storage worries ZNFU
By Joseph Mwenda
Fri 12 Nov. 2010, 03:59 CAT

ZNFU says it is extremely worried that poor storage facilities for the record bumper harvest will result in a disaster following the onset of the rains.

In an interview yesterday, Zambia National Farmers Union (ZNFU) president Jervis Zimba said the Food Reserve Agency (FRA) would have avoided the damage of purchased maize if it had considered the caution from the union which projected a record harvest last year by planning in advance.

“As a union, we are extremely worried. We are worried about how our grain is being stored. I think there is need to review FRA marketing, so that excess maize should be sold outside Zambia immediately,” he said.

Zimba said the FRA was notified of this year’s harvest projection but that the advice was not heeded.

“We knew in March last year that there was going to be a bumper harvest this year but as usual, government will never react until the crop forecast,” he said.

Zimba said by July this year, FRA should have had the money ready for maize purchases instead of waiting until the farmers had harvested their crops.

“The matter is very worrying and any further delay as we go into the rainy season, it will be a very sad situation,” Zimba said.

“The rains have started and the next challenge we are so extremely worried about is the transportation of the grain from satellite depots to the holding depots. Some areas rain heavily, so when the rains intensify, they might not be able to reach such areas to transport the grain.”

Zimba further urged the FRA to relax transportation rules and allow even small trucks to help move grain to safe storage facilities.

He also said FRA should honour its promise by paying off all farmers for the crops supplied by November 15.

“They promised that they would finish paying all the farmers by November 15, so we want them to honour their promise so that the farmers are paid on time,” said Zimba.

“We also want to warn the provincial and district agriculture coordinators to ensure that no farmer is discriminated in terms of payment for those who supplied maize to the agency and also in terms of distribution of farming inputs for the next farming season.”

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Monday, September 13, 2010

Govt owes farmers K400bn

Govt owes farmers K400bn
By Moses Kuwema, Christopher Miti and Henry Chibulu
Sun 12 Sep. 2010, 04:00 CAT

GOVERNMENT owes small-scale farmers over K400 billion for the maize that has been sold to the Food Reserve Agency, ZNFU president Jervis Zimba has disclosed.

And unpaid maize farmers last Friday stormed the Chipata district commissioner’s office to register their disappointment over Food Reserve Agency (FRA)’s delay to pay them for the maize supplied.

Meanwhile, UPND Magoye member of parliament Ben Mweemba has expressed fears that thousands of bags of maize piled outside Food Reserve Agency (FRA) storage sheds may go to waste in his constituency because of the government’s failure to provide adequate storage facilities.

During the Mkushi Farmers Association annual general meeting on Friday, Zimba appealed to the small-scale farmers to exercise patience.

“…I want to appeal to the Ministry of Finance to ensure that this specific amount of money is with FRA so that FRA pays transporters to move the maize to holding depots or storage facilities, at the moment all the maize which is across the country is in satellite depots and if you don’t move that maize from satellite depots to holding depots most of the maize around will be soaked,” he said.

Zimba said with the way things were moving in terms of maize marketing, the country was likely to experience a serious reduction in maize production next year.

“Some of these problems we have now have been caused by the Ministry of Agriculture for not speeding up the process of lifting the export ban.

Because when you have an export market it means we are stabilising the production, you know that there is market out there, the local millers will pay the right price then the exports will go.

We might be okay as a nation with this surplus, next year we have no problem because we have something to eat but come around 2012, we might see imports coming through…,” he said.

And Zimba has said ZNFU was not happy with the way the millers were playing games with regard to the Statutory Instrument (SI) on wheat imports.

Zimba said the millers’ insistence on lifting the ban on imports of wheat was a direct challenge to President Rupiah Banda who issued the directive to have the SI in place.

And the farmers in Chipata protested at the district commissioner’s office over non-payment of money by FRA for the maize sold to the agency.

The farmers who were drawn from different areas, with the majority being from Mgubudu in Chipangali Constituency, said they were tired of unfulfilled government promises as regards payment.

One of the farmers Gershom Phiri said it was unfortunate that they sold their maize in July and that they had not yet been paid up to now.

“What is disappointing is that these people from government promised to pay us after 14 days but the 14 days elapsed. I don’t know whether we didn’t get them clearly; maybe they meant after 14 months, or what? We are here to get our money,” Phiri said.

He said government should be clear whether it had failed to help farmers.

Phiri said he sold 306 by 50 kilogramme bags of maize to the FRA. Another farmer Mark Zulu said the government was not helping farmers by delaying payment for the maize they sold to FRA.

“The promise was that they were to pay us after 14 days but now we are talking of one month and some weeks. You know we need to pay school fees for our children while others have no uniform. So this is very disappointing,” Zulu said.

He said the delay to pay them would affect their performance in next farming season.

Zulu said the farmers sensed that it was not going to be possible to be paid on Friday when the FRA agents, the District Farmers Association, refused to give them the GRN’s (Goods Received Notes).

Later, Zulu had a closed-door meeting with farmers and the district commissioner which lasted close to two hours. One of the farmers who attended the meeting said the district commissioner promised them that they would be paid their money.

“I think he was just cooling us down because despite what has been said in the meeting, we haven’t been paid our money. But he assured us something, we will wait and see what happens,” the source said.

Before going into the meeting, district commissioner Moses Nyirenda, who did not expect reporters, said he would only talk to reporters after the meeting.

And Mweemba said in Mazabuka last week that all storage facilities were full, forcing FRA to pile up the maize outside the sheds. He said FRA officials in the district had failed to provide satisfactory answers to him on the measures the government had put in place to protect the grain from being soaked, realising that the rainy season was approaching.

Mweemba said there was no cause for the government to celebrate the bumper harvest because once the rains start, all the maize would be destroyed due to lack of adequate storage facilities.

He also took a swipe at the FRA for delaying to pay farmers who supplied maize to the agency about three months ago.

He revealed that information he obtained from FRA had established that some farmers may be paid their money in January next year because the government had no funds for the marketing exercise.

Mweemba said it was unfair for the government to mistreat farmers by not paying them on time because they needed to use the same money to purchase inputs for the next farming season.

He has since urged government to give farmers promissory notes that will enable them to buy inputs from suppliers because subjecting them to waiting for next year would disadvantage them.

Mweemba observed that delaying to pay farmers would frustrate their desire to continue growing maize.




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Monday, September 06, 2010

Solving problems in agriculture requires mature leadership - ZNFU

Solving problems in agriculture requires mature leadership - ZNFU
By Chiwoyu Sinyangwe in Kafue
Mon 06 Sep. 2010, 04:00 CAT

ZAMBIA National Farmers Union (ZNFU) has observed that solving the current problems in the country’s agriculture sector requires “mature and sober leadership.” And ZNFU has advocated that Nitrogen Chemicals of Zambia (NCZ) be transferred to Ministry of Commerce as part of rescuing the beleaguered fertiliser manufacturing plant.

The agriculture sector currently faces a number of challenges, epitomised by bottlenecks in the present maize marketing season, which has led to most farmers being left to the mercy of ‘briefcase buyers’ owing to limited funding by the government to Food Reserve Agency (FRA).

Key institutions like FRA and NCZ have continued to operate without management boards for close to two years despite key stakeholders having submitted proposed names of board members to agriculture minister Peter Daka.

Addressing workers and management of NCZ after touring the plant in Kafue on Thursday, ZNFU president Jervis Zimba said the local farmers had lost confidence in the current leadership at the Ministry of Agriculture.

Zimba said the local agriculture sector was currently in problems.

He complained that most small-scale farmers were getting a raw deal from the current maize marketing, thus leaving them vulnerable to briefcase buyers who were buying a 50 kilogramme (kg) bag of maize at less than K30,000 compared to FRA’s K65,000.

“There is a problem at Ministry of Agriculture and Cooperatives. President Rupiah Banda has provided leadership but at Ministry of Agriculture, their priority is somewhere else,” Zimba said.

“The fact that there are no boards at NCZ and FRA speaks volumes of the problems at Ministry of Agriculture and Cooperatives. Agriculture requires mature people in leadership with sober minds because here we are always dealing with human lives… they have to be careful.

They send wrong signals because today they say this, today they say this, tomorrow they say that… agriculture sector requires sober and mature leadership.”

And ZNFU said the problems facing NCZ were compounded by the wrong ministry under which it had been placed.

Zimba said Ministry of Agriculture lacked corporate ethics to manage a company profitably and in a sustainable way.

“Our debate is whether NCZ is under the right ministry. Let’s face things head-on,” said Zimba.


“We want this to be analysed. The reason is that we want this matter to be analysed and find ways of bringing on board private partnership to find a way of making you NCZ operate profitably and sustainably in the future. And in this case, we call on ZDA Zambia Development Agency to rise to the occasion and provide leadership on this matter.”

Earlier, NCZ managing director Richard Soko said the state-owned fertiliser manufacturing company had already completed manufacturing the 20,000 metric tonnes basal dressing fertilisers it was allocated under the Farmer Input Support Programme (FISP).

Soko said allowing NCZ to deliver basal dressing fertilisers for one season could enable it to solve all the problems the beleaguered company was currently facing.

“If all that 89,000 metric tonnes of basal dressing fertilisers was awarded to NCZ, and there is no reason why not because we have the capacity to produce, would generate revenues in excess of K300 billion for NCZ,” said Soko.

“With that kind of that revenue, we will be able to sustain ourselves and not run back to the government…progressively rehabilitate the plant and ask for additional funds from anywhere. The only decision we are asking is that they award the whole contract of D compound to NCZ.”

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Tuesday, July 27, 2010

ZNFU reveals interference from millers on wheat import ban

ZNFU reveals interference from millers on wheat import ban
By Moses Kuwema
Tue 27 July 2010, 04:01 CAT

From left to right, Zambia National Farmers Union (ZNFU) security unit chairman Charles Coxe, deputy commissioner of police Emmanuel Chileshe and ZNFU president Jervis Zimba listening to CMR farms of Kabwe managing director Sara Ashworth during the visit to her farm on Wednesday. - Picture by Moses Kuwema

ZAMBIA National Farmers Union (ZNFU) president Jervis Zimba has disclosed that there are people who are fighting to have the ban on wheat imports lifted. And Chimsoro Farms proprietor Constain Chilala has said only non Zambians can push for the reversal of the Statutory Instrument on wheat imports.

Speaking when he addressed farmers in Mkushi last week, Zimba said the country did not need any imports on wheat because the crop yield had not reduced. He said once the imports on wheat were allowed, Zambian farmers should forget about selling their wheat.

“This battle was fought, we said there is no need for wheat imports but again we are aware that the millers are working together with some directors at the Ministry of Agriculture to try and remove this SI. They started last year again now we are seeing this is what is happening…and because of the annoyance among the millers and some directors at the Ministry of Agriculture they are using a fake association just to be attacking ZNFU to say this is not right… its not correct we have to look at the bigger picture of farmers and what is happening,” he said.

He said Zambia was the only country in the southern Africa region, or perhaps in Africa, which could feed itself in any commodity but that there were people who were bent on destroying that potential.

“Some two weeks ago, one miller wrote to the minister to say you ban all exports of soya beans… now we have a bit of excess in terms of soya beans but what they want is to make sure the prices are suppressed and they pay the yields to the farmers for nothing...We have told them there is no need of writing letters to the minister, write your letters to the president of ZNFU who will then call a stakeholders' meeting and determine how much should go for exports, we did it last year,” he said.

And Zimba said farmers should this year brace themselves for hard times because of the commodity prices which he said were not good.

“Whatever you have produced no one knows where that maize is going to go so you are hammered with commodity prices. We need to put our heads together, for the issue of commodity prices in the country we are completely at cross roads. If you look at the briefings we sent you, all of you must have seen how the prices have dropped in a couple of months be it wheat, be it soya beans,” he said.

Zimba said the Food Reserve Agency (FRA) had totally lost direction, adding that the continued lack of a board at the agency was a source of concern for the farmers.

“They FRA keep interfering on the market at the wrong time all the time, you remember in the beginning of the year we had early maize to be taken on the market, most of it was stuck, today some of you have sold it for a song. There is nowhere in the world where you have a huge output of crops and the minister is delaying or failing to announce the board when he has got the names on the table, we can’t allow a situation like that. Right now as am talking there is an advert in the paper where the FRA is saying they have about 160,000 metric tonnes and they have just put a huge advert that traders should bid for it to try and see if they can buy it for exports…they have got no capacity as FRA to monitor whether that maize is going for exports or not. For heaven’s sake why can’t FRA themselves not secure the export market?” he wondered. “They have been telling us that they have secured almost a million tonnes of exports, then why advertise locally to allow other people to export it when FRA themselves have got the capacity to sell it, so as farmers we are braced for hard times this year its not going to be a good road in terms of the maize and we know the cost of production is high, how do farmers sell their commodity below the cost of production?”

Zimba said if the situation was allowed, the millers and traders would again start playing around with the prices of the commodity.

Zimba said the farmers were grateful to the government for finding money to buy maize but that it was unfortunate that the funds had not yet been released.

“We are now coming towards the end of July and you know when you are buying commodity under collateral management it takes long time meaning that they have got to buy and then after two to three weeks the banks have got to verify how much maize, is it true, the location, so for a farmer to get his money, we will be looking at may be another three weeks and who knows with the way the FRA plays games it may be a month, so these millers would say we have no choice but to keep buying and dispatching 42,000 and so forth. So we have a very serious problem at hand regarding the maize marketing season this year and I call it the national crisis,” he said.

Zimba said there was need for a serious intervention by the government because officials in the Ministry of Agriculture were reluctant to implement the presidential directive on exports.

“Again I met the president before the end of the year I said look, can we try and look at the exports to Democratic Republic of Congo DRC, the DRC problem we have is that we keep shutting the door, open it up, shut it...so the best thing we can do is can we have these quotas, agreed quotas between the DRC and in February the millers, ZNFU, grain traders we established a list of these quotas we should be able to be given to DRC agreed and they were given to them, to date as I am telling you ministry of agriculture has said no we cannot do that we shall give it to the joint permanent commission I think this is between the Copperbelt Province and the DRC, what a joke!
“We believe the Ministry of Agriculture is totally in reverse gear its like nobody seems to know whether we are going forward or backwards, the only time we see these Ministry of Agriculture officials very active is already now they know that they have got a serious crisis of the maize, they are already jumping talking about the Fertiliser Support Programme FSP programme that this year we are giving 900,000 farmers, they are more excited because this is where they cut deals. No one is interested about the FSP now what every farmer is interested in now is how he is going to secure his maize.”

And Chilala said the implementation of the SI was to protect the production of wheat in the country.

“The production of wheat is so high now to a level where we are able to feed even Katanga Province in the DRC, now if someone at the ministry decides to go against the presidential directive or advise against the presidential directive, that person is not Zambian he should be one of those who were involved in the importation of wheat which we heard in 2008 and 2009 where they brought 30,000 metric tonnes during our harvesting season,” Chilala said.

He said millers had become like briefcase business men because they did not want to buy the crop on time.

“They want us to keep the crop after growing it and then they want it for nothing. And unless this is resolved between the millers and the farmers it will see farmers now stop investing in wheat, they will start saying no investment in wheat is very expensive it requires you to buy centre pivots, irrigation equipment and those are very expensive,” he said.

And Chilala said a crop surplus without well organised marketing programmes put people into new and bigger problems.

“As a country we are able to produce these crops by the farmers, but farmers are now suffering that they can't get this crop to the market to process it so that the Zambians can eat it, one time I read in the newspaper where the Minister of Agriculture was saying we have got a bumper harvest now, so the food can go down but he forgot that that food costs money to produce, how does he expect that food to walk into homes as cheap as he was anticipating it to because someone spent money to grow the food he must sell it at a reasonable price for him to be able to grow a new crop this year,” said Chilala.


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Friday, June 11, 2010

ZNFU urges reintroduction of maize marketing board

ZNFU urges reintroduction of maize marketing board
By 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.

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Wednesday, June 09, 2010

(LUSAKATIMES) Government gives green light to export of maize surplus of 1.1 million tonnes

Government gives green light to export of maize surplus of 1.1 million tonnes
Wednesday, June 9, 2010, 18:45

The Zambia Government has allowed farmers and traders to export the maize surplus of 1.1 million tonnes mainly in southern African after a good harvest, but farmers have urged more exports.

Zambia National Farmers’ Union (ZNUF) president Jervis Zimba told Reuters today that farmers also wanted the government to provide tax waivers on maize exports and other incentives to make exports cheaper.

He said they are looking at exporting somewhere around 1.3 million tonnes in order not to have serious carry-overs for the next crop. Zimba said proposals to subsidise exports would also allow excess maize to be removed from the local market and guarantee higher prices in the 2010/11 season, after the government kept this year’s prices flat at K65,000 per 50kg bag.

Zimba said maize output would drop if the government did not facilitate the export of the surplus through an export subsidy. South Africa said in April that it had secured foreign markets to sell its surplus maize of about 4 million tonnes in the 2009/10 season to safeguard maize prices for local farmers.

Zimba said proposals to subsidise exports would also allow excess maize to be removed from the local market and guarantee higher prices in the 2010/11 season, after the government kept this year’s prices flat at K65,000 per 50kg bag.Zambia produced 2.7 million tonnes of white maize in 2009/2010, beating last season’s harvest of 1.9 million tonnes, to leave a surplus of 1.1 million, according to a government crop survey.

Zimba said Zambia’s food balance sheet showed that total maize required for human consumption was 1.3 million tonnes, 230,000 tonnes for industrial use and 200,000 for strategic reserves.

Zambia, Africa’s top copper producer, also relies on copper exports for about 63 percent of foreign exchange earnings.

It has in the previous seasons exported maize to the Democratic Republic of Congo (DRC), Zimbabwe, Namibia, Botswana and Angola.

Exporters said they will target exports to Zimbabwe, after it declared 11 percent of its maize a write-off due to a dry spell, and also to other neighboring countries.

Meanwile, Kenya and Sudan have expressed interest in importing maize from Zambia.

Agriculture Minister Peter Daka says ZAMBIA has the capacity to export Maize and other crops to neighbouring countries and the sub region.

Zambia this year has over three million tonnes of maize following a bumper harvest recorded this year and carry over stock from last year.

Mr Daka said this during a consultative workshop on the development of the Zambia National Rice Strategy in Lusaka on today.

The minister said Zambia could treble its rice production if it develops a strategic plan for the sector.

Zambia currently produces 42 thousand metric tones of rice annually.

Reuters/ZNBC

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Tuesday, May 18, 2010

ZNFU accuses millers of profiteering

ZNFU accuses millers of profiteering
By 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.”

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Monday, May 17, 2010

(LUSAKATIMES, REUTERS) Low, unsustainable maize prices threaten next year’s output

COMMENT - Maize is $249 per tonne and that is supposed to be 'low'? What are they smoking? Maize in South Africa is $160 per tonne. Anything over $200 is high.

Low, unsustainable maize prices threaten next year’s output
Monday, May 17, 2010, 15:42

Zambia’s maize harvest for the 2010/11 marketing season is likely to fall from output of more than 1.9 million tonnes expected this year because of low, unsustainable maize prices, an industry official said on Monday.

Zambia National Farmers’ Union (ZNFU) President Jervis Zimba said the maize price had dropped from about $285 per tonne at the end of March to $249 per tonne as of May 11 after Zambia’s Food Reserve Agency (FRA) offloaded maize onto the market to keep prices low.

Zimba said farmers were failing to find a market for their irrigated maize which required huge investment in drying facilities as it was normally harvested between March and April with very high moisture content.

“The future of both early maize production and rain-fed maize production hangs in the balance,” Zimba said in a statement.

Zimba said production costs were rising owing to a hike in fuel prices and a planned increase in electricity tariffs.

Maintaining the price of maize below the cost of production would hurt future production, he said.

“Should this situation remain (unchanged), maize production will drop drastically next farming season and the country risks having to return to importing maize,” Zimba said.

He said there was a need to adequately fund the FRA so that it could participate more effectively in the market in buying excess crop which was depressing the price of maize.

Zambia plans to export between 50,000-80,000 tonnes of maize this year but Zimba urged the immediate export of up to 178,000 tonnes of 2009 carry-over stocks to ensure better local prices for this season’s crop.

Finance Minister Situmbeko Musokotwane told Reuters the government was presently not in a position to allocate additional resources to the FRA but may do that next year.

Musokotwane said the government would consider additional maize exports to protect the local grain industry.

[Reuters]

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Wednesday, April 07, 2010

Export maize reserves, ZNFU advises FRA

COMMENT - So maize will be cheaper. It is better to have maize in reserve than to have to buy it in case of an emergency. Does anyone remember Malawi being told to sell it's maize reserves, and losing 1,500 people from famine? Farmers should use other means to stabilize their prices. Zambia really needs to expand ZAMACE, so farmers (collectively) can use commodities to lock in the prices they can get or their maize.

Export maize reserves, ZNFU advises FRA
By Fridah Zinyama
Tue 06 Apr. 2010, 04:00 CAT

THE Food Reserve Agency (FRA) should immediately export the 180,000 metric tonnes of maize in its custody as the stocks will distort the next marketing season, Zambia National Farmers Union (ZNFU) president Jervis Zimba has advised. And Zimba has urged the government to quickly institute a new board at FRA as the lack of one was affecting its operations.

Zimba said FRA needs to quickly sell off the 180,000 metric tonnes of maize it has in its reserves so as to prepare for the new marketing season, which is supposed to start in July.

Zimba said FRA also has about 180,000 metric tonnes of maize in its reserves, a situation which could affect its role on the market, unless it was allowed to export its current stock of maize.

“FRA has to export this maize as quickly as possible,” he said. “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 said the forthcoming crop marketing season was worrisome as the country was likely to produce a huge harvest this year.

“We say that the issue of marketing is worrisome this year because of the huge crop that farmers are likely to produce,” he said. “All the players in the maize sector seem to be holding enough maize stocks at the moment. Millers have excess crop which is likely to last them until June–July.”

Zimba said FRA normally offered better prices for farmers and if they did not quickly come onto the market once marketing starts, unscrupulous traders would take advantage of desperate farmers wishing to sell their crop.

“The current situation in the maize industry is affecting the price of the commodity,” he said. “…As it is, the early maize is already on the market and millers are buying it, meaning that once the crop marketing season properly starts, farmers will not have a ready market for their crop... leaving them vulnerable to ‘briefcase buyers’.”

Zimba said briefcase buyers had already started buying maize from desperate farmers in Southern Province for prices as low as K40,000.

“Some buyers are already buying maize from farmers at K25,000 before it is even harvested,” he charged. “This is unacceptable and government, through FRA, should not allow such a thing to continue, as it might demoralise farmers from growing maize.”

Zimba said unscrupulous buyers purchasing maize at low prices were pushing farmers into poverty.

“Zambia can reach self efficiency in all the crops that it grows, if marketing issues that the agriculture faces are well addressed,” the ZNFU president said. “For instance, for the past two years, farmers have ensured the food security of the country by producing more than enough than the country needs.”

Zimba said while it was important for farmers to produce enough food for the country, certain challenges which the sector was experiencing needed to be addressed if the country was to become a bread basket of the region.

“We have enormous potential as farmers to produce more but the high cost of production was killing the industry,” he said. “We have such a high production cost and this is making us uncompetitive in the region... when we have maize to export, we are losing out because South Africa is beating us where prices are concerned.”

Zimba said fuel, electricity and fertiliser were major contributors to high production costs in the country and the government needed to quickly address their concerns if the local agriculture sector was to realise its potential.

“As a country, we even fail to export maize to the Democratic Republic of Congo because our prices are so high,” he said. “South Africa, which has to transport its maize through Zimbabwe and Zambia, lands its maize in DRC at a much cheaper price than Zambia.”

Zimba said the government needed to seriously address the agriculture sector’s concerns because of the crucial role that the industry played in the economy.

“Agriculture is a major source of employment and inflation goes down if the country has enough food,” he said.

Zimba added that the government’s setting of the floor price did not benefit farmers in any way.

“The setting of floor prices is disadvantaging farmers as it does not consider the production costs,” Zimba said. “This is one issue which we have raised time and again but which government has failed to adequately handle.”

Zimba said the setting of floor prices was to some extent affecting production in the agriculture sector, as the cost of production was not considered.

“This might be because government has been subsidising the crop that small scale farmers produce, but what happens to farmers who do not have access to such facilities,” he wondered. “The crop marketing should therefore be liberalised so that farmers can sell their crop at profitable prices which in turn will further improve on production.”

Zimba said there was need for the country to show interest in the crop marketing season, as it played a critical role of determining whether the country would produce enough food to meets its consumption requirements.

“We want to hear more from all stakeholders,” he said. “Let them comment on the market floor price and how it affects farmers.”

Zimba said unless problems in the crop marketing process were addressed, farmers might be discouraged from producing maize next year, as they might be worried of making losses.

“This has happened in previous years… when prices were bad, farmers abandoned the production of maize to grow other crops which offered better prices,” he said.

Zimba said a precedent had been set in Zambia in that whenever the country went high in production and the marketing was not done properly, the following year always recorded a reduction in production.

“This happened for maize, cotton, sunflower, soya beans and wheat,” he said. “Farmers would like to realise a profit whenever they work hard to produce any commodity.”

And Zimba said there was urgent need for agriculture minister Peter Daka to quickly institute a new board at FRA.

The Costain Chilala-led board was dissolved last September after then agriculture minister Dr Brian Chituwo refused to renew its mandate, which had expired.

The board was dissolved at the height of the acquisition of the K270 billion loan from an undisclosed bank for that year’s maize purchasing exercise.

Zimba said the government through the Ministry of Agriculture should put a new board in place at FRA, as it was currently operating without one.

“For example, it takes a lot of thinking and strategising to ensure that the maize which farmers have produced is mopped up in four months,” he said. “FRA cannot do this if they do not have a board in place to address such pertinent issues.”

Zimba said putting a new board in place should be a priority for the government as the country entered the critical period in which it purchases its staple food.

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Thursday, March 04, 2010

Govt has said new land rates were a mistake – ZNFU

Govt has said new land rates were a mistake – ZNFU
By Mutale Kapekele
Thu 04 Mar. 2010, 04:00 CAT

The Zambia National Farmers Union (ZNFU) has said the government has responded to the union's reaction over the increase of land rates by nearly 1,000 per cent by the operation of Statutory Instrument No. 110.

According to ZNFU president Jervis Zimba, the government has said the new land rates were a mistake. Zimba said the government has also requested ZNFU to give the Ministry of Lands time to rectify the error after consulting the other relevant government ministries.

He advised farmers not pay any land rates until the alleged anomaly was rectified. The recent increase of land rates by nearly 1,000 per cent by the Ministry of Lands had shocked the farming community.

Less than two years ago, the ministry increased the land rates by between 500-600 per cent.

This was done through the issuance of the Statutory Instrument No. 44 of 2006 under the lands Act CAP 184 (Ground Rent, Fees and Charges) of the Laws of Zambia which came into effect on February 13, 2007.

Zimba said the increase caused a lot of difficulties for farmers of all sizes to meet the land rate payment obligations.

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Saturday, February 20, 2010

ZNFU resists proposed land rates

ZNFU resists proposed land rates
By Florence Bupe
Sat 20 Feb. 2010, 03:04 CAT

THE Zambia National Farmers Union (ZNFU) has resisted the proposal by the Ministry of Lands to increase ground rates.

Appearing before the parliamentary committee on agriculture and lands on Thursday, ZNFU president Jervis Zimba said the proposed increments, which are as high as 80 per cent, were unjustified and should not be allowed.

“Ground rates have gone up by about 80 per cent. For instance, one would pay K2 million for 250 hectares of land, but the rate has now gone up to K11 million for the same piece of land,” Zimba said.

He said the decision by the land ministry would disadvantage many small scale farmers as the cost of production would increase drastically.

Zimba disclosed that the union was currently engaged in discussions with ministry officials with the aim of reducing the rates payable on land.

“Many farmers will be discouraged by the high cost of production brought about by the increase in rates, and this will have a spiral effect on the production levels,” Zimba said. “Most farmers will give up and the pressure to go into communal land will be high.”

And ZNFU head of outreach, member services and administration Coillard Hamusimbi warned that land encroachments would persist as long as the government did not release part of the state owned land into customary tenure.

He observed that part of the land that had remained reserved would be more productive if used for farming activities.

“As a country, we have about 94 per cent of land under customary law, but 39 per cent of this land is under reserves,” Hamusimbi said. “The population is growing but we don’t have additional land being released for settlement. Some of the reserved land has been idle for too long, we could use this land for agricultural purposes.”

Hamusimbi also called for a land audit to take account of how much land is available and how much of it could be released and customary tenure or leasehold.

Committee chairperson Request Muntanga directed ZNFU to submit a report on the union’s specific land requirements by March 31, 2010 for presentation to Parliament.

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ZNFU resists proposed land rates

ZNFU resists proposed land rates
By Florence Bupe
Sat 20 Feb. 2010, 03:04 CAT

THE Zambia National Farmers Union (ZNFU) has resisted the proposal by the Ministry of Lands to increase ground rates.

Appearing before the parliamentary committee on agriculture and lands on Thursday, ZNFU president Jervis Zimba said the proposed increments, which are as high as 80 per cent, were unjustified and should not be allowed.

“Ground rates have gone up by about 80 per cent. For instance, one would pay K2 million for 250 hectares of land, but the rate has now gone up to K11 million for the same piece of land,” Zimba said.

He said the decision by the land ministry would disadvantage many small scale farmers as the cost of production would increase drastically.

Zimba disclosed that the union was currently engaged in discussions with ministry officials with the aim of reducing the rates payable on land.

“Many farmers will be discouraged by the high cost of production brought about by the increase in rates, and this will have a spiral effect on the production levels,” Zimba said. “Most farmers will give up and the pressure to go into communal land will be high.”

And ZNFU head of outreach, member services and administration Coillard Hamusimbi warned that land encroachments would persist as long as the government did not release part of the state owned land into customary tenure.

He observed that part of the land that had remained reserved would be more productive if used for farming activities.

“As a country, we have about 94 per cent of land under customary law, but 39 per cent of this land is under reserves,” Hamusimbi said. “The population is growing but we don’t have additional land being released for settlement. Some of the reserved land has been idle for too long, we could use this land for agricultural purposes.”

Hamusimbi also called for a land audit to take account of how much land is available and how much of it could be released and customary tenure or leasehold.

Committee chairperson Request Muntanga directed ZNFU to submit a report on the union’s specific land requirements by March 31, 2010 for presentation to Parliament.

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Saturday, January 30, 2010

Govt’s non-running irrigation programme upsets EU leader

Govt’s non-running irrigation programme upsets EU leader
By Mutale Kapekele
Sat 30 Jan. 2010, 04:00 CAT

EUROPEAN Union (EU) head of delegation for Zambia Dr Derick Fee has said he is surprised that the Irrigation Fund project that was introduced in 2007 by the government to improve farmers’ productivity has not been implemented.

Answering questions from journalists after officiating at the launch of the Zambia National Farmer’s Union (ZNFU) project on improving productivity of smallscale agriculture sector yesterday, Dr Fee said he was surprised to learn that the money for the project was not there.

In September 2007, the government introduced the US $135 million Irrigation Development Fund (IDF) to help improve farmers' productivity which was supposed to be a revolving fund managed by Finance Bank Zambia.

The fund which was initially to run over a five-year period targeted small and medium scale farmers, largescale farmers and manufacturers of irrigation equipment.

“I remember attending the launch for the irrigation project and we worked with the African Development Bank ADB now Bank ABC and I am very surprised to hear that the money is not there,” Dr Fee said.

He said the irrigation project was a good one and urged the government to come up with other serious projects that the EU could fund.

“We only get involved with serious projects, we are not here to waste our time and our partners’ time,” he said.

“If there is a serious irrigation project, we can talk and see what we can do. We don’t want to hear about potential programmes. I have been hearing about potential for the past three years. Yes, potential is okay but you need to move to action.”

Earlier ZNFU president Jervis Zimba disclosed that the funds for the irrigation fund had disappeared.

“There is nothing in the account for the irrigation fund,” Zimba said.

“Right now, there is no irrigation fund. We don’t know where the money went. This is a very sad story because we should not be talking about irrigation now. I am happy that God has punished us with the drought that we are experiencing so that people can see the importance of irrigation.”

The EU yesterday released 2.4 million Euros K15 billion to ZNFU for the improvement of productivity for smallscale farmers. r Fee said the 87,000 farmers were expected to benefit from the project through increased access to agricultural support services.

“This will lead to increased household food security,” Dr Fee said. “The increased volumes of marketed farm produce will greatly contribute to reducing food prices and hence stabilising them on the local market in the long run.”

Zimba said food security was the greatest concern to his union and the country.
“Regrettably, there is overwhelming evidence that food security is still one of the greatest challenges of our time in this country,” he said.

“It is for this reason that ZNFU for over a century now has continued to work hard in mobilising farmers to ensure food insecurity will be one day a thing of the past.”

Zimba said from this year on, ZNFU would work on “unlocking” the potential for farmers.

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Thursday, January 07, 2010

‘It’s not too late to zero rate agricultural products for VAT’

‘It’s not too late to zero rate agricultural products for VAT’
By Kabanda Chulu
Thu 07 Jan. 2010, 04:00 CAT

ZAMBIA National Farmers Union (ZNFU) has said it is not too late for finance minister Situmbeko Musokotwane to zero rate agricultural products for value added tax (VAT) purposes in a bid to reduce costs of production and stimulate demand.

Under the 2010 budget, Dr Musokotwane placed most agricultural products on VAT exempt category and this does not favour farmers because VAT is paid on certain inputs even before the process of production begins.

“This makes it difficult for local products to compete on level terms with imported products as the imported products are not subjected to any VAT upon importation while producers in surrounding countries, such as South Africa are able to reclaim all their input VAT,” Zimba said.

“It is in this line that ZNFU made specific proposals during the 2010 budget submissions and requested for agricultural products to be zero rated for VAT purposes in a bid to reduce costs of production, stimulate demand and expand production.”

Zimba said costs of production were further driven up by other non-production related costs farmers had to pay up because of being involved in farming business.

He said a review undertaken by ZNFU to understand the burden in agriculture revealed that farmers paid as much as 61 per cent in taxes when all forms of charges applied on farming were computed.

“We are grateful to President Rupiah Banda for abolishing crop levies which were penalising farmers even before they sell their products and some of the non-production related costs are council levies, environmental council charges, land rent, among others,” said Zimba. “These charges are continuously being revised upwards without due consideration of the impact they have on the competitiveness of agricultural products. It is for this reason that we are disappointed that in the 2010 budget, ground rent has been increased by 80 per cent in spite of the fact that hardly two years ago, it was revised upwards by more than 100 per cent.”

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