Policing our mealie-meal
By The Post
Fri 22 Mar. 2013, 14:00 CAT
Jamas Milling managing director John Coutlis blames the current shortage of mealie-meal on weak monitoring mechanisms by law enforcement agencies. Coutlis accuses law enforcement agencies of allowing rampant smuggling of mealie-meal to neighbouring countries.
True as it may be that the current shortage of mealie-meal is caused by illegal exports to some neighbouring countries, law enforcement agencies are not in a position to stop it. This is not a new problem. This problem has been there from the 1980s. All sorts of check-points were put along our borders to try and stop the smuggling of mealie-meal. Even songs were sung to discredit smugglers of mealie-meal. But the smuggling continued.
We don't think the demand for Zambian mealie-meal in our neighbouring countries is in itself a bad thing. It does offer an opportunity to our farmers and millers to increase their market. There is a bigger problem than this: Zambian maize and mealie-meal are highly subsidised. We are subsidising both production and consumption. We have subsidised fertilisers and other inputs. And the maize that is bought by our millers is sold to them at a subsidised rate.
This, in itself, means that Zambia is subsidising the consumption of maize meal in the neighbouring countries. For a very long time, the Katanga Province of the Democratic Republic of Congo has been dependent on Zambian maize and mealie-meal. There are also substantial amounts of mealie-meal that go to Angola. Our subsidised fertilisers get to Malawi and other neighbouring countries.
In our planning, there is no provision for subsidising our neighbours. We are planning our maize stocks and mealie-meal supply on the basis of our population without taking into account Katanga and eastern Angola. Any increase in demand across our borders, or even within our country itself, can cause serious shortages of mealie-meal.
But policing our borders is not the solution. Even if we wanted to, we have a very long border with our neighbouring countries which is not possible for us to police. The solution to this problem lies far beyond law enforcement. It is an economic problem that needs economic solutions. At the rate we are subsidising our maize and mealie-meal, it doesn't make economic sense for the Katangese and others to engage in production of maize. Why waste their time and money when they can get the mealie-meal cheaply from Zambia? It doesn't matter whether the mealie-meal is smuggled to them or not. What matters to them is having the mealie-meal.
The solution lies in making the cost of producing maize and the prices of our mealie-meal economic and competitive. This demands, among other things, the removal of subsidies from maize production and mealie-meal consumption. But is this possible in our current situation? Our answer is a categorical no. We are not in a position right now to arbitrarily remove maize and mealie-meal subsidies.
To do so will first require us meeting certain prerequisites. It demands crop and foodstuffs diversification. We need to wean off our people from excessive dependence on maize meal. When this is done, we can then start reducing or totally removing subsidies from maize production and mealie meal consumption. When this is done, those who engage in maize and mealie meal production will have the right to sell their maize at the market price to the Democratic Republic of Congo and other neighbouring countries. Exporting subsidised mealie-meal doesn't make economic or financial sense when the whole issue is viewed from the interests of the nation as a whole. It may make sense and appear to be very profitable at an individual trader level, but the nation is losing out.
We love our neighbours but we don't think we have the capacity to feed them every year with subsidised mealie-meal. Some of them are actually very rich countries with more resources than ourselves. Why should we subsidise their mealie-meal consumption? One can sympathise with fertilisers being smuggled into Malawi because that country is relatively poorer than us but with a population that is equal to ours to feed. The smuggling of fertilisers into Malawi may be out of necessity or need. But the same cannot be said about the smuggling of mealie-meal into Katanga or eastern Angola.
Bold decisions will need to be taken over this issue. We have to introduce our people to other foodstuffs that are available in our country and are cheaper to produce. Let's teach our people to start looking positively at rice consumption. It is much easier and cheaper to feed a large population on rice. If Asia was as dependent on maize meal as we are, many of the citizens of that region would be dying from hunger every year. It is much cheaper to produce rice than maize. Rice doesn't need fertilisers and other expensive inputs that maize needs. And every region of our country has the capacity to produce enough rice to feed its inhabitants and have a surplus for export. Probably in that way, our neighbours may also learn to eat rice and in that way create a market for our rice growers.
We also have crops like cassava, millet, sorghum, sweet potatoes and so on and so forth that our people can turn to and reduce their dependence on maize meal.
But the movement away from maize will not be spontaneous, it has to be a guided one. In the first place, our people's movement to maize meal was not spontaneous, it was guided. This country has not always been dependent on maize meal. Maize meal is something that has been foisted upon our people by the commercial farmers who accompanied the mining activities on the Copperbelt.
There is a huge market for maize in our region and in the world. Let us exploit that market by producing maize in the manner that is commercially and financially viable. Let us come up with a system that will help us phase out subsidies to maize production and consumption. We understand the political sensitivities that are tied to mealie-meal. And already, there are some political vultures that are without shame, trying to make political capital out of the mealie-meal shortages that some of our towns have been experiencing. Politics will always be there around mealie-meal if it remains the sole staple food for our people.
And this should always be borne in mind when dealing with mealie-meal. The changes that we are advocating should take these political realities into account.
Labels: JOHN COUTILS, MEALIE-MEAL, MILLERS
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COMMENT - From Chola Mukanga's blog, from the President of NAREP, Elias Chipimo. It is great to hear a more detailed background to the maize/mealie-meal crisis. Drought in the US/Canada, leading to South Africa's exports being diverted from the DRC to the USA, leading to higher prices in the DRC, which leads to Zambian maize exports to the DRC.
The Mealie-Meal Crisis in Zambia
By Elias Chipimo
When NAREP held a press conference on 10 January 2013 to deliver our New Year message, we challenged the Patriotic Front to stop focussing on political domination (for example, through triggering unnecessary by-elections) and to prioritise development actions. We then gave several examples of people’s expectations and pointed out that it was not our intention to see the PF fail because if they failed, it would be the people who would suffer.
We received a harsh response from State House suggesting that we are living in a “parallel universe” and requesting us to: “pinpoint where the PF Government has failed, and provide alternative grounded options rather than spend time in a day-dreaming or theoretical session about what [we] [wish] to happen”. The Parallel Universe Series will therefore address issues we were asked to point out. We do this in the spirit of offering solution-oriented thinking and to share with the general public our own policy priorities and governance plans as a Party that seeks to restore values-based leadership through constructive reasoning and issue-based politics. Our first discussion topic is the current mealie-meal crisis.
Rule number one in handling a maize crisis: accept that there is a problemFew people would deny that we are facing a serious food crisis and one that could get a lot worse by the time the current rains are over and the new maize crop is harvested. The price of maize meal – the nation’s staple food – has increased in some cases by over 100 percent from the prices prevailing prior to the day the PF administration came to power. As we will try to demonstrate, although the problem is not entirely the PF’s fault, decisions that they have either taken or failed to take, have served to make a bad situation even worse.
With the price of mealie-meal reaching record levels, the PF appears to have finally woken up from its development slumber and realised they need to get their act together. The problem is that rather than acting, they are reacting. During one of the seemingly endless swearing-in ceremonies at State House, President Sata stated that he would consider re-introducing price controls to curb the high cost of mealie-meal. This would be an act of desperation and would only make the situation worse over the long-term. When you consider that prior to the election in 2011 the average cost of a 25 kilogramme bag of mealie-meal was K45,000 (rebased K45) and that this had risen to over K90,000 (rebased K90) at its highest point in some parts of the country last month, it is clear why there is some panic within the PF hierarchy.
The threat of price controls should not be taken lightly. Mealie-meal increases on a much smaller scale formed an important part of the revolutionary build up that saw the downfall of President Kaunda in 1991. Riots that took place in June 1990 due to Kaunda’s attempt to remove subsidies on maize were seized upon by a daring signals officer who mounted a short-lived coup less than 12 months before Zambia’s First President was finally voted out of power. Mealie-meal is clearly serious business in Zambia. What is sad about the situation we face today is that the present increases were predictable and could have been avoided.
The belated intervention by the Food Reserve Agency (FRA) and continued threats from the Head of State against the millers have meant that prices have started to come down. This has reduced the fear that price controls and other Second Republic tactics will be adopted to address a problem that was almost entirely due to the mishandling of the situation by an administration that appears to be focused more on playing politics than on development. Before we get too cosy with the idea that this risk has gone away, however, we need to remember that because the current price reductions are not a reflection of market forces, the reductions we are witnessing may only be temporary. Sooner or later, a more comprehensive approach to dealing with the mealie-meal crisis will have to be taken. What is needed now is a government that fully understands the politics of maize.
Understanding the politics of maize
When prices of commodities rise drastically, it is usually a market signal that something has gone wrong with the balance of supply and demand. If more people want to buy something that is in short supply, the price of that item will quite naturally go up. Any person who is in the business of trading in mealie-meal will be well aware when demand goes up and so will the consumers. Out of desperation and in order to secure an “essential” commodity whose availability is uncertain, people will – up to a certain level – be reluctantly prepared to pay more. This is exactly what has happened with the price of mealie-meal in Zambia.
The PF does not seem to have understood the politics of maize quickly enough. They have been too busy dealing with their political opponents to realise that they have created for themselves a new enemy: the ordinary Zambian who just wants to be able to enjoy his staple nshima without paying too much for it. Things might not even be so bad for the generally neglected Zambian if at least he or she had a job and could afford the price increase – or if he or she did not have to suffer endless load-shedding, lack of access to quality healthcare and safe clean water, or to face costly transport charges getting the family to school and to work. But before we give the PF too much grief over their poor handling of the maize crisis, let us first examine how we got here in the first place.
The roots of the crisis
The roots of the current mealie-meal crisis lie in the seemingly insatiable demand for the commodity from neighbouring countries, particularly the Democratic Republic of Congo (as well as in the broader Great Lakes Region and beyond), which demand has been made even worse by last season’s poor harvest in the United States and Mexico. Here is a summary of the challenge: South Africa has produced about 12 million metric tonnes of maize this year and is able to supply mealie-meal to the Congo more cheaply than Zambia because of its efficient system of planting, harvest, storage, finance and generally well-supported agricultural sector. This year, however, South Africa is not exporting to the Congo because its exports are covering the shortfalls in the North American markets (which were a result of last year’s drought in that region). The massive vacuum in the Congo supply chain has created even greater pressure on Zambian maize. Due to the basic rules of supply and demand, Zambian maize has simply become hot property in the DRC and beyond, pushing up the local sale price to unprecedented levels.
Had the Government intervened early enough when it became clear that prices in Zambia were rising, the crisis would have been far better managed. For example, when several politicians and commentators started speaking of banning exports last year, it was precisely to prevent Zambian maize from being sucked into the regional vacuum and creating a crisis here.
When you add to the regional demand factor, the various problems resulting from (i) the Food Reserve Agency’s confusing role in the maize market (exporting maize when our markets are facing erratic supplies); (ii) infrastructure challenges preventing maize from being collected from rural areas when roads are impassable during the rains and there is no effective storage in these locations; (iii) long-term structural problems in maize marketing; (iv) delays in providing inputs and payments to farmers; (v) poorly thought out government policy; and (vi) last minute procurement practices, you have the perfect storm of problems. You also have one predictable outcome: sky high maize prices in excess of K100,000 per 25 kilogramme bag. In some ways, we are lucky that the price is not higher!
When you have a critical continental shortage of a staple commodity creating strong regional demand, the short-term measure to take is to prevent exports (so that you can at least feed your own people) and flood the market with as much raw material (stored maize) as possible in a consistent manner. Belatedly, this is the action that PF administration has taken. The reason why prices are not coming down as fast as they should is that the demand is still so high and there are no effective means of preventing exports from our long and porous border with the DRC. Earlier this month newspapers reported the discovery by a Government official of a boat laden with mealie-meal as it was about to set sail for Burundi from Mpulungu harbour. Demand is high in the Great Lakes countries and into Sudan. How many boats go unnoticed? How much mealie-meal is being smuggled daily, weekly, monthly? No one knows!As for the FRA? Well, that is a whole different story. FRA stocks of maize are not audited and it is pure guesswork as to how much maize they are holding at any one time and the quality of that stock. It did not help that the FRA was itself getting in on the export game during the current marketing season, presumably to try and recover the huge subsidy costs to the maize sector which amounts to nearly US$2 million per day. That amounts to 730 million dollars a year – almost the same amount of money as we borrowed under the Eurobond!
So what is the way forward?
(a) Infrastructure and extension services
Clearly, there is need for more innovative approach to the challenges (actual or perceived) affecting this critical sector. Even when it is not trying hard, Zambia is capable of producing enough food to feed itself. There has to be an expanded incentive to produce not only more but to do so efficiently. This calls for massive investment in extension services, research and development, road networks, irrigation infrastructure and in maize marketing. The colossal amounts being spent on maize purchases could have done wonders if applied to these areas. It is commendable that a good part of the Eurobond is to be spent on the energy and transportation sectors. These are critical areas for ensuring sustained agricultural production.Zambia has in excess of 400,000 square kilometres of medium to high quality arable land that could serve as a massive breadbasket not only for the region but for Africa as a whole. Without investment in infrastructure, however, this potential will remain unrealised. The PF is certainly trying to do its part to improve the road infrastructure with its Link 8,000 project. The only problem is that Link 8,000 is not being supervised and run in a manner that will get us the best results within the shortest possible time and at the least cost (but this is a topic for another day).
(b) New marketing mechanisms
Once production costs are brought under control, we need to develop an efficient marketing mechanism. Innovative ideas include the support to the development of a vibrant commodity exchange linked to a series of storage centres around the country. Storage is critical and can be tied to a system of warehouse receipts. This is a great way to reintroducing the financial sector into agriculture even at a smallholder level. Storage that is certified based on best international practice will effectively commercialise the small farmer. If, for example, a rural small-scale farmer can deposit their produce in a warehouse near his or her field and collect a warehouse receipt for that commodity, he or she can take that receipt and obtain cash for part or all of the stock. This will prevent panic selling and will provide stability to his or her financial requirements. In order for such a system to work efficiently, however, Government must put in place – among other things – supporting legislation and a national storage construction and development programme.
It is important to recall that the private sector has been asking for the recognition of a Warehouse Receipt as a document of title from as far back as 2004. The MMD Government only moved on this in 2010 in an attempt to replace the Agricultural Credits Act. However, the 2012 Act remains unimplemented. This action should be delayed no further. Similarly, an Agricultural Marketing Bill went through stakeholders consultation in 2010 but it is not clear when it will be taken to Parliament despite a Parliamentary Committee report recommending the immediate presentation of the Bill to the National Assembly. It contains important provisions for the improving the sector and curtailing adverse political interference. A Commodity Exchange Bill also underwent stakeholder consultation in February 2010, although it is not clear what stage the Bill has reached.
All of these interventions will help to put maize supply on a much better footing. The price of mealie-meal should be determined as much as possible by market forces and if the Government wants to intervene then it should be done for every bag of roller meal which leaves the mill and not from the raw material stage. After all, Government is probably also subsidising the production of stock-feed (which uses huge amounts of maize) and is not able to monitor how much of the subsidised maize is being used in the stock-feed industry.
(c) Rethinking our diet and farming practices
It is also important for Government to begin the exercise of re-thinking our dependence on maize as a staple food as part of a broader crop diversification programme. Consuming huge quantities of maize meal, particularly the refined breakfast meal contributes to the high rates of preventable illnesses – particularly diabetes. It is almost as impacting as taking lots of sugar in your tea because it is simply refined carbohydrates (especially breakfast meal) that are then converted into sugar by the body. Traditionally, our communities were raised on finger millet – a commodity that can grow with far less fertilizer, has far greater nutritional value and would not become embroiled in the politics of maize as it can be grown more cheaply and efficiently in rural locations. Rural farmers need to be supported to move from subsistence to income-based farming through the emphasis on money crops like soya beans. Soya beans is a source of protein that is widely used for both human consumption and animal feedstock and has great national and regional demand. A soya farmer should have no problem paying back loans on the back of huge demand. In order for the maize sector to perform better, certain structural changes will have to be made.
(d) Rethinking the role of the FRA
Government needs to seriously rethink the role and performance of the FRA. Many traders and millers are not willing to take any local positions on maize preferring to do so purely for export and to a lesser extent to supply local breweries which consume a very small portion of annual production (approximately 80,000 metric tonnes against a full harvest of over 1 million tonnes). Local traders have traditionally had mandates from mills to buy and stock maize for them for release later on in the year but this business has been obliterated by FRA. The reason is simple. If a trader is not sure whether the FRA will also begin releasing maize at a cheap price to millers in the middle of the year, that trader will not want to hold stock that he might have purchased at a high price. This is because even a small reduction in the FRA price to the market could bankrupt a miller that has pre-purchased maize stock for releasing later into the market.
Most millers rely on bank finance but the lack of clarity and planning on the part of FRA makes both the millers and the lending institutions nervous and therefore cautious. They have no certainty as to when the FRA will intervene in the market. The only solution is to focus on the export market or buy limited amounts of stock that they can quickly sell if the FRA drops the price of maize. The financial sector generally prefers to lend to FRA because such lending comes with a Government guarantee. Millers would therefore rather fill their storage sheds with only a few months of stock when FRA is not participating in the market between May and October (a restriction set by the Food Reserve Act).
Further, because not every miller is able to accesses cheaper FRA maize, there is a distortion in the market. A close look at production figures shows that the more efficient producers of maize – essentially the large scale farmers – have tended to diversify into other commodities such as soya beans and tobacco. FRA has therefore only served to promote inefficiency. Current maize yields in Zambia average about 2 tons per hectare when they are supposed to be 5-10 tons per hectare. With its 1.3 million small-scale farmers, Zambia can easily match the average annual South Africa production of 10-12 million tons of maize and feed the continent!
Conclusion
A simple comparison between Zambia and South Africa demonstrates the challenge we face and how without more focussed national leadership, we will not solve the problem of high maize prices. In the end, unless economic activity picks up and people are able to earn more money, the price of maize will always be too high. Even in South Africa where production and marketing efforts are efficient, the price of a 25 kilogramme bag of maize fetches over K100,000 (rebased K100). If the PF administration was as determined to deliver development as it is to destroy Nevers Mumba’s MMD, Zambia would already be a very different country by now. As one expert in the sector (who shall remain nameless) points out, maize in the Americas and Asia is an economic commodity, whereas here we have reduced it to a political crop, haemorrhaged the Treasury and succeeded in sustaining poverty.
Elias C. Chipimo is a Zambian politician and current President of NAREP. He previously worked as a corporate lawyer and human rights activist. He is the author of the book - “Unequal to the Task” which discusses leadership in Zambia and the current state of the nation.
Labels: ELIAS CHIPIMO, FOOD, FRA, MEALIE-MEAL, NAREP
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Millers and their prices
By The Post
Fri 11 Jan. 2013, 14:00 CAT
The enjoyment of a decent standard of living is frustrated, on part of the poor, when there is
an exorbitant and constant rise in prices of basic foodstuffs.
There has been a constant rise in the prices of foodstuffs, especially mealie-meal. While this rise may not affect very much the small minority of well-off people, it affects dramatically the majority of the common people and in a special way the immense crowd of the poor. This increase of prices is again provoked by the pressure of an artificial shortage created by millers, traders.
And this price increase of some food commodities has not been matched by the corresponding increase in wages and prices for goods produced by farmers, as would be logically expected.
The right to live a dignified life can never be attained unless all basic necessities of life, including food, are adequately and equitably available to everyone.
We expect government bodies to have sound policies over the sale and pricing of essential foodstuffs. We need to provide food at prices which both give a just return to farmers, millers and are reasonable to consumers.
Economic justice requires that each individual has adequate food to survive, to develop and thrive. With the current high prices of food, there are many people who each day cannot meet the basic food requirements necessary for a decent human life.
And as we have consistently pointed out, it is a strict duty of justice and truth not to allow fundamental food needs to remain unsatisfied.
The current food supply system is inadequate, chaotic, irrational and is likely to lead to bigger problems in future. Michael Sata's government has inherited this system from the previous regimes. It is not a system that this government should retain. It is something that this government should strive to change because it is a system that has not worked well, that has not helped to ensure food security in our country.
It doesn't make sense for the government to retain policies that every year require the President of the Republic to police mealie-meal prices and threaten those who maintain high prices with all sorts of sanctions. The threats that are being issued by Michael to millers are understandable and may be justified. But they are not new. Michael is not the first president of this country to deal with millers in such a way. It is such problems that in the 1980s forced the UNIP government of Dr Kenneth Kaunda to nationalise milling enterprises. But did it work? The answer is a categorical no.
It didn't work. Why? Probably because nationalising the milling enterprises did not address the fundamental issues that gave rise to this perennial problem. Mealie-meal shortages continued despite KK nationalising the milling industry. Every president of this country has had to meet millers; do a deal with some millers. But is this the best way to deal with the problem?
A more stable, permanent solution must be found for this serious problem. The total failure of the initiatives that have been taken by all the governments and leaders who have presided over the affairs of this country is today more evident than ever.
There is a great danger that government policies, if not combined with clear social concern, will bring socio-economic deprivation.
Our excessive dependence on maize meal is proving problematic and needs to be addressed. At the current cost of producing maize, it is impossible, unrealistic and irrational not to move towards serious crop diversification. We have other grains like rice, sorghum and even cassava that can give us the needed starch at a relatively low cost or price.
Every year we are subsidising the production of maize by not less than US$300 million and buying maize from farmers at KR65 per 50kg bag and reselling that to millers at KR60. For how long should we continue doing this?
Here the issue is not whether we should subsidise maize production and consumption. The issue is whether we can afford to do so or not. If we have a lot of money and we can afford to spend it in such an irrational way, it's fine. But if we don't have that type of money, then there is a problem and we must start considering sensible alternatives.
We insist that it is time we started moving away from this excessive dependence on maize meal and start to teach our people to eat cheaper grains like rice. There is a lot of rice in the country, but it will require a lot of work to make our people accept it as a staple food that is just as good, if not better than, maize. The majority of the world's population depends on rice. What harm will it do us to join them?
Moreover, we shouldn't cheat ourselves that we have always been dependent on maize meal for our survival. Maize meal is a new thing to us. It is not that old in this country. It is something that came in strongly with mining and urbanisation. The same way we became dependent on maize meal, we can become dependent on rice and other grains and sources of starch. But this will require some effort from government and other agencies. The Zambian people need to be prepared for a future that is not dependent on maize meal, but on other foodstuffs which we can grow cheaply and provide to our people in abundance. In addition to rice, sorghum, millet and cassava, we have sweet potatoes and other tubers and nuts.
The world prices for maize are continually rising and it will soon become very difficult to force our farmers to sell their maize locally at such low prices instead of them exporting. We are producing enough maize and mealie-meal, but the good part of it goes to Congo and Angola. Smuggling will be impossible to stop given the nature of our borders. And as long as the price across the border is good, smuggling will not stop. And with smuggling, shortages will continue. Good prices across the border will also push millers to continually attempt to increase their margins. This will mean every year, every now and then, the president will have to blackmail millers to reduce their prices. Is this the way to run an economy? Is this the most rational way to manage the food security of our people?
Labels: MEALIE-MEAL, MILLERS
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Sata to meet millers
By Henry Sinyangwe
Mon 07 Jan. 2013, 14:00 CAT
MILLERS will today meet President Michael Sata to discuss mealie-meal prices, according to sources.
Sources said the millers want to raise issues of mealie-meal price controls which had the potential of harming the farming sector. And Millers Association of Zambia president Allan Sakala remained mute on the meeting.
Sakala said the millers had heeded to President Sata's directive to all millers to reduce wholesale prices to KR50 (K50,000) or less.
"From the millers' perspective, we have decided to comply with the presidential directive of pegging the wholesale price of a 25kg bag of mealie-meal at K50,000 (KR50) . We decided to do this on Friday," Sakala said.
He said the government should closely monitor the prices at the wholesale and retail stages to ensure that consumers are not exploited.
Sakala said retailers were only allowed a KR3 (K3,000) increment in view of transportation costs.
"We will be engaging government to see to it that they closely monitor the traders. As millers, we are just producers of mealie meal; we are not supposed to be doing the selling, and we do not want to shut out the traders," he said.
Agriculture minister Emmanuel Chenda called on millers to open up additional outlets to counter the problem of traders who the millers have blamed for the high mealie-meal prices.
President Sata warned millers that government would re-introduce price controls if they continued to exploit consumers by selling mealie-meal at K80,000.
He warned that any retailer or miller selling mealie- meal at more than 50,000 risked having their licences revoked.
Labels: MEALIE-MEAL, MICHAEL SATA, MILLERS
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Coming late to work is dismissible - Sata
By Moses Kuwema
Fri 28 Dec. 2012, 14:00 CAT
PRESIDENT Michael Sata yesterday said that reporting late for work at State House was a dismissible offence. And President Sata says millers selling a 25-kilogramme bag of mealie-meal above K50,000 risk having their licences revoked.
Meanwhile, Consumer Unity Trust Society (CUTS) says there is need for stiffer market regulation so that prices of commodities such as mealie-meal do not sky-rocket.
Speaking when he swore in Kabompo East MMD member of parliament Danny Chingimbu at State House as lands, natural resources and environmental protection deputy minister, President Sata told Chingimbu that he was allergic to reporting late for work.
"If there is one thing which I am allergic to, it is coming late to work. Here at State House, coming late is a dismissible offence because when you are coming to work late, you are stealing money for the poor people. All of us who are here we are getting taxpayers money, what are we doing for the taxpayers?" he said.
President Sata urged Chingimbu to emulate finance minister Alexander Chikwanda, whom he said reported for work at 07:00 hours.
"Show a good example at home to your children, madam and at work. Because some people they think because you are a minister, you go to work at 16:00 hours. Behave like Minister of Finance. If you go to Ministry of Finance at 07:00 hours, you find Mr Chikwanda is in the office.
You must be an example. The biggest problem we have in this country….when I was a young man and when there was Northern Rhodesia government, we were far much richer than all the countries in the region. We were even richer than South Africa, that's why the Europeans forced us to go into the federation because they wanted to steal our riches. But today, we don't work. We are too lazy. Our currency is very weak, even if it has recovered by two cents but it is not what it used to be," President Sata said.
He warned Chingimbu against using his position to organise the MMD.
"We welcome you. You are MMD and a member of parliament. We have picked on a member of parliament because the Constitution says ministers will come from members of parliament. When you find that people from PF are keeping a distance from you, the choice is yours.
The only thing I want from you is to be a leader. Don't use your ministry position, cars, office and telephone to organise MMD. If you want to organise MMD go and ask jail master Nevers Mumba to give you the money to organise MMD. We will always relieve you," he said.
Meanwhile, President Sata said Kabompo could only become the provincial capital of North Western Province once the people in the district were united.
"The capital of North Western Province is supposed to be in Kabompo but you the people in Kabompo must be united. Once you are united then the sky is a limit. I know North Western Province very well because from Kabompo it is very easy to get to Yambezhi Zambezi, Chavuma, Mwinilunga, Mufumbwe and Solwezi.
But you people yourselves you have to work hard, " he said. "You know that Kabompo and Mwinilunga, we need to do that road, I have driven on that road, some of you don't even know where it is. Even Mrs Inonge Wina does not know where Kabompo is and we need to put a bridge to go to Manyinga district. There is a new Manyinga district, we need the roads."
On the mealie-meal prices, President Sata said the price of the commodity had continued to go up uncontrollably and warned the millers that the government would not hesitate to re-introduce price controls if the trend continues.
"I would like to warn the millers, we as the government, we can re-introduce price controls if they want to exploit the people in the villages and townships who don't work. And then you say mealie meal can cost K80,000. Any retailer…miller who is selling mealie meal for more than K50,000, they have their licence hanging," he said.
But CUTS-International Zambia executive director Simon Ng'ona said much as the President has the right to impose such market controls, the forces of demand and supply should be the order of the day.
"The problem which is there in this sector is lack of regulation. What the President should be doing is challenging the ministers or the regulators in the market to ensure that there is effective regulation so that prices don't sky rocket," Ng'ona said.
He said the other problem that could be there was the holding of maize by millers, saying the government had not done a thorough forensic audit of the maize stocks.
"These are some of the issues which should be looked at not the issue of taking us to the price control. The government should allow more private sector participation in the value chain of maize production, maize buying and I think it will bring about efficiency and effectiveness," said Ng'ona.
And President Sata said MMD president Nevers Mumba would be the next person he was going to swear in.
He said the only problem was that he did not know which job to give Mumba.
While walking outside for the photo shoot, President Sata mockingly told justice minister Wynter Kabimba that it was nice to be in government as he could afford to bring people from other political parties and make them ministers.
He said all MMD members of parliament would soon join PF.
"Mr Wynter have you seen how nice it is, we can even go to other parties and bring people and make them ministers," said President Sata as Kabimba responded: "I wish I was MMD, I would have been sworn in."
President Sata then said: "the MMD are coming, all of them. Tomorrow today it's 'Nerves' MMD president Nevers Mumba who is going to come but the biggest problem, is what job to give him."
Labels: CUTS, MEALIE-MEAL, MICHAEL SATA, WORK ETHIC
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Mealie meal prices in Mwansabombwe reduced by 35%
TIME PUBLISHED - Saturday, February 25, 2012, 4:44 pm
Mealie meal prices in Mwansabombwe palace of Mwata Kazembe and surrounding areas in Kawambwa district have been reduced by K25, 000.
A check by Zambia News and Information Services (ZANIS) in Mwansabombwe yesterday discovered that a 25 kilogramme bag of breakfast meal from APG milling company which was previously selling at K70, 000 is now selling at K45,000
The check also revealed that a 25 kilogramme bag of roller meal is now costing K35, 000 from the previous K65, 000.
And Thomas Chingele who was found selling the commodity also told ZANIS a five kilogramme of breakfast and roller meal is selling at K6, 000.00 and K5, 000.00 respectively.
Mr Chingele said people in the area are happy at the drastic reduction of mealie meal prices attributing this to good governance of the Patriotic Front (PF) government.
He thanked the PF government for facilitating in the reduction of mealie meal prices saying this has enabled many people in the area afford thecommodity.
Mr Chingele said people in the area had suffered enough and the reduction in price could not come at a better time than now.
Mr Chingele however, could not give other reasons for the immediate reduction in price of the staple food but said the source also had a similar reduction hence the chain reaction to the benefit of consumers.
Efforts to get a comment from APG milling company failed as the contact phone number was not going through at press time.
ZANIS
Labels: INFLATION, KAWAMBWA DISTRICT, MEALIE-MEAL, MWANSABOMBE, MWATA KAZAMBE
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Extend mealie-meal handouts ban, Mangani urges govt
By Moses Kuwema
Thu 13 Oct. 2011, 13:30 CAT
LAMECK Mangani says the government's ban on mealie-meal handouts to defence and security personnel should be extended to water and electricity. In an interview, Mangani (left), the former home affairs minister, said the proposal to give the defence personnel money instead of mealie meal was good.
"The best is to give them money for water bills, electricity everybody should manage things on their own and in the long term it will be relatively cheaper to run these things. The concept of Niva Boma public property will die, everybody will feel responsible," Mangani said.
He said currently, very few people cared even if they left taps running in their homes because the government was responsible for paying their bills.
"That's why we have a lot of bills that have accumulated which are very difficult to dismantle in all these institutions, the police, the army. The soldiers can buy mealie meal or whatever they want to buy on their own and eventually we have to look at issues of water and electricity, they have to pay on their own," he said.
And Mangani said the country needed to be told what the Salaries Commission came up with during its sittings as disparities in salaries for defence and security personnel had continued.
"You remember there was a salaries commission that was appointed. I think it would be a good idea that we try to find out, what did that commission do because there are a lot of disparities in the way salaries are given out particularly with the servicemen.
What did they do because a lot of money was spent on that commission? This is important so that we harmonise the salaries. For example when you look at an equivalent of a captain in the army versus the police, the disparity is too big so those are the issues. The salaries commission what did they come up with? Did they just use the money and throw the report away? What did they do?" said Mangani.
On Monday, President Michael Sata advised defence minister Geoffrey Mwamba to harmonise the conditions of service for defence and security personnel.
"Mr GBM let me know because we know the cost of mealie-meal. I don't mind giving the soldiers that increment instead of giving them handouts. Don't give soldiers, don't give the police, don't give prisons...don't give all these people handouts, give them the money they deserve and there's a very big gap between the police, the army, the air force and ZNS," said President Sata.
Labels: GBM, LAMECK MANGANI, MEALIE-MEAL, MICHAEL SATA
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Rupiah threatens opposition leaders ‘insulting’ him
By Chibaula Silwamba
Thu 21 Oct. 2010, 04:30 CAT
PRESIDENT Rupiah Banda yesterday warned that he has powers to arrest opposition leaders that ‘insult’ him but will not do that because he does not want to split the country. And President Banda said his government was working on measures to reduce mealie-meal prices following a bumper harvest of maize estimated at 2.8 million metric tonnes.
Addressing a campaign rally to drum up support for Movement for Multiparty Democracy (MMD) candidate Keith Mukata at Mount Makulu Basic School in Chilanga ahead of Monday’s by-election, President Banda said he was a subject of insults every day.
“My name is always put into ridicule but that doesn’t mean that I don’t have the power. Of course I have the power, I can arrest those people; I can do all kinds of things to them but I don’t want to do that,” President Banda said.
“I promised the Zambian people when I was asking you to elect me during the elections after we lost our dear brother the late president Mr Mwanawasa, I promised that I will be a President of peace and I promised that I will not be the one to split our people.”
He said he had promised Zambians that he would do everything in his powers to unite Zambians and he was currently fulfilling those promises.
“I also know how to insult. I know the words of nshamba insults, I can say the kind of things that my colleagues in the opposition say but I think it is undignified for a President to stoop so low and start using abusing words from his mouth,” President Banda said.
“Every day they insult, not only me, they insult you too. We must as a nation, especially that everything that we say is heard by our children, we must be an example of good leadership and parenthood.
We cannot be the ones to take lead in teaching our children insults.”
President Banda said MMD’s former Chilanga partliamentarian Ng’andu Magande was expelled because he became difficult for the party.
“Although he was claiming that he was MMD, he was also very busy criticising the MMD and any organisation has got the right to sort out this kind of problems and this has resulted in this by-election today,” President Banda said.
He said Mukata was the most suitable candidate to become Chilanga parliamentarian unlike UPND candidate Captain Cosmos Moono, whom he claimed had failed to serve Chilanga residents during his five-year tenure as parliamentarian there between 2001 and 2006.
“Keith already has all my telephone numbers; my cell phone, my office number, he knows how to get hold of me,” President Banda said. “I don’t know if Mr Moono would know what to do with your problems.”
And reacting to MMD members that informed him that they would fight back the opposition members for “provoking” them, President Banda told the cadres not to hit back.
He said Zambians want to live in peace, hence the MMD should concentrate on convincing the voters on why they should vote for Mukata and not fighting.
President Banda urged opposition leaders to denounce violence.
“We don’t want elections to be associated with violence,” he said.
President Banda said his government’s good policies in agriculture led to the production of 2.8 million metric tonnes of maize.
“We are not satisfied, the price of mealie-meal is low enough; we are going to put measures in place to even reduce it further. But the fact is our mealie-meal is a little bit cheaper than before,” said President Banda.
Mukata said Moono had done nothing for Chilanga and there was no need for people to re-elect him.
Labels: MAIZE, MEALIE-MEAL, RUPIAH BANDA
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ZNFU bemoans high mealie-meal prices
Written by Florence Bupe and Nchima Nchito Jr
Friday, July 31, 2009 3:28:37 PM
THE Zambia National Farmers Union (ZNFU) has noted that the price of mealie-meal has not reduced despite millers purchasing maize grain from farmers below the recommended K65,000 for a 50 kilogramme bag.
In an interview, ZNFU executive director Ndambo Ndambo disclosed that the union had been carrying out an exercise to monitor the price of mealie-meal on the market since April this year, and noted that prices of the commodity had remained high even after the commencement of grain purchases by both the private sector, who include millers, and the Food Reserve Agency (FRA).
“The millers, National Milling in particular, were on record supporting the K65,000 floor price that was set for maize during this year’s maize marketing season. However, we have seen these same people buying maize from the small-scale farmers at prices as low as K41,000,” Ndambo said. “We are monitoring the price of mealie-meal and we want to establish who is benefiting from these prices.”
Ndambo said the union had been vindicated on the concerns raised earlier over the targeted 110,000 metric tonnes which FRA would purchase from the small scale farmers.
He said ZNFU still maintained that the targeted tonnage was a joke and mockery to the small-scale farmers.
“What we had predicted is exactly what’s happening now. For example, some depots in Mbala were able to purchase the targeted quantities of maize within two days of commencing the buying exercise, leaving many farmers stranded with their produce,” he said.
Ndambo urged government to hastily source for additional funds to facilitate the purchase of more grain from small-scale farmers.
And ZNFU, in a statement, revealed that low prices of maize had characterised this year’s grain marketing season.
“The ZNFU SMS service indicates the highest offered price so far this season being K70, 000, 00 per 50 kilogramme bag on the Copperbelt Province, while the lowest offer being K45, 000 per 50 kilogramme bag in Eastern Province,” ZNFU stated.
And ZNFU has been tasked to come up with terms of reference for the Agricultural Finance Committee in the Ministry of Finance and National Planning.
The main purpose of the committee is to find lasting solutions to the problem of dwindling financial outlay to the agricultural sector by financial institutions.
Labels: FRA, INFLATION, MEALIE-MEAL, NDAMBO NDAMBO, ZNFU
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Liato urges millers to stabilise mealie-meal prices
Written by Moses Kuwema
Friday, May 01, 2009 2:41:07 PM
LABOUR minister Austin Liato has urged millers in the country to stabilise the rising prices of mealie-meal.
During the National Milling Corporation (NMC) staff recognition awards in Lusaka on Wednesday, Liato said people were taking advantage of the global financial crisis to hike mealie meal prices beyond reasonable means.
“In these difficult times, mealie meal pricing is critical so we need leaders to ensure prices are stabilised and we are expecting these high prices to be temporal because this year, we are likely to have good harvests,” Liato said.
And Liato said the first ever awards by NMC were a clear indications of how employer and employee relationships must develop in the workplace.
He said the awards ceremony showed that the workforce was cardinal and essential to the success of any business.
Liato said partnerships between the government, unions and the business sector were a vital tool in driving Zambia’s continued economic growth.
And Zambia Congress of Trade Unions (ZCTU) president Leonard Hikaumba said human resource was a critical component of production.
Hikaumba said most companies in the country were not well because they had not looked after their workers.
He said the labour movement will continue to speak out as long as things are not perfect.
“As long as things are not perfectly well, things that seem to be hostile, we will continue to speak out..it’s a good thing to be informed in advance when new things are about to be implemented, because we would like to maintain industrial peace,” said Hikaumba.
And NMC managing director Peter Cottan said the company’s main focus was on work place productivity.
Cottan said NMC was looking for business practices that would improve timeliness, quality, minimise costs and waste by involving employees’ participation in innovation and technology.
Labels: AUSTIN LIATO, INFLATION, MEALIE-MEAL, NMC
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Govt won't allow importation of mealie meal - Mutati
Written by Kabanda Chulu
Tuesday, April 28, 2009 3:56:57 PM
GOVERNMENT will not allow the importation of mealie meal into the country, claiming that prices will stabilize soon due to the harvest of early maize crops.
Last week, the Zambia Competition Commission suggested that government should allow the importation of mealie meal to help reduce prices since the Millers Association of Zambia (MAZ) were operating like a cartel, hence exploiting consumers through excessive pricing of mealie meal.
But commerce minister Felix Mutati has said the importation of maize through the Food Reserve Agency (FRA) was enough to cater for the deficit.
He said government also wanted to utilize the existing local capacity of millers, who were creating jobs and making money to re-invest in the country.
"It will not make sense to import mealie meal especially that there is brand loyalty, for instance, others just eat mealie meal from Choma Milling but if we import, we may create apprehension and people will resist since there will only be stocks of 'xyz' brands," said Mutati.
"Also when we import mealie meal, people will lose jobs and there will be need to import by-products like stock feeds, so where are we going to end? An importer of finished products and yet we have the capacity but soon there will be some early maize harvest and by next month many other farmers will come on board to correct the situation."
Despite the importation of thousands of metric tonnes of maize by the FRA, which they later subsidized to members of MAZ, mealie meal prices in the country are still high with a 25 kilogramme bag of breakfast costing at an average of K70,000.
This development prompted the Competition Commission to ask government to allow imports so that prices could come down in order to protect Zambian consumers and to afford buyers a wider choice for the products.
Labels: FELIX MUTATI, MAZ, MEALIE-MEAL, ZCC
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Watch it over mealie-meal prices, Luchembe warns Rupiah’s govt
Written by Katwishi Bwalya
Wednesday, April 22, 2009 6:15:34 PM
THE continued high prices of mealie-meal in the country might see the MMD out of power in 2011, Captain Mwamba Luchembe, the 1990 foiled coup mastermind has said. Featuring on a Muvi TV programme Matter at Hand on Monday night, Capt Luchembe said there was need for the government to intervene in the escalating prices of mealie-meal."Basically, what I can tell you is that when Dr [Kenneth] Kaunda increased the price of mealie-meal, I believe it was from K13 to about K16, there was a difference of about K3.
There were food riots and the Police lamentably failed to stop that, I was with 5th Battalion of the Zambian Regiment at that time in the Western Province of Zambia. When they failed we were called in to come and stop this," Capt Luchembe recalled. "You see a military man is not born out of a fellow military man. You could be born from one military man but, basically we are all born from civilians. What necessitated that [coup] was an increase in mealie-meal prices. A military man is also a son of a civilian, it also affected my parents, it affected other soldiers' parents so we were not happy and everything was not okay and what happened, happened.
"The same mealie-meal prices brought MMD into power. Of course it was mealie-meal which was a catalyst to that action and the same mealie-meal prices as at now though it is now a democracy may see MMD out of power in 2011 or otherwise."
Capt Luchembe advised President Banda to be careful with people that surrounded him because it was possible for them to abandon him at some point.
"I am not a threat to anybody. They should just realise that the people who have been enumerated are political hijackers. When we formed MMD, this time when you count amongst the most prominent people, there are probably two or three people who are remaining and those are the ones who at one time left the party and came back at one time or another. You will find that politicians are not predictable, Mr Rupiah Banda must be very careful with such characters. You see the same characters who were embracing Michael Sata when he was in MMD, dancing for him, and they are now insulting him now that they are in MMD or now they are in UPND," Capt Luchembe said. "The same characters when Dr Chiluba was in government they were there singing for him today they are calling him a thief, the same characters. So Mr Rupiah Banda should be very careful the moment he leaves that office they will be calling him names."
He said some ministers in President Banda's government were the most indiscipline and that cadres had now turned State House into a party ground.
"In military governments there is some elements of discipline not the way I am looking at things now where cadres have now made State House as if it is their headquarters. If there is any protest against anybody in the ruling party they have the MMD secretariat. [Patriotic Front] PF has a got their secretariat at Farmers House, MMD at Lusaka House, even [United Party for National Development] UPND in Rhodes Park. They should be marching there and not State House. That House is a very serious House. It is for government business, it is for the nation and not for cadres and our leaders should not be entertaining that," Capt Luchembe said. "And the Police, I don't think they are being sincere. When MMD cadres march, they march at will without any notice without anything and they are even given protection and escort. When it is the opposition you hear arrests and I don't know where we are heading to."
Capt Luchembe said there was need to emulate the good things about former president Dr Kaunda's government.
"In Dr Kaunda's government there was discipline not everything was wrong with Dr Kaunda but he overstayed and when you overstay you tend to become a dictator," he said. "The only advice I can give him [Rupiah Banda] is that because of this economic crunch we are facing... In Zambia, we have been facing this crunch even before the US one because of indiscipline among leaders especially the ministers. You see we have got 150 members of parliament and the government buys vehicles for them for use when going to their constituencies. They buy those vehicles on duty free when Parliament goes into recess they are given constituency money for them to go to their constituencies, for fuel, accommodation.
"Now you will find that they [ministers] will get that money, they will keep it in their banks or their pockets they will not use those parliamentary vehicles. They will use GRZ vehicles with flags going to do a job which is not related to their ministerial duties. That is actually abuse in the mean time, the same minister is going to draw imprest from his ministry, he is going to draw fuel from his ministry, he is going to take his official driver from the ministry."
And Capt Luchembe said it was sad that African leaders were now insulating themselves from legal advice.
"The problem with African leaders is that they insulate their ears from legal advice and constructive criticism. This is what actually leads to all these problems like the issue at hand. Like my coup in 1991. Once you insulate your ears, it creates anxiety and causes unrest," Capt Luchembe said. "Leaders when you advise them they should not insulate their ears from advice because there is an adage in Bemba which says he who does not heed advice went with human excreta to the in- laws [munshumfwa aile na mafi kubuko] but as long as they continue insulating their ears I don't know."
Capt Luchembe also said he should be recognised as the former president Frederick Chiluba recognized him.
"If anything, Dr Chiluba should be driving GRZ TP [third president]. I am the second president whether you like it or not. In some countries I have been recognised. Laurent Kabila [DRC late president] went through a coup after Mobutu [Seseseko]. You recognised him here. Libyan President Muammar Gaddafi he overthrew someone else and you have recognised him as President. So who am I not to be recognised as President and I think let's be serious. Let's call a spade a spade," said Capt Luchembe.
Labels: INFLATION, MEALIE-MEAL, MWAMBA LUCHEMBE
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ZNFU threatens to expose Lusaka millers cheating Mazabuka farmers
Written by Henry Chibulu in Mazabuka
Wednesday, April 22, 2009 6:07:56 PM
THE Zambia National Farmers Union (ZNFU) in Mazabuka has threatened to expose some Lusaka millers who have invaded most parts of Mazabuka and allegedly cheating farmers by buying maize at low prices.
ZNFU agri-business manager for Mazabuka, Clement Phiri, yesterday said investigations conducted by his organisation had established that some millers believed to be from Lusaka had allegedly hired agents to buy maize from farmers for as low as K18,000 per 50 kilogramme bag in chief Mwanachingwala’s area and at K 25,000 and K 35,000 in Chivuna and Chikankata respectively.
Phiri said there was need for the government to move in swiftly and announce the floor price for maize and ensure that the Food Reserve Agency (FRA) was allocated huge resources to buy off the commodity from small- scale farmers.
He said the government should buy enough maize from farmers for national reserve and prepare for any food shortages.
Phiri said ZNFU was worried with the increased number of unscrupulous maize traders buying maize at give-away prices, adding that the private sector could create an artificial maize shortage that may result in price hikes for mealie- meal.
In the 2007/2008 maize marketing season, a 50 kilogramme bag of maize was pegged at K50,000 as announced by the government.
Phiri has since urged agriculture minister Brian Chituwo to ensure that the floor price of maize was announced in the first week of May to save farmers from being swindled.
On Monday, Mazabuka district commissioner, Tyson Hamaamba, pleaded with farmers to stop selling maize to briefcase buyers and wait for the government to announce the floor price.
Labels: CORRUPTION, MAZABUKA DISTRICT, MEALIE-MEAL, MILLERS, ZNFU
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KCM fires 26 miners over retirement dues
Written by Correspondent
Saturday, March 07, 2009 10:21:57 AM
KONKOLA Copper Mines (KCM) has fired 26 miners in Chililabombwe for accessing National Pension Scheme Authority (NAPSA) retirement dues before they can attain their retirement age.
And five shops have been closed for selling mealie-meal at K80,000 instead of the standard price of K50,000 per 25-kilogramme bag of breakfast mealie-meal.
Chililabombwe district commissioner Timothy Musonda confirmed the firing of the 26 miners who were involved in the NAPSA retirement dues scam.
Musonda said in an interview in Chililabombwe yesterday that the 26 had been fired for absconding work and also for bringing the name of the company into ridicule.
He said police and other security wings had since intensified investigations to bring more culprits to book so that they could face the wrath of the law.
"I can confirm that KCM in Chililabombwe has fired 26 miners who were believed to be among the 300 miners on the Copperbelt who are alleged to have fraudulently accessed their pension dues from NAPSA. Some of them were recently arrested. The fired miners have since appealed against management decision to dismiss them. Their first and second appeals were thrown out and right now they were waiting for an outcome of their last appeal," he said.
"There is group of crooked characters that mislead the miners that they can access their dues before attaining their retirement age and some miners fell for that and in the process, the scam burst, hence the arrest and firing of some miners."
And Musonda has said his office decided to close down the five shops, which were selling mealie meal at K80,000 because the government was not happy to see people being exploited by unscrupulous traders in the district.
He said his office and other law enforcement agencies in the area would be vigilant to ensure that traders were not exploiting the consumers by selling the commodity more than the recommended price of K50,000 per 25kg bag.
He said the district was fighting both the smuggling of the commodity into neighbouring countries and the exploiting of people by unscrupulous traders who were overcharging on mealie-meal.
"The problem of artificial shortage of mealie meal in the border town was getting out of hand. Almost all the marketeers have virtually abandoned their usual businesses of selling commodities such as vegetables and have turned to trading in mealie meal. Even our effort to subject buyers to dip their fingers in ink is proving futile as they are using spirit to remove them. Stands in markets are now found empty as most family members prefer to go and line up for mealie meal especially in retail shops where we are regulating the prices of the commodity," said Musonda.
Labels: INFLATION, JOBLOSSES, KCM, MEALIE-MEAL, NAPSA, TIMOTHY MUSONDA
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Cottan rules out immediate reduction in mealie-meal prices
Written by Chiwoyu Sinyangwe in Lusaka and Justine Kawisha in Mazabuka
Saturday, February 28, 2009 9:21:15 AM
MILLERS Association of Zambia (MAZ) vice chairperson Peter Cottanhas said adjustments to the current mealie-meal prices are only expected to be made next month.
Cottan explained that millers were currently selling mealie-meal at a fixed price as they were getting maize from Food Reserve Agency (FRA) at a fixed price.
Cottan, who is also National Milling Company (NMC) managing director, said the millers in the country were at the moment receiving a steady supply of maize from FRA.
He said millers were currently working at increasing the mealie supply in the country as a way of stabilising the supply of the country's staple food.
“As far as current prices are concerned, all the millers are under contract with FRA and the price is fixed and so is the price of maize…but from March,” said Cottan.
“There are discussions going on between FRA, the ministry of agriculture and millers of whether these prices will remain the same. We don't know yet but we are getting stable supply of maize now.”
FRA is currently selling a 50-kilogramme bag of maize to millers at K55, 000.
Currently, a 25-kilogramme bag of breakfast mealie-meal in the country is selling at an average price of K47, 000 while the same quantity for roller meal is presently pegged at about K38, 000.
Meanwhile, the shortage of mealie-meal in Mazabuka has become a business opportunity as some traders are conspiring with transporters to illegally divert the consignments and offload before they reach their destinations.
Police in Mazabuka on Wednesday impounded a Lusaka-based truck loaded with mealie-meal from the National Milling Company meant for Mazabuka depot. This was after the truck driver diverted the commodity and started offloading into a canter truck for private business in the nearby bush.
The incident happened around 14:00 hours in Kaonga area after some members of the community who found the transporter offloading the commodity became suspicious and tipped the police.
A check at the scene found the Volvo truck registration number ABH 4820 of Madimba Constructions of Chelston in Lusaka which was offloading the mealie-meal being ordered by the police to stop.
The police then ordered the four-tonne canter truck registration number AJB 6839 which was carrying the offloaded commodity and the Volvo truck to the police.
Meanwhile, police nearly manhandled the driver of the canter truck for what they termed “monkey tricks” when he refused to move his truck, saying it had run out of fuel as they were heading for the police.
The driver twice pretended that his vehicle was faulty and later said it had run out of fuel, a situation that annoyed the police and prompted them to buy fuel from Vuma filling station to enable the truck reach the police station.
But the driver of the Volvo truck vindicated himself in the matter saying he was working under instructions from a depot official in Mazabuka who told him to offload the commodity in a private area.
He said he was transporting 400 bags of mealie-meal to the Mazabuka depot but that he was instructed that half of the consignment was already bought by some business persons from Monze.
But the canter driver denied to have been hired to take the commodity to Monze and only said he was told to load and take the commodity at the Mazabuka depot.
Efforts to talk to the National Milling depot manager in Mazabuka proved futile as he was being questioned by police by press time.
And Mazabuka district commissioner Tyson Hamaamba directed the police to detain both drivers and confiscated the mealie-meal.
Hamamba further summoned national milling management to explain how the distribution of the commodity was done.
He said it was inhuman to sell the scarce commodity to other places for profit making when people in the district were spending nights looking for it.
Hamamba confirmed that management at National Milling responded to his request and promised to report to his office by yesterday.
Labels: INFLATION, MEALIE-MEAL, PETER COTTAN
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COMMENT - Even the freemarketeers should see that the staple food should not be used for speculative purposes. Buying in bulk and waiting for the price to rise should not be done with the national staple.
Meal meal prices in Mazabuka skyrockets
February 15, 2009
The Price of Mealie Meal in Mazabuka town in Southern Province on the black market has increased to K 60,000 and K 75,000 respectively at Nakambala market.
And Mazabuka District Commissioner, Tyson Hamaamba has attributed the sky rocketing prices to
the Food Reserve Agency’s delay to release maize to Kapinga Milling Company which has since halted production.
Mr Hamaamba said failure by FRA to release maize to Kapinga and the consignment meant for sale to starving villagers has necessitated the sharp increase on the black market.
A survey conducted by ZANIS at Mazabuka’s largest Market, Nakambala has revealed that a 25 Kilogramme bag of Breakfast brand by National Milling Company has shot up from K45,000 to K 70,000 while a similar bag of Roller Mealie Meal has been hiked from K 36,000 to K 60,000.
The survey further revealed that Nakambala market has been flooded with expensive mealie meal while leading super markets have completely run out of the commodity.
Traders talked to said the increase in the price of the staple food could not be reduced because the free market economy promotes competition in business.
They also said the price of mealie meal at the market was cheaper than some named shops in the Central Business District who are now pegging the price of the commodity in some cases at K 75,000.
But Mr Hamaamba said there was little his office could do to reverse the price of mealie meal by marketers on the black market.
Mr Hamaamba said the solution to the mealie meal price reduction lies on the Food Reserve Agency in sending relief food for sell to starving people and release of maize to Kapinga Milling Company.
The DC has since warned that the food situation in the district is likely to worsen this month.
But some residents have since called on the Government to screen people buying mealie meal in bulk because they are creating artificial shortage of the commodity.
ZANIS/ENDS/HC/CLM
Labels: DISTRICT COMMISSIONERS, MAZABUKA DISTRICT, MEALIE-MEAL, TYSON HAMAAMBA
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Govt subsidy to millers not sustainable – Weber
Written by Fridah Zinyama and Chibulu in Mazabuka
Monday, February 16, 2009 5:16:17 AM
GOVERNMENT’S decision to subsidise the millers through the supply of cheaper maize is not sustainable for Zambia, Agricultural Consultative Forum (ACF) Food Security advisor professor Michael Weber has observed.
And chairperson for the Parliamentary Committee on Agriculture Request Muntanga has called on government to subsidise production of maize in the country as a long-term measure to resolving mealie-meal shortages as opposed to subsidising consumption.
Commenting on the decision by government, through the Food Reserve Agency (FRA) to purchase maize from millers and resale it at subsidised prices, Prof Weber in an interview, said there was need for more transparency in the maize crop marketing system if the current mealie-meal shortages were to be permanently eliminated.
Prof Weber said there was tightness in the maize marketing system last year which had led to the current problems being experienced in the country.
“Some of the millers have not been open about the stock of maize which they have in their warehouses and I think this is what has led to the current expensive mealie-meal on the market,” he said. “This has prompted government through the Food Reserve Agency (FRA) to subsidise the millers, a scenario which is not sustainable.”
Prof Weber said government’s decision to subsidise the millers was very costly and could not be relied upon to sort out the problems in the maize sector.
“We understand that government has to be concerned about whether there is enough food in the country but this has to be done in a sustainable manner,” said Weber.
And Muntanga said government’s decision to buy maize from millers at a subsidised price would create future problems as millers were always going to expect government to bail them out.
“The only solution to the mealie-meal shortages in the country is for government to ensure that it comes up with proper measures of subsiding production,” he said. “Small-scale farmers should have access to inputs and this will subsequently lead to enough food production and low maize prices in the country.”
Muntanga expressed concern at the rate in which the mealie meal sector was being handled in the country.
“If things continue being run like this, government will be held at ransom, where millers will continue hoarding maize expecting government to subsidise them,” Muntanga said.
Meanwhile, some mealie-meal traders in Mazabuka have inflated prices of the commodity which is now fetching at between K 60,000 and K75,000 at Nakambala market.
A survey conducted at Nakambala, which is Mazabuka’s largest market revealed that a 25 kilogramme bag of National Milling breakfast had been hiked from K45,000 to K70,000 while that of roller meal was being sold at K60,000, from K36,000.
Leading supermarkets had by yesterday completely run out of the commodity, forcing traders on the black markets to inflate prices by almost double the original price.
Traders talked to said the price of the staple food could not be reduced because Zambia, as a free market economy, promotes competition in business.
They also said the price of mealie-meal at the market was cheaper than some named shops in the central business district which were now pegging the price of the commodity at around K75,000 per 25 kilogramme bag.
Labels: FARM SUBSIDIES, FRA, MAIZE, MEALIE-MEAL, MILLERS, REQUEST MUNTANGA
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Police guard Choma Milling, as mealie-meal shortage persists
Written by Henry Chibulu in Mazabuka
Sunday, February 15, 2009 7:49:19 AM
ARMED police were yesterday deployed at Choma Milling Company depot in Mazabuka where residents have been struggling to buy mealie-meal following the shortage of the commodity in most leading supermarkets.
A survey conducted yesterday morning revealed that some residents woke up as early as 03:30 hours to queue up for the commodity which had become scarce in the Central Business District.
Staff at Choma Milling depot explained that the company sought the intervention of the police in order to maintain law and order.
And a resident of Chivuna area in chief Hanjalika, Moses Mweemba, said he had spent two days in Mazabuka town to buy mealie-meal because of the long queues.
He urged the government to find a solution to the problem before the situation worsened.
Mweemba said also urged authorities to screen those buying mealie meal since some people were buying in bulk in order to resale at exorbitant prices.
And district commissioner Tyson Hamaamba said the shortage of mealie-meal had been compounded by the temporal suspension of production at the local Kapinga Milling Company which had completely run out of maize.
He warned that unless the Food Reserve Agency (FRA) immediately offloaded maize to the millers, the district would be plunged into acute food shortages in both rural and urban areas.
Labels: CHOMA, CHOMA MILLING COMPANY, MAIZE, MEALIE-MEAL
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Maize shortage artificial, Chituwo tells Parley
By Times Reporter
THE current maize shortage is an exaggeration caused by dishonest and greedy stakeholders, Agriculture and Cooperatives Minister, Brian Chituwo has said. Dr Chituwo told Parliament in a ministerial statement yesterday that there was gross exaggeration of the shortage.
He said that when former Agriculture minister, Sara Sayifwanda announced the national food balance as being at 1.2 million tonnes, stakeholders disputed saying the country had less maize.
The minister said the FRA declared 150,000 tonnes of maize, millers 55,000 tonnes and the Grain Traders Association of Zambia (GTAZ) 25,000 tonnes, giving a total of 225,000 tonnes.
He said when the private sector was allowed to import 50,000 tonnes of maize, it failed and by November 2008, the same sector reported reduced stocks of maize.
He said by indications to Government, the situation was getting worse and the FRA was asked to import 100,000 tonnes.
“We now started hearing of thousands of tonnes of maize available and my ministry carried out a verification exercise which confirmed more than 180,000 tonnes,” he said.
He said GIA International that was contracted to supply maize brought in 58 trucks with 11 carrying non-GMO maize while 47 carried GMO maize which was escorted back to the port of entry.
Dr Chituwo said GIA International was punished when the Government asked the supplier to take back the GMOs at the company’s own cost.
Answering a question by Roan MP Chishimba Kambwili, (PF) Dr Chituwo said that the Government had not changed its policy because GMOs could contaminate Zambian seed.
Responding to Chienge MP Katele Kalumba (MMD) who asked whether there was insincerity in the contracting of the suppliers of maize, Dr Chituwo said the whole process was above board.
And United Party for National Development (UPND) Members of Parliament yesterday walked out of Parliament after Deputy Speaker, Mutale Nalumango curtailed debate on the removal of squatters from Sichifulo game management area (GMA).
This was after Tourism, Environment and Natural Resources Minister, Catherine Namugala delivered a ministerial statement on the removal of the squatters from the GMA, which stretches from Kazungula to Kalomo.
As soon as the minister finished reading the statement, almost all UPND MPs indicated to the deputy speaker that they wanted to ask her questions concerning the statement.
The emotionally-charged MPs asked why the 8,000 people had been removed and where they had been taken because they originally came from the valley in the area around Lake Kariba.
Debate continued and when Chongwe MP Sylvia Masebo (MMD) asked why GMAs in the Northern Province were demarcated, Namwala MP Robbie Chizyhuka (UPND) interrupted saying it was because that was where Ms Namugala came from.
Noticing the emotions, Mrs Nalumango asked Mr Chizyhuka to go outside to cool down.
When more MPs sought to contribute, Mrs Nalumango indicated that the House should move to the next agenda item and the UPND MPs who still wanted to debate stormed out.
After the break, all the UPND MPs except for Magoye MP, Bennie Mweemba did not return to the House, prompting Ms Masebo to rise on a point of order on their absence.
But deputy chairman of committees Mkhondo Lungu who had taken over from Mrs Nalumango ruled that the absence of the MPs would be ignored because the a quorum had been formed.
Labels: BRIAN CHITUWO, MAIZE, MEALIE-MEAL
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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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