FRA still owes farmers K198bn, reveals Siame
By Gift Chanda
Mon 19 Dec. 2011, 13:59 CAT
FRA still owes farmers about K198 billion for grain sold to the agency under the previous crop marketing season, says spokesperson Mwamba Siame. The Food Reserve Agency (FRA) purchased over 1.7 million metric tones of maize under the 2011/12 marketing season valued at over K2.2 trillion.
"The agency has so far paid out over K2 trillion," Siame said in a statement on Friday. "The agency awaits government funding to clear the balance."
She said the agency last week used its own resources to pay K58.5 billion to farmers that had previously not been paid.
"The payments were made to farmers in Eastern, Southern, Northern, Luapula and Central provinces for maize and rice purchases for the 2011/12 marketing season," she said. "This leaves a balance of about K198 billion in the respective five provinces."
She said farmers in Western, North Western, Lusaka and Copperbelt provinces have all been paid.
Farmers in most parts of the country recently complained over delayed payments by FRA for maize they sold to the agency.
Delays in paying farmers even triggered protests in Mufumbwe where a farmer was allegedly severely assaulted by a police officer amid the fracas.
In an interview, Zambia Federation of Cooperatives (ZFC) director general James Chirwa urged the government to review the crop marketing system to avoid delays in paying farmers in future.
He said paying farmers on time would ensure sustainable production as farmers would adequately prepare for the next farming season in time.
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COMMENT - "sold over 180,500 metric tonnes of maize valued at over US$30.6 million." Even at $200 per tonne, 180500 tonnes works out at $36.1 million. And in Zambia, maize is
well over $200 per tonne.
FRA sells 180,500 tonnes of maize
By By Gift Chanda
Thu 17 Feb. 2011, 03:59 CAT
FRA has so far exported over 160,000 metric tonnes of maize to four neighbouring countries. The agency says it expects to sell about 500,000 metric tonnes of maize this year owing to the bumper harvest recorded in the last farming season.
According to public relations manager Mwamba Siame, the agency as at February 11, 2011 had sold over 180,500 metric tonnes of maize valued at over US$30.6 million.
“Prospects on the market are looking bright and it is projected that the Agency may sell up to 500,000 metric tonnes by the end of the year,” she said.
Siame said exports accounted for the large percentage out of the total volumes of maize sold.
“Exports accounted for 163,600 metric tonnes while19, 960 metric tonnes were sales on the local market,” she said.
Siame said most of the maize had been exported to Zimbabwe which accounted for over 70 per cent of the sold quantities.
“Twenty-five per cent went to Democratic Republic of Congo while the Mozambican and Namibian markets purchased one per cent each. Although the quantities for the DRC market are smaller in terms of volume, there has been an upsurge of activity in the recent past. Similarly, the Zimbabwean market has recorded scaled up volumes and payments during the same period,” she said.
Siame said the agency had so far made commitments in terms of maize contracts totalling 320,132.39 metric tonnes which is yet to be paid for and uplifted by clients.
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FRA releasing K150 bn every week for farmers – Siame
By Chiwoyu Sinyangwe
Mon 04 Oct. 2010, 04:00 CAT
THE Food Reserve Agency is releasing K150 billion every week to quickly buy maize from local farmers before the onset of rains which threatens grain safety, spokesperson Mwamba Siame said yesterday.
In an interview, Siame said following the extension to the current marketing season from closing last month to end of October, FRA planned to disburse huge amounts of funds to expedite payments to the farmers. Siame said FRA had an indefinite budget whose target was to buy as much grain from the farmers.
She said FRA paid K306 billion with the latest release of K80 billion on Friday last week.
“The Food Reserve Agency has maintained that farmers are being paid amid opposite views,” Siame said. “Another K150 billion will be released next week. A total of K150 billion will be disbursed every week until all the farmers have been paid. This funding is a combination of government injections and the loan accessed from banks.”
Siame, who did not immediately state the names of banks, urged local banks involved in paying farmers to ensure that their system remained alert to huge amounts that are to be paid to farmers and they have been responsive so far.
“K150 billion is a lot of money especially for smaller bank branches,” she said. “We are aware that with these amounts, it is possible that these banks get overwhelmed and as a result have challenges to cope. So, what we are saying… is appealing to these institutions that they prepare their systems and if possible employ more people to avoid unnecessary delays in clearing farmers.”
And Siame said FRA expected regional countries to start up-taking maize from Zambia as grain stocks start to dwindle.
Zambia currently plans to export 160, 000 metric tonnes of maize from previous harvest, with a possibility of this number swelling to about 600, 000 metric tonnes depending on the decision of Stock Committee following the current bumper harvest, according to Siame.
Siame anticipated that maize demand and price in the region was expected to rise in the periods from October to February next year according to annual patterns.
“The FRA has exported 82,000 metric tonnes to Zimbabwe and projects that the market prospects will continue to improve and offer a better price… because if you look at Namibia and Botswana, their grain marketing bodies, you see the grain levels are declining despite having surplus at one time” said Siame.
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COMMENT - What's the hurry? How about stockpiling the maize to increase food security?
Expert urges quick action on export of excess maize
By Fridah Zinyama
Mon 21 June 2010, 04:00 CAT
A crop marketing expert has advised the government to move quickly over the sale of 1.3 million metric tonnes surplus maize the country holds resulting from the bumper harvest recorded this year.
And Food Reserve Agency (FRA) public relations manager Mwamba Siame has said the government has so far only released about K16 billion of the K100 billion which had been allocated for the purchase of 300,000 metric tonnes of maize this season.
Agriculture minister Peter Daka insists that the government would only participate on the market through FRA but that the private sector should play a more active role in mopping up the excess maize.
In an interview, Graham Rae said the marketing of excess maize was a national issue which needed urgent government attention.
“Government should move quickly and sign bilateral trade agreements with countries like the Democratic Republic of Congo (DRC), Angola and Zimbabwe which are in need of maize,” he said.
Rae said government should be very pro-active in dealing with the marketing of this year’s surplus maize as it might determine the country’s future production of the crop.
“Countries like Malawi have already moved and sold their maize to countries like Sudan,” said Rae.
“If government does not act quickly, all the available markets which the maize could have been sold would have been taken by other countries in the region like Malawi, South Africa and Kenya which have produced a surplus of maize.”
And Siame said the government would only buy about 300,000 metric tonnes of maize from the farmers and would let market fundamentals to take care of the one million tonnes.
“The law of demand and supply will take care of the rest of the maize which will not be bought by FRA,” she said. “There are millers, grain traders and stock-feed producers who can and will take care of the surplus maize which the market currently has.”
The lack of willingness by the government to mop up the excess maize on the market has agitated local farmers, prompting Zambia National Farmers Union (ZNFU) to call for the re-introduction of the marketing board to oversee the purchase and eventual sale of agricultural commodities.
Labels: FRA, GRAHAM RAE, MAIZE, MWAMBA SIAME
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‘Govt opened crop marketing season without adequate funding to FRA’
By Chiwoyu Sinyangwe
Sat 12 June 2010, 04:00 CAT
THE Food Reserve Agency (FRA) has bought some skimpy quantities of maize, over a month after the government prematurely opened the crop marketing season when moisture content was still high and without adequate purchasing funding to the agency.
The government’s premature opening of the maize marketing season when the FRA is not ready to buy the crop due to lack of money and high moisture content has opened up small-scale farmers to unscrupulous buyers.
Over a month after agriculture minister Peter Daka launched the 2010 crop marketing season in Monze with an announcement that FRA would purchase a 50kg bag of maize at K65,000, the grain buyer of the last resort was yet to enter into the market.
FRA plans to purchase 300,000 tonnes of white maize from peasant farmers to keep in strategic reserves.
Owing to lack of FRA presence in the market, most ‘briefcase’ buyers of maize have taken over the markets, buying the commodity at between K25,000 and K35,000 per 50kg of maize depending on the proximity the source of the maize is to the buying point.
According to the crop purchase update, spokesperson Mwamba Siame said FRA has initiated the maize buying exercise in some districts in North Western Province.
Siame named Kabompo and Zambezi districts as the areas where FRA had started mopping the crop.
“The Agency wishes to report that crop purchases have been recorded in a few depots in Northwestern Province. Kabompo recorded 4,458 x 50kg bags of maize and Zambezi 1,015 x 50Kg bags of maize,” Siame stated. “A sum of K60.9 million has been paid to some farmers in Zambezi District.”
Siame who confirmed that the government had released K16 billion towards the programme said moisture content was still higher than acceptable levels.
“Apart from the high moisture content, maize deliveries have been delayed due to rains recently reported in various parts of the country,” stated Siame. “However, the Agency has positioned its agents, who are ready to receive crop that will meet the grain quality specifications, at all satellite depots. In addition, the government has released K16 billion towards the programme.”
According to some market sources, the FRA would only be able to enter the maize marketing season at “full strength” earliest end of June when the moisture content was expected to reduce to the acceptable levels of 12.5 per cent from the current average of 14 per cent.
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FRA commences sell of grain sells to the general public
Saturday, January 30, 2010, 20:53
The Food Reserve Agency ( FRA ) spokesperson Mwamba Siame says the agency has begun conducting Community sales of grain in rural communities in the Country. Mrs. Siame in an interview with ZANIS, today, said the FRA was selling maize and rice to the general public including millers in the country.
She stated that consumers especially in rural areas will be able to easily access the commodity through their
Districts commisioners’ offices.
Mrs Mwamba noted that the DC office will scrutinize requests for approval and dispatching the maize and rice will be done by FRA respectively in the rural Communities.
She said that the FRA management had put the price of the commodities at a market price of K 70,000 and k 85, 000 for a 50 kg bag of maize and 40 Kg bag of Rice, respectively.
Mrs Siame stressed that sales the two commodities are part of the Agency’s Core business aimed at stabilizing Mealie meal prices and meeting local shortfalls, during this period prior to the harvest in May.
She said that FRA has projected that the millers will service the urban Consumers and the agency estimates to sell 50,000 to 80,000 metric Tonnes of maize and 900 metric tonnes of paddy rice.
ZANIS
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