News / National
Maize price unattractive and below farmers' expectations
03 Aug 2013 at 02:51hrs | Views
THE recently announced GMB buying price of US$378,86 per tonne for the 2013-14 marketing season, up 28 percent from last season's figure of US$265, remains unattractive and below farmers' expectations, a Zimbabwe Farmers' Union official has said.
The GMB no longer has a monopoly on maize buying and its price simply sets the base. Private buyers can and often do offer more but if a farmer cannot find another buyer then the GMB will accept what he offers at the stated price.
ZFU second vice president Mr Berean Mukwende said such a marginal increase has the potential of demoralising farmers who end up switching to other crops such as tobacco and soyabeans that fetch lucrative prices on the market.
"As farmers we had submitted our recommendations and chief among them we had lobbied for a minimum of US$400 per tonne, though it still falls short of the regional average price of about US$460.
"With the recently announced price, farmers will be lured to more lucrative crops such as tobacco which fetch higher prices and usually offer instant payments and we are concerned this can lead to a threat to food security," he said.
In a statement announcing the new price, GMB however agreed with the ZFU official on ensuring that food security was of major concern.
"The increase comes amid calls by farmer organisations and individuals for the Government to incentivise maize farmers to continue producing the staple crop as the production of maize and ultimately food security is being threatened as most farmers now prefer cash crops such as tobacco," said the GMB.
Mr Mukwende added that farmers had been anxiously waiting for the pronouncement of a substantive producer price after an interim price was set at US$310 per tonne and had remained confident that their recommendation of at least US$400 was going to get the green light.
Another concern from the farmers is the delay often associated with the payment of money after delivery which affects their planning and preparations for the next season.
Earlier in June, Zimbabwe Commercial Farmers' Union president Mr Wonder Chabikwa expressed the same sentiments on late disbursement of funds as a cause for concern at the time the interim price of US$310 was announced.
"It would be better for us if the US$310 per tonne could be paid in cash as private players have been paying that amount in cash while US$350 per tonne was being paid within seven days and more than US$350 per tonne being paid within a fortnight," he said.
However, GMB says it remains optimistic that the new producer price will go a long way in persuading farmers to deliver their surplus grain to its depots countrywide.
The GMB no longer has a monopoly on maize buying and its price simply sets the base. Private buyers can and often do offer more but if a farmer cannot find another buyer then the GMB will accept what he offers at the stated price.
ZFU second vice president Mr Berean Mukwende said such a marginal increase has the potential of demoralising farmers who end up switching to other crops such as tobacco and soyabeans that fetch lucrative prices on the market.
"As farmers we had submitted our recommendations and chief among them we had lobbied for a minimum of US$400 per tonne, though it still falls short of the regional average price of about US$460.
"With the recently announced price, farmers will be lured to more lucrative crops such as tobacco which fetch higher prices and usually offer instant payments and we are concerned this can lead to a threat to food security," he said.
In a statement announcing the new price, GMB however agreed with the ZFU official on ensuring that food security was of major concern.
"The increase comes amid calls by farmer organisations and individuals for the Government to incentivise maize farmers to continue producing the staple crop as the production of maize and ultimately food security is being threatened as most farmers now prefer cash crops such as tobacco," said the GMB.
Mr Mukwende added that farmers had been anxiously waiting for the pronouncement of a substantive producer price after an interim price was set at US$310 per tonne and had remained confident that their recommendation of at least US$400 was going to get the green light.
Another concern from the farmers is the delay often associated with the payment of money after delivery which affects their planning and preparations for the next season.
Earlier in June, Zimbabwe Commercial Farmers' Union president Mr Wonder Chabikwa expressed the same sentiments on late disbursement of funds as a cause for concern at the time the interim price of US$310 was announced.
"It would be better for us if the US$310 per tonne could be paid in cash as private players have been paying that amount in cash while US$350 per tonne was being paid within seven days and more than US$350 per tonne being paid within a fortnight," he said.
However, GMB says it remains optimistic that the new producer price will go a long way in persuading farmers to deliver their surplus grain to its depots countrywide.
Source - Zimpapers
