Thu, 02 Mar 2017 10:34:48 +0000
…traders demand to export surplus as they await new crop
By Bennie Mundando
The government should immediately allow the export of up to 320,000 metric tonnes of maize and mealie meal to avoid a major maize storage crisis.
Stakeholders who met recently warned that a storage crisis was looming in the maize industry caused by unfavourable maize marketing conditions and Government must allow the export of maize and mealie meal if the problem is to be addressed, stakeholders in the agriculture sector have warned.
The stakeholders have also called for the cancellation of the tripartite maize arrangement between the Grain Traders Association of Zambia (GTAZ), Millers Association of Zambia (MAZ) and the Food Reserve Agency (FRA) as it had allegedly failed to achieve the intended objectives.
In a communique jointly signed by the Zambian National Farmers’ Union (ZNFU), MAZ and GTAZ addressed to Agriculture Minister Dora Siliya dated 24th February 2017, the stakeholders have expressed worry over the huge quantities of carryover maize stocks in the country.
They contend that as a result of huge stocks of maize from the previous maize marketing season, the farmers could be affected by inertia to buy new stocks because crop buyers were still struggling to dispose of the old stock.
They noted that the country had a total of 915,000 metric tonnes of maize stocks and that even if the country was to consume 400,000 metric tonnes in the next four months and reserved 280,000 through the Food Reserve Agency (FRA), there would still be a surplus of 230,000 metric tonnes of the commodity, a situation which will interfere with the 2017 maize marketing season.
“We wish to bring to your attention the looming crisis in the maize industry on account of unfavourable maize marketing conditions currently obtaining in the country. As at 28th February, 2017, the country will be sitting on a total of 915,000 metric tonnes of maize.
‘‘If we net out 400,000 metric tonnes for the next four months for consumption as well as 280,000 metric tonnes FRA strategic reserves, the country has a surplus of 230,000 metric tonnes.
“This will interfere with the crop marketing season. As a result of this carryover surplus, the industry is experiencing reduced appetite for the 2017 crop as buyers are still struggling to dispose off the old maize stocks.
‘‘Additionally, there is also reduced appetite from regional buyers as countries such as Malawi and South Africa are already forecasting surplus production for the year 2017,” reads the communique in part.
They observed that farmers, traders, and millers risked going bankrupt while FRA’s purchase of 2 million metric tonnes of maize from small-scale farmers would also cause unnecessary stress on the Treasury as a consequence of the maize surplus exacerbated by the current maize export ban.
“In order to avoid this looming crisis, the private sector players along the value chain are recommending that the country immediately allows the export of 320,000 metric tonnes in the form of maize and mealie meal and also immediately allow bran exports up to the month-end of May, 2017.
“Governmnet should also cancel the current tripartite maize sale programme between GTAZ, MAZ and FRA as it has failed to achieve its intended objectives. Governmnet must also remove 10 percent export tax on maize and maize products,” reads the communique.
