Tue, 02 Jan 2018 12:58:22 +0000
By BUUMBA CHIMBULU
WITH the forecasted good rains, Zambia is likely to produce another bumper maize crop in the 2017/2018 production season, the Indaba Agricultural Policy Research Institute (IAPRI) has predicted.
According to IAPRI, this development will come after the 2016/17 agricultural season where Zambia like other countries in the Southern Africa region produced a maize surplus.
The institution, however, observed that there might be a reduction in production compared to 2016/17 mainly from the net maize-sellers who may have been discouraged by the crash in maize prices in the current marketing season.
In the Maize Market Outlook and Regional analysis 2017/18 prepared by IAPRI, the 2017/2018 marketing season had been very slow as market prices for maize remained low and the private sector was reported to have bought only about 350, 000 metric tonnes by the end of September 2017.
“On the other hand, as of 10th November 2017, the Food Reserve Agency (FRA) had managed to purchase 513,547 metric tonnes out of the targeted 500,000 metric tonnes.
“However, only K103 million has been paid to farmers for the maize supplied out of a total of K600 million owed to farmers. The amount paid represents only 17 percent of what the FRA owes the farmers,” read the report. The report, released last month, emphasised that the 2017/2018 maize marketing season had been characterised by low private sector participation.
According to the report, in the previous marketing season, many of the large private grain traders obtained financing from banks to facilitate the purchases of grain in anticipation of high domestic and regional prices.
“When the government imposed an export ban, some of the traders could not fulfil contracts on grains earmarked for exports – hence the huge carryover into the current marketing season,
“This situation had a ripple-effect as it led to defaults on loans. As a result, financial institutions are reluctant to lend to grain traders this season, which inhibits their market participation,” said IAPRI.
