2014-06-24 FRA Floor Price at K70 / 50kg bag

Bleak morning here in Senanga; mid-afternoon yesterday, a low bank of clouds blew in from the east and have remained through the night. Consequently, our early hours are darker and cooler than usual, though the cloudiness this time of year is not unusual. Very rarely (as was the case in 2007 and in 2011) it will rain, and a more miserable site could never be espied; cold and wet is something the locals aren't really keen on.

Friday evening between watching-paint-dry sessions with L. at Country Lodge, they switched the television to the national news (ZNBC). Despite being a pedantic and uninspiring example of state-run media, Zambians will almost uniformly switch over at 19:00 hrs to hear about what Government (like the Brits, no definite article necessary) has done today. Anyway, Friday's news was the long-awaited announcement: the Minister of Agriculture, Wylber Simuusa declared the Food Reserve Agency (FRA) "floor price" has been raised from K65 [first set in 2009] to K70 ($11.49USD).

So far, the news has not been received well by most farmers. They were hoping for a increase in the floor price that would match inflation and the increased cost of living; not surprising, given that when the K65 floor price was set in 2009, it was worth $13.00. Now, the price has dropped in real dollars by $1.50, and that dollar-fifty doesn't go nearly as far.

We'll wait and see, but my gut says the PF government is trying to slowly implement its plans to diversify Zambia's agriculture picture by slowing down the maize juggernaut. Or, they simply can't afford to raise it any higher. Both may be means to the same end.

ZNFU Bulletin, Week 24 - 2014

The Zambia National Farmers' Union (ZNFU) is the former Commercial Farmers Union (CFU, which now means Conservation Farming Unit, yay acronyms). I won't right now discuss the somewhat complex partnership we have with their district offices (our implementing partners in Mongu and Kaoma) or my thoughts on how they work, but they do publish a weekly bulletin that crunches everything into good and quick chunks; one such bulletin is shown below. As usual, I claim no responsibility for the content.

Have a great Monday.
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FRIDAY BRIEF

WEEK 24, 2014

THIS Week’s Highlights

·         FARMERS URGED TO KNOW THEIR WATER USER RIGHTS

·         PIG GENETICS FARM SOON TO OPEN IN ZAMBIA

·         GSI/AFGRI CONDUCT GRAIN SILOS DEMONSTRATION

·         2015 NATIONAL BUDGET SUBMISSIONS TO MINISTRY OF FINANCE

…... SEE DETAILED UPDATES BELOW……

INDUSTRY UPDATES/ALERTS

FARMERS URGED TO KNOW THEIR WATER USER RIGHTS

The Director for Water Resources Management Authority (WARMA) has reiterated the need for sound legislation and water management structures among all major water users as provided for in the new Water Resources Management Act No. 21 of 2011.  Mr. Kakotwe informed the National Catchment Delineation workshop in Chisamba that his Authority was putting up water management structures at all levels to help calm the growing inter-sectoral water use conflicts among major users, i.e. farmers, mines, manufacturing industry, environment and domestic consumers. WARMA is calling on all water users to organize and recognize themselves into Water Users Associations as provided for by the law in order to claim their water user rights and obligations. The new WARMA Act provides for, among other things, an integrated, interactive, participatory, gender-sensitive; multi-sectoral and stakeholder approach to water resources management aimed at enhancing equitable water use allocation.

PIG GENETICS FARM SOON TO OPEN IN ZAMBIA

A Pig Genetics farm will soon start its operations in Zambia. This came to light when a team of Zambian Industry experts from the Ministry of Agriculture and Livestock as well as the Zambia National Farmers’ Union visited a pig genetics farm in South Africa to familiarize themselves with the operations of such an investment. The farm which will be fully automated is expected to cater for the supply of breeding stock to other countries such as; Angola, Democratic Republic of Congo and Tanzania. Ground work has already commenced and the farm is expected to be operational in September, 2014. The farm will initially start with a 500 sow unit and is expected to offload more than 200 weaners per week to grower farms.   ZNFU is happy with this development as new Pig Genetic farm will help resolve current problems faced by many pig farmers when sourcing for improved genetics for their breeding stock.

GSI/AFGRI CONDUCT GRAIN SILOS DEMONSTRATION

GSI Zambia Ltd in partnership with AFGRI recently unveiled their new grain storage technology to Mkushi farmers at the AFGRI Bunker. The company showcased different storage facilities which included steel farm bins, commercial storage grain bins, grain silos and a low cost bulk grain storage solution for smallholder and emergent farmers. Speaking to farmers during the function, Mkushi District Commissioner Mr. Luka Mwamba expressed delight at the fact that some of the storage facilities are now tailor made for small scale and emergent farmers a move that will enhance storage and reduce post-harvest loses.

2015 NATIONAL BUDGET SUBMISSIONS TO MINISTRY OF FINANCE

The Ministry of Finance has started receiving tax and non-tax proposals for the 2015 National Budget and the 2015 to 2017 Medium Term Expenditure Framework [MTEF]. In this regard the Union is requesting members to submit tax and non-tax proposals across the agricultural value chains to ZNFU Head Office by 15^th July 2014. This will enable the Union have ample time to compile all submissions prior to submitting to the Ministry of Finance on behalf of members.

The format of the proposals to be submitted to Ministry of Finance is as follows:

1. Clearly outline the expected impact in terms of;

·         Proposed measure,

·         Justification; and

·         Expected revenue impact (i.e. gain or loss).

2. All proposals on improvement of tax administration must clearly outline anomalies/challenges in current statutes which are proposed to be corrected and justify expected improved outcomes, especially in revenue collection.

Kindly send all your submissions to: judy.hamonzwe@znfu.org.zm

NEWS FROM THE REGIONS

CENTRAL REGION

MKUSHI DFA TO HOLD ITS 2014 AGM

Mkushi DFA has set 27^th June 2014 as the date for this year’s Annual General Meeting. This year’s date is intentionally set to coincide with the District agricultural show starting the same day so that farmers can interact with exhibitors before the meeting. To facilitate this, the AGM will be held at the Council chamber instead of the usual country club at 14 hour.

I-CONNECT TO EXTEND COVERAGE TO MKUSHI

I-connect one of the internet service providers established in 2005 and who are now a part of the Vodacom group has expressed interest to extend its internet coverage to Mkushi district. During their discussions with the ZNFU Officials, the I-connect officials indicated that they were looking forward to partnering with the Union in their drive to modernize internet connectivity and offer competitive services to the farming community. Meanwhile, the ZNFU has welcomed the development as it will enhance communication efficiency.

EASTERN B REGION

LEAVE FISP FOR THE VULNERABLE, CHIEF NYAMPANDE ADVISES FARMERS

 Chief Nyampande of Petauke District has warned farmers to stop depending on FISP because the program was meant to help only the vulnerable people. Speaking during the Mechanization Road Show field day organized by CFU on 10^th June 2014, the Chief advised the farmers to join ZNFU if they were to reap the benefit of Agriculture because ZNFU was there for farmers and their service delivery was more efficient. He cited the Lima Credit Scheme as one of the major benefits among other services that farmers can access from the Union. He said that he had confidence in the Union because he has seen how farming has improved in his Chiefdom due to interventions which ZNFU has brought in his area. He however, advised the DACO to quickly address challenges surrounding the allocation and distribution of inputs under FISP in the District. He further appealed to Government through the District Commissioner’s office to quickly announce the maize floor price as farmers were running out of patience.

FARMERS ADVISE TO EMBRACE CONSERVATION AGRICULTURE TECHNOLOGY

Petauke District Commissioner has advised farmers in the Province and particularly Petauke District to embrace the modern Conservation Agriculture Technology which CFU and other stakeholders like ZNFU are promoting .Speaking at the Mechanization road show field day, she advised farmers to have a positive mind that can quickly adapt to change and take advantage of technologies that are being offloaded on the market. And also speaking during the same event, Petauke DFA chairperson, Mr. Joseph Lungu said “the Union does not only speak for farmers but also provide solutions to increase production and productivity.”

PETAUKE BEE KEEPERS HAPPY WITH HONEY PRICE

Farmer’s in Petauke have expressed satisfaction with the market linkage that the Zambia Honey Council has established in the district for bee keepers. The private buyer Agri-world is currently offering K6.50 per kg to the farmers and has been consistent in both payments and collections.

NORTHERN REGION               

 

CHILUBI RICE FARMERS STUCK WITH THE COMMODITY

Rice farmers in Chilubi have no market where to offload the commodity they have grown in area and have appealed to the government to quickly intervene. Kampombo Cooperative secretary Mr. Pride Kaunda observed that rice farmers are frustrated in Chilubi because the current marketing policy did not favour them as they are left to organize market linkages on their own. Despite Rice farmers in the area responding to government calls of diversification, they had been facing challenges in selling rice because government has not been buying the commodity from them as they are doing for maize farmers. Meanwhile, Chilubi mainland this year has produced estimated 7,000 x 50kg bags of rice. 

ALL IS SET FOR THE MBALA DISTRICT SHOW

Mbala district held its District Agricultural show today and the ZNFU participated through Mbala District Farmers’ Association and Nondo Information Centre which was represented Nondo Block. The theme for this year’s show was ‘Breaking the new grounds’.

SOUTHERN B REGION

MAZABUKA FARM WORKERS TO BENEFIT FROM LCS

Farm workers at Rafeen Farm among other farms in Mazabuka district have expressed interest to join the Union and participate on the Lima Credit Scheme program. Speaking at a meeting today, Mr. Ivor Evans encouraged his workers to join ZNFU in order for them to double their production by participating on the Lima credit scheme.

In a similar development, another meeting at Northern Zambezi Traders (PAMA MEAT) was organized with the same view of helping the farm workers to access inputs through the ZNFU’s Lima Credit Scheme and that they will not have to look for an off taker, as the company is ready to buy off the commodity from its workers.

WORLD VISION ZAMBIA TO COLLABORATE WITH ZNFU

World Vision is implementing a number of agricultural activities in Namwala and has since approached Namwala DFA so that all the trainings they intend to conduct with the farmers are channeled through the Information Centres. The trainings will be conducted for all the contact farmers in the following ; conservation farming,  post-harvest technologies and sensitize farmers on the importance of crop diversification in commodities such as cow peas, Irish potatoes and sweet potatoes.

The organization has also challenged ZNFU and NAIS to come up with radio forums programs at the Macha’s vision broadcasting community radio. The programs will aim at educating and informing the community on what ZNFU and World vision are doing in the area. 

NORTH WESTERN REGION

ALL IS SET FOR THE NORTH WESTERN PROVINCIAL SHOW

The North Western Provincial Agricultural, Mining and Commercial Show will to be held in the showground from 20^th - 22^nd June under the theme “BREAKING NEW GROUNDS.”  In relation with the theme, the technology of the ZNFU e-extension is definitely breaking new grounds some farmers have since started accessing extension services using this system. The show will therefore be a platform at which the system will be exhibited and shared with more farmers as they visit the ZNFU stand.

WESTERN REGION

MUMBWA FARMERS AWAIT THE ANNOUNCEMENT OF MAIZE FLOOR PRICE

Farmers in Mumbwa are eagerly awaiting the announcement of the maize floor price. This came to light during an Information Centre meeting in Keezwa IC's Shibunji District held on Tuesday this week. Speaking on behalf of the farmers, information centre Chairperson Adam Kipupu said the delay in the announcement of the Maize floor price will give an upper hand to the private buyers whose dealings with the farmer are not fair. Mr. Kipupu further said all farmers in the area are expecting that the floor Price to be announced will be higher than K65.00 per 50 kg bag considering the rise in the cost of inputs.

SUPERIOR MILLING STARTS OPERATIONS IN MUMBWA

The long awaited Superior Milling branch officially opened its doors for business on Tuesday the 10th of June, 2014.  Gracing the opening Ceremony was Mumbwa District Commissioner Mr. Sunday Shamabanse. Mr. Shamabanse said that the venture that Superior milling has launched is in line with governments endeavour in terms of Job creation. He also thanked the company for looking towards Mumbwa district in their quest to increase and the companies’ outlets. He further said ‘Superior Milling will add to the already existing agro off takers of maize in the district.’ The opening Ceremony took place at the ZNFU's Agriculture Service Centre where Superior Milling will be operating from.

JTI TO PROMOTE A NEW TOBACCO CURING METHOD

JTI is now promoting a more environmental friendly and cost effective way of curing the tobacco to farmers in Kaoma. JTI is trying to come up with ways of preventing environmental degradation which has seen a lot of wood lots cut down for fire wood which is used for curing purposes. The new technology called Matope Balm will also help in reducing the colours of the crop to two; reduce on the quantity of firewood used and days for complete curing. This will help improve on quality and reduce the cost of curing while addressing environmental sustainability through the promotion of Afforestation by planting selected tree species that can help in firewood and poles for construction. Furthermore, farmers are motivated by receiving a payment of 8 cents per surviving tree annually.   

Food, FRA, and floor prices

I've totally run out of ideas for snappy titles. Come to think of it, lately I've totally run out of ideas. 

Still, wanted to share a great quote from this week's Stuff Expat Aid Workers Like (definitely a more regular and better read than this blog). 

[As a quick rule of thumb for those considering the leap to 'the field': if you’re in an area where different cultures have been interacting, fighting, and generally sloshing around for centuries, chances are the food is relatively decent. Which generally means the coasts. The further inland you go, the greater the chance that the local culture has been spent centuries perfecting various ways to eat sorghum. (Thus the tendency to facipulate those life-saving workshops in places like Bali, Istanbul, or Rome: amazing coffee breaks and team dinners.)]

Wow did they nail this on the head ... Zambia is so thoroughly nshima-fied that I'm starting to discern between different places and how they serve nshima (buhobe, sima, nsima, ubwali, ugali, nsadza, pap, etc.). I've noticed much of the restaurant nshima in Western lately has taken on a certain odor and texture indicative of the owners cutting the maize meal with cassava in order to keep the prices steady; maize meal, especially the refined version, so-called "breakfast meal", is spectacularly highly priced right now. Reasons are mainly around the FRA (the default supplier of maize grain to the large-scale national millers (AMC "Mother's Pride", Mealile, APG, ChoBro, etc.): 

1. They are still offloading stocks from last year (the PF wants to take no risks with over-exporting, as that was political dynamite last year);
2. The Government (known here as "Government") has yet to set the "floor price" for maize. Speaking with a friend of mine via Facebook (Dr. William Burke), he clarified that is something of a misnomer; a true floor price is a mandated minimum price (per weight or volume) below which sellers cannot legally purchase. The FRA floor price is simply a pan-territorial price, e.g., every large, medium and satellite (e.g., typically small and remote) depot in the country will pay farmers the same price, regardless of whether that farmer is selling in Shan'gombo (800 km and 16 hours from Lusaka) or Chibombo (the first district immediately north of Lusaka). 

The second point is a touchy one for Government; as I've said sporadically over the years, maize (and its main derivative, maize meal) is staggeringly important in Zambian political necessity. The strange phenomenon that is Zambia's high urban population (relative to the population) means that much of the population that is politically very active consumes lots of nshima, and ergo wants cheap mealie meal. On the flip side, the rural population (the producers ... note, commercial producers are not allowed to sell maize to FRA), wants a high price for the commodities they produce. With the current ruling party (the Patriotic Front or PF) being a proponent of "pro-poor" policies, that puts them in a tough spot ... the urban poor want cheap food, the rural poor want higher prices, so they have to hit something of a sweet spot to satisfy both. 

Compounding the headache for this year is the bumper harvest recorded this past season. There is a lot of maize out there; not necessarily by Iowa standards, but for Zambia 3.3 million tonnes is pretty good despite the still shockingly low productivity levels. Everyone who grew the maize (rural) wants to sell it all at [much] more than the K65 which has been the market price since 2009. The urbanites see the bumper harvest as a sign that mealie meal will get back to K30 or K40 / 25kg bag as it was a few years ago. 

Small wonder that a maize cob features so prominently on Zambia's Coat of Arms, bracketed by the motto "One Zambia, One Nation" ... wonder if it stands to reason that it might by the linchpin between urban-and-rural.