Monday, June 23, 2014

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.


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