May 25, 2015 - Notes From the ZNFU Weekly Update

Highlights from the Zambia National Farmers Union (ZNFU) - Friday Brief #21

ZSIC CARRIES OUT CROP FAILURE ASSESSMENT

A combined team of staff from Zambia State Insurance Corporation (ZSIC) and the ZNFU Western Region staff have this week been visiting farmers under the Lima Credit Scheme to assess the extent of the crop failure owing to the drought which hit most parts of the country in March this year. The team visited Itezhi Tezhi, Nkeyema and Kaoma districts.  In Kaoma alone, more than 100 farmers with over 200 hectares have been affected.

LIVINGSTONE IN COWPEAS SHORTAGE 

Livingstone district has been experiencing a shortage of Cowpeas supply in the last few months. Cowpeas have become rare commodity in the district. This has been attributed to the rise in the price of the commodity as well as its scarcity due to low production. Cowpeas is highly sought after by traders from Botswana but they are finding it difficult to access it due to the high price and scarcity. Some traders from Botswana visited both the Ministry of Agriculture and Livestock and ZNFU to inquire on where they could find the commodity at a reasonable buying price. The traders were willing to buy the commodity at K3/kg but the commodity is commonly available at K5/kg, and in some areas farmers are offering the commodity at K7/kg to k11/kg. 

DC URGES FARMERS TO MECHANIZE

The acting District Commissioner (DC) for Lundazi Mr. Manda has advised farmers in the district to adopt mechanization in their farming business in order to increase on production and consequently yields. This came to light during a CFU/MUSIKA organized mechanization roadshow held in the district at Msuzi Basic School. The smallholder farm mechanization roadshows accords an opportunity for farmers to learn about different farming equipment that can be used by the farmers. It’s also a platform that explains how farmers can acquire the equipment under different farmer asset financing schemes like the Bunjimi Asset Plus being implemented by the ZNFU.

The roadshow attracted over 700 farmers for various parts of the district with exhibitions from ZNFU, KEEGY, SARO, AFGRI, NWK, MRI, PANNAR, PIONEER, ZAMSEED, AND Klein Karoo.

FARMERS ANXIOUSLY WAITING FOR ANNOUNCEMENT OF MAIZE FLOOR PRICE

Farmers in Mbala district are anxiously waiting for the government to announce the Maize floor price for the 2015 marketing season. The farmers are eager to know the floor price which they say will allow them budget properly for the next farming season as well as household expenses. 

19 May, 2015 - Maize Production along Zambia's Line-of-Rail

Excerpted from Zambia National Farmers' Union (ZNFU) Weekly Agro-Watch (18th May 2015, Vol. 19)

Marketable Maize along Line of rail to fall by 43 percent

The Crop forecast results released last week by the Ministry of Agriculture and Livestock reveal that the quantity of marketable maize along the line of rail, the hub of private sector participation in maize marketing, is anticipated to reduce by 43 percent in the 2015/16 marketing year to 580,072 metric tons. The maize production areas along the line of rail were the worst hit by the weather shocks that characterized the 2014/15 agricultural season and are likely to suffer higher production losses.  The off line of rail marketable surplus has however been forecast up by about 2 percent to 877,409 tons. This is mainly on account of increased maize production by the northern region of the country. The quantities of maize to reach the market in Eastern and North-Western Provinces are however forecast to drop by 24 and 35 percent respectively in comparison to the previous marketing season.

Zambezi Water Levels:

• On the local scene, information from the Zambezi River Authority indicates that the flowrate of the Zambezi River is about 50 percent lower than last year about the same time. The lower flow rate may not only affect the availability of water for irrigation but also electricity generation, two inputs critical in Zambia’s wheat production. 

Maize:

• Following the announcement of the 2014/15 crop forecast results, the Minister of Agriculture and Livestock – Hon. Given Lubinda stated that Zambia’s borders would remain open to maize exports as long as national food security was not threatened.
• Meanwhile, indications are that Zimbabwe is in search of about 700,000 tons of maize to meet its anticipated maize supply deficit.
• Results from Malawi’s second round survey revealed that they country may require to import about 123,000MT of maize in order to meet its looming maize deficit in the 2015/16 marketing year. This will however be confirmed by its third round survey to estimate the 2015 harvest.
• The Chicago maize futures price for delivery in July 2015 was pegged at US$ 145.27/MT on 18^th May 2015.
• Local maize offer prices averaged ZMW1165/ton in the week ending 15^th May 2015. Lusaka prices are however around ZMW1, 320/ton. The maize market players are now anxiously waiting for the announcement of the FRA purchase price.

Fuel:

• On the local scene, the Energy Regulation Board (ERB) has adjusted fuel prices by ZMW1/litre on average with the new prices of petrol, diesel and kerosene pegged at ZMW8.74/L, ZMW 7.59/L and ZMW 5.40/L respectively. ERB has attributed this increase to the poor performance of the Kwacha. With the rising international crude oil prices, further increments in local fuel prices cannot be ruled out.

May 18, 2015 - Ministerial Statement on Crop Forecast (14th May, 2015)

(Note: Copied verbatim from Ministerial Statement received 18th May 2015)

REPUBLIC OF ZAMBIA

MINISTRY OF AGRICULTURE AND LIVESTOCK

MINISTER OF AGRICULTURE AND LIVESTOCK

HON. GIVEN LUBINDA, MP

ON

THE CROP FORECASTING SURVEY FOR THE 2014/2015 AGRICULTURAL SEASON AND THE FOOD BALANCE STATUS FOR THE 2015/2016 MARKETING SEASON

14^th   May, 2015

LADIES AND GENTLEMEN;

IT IS MY PLEASURE TO ANNOUNCE TO THE NATION THE COUNTRY’S ESTIMATED CROP PRODUCTION FOR THE 2014/2015 AGRICULTURAL SEASON AS WELL AS THE COUNTRY’S NATIONAL FOOD BALANCE FOR THE MARKETING SEASON COVERING THE PERIOD FROM   1ST MAY 2015 TO 30TH APRIL 2016.

THE CROP PRODUCTION ESTIMATES THAT I AM RELEASING TODAY ARE BASED ON A UNIVERSALLY APPLIED SCIENTIFIC SURVEY METHOD THAT IS USED EVERY YEAR. THE SURVEY IS JOINTLY CONDUCTED BY THE MINISTRY OF AGRICULTURE AND LIVESTOCK AND THE CENTRAL STATISTICAL OFFICE (CSO) AND COVERS ALL THE DISTRICTS OF THE COUNTRY.

THIS YEAR, MAIZE PRODUCTION IS FORECAST TO DECLINE TO 2,618,221 METRIC TONNES FROM 3,350,671   METRIC TONNES, A DECLINE OF 21.86 PERCENT. THE NATIONAL AVERAGE YIELD RATE FOR MAIZE HAS DROPPED FROM 2.36 METRIC TONNES PER HECTARE TO 1.75 METRIC TONNES PER HECTARE. THIS REPRESENTS A DECLINE OF 26 PERCENT. SMALL AND MEDIUM SCALE FARMERS HAVE RECORDED AN AVERAGE MAIZE YIELD RATE OF 1.68 METRIC TONNES PER HECTARE, WHILST LARGE SCALE FARMERS HAVE RECORDED AN AVERAGE MAIZE YIELD RATE OF 4.36 METRIC TONNES PER HECTARE.

DESPITE THE DECREASE IN MAIZE PRODUCTION, I WOULD LIKE TO INFORM YOU THAT THE AREA PLANTED TO MAIZE AND MOST OTHER CROPS HAS INCREASED COMPARED TO LAST SEASON. AREA UNDER MAIZE INCREASED BY 5.3 PERCENT TO 1,494,451 IN THE 2014/2015 SEASON FROM 1,419,326 HECTARES LAST SEASON. USAGE OF FERTILIZER ON MAIZE BY FARMERS INCREASED BY 12 PERCENT IN 2014/2015 COMPARED TO LAST SEASON. THE USE OF FERTILIZER AND HYBRID SEED INCREASED DUE TO THE INCREASE IN THE QUANTITY OF FERTILIZER AND SEED DISTRIBUTED BY GOVERNMENT THROUGH THE FISP AS WELL AS THE CONTINUING EXTENSION EFFORTS TO IMPROVE CROP PRODUCTION MANAGEMENT PRACTICES.

LADIES AND GENTLEMEN

PRODUCTION OF SORGHUM AND MILLET IS FORECAST TO DECLINE BY 29.7 PERCENT TO 8,123 METRIC TONNES FROM 11,557 METRIC TONNE LAST SEASON.  

PRODUCTION OF MILLET IS FORECAST TO INCREASE BY 4.8 PERCENT TO           31,967 METRIC TONNES FROM 30,504 METRIC TONNES LAST SEASON.

PRODUCTION OF RICE IS FORECAST TO DECLINE BY 48.6 PERCENT TO           25,514 METRIC TONNES FROM 49,640 METRIC TONNES LAST SEASON.

PRODUCTION OF GROUNDNUTS IS FORECAST TO DECLINE BY 22.4 PERCENT TO 111,429 METRIC TONNES FROM 143,591 METRIC TONNES LAST SEASON.

PRODUCTION OF SOYA BEANS IS FORECAST TO INCREASE BY 5.7 PERCENT TO 226,323 METRIC TONNES FROM 214,179 METRIC TONNES LAST SEASON. THE NATIONAL YIELD RATE FOR SOYA BEANS HAS DECLINED BY 5 PERCENT. HOWEVER, THE AREA PLANTED TO SOYA BEANS INCREASED BY 11.2 PERCENT. THIS INCREASE IN THE AREA PLANTED TO SOYA BEANS UNDERSCORES MY MINISTRY’S COMMITMENT TO SUPPORTING ZAMBIA’S OILSEED PROCESSING SECTOR.

I WOULD LIKE TO ENCOURAGE OUR FARMERS TO CONTINUE INCREASING THE HECTARAGE UNDER OIL SEED CROPS SUCH AS SOYA BEANS AND SUNFLOWER TO ENABLE ZAMBIA BECOME SELF SUFFICIENT IN COOKING OIL.

PRODUCTION OF SEED COTTON IS FORECAST TO DECLINE BY 13.7 PERCENT TO 103,889 METRIC TONNES FROM 120,314 METRIC TONNES LAST SEASON. HOWEVER, AREA PLANTED TO SEED COTTON DID INCREASE BY 18.4 PERCENT TO 158,619 HECTARES COMPARED TO LAST SEASON.

PRODUCTION OF SWEET POTATOES IS FORECAST TO DECLINE BY 21.2 PERCENT TO 118,330 METRIC TONNES FROM 150,158 METRIC TONNES LAST SEASON.

PRODUCTION OF IRISH POTATOES IS FORECAST TO INCREASE SIGNIFICANTLY BY 35.7 PERCENT TO 45,902 METRIC TONNES FROM       33,833 METRIC TONNES LAST SEASON. THE INCREASE IN THE PRODUCTION OF IRISH POTATOES IS LARGELY DRIVEN BY THE LARGE SCALE FARMING SECTOR. I WISH TO ENCOURAGE OUR SMALLHOLDER FARMERS TO ALSO INCREASE THEIR EFFORTS AT CROP DIVERSIFICATION.

PRODUCTION OF MIXED BEANS IS FORECAST TO DECLINE BY 18.4 PERCENT TO 50,398 METRIC TONNES FROM 61,749 METRIC TONNES LAST SEASON.

PRODUCTION OF VIRGINIA AND BURLEY TOBACCO IS FORECAST TO DECLINE BY 24.1 PERCENT AND 36.4 PERCENT TO 19,811 METRIC TONNES AND 6,083 METRIC TONNES RESPECTIVELY

ACCORDING TO THE CROP FORECAST SURVEY RESULTS, NATIONAL CASSAVA FLOUR EQUIVALENT PRODUCTION FOR THE 2014/2015 SEASON HAS BEEN FORECAST TO INCREASE BY 3.6 PERCENT TO  952,847 METRIC TONNES COMPARED TO  919,497 METRIC TONNES OF CASSAVA FLOUR EQUIVALENT, PRODUCED DURING THE LAST SEASON.

LADIES AND GENTLEMEN

YOU WILL NOTE THAT THE YIELD RATES FOR MANY CROPS HAS DECLINED IN THE 2014/2015 SEASON COMPARED TO LAST SEASON. THE GENERAL DECREASE IS MAINLY DUE TO THE FOLLOWING FACTORS:

1. THE LATE ONSET OF RAINS WHICH LED TO LATE PLANTING OF MOST CROPS; AND
2. THE POOR DISTRIBUTION OF RAINFALL WHICH CHARACTERIZED THE SEASON CULMINATING IN A PROLONGED DRY SPELL DURING THE MONTH OF MARCH.

LADIES AND GENTLEMEN

THE NATIONAL FOOD BALANCE SHEET FOR THE 2015/2016 MARKETING SEASON BASED ON THE CROP FORECASTING SURVEY  SHOWS THAT THE COUNTRY HAS PRODUCED SUFFICIENT MAIZE FOR BOTH HUMAN CONSUMPTION AND INDUSTRIAL USE. AS ALREADY STATED, TOTAL MAIZE PRODUCTION IN THE 2014/2015 SEASON HAS BEEN ESTIMATED TO BE 2,618,221 METRIC TONNES. THE COUNTRY ALSO HAS A MAIZE CARRY-OVER STOCK AMOUNTING TO 1,345,401 METRIC TONNES. MOST OF THIS MAIZE IS UNDER SAFE STORAGE WITH THE FRA, PRIVATE TRADERS AND COMMERCIAL FARMERS. WHEN THE MAIZE CARRY-OVER STOCK FROM LAST SEASON IS ADDED TO THE MAIZE PRODUCTION FOR THE 2014/2015 AGRICULTURAL SEASON, THE TOTAL SUPPLY OF MAIZE AVAILABLE FOR THE 2015/2016 MARKETING SEASON IS 3,963,622 METRIC TONNES.

FOR AN ESTIMATED POPULATION OF 15.7 MILLION PEOPLE, THE FOOD BALANCE SHEET SHOWS THAT TOTAL MAIZE REQUIRED FOR HUMAN CONSUMPTION, INDUSTRIAL USE AND OTHER COMMITMENTS AMOUNTS TO 3,086,854 METRIC TONNES. THE TOTAL MAIZE REQUIREMENTS INCLUDE AN ANTICIPATED NATIONAL STRATEGIC RESERVE STOCK OF 500,000 METRIC TONNES TO BE HELD BY THE FOOD RESERVE AGENCY.

WHEN TOTAL MAIZE REQUIREMENTS ARE SUBTRACTED FROM TOTAL MAIZE AVAILABILITY, THE FOOD BALANCE SHEET INDICATES THAT THE COUNTRY HAS RECORDED A MAIZE SURPLUS OF 876,738 METRIC TONNES.

LADIES AND GENTLEMEN;

THE WHEAT CROP FOR THE 2014/2015 SEASON IS CURRENTLY BEING PLANTED. HOWEVER, PRELIMINARY ESTIMATES INDICATE THAT THE COUNTRY IS LIKELY TO INCREASE ITS WHEAT PRODUCTION THIS SEASON COMPARED TO LAST YEAR. DETAILED ESTIMATES FOR THE ANTICIPATED WHEAT PRODUCTION WILL BE UPDATED LATER IN THE SEASON.

LADIES AND GENTLEMEN;

I WISH TO INFORM THE NATION THAT GOVERNMENT, THROUGH THE FOOD RESERVE AGENCY (FRA), WILL PURCHASE 500,000 METRIC TONNES OF STRATEGIC RESERVES.

LET ME HOWEVER, ENCOURAGE THE PRIVATE SECTOR TO CONTINUE TO FULLY PARTICIPATE IN CROP MARKETING BOTH LOCALLY AND INTERNATIONALLY. MY MINISTRY WILL CONTINUE TO ISSUE EXPORT PERMITS TO VARIOUS PRIVATE SECTOR PLAYERS TO EXPORT OUR SURPLUS GRAIN TO REGIONAL MARKETS. THIS WILL BE DONE WITHOUT COMPROMISING NATIONAL FOOD SECURITY. LET ME EMPHASISE THE FACT THAT GOVERNMENT IS KEEN TO SEE MORE PRIVATE SECTOR PARTICIPATION IN THE PURCHASING OF GRAIN FROM OUR HARD WORKING FARMERS.

THE FRA WILL IN DUE COURSE, ANNOUNCE THE PURCHASE PRICE FOR MAIZE FOR THE 2015/2016 MARKETING SEASON. THE FRA WILL ONLY COMMENCE MAIZE PURCHASES ONCE THE MOISTURE CONTENT HAS REACHED DESIRED LOW LEVELS. LET ME TAKE THIS OPPORTUNITY TO INFORM THE NATION THAT I WILL SOON BE CONVENING A MEETING WITH RELEVANT STAKEHOLDERS TO DISCUSS AMONG OTHER THINGS, THE WAY FORWARD ON CROP MARKETING FOR THIS SEASON.

LADIES AND GENTLEMEN

LET ME CONCLUDE BY ONCE AGAIN THANKING THE FARMERS OF ZAMBIA FOR THEIR CONTINUED HARD.

THIS IS THE OFFICIAL SUMMARY OF THE CROP FORECAST SURVEY RESULTS FOR THE 2014/2015 AGRICULTURAL SEASON. DETAILED RESULTS CAN BE OBTAINED FROM THE AGRICULTURAL STATISTICS AND EARLY WARNING SECTION OF MY MINISTRY AS WELL AS THE CENTRAL STATISTICAL OFFICE.

I THANK YOU FOR YOUR ATTENTION. 

May 18, 2015 - Zambia Has Enough Maize

(from the ZNFU weekly update)

ZAMBIA HAS ENOUGH MAIZE DESPITE LOW YIELDS

According to the Crop Forecast Results released by the Ministry of Agriculture and Livestock yesterday, Zambia’s 2014/15 maize production dropped by 21.86 to 2.6 million tons. Despite an increase in the area planted, the national average yield dropped from 2.36 tons per hectare to 1.75tons poor hectare. The yield reductions have been attributed to the poor weather experienced during the seasons.  The country is however expected to have a surplus of around 877,000 MT due to a large carry over stock from the previous season.

During his announcement of the crop forecast results, the Minister of agriculture and Livestock- Honourable Given Lubinda, stated that the Food Reserve Agency would only purchase 500,000MT of maize at a price to be announced later. He further encouraged private sector participation in the 2015/16 marketing season and indicated that the borders would remain open for maize exports as long as national food security is not compromise.

Meanwhile the national Soya beans productions has been forecast up by 5.7 percent to 226,323 MT as the increase in area planted is expected to outweigh the yield reductions. Cotton production has been pegged at 103,889MT. The crop forecast results generally reveal that most crops suffered yield losses. There was however notable increase in the plantings of Irish potatoes especially by the large scale farmer.  

TRADITIONAL LEADER STRATEGIZES FOR INCREASED AGRICULTURE PRODUCTION 

Senior Chief Nkula of the Bemba speaking people of Chinsali has come up with strategies to scale up agriculture in his Chiefdom because the majority of his subjects never take agriculture seriously, resulting into high poverty levels. The traditional leader has put up some strategies which include:

• Setting up of a village committee which will be responsible for giving out traditional land to individual farmers for agricultural purposes, starting from 5 hectares going upwards
• Starting with the 2015/2016 farming season, all subjects will be forced to go to their various farms/fields. A scheduled alarm (bell) will be resounding around 08:00hrs every morning to notify farmers to go to their crop fields and this will be under the serious supervision of chief retainers.

The senior Chief has also encouraged all civil servants in his area to get land so that they become models to others. The people of Nkula Chiefdom have welcomed these strategies because a lot of people are not farming but concentracting on useless vices such as beer drinking. The Chief informed his subjects of his plans during an agricultural camp show held at Nkula camp in his chiefdom this week on Wednesday. 

TOBACCO FARMERS COMPLAIN OF HIGH TRANSPORT CHARGES

Japanese Tobacco International (JTI) and Alliance One have centralised the marketing points of Tobacco.  JTI will conduct Tobacco marketing at their newly built modern facility called Rosewood in Kaoma district while Alliance One will be at their main depot in Nkeyema. Sources have reviewed that the reason for centralising the marketing points was to reduce on possible risks of side marketing and reducing handling costs among others. But Tobacco farmers in Kalumwange and Chitwa Farming Blocs have complained of the cost of transporting Tobacco which will now be tripled. The farmers are worried that the rise in transport costs will negatively affect the profitability of their crop produce. JTI has completely done away with all their satellite depots.