April 19th, 2016 - The Maize Front

It has been difficult to be away from Zambia in what is turning out to be a crucial year in the continuing saga of maize: 

• Zambia announced back on the 6th (April) that maize exports, inclusive of bran, the by products of milling off the endocarp when making white (breakfast meal);
• Maize prices in Zambia are allegedly going to be controlled by government, but the routine of cross-border smuggling (through buyers purchasing at retail and reselling in DRC and Malawi) from two years ago and last year is replaying on a much greater scale;
• Queues for maize meal have been increasing, with buyers at supermarkets (e.g., Shoprite, Pick-n-Pay, etc.) limited to one 25kg bag per person;
• Prices have gone through the roof for the commodity, particularly in southwest and western Zambia, with 25kg of mealie meal selling at K200 ($21.39USD);
• Farmers in the same region as above are selling cows ... something of a !! because only better off have cows and they are not usually sold unless they are on death's door. "Prices" are in barter; families are getting 4 or 5 bags of maize (unmilled) for a single cow. This represents a kwacha value of K280 to K350 ($30 ~ $37.4 USD) per cow, as reported on-the-ground from Mwandi, west of Livingstone.

Word from ZNFU:

CME Soya futures price for May 2016 delivery opened trading at US$354.21/MT on 18th April 2016.

Local Soya beans spot prices were still hovering around ZMW5, 900-6,400/MT ($630 - 684USD) last week according to information captured on the ZNFU market price information system.

...

Malawi is forecasting a further reduction in its maize output this year. The country’s production estimates are currently around 2.43 million tons against a national consumption requirement estimated at 3.2 million tons. Zambia has been a major source of the maize grain to Malawi over the last year through both formal and informal trade. Meanwhile the Malawian President on 12th April declared a state of national disaster as the northern part of the country experiences floods and the southern drought.

On the local scene GRZ through Ministry of Agriculture is expected to issue a Statutory Instrument (SI) to facilitate the trading of maize grain and maize products sometime this week. This follows recent announcement by the Ministry of Agriculture that the country had adequate stocks to meet the national demand for maize.

 The CME Corn futures price for March 2016 delivery opened trading at US$147.71/MT on 18th April 2016.

 The offer price on the ZNFU market information system was in the range of ZMW 1,300/MT to ZMW 1,900/MT ($139.03 - 203 USD) in the week ending 18th April 2016.

...

AVERAGE DAY OLD CHICK PRICES
... No changes were registered in the price of day old chicks during the course of the week. However, day old chick outlets/agents have indicated that there has been a significant drop in the sales of day old chicks this year mainly caused by the increased cost of production, particularly increased cost of feed which some of the small scale farmers cannot keep up with.

January 16th, 2016 - Not a viable field

This blog represents the views of the author's alone, and does not represent the views of his employer, Concern Worldwide.

News from the World of Maize:

Over the past few days, I hosted a friend of mine who works in southwestern Zambia and northern Malawi. He clued me in to some of the bits of information:

1. Maize stocks in Malawi are at spectacularly low levels ... he revealed a date of March 4th as the proverbial D-Day. I did a bit of digging online and FEWSNET has the following concurrence Currently food insecure populations in 12 districts spanning parts of the southern and northern regions are receiving assistance. Response programming to these areas and an additional 13 districts have enough funding for implementation through February 2016. Assistance originally planned for the month of March 2016 is uncertain due to a remaining 25 percent funding shortfall
2. It was interesting the deadline of March, which is keyed to the availability of direct budgetary aid, something which the Malawian government relies on to a greater extant that most countries in the region, a by-product of not being blessed [cursed] with mineral or other resources of the extraction variety. Part of what R. said got me trolling through the web; it appears that Malawi's President Peter Mutharika is under pressure to accept donor aid, particularly from DFiD, with some strings attached, namely that Malawi decriminalizes homosexuality. This has caused quite a stir in what I consider a significantly more conservative country than Zambia. According to the BBC, a moratorium was enacted on the laws, but full repeal of the law is a huge issue of realpolitik for Mutharika, who risks incredible backlash on the issue against both himself and threatened recrimination against the LGBT community. 
3. This has been accompanied by a steady rise of maize prices on the market (as is the case in Zambia) that has not been helped by the suspension of sales from ADMARC, Malawi's parastatal [government-run] agriculture marketing board which is by the largest buyer and seller of maize in the country. This has been exacerbated by the theft of maize by local ADMARC officers.

This morning, four hours after we parted ways, he sent this he sent this chilling text as he drove through Southern Province:

"Country is f***ed, not one viable maize field from Maz[abuka] to Choma, brutal!"

18 November, 2015 - No rains yet ... and ... ZNFU Agro Watch Notes

This blog represents the views of the author alone, and does not reflect the opinions of his employer, Concern Worldwide. 

Greetings, again dear readers wherever or whoever you may be.

We are still awaiting the "planting rains", three days after a singularly important day on two levels for me as an agriculturalist in Zambia, and as a Yooper. November 15th to the 25th is highly critical for Zambian farmers as it represents the optimal planting window for maize. Why? I'll summarize a few hours worth of training into a few bullets:

• Nitrogen flush:   Once rains kick off, the air and soil temperatures drop off precipitously (a brief aside ... last week I was in mid-40s C temps in Liuwa Plains NP, Kalabo, Mongu, Senanga, Sesheke, Livingstone, and Chirundu ... maybe I'll write briefly about ringing the west and south, maybe not. Anyway, the precipitous drop means soil temps go down to low 30s/high 20s ... still plenty of heating units even in mulched soils). Once these temps drop (and some moisture comes into play), saprotrophs and heterotrophs start breaking down organic material in the soil, which is then  mineralized into plant available forms (plants don't chew raw nutrients ... they suck it up as a solution, another reason moisture is key). Anyway, flush is the real word ... it's there and gone in a hurry as our soil temps are generally high, and in farmed fields, the tradition of burning crop residues prior to planting reduces available organic matter. The microbes essentially eat and reproduce themselves out of house and home in a hurry, even faster if they till the soil (which increases oxidation and mineralization rates by aerobic bacteria. Anyway, long and short is that if you can catch that flush, especially in maize, you get a huge boost in the critical first four weeks of the plant growth, effectively developing a much more effective photosynthetic engine. 

• Daylength:  Maize is a sun-loving plant; not a surprise, given the demands it puts on the photosynthetic outputs (big stalk, heavy cobs, etc). We don't see this much in temperate climes as we have comparatively long summer days (heat and degree days are more the problem). However, in Zambia, days range from 13 hours in the summer (with longer in the south) to 11 hours in the winter. Catching as much sun as possible means more photosynthetic output, and consequently, a bigger plant. Some estimates show that yield loses from planting after November 25th equal 2% of potential yield per day (!). Also, and I'm wandering out onto thin ice, but maize often flowers (depending on the genotypes) based off the daylength, which can mean some plants may flower prior to being "ready" (growth-wise) to flower. It, like all aspects of maize, are somewhat strange and fascinating ... a great thesis from a Zambian student at Iowa State in the late 1980s explains somewhat why tropical maize grown in the temperate zones gets really big (leafy) but produces little (something I've observed as well). 

• Rain: This damnable ENSO (el Nino) event is going to make life miserable for farmers despite rainbows, prayers, days of fasting, etc. (Appealing to the Almighty is understandable and I often do so myself, but the extent that it actively destroys agency and responsibility gets a bit wearisome). Anyway, we are going to have short (late start, early finish) rains, and likely low annual accumulations between October and April, the months in which nearly all the rain falls and which we typically measure. The earlier you plant, and combined with the above, the more of that rain you catch, the better the yield. 

Long and short, plant early ... and not just maize! 

Notes from ZNFU Friday Brief (Week 46) (My notes in red text):

The Minister of Agriculture, Hon. Given Lubinda, MP has assured maize farmers in Zambia that maize markets will still be available for the 2015/2016 crop despite the increasing input costs that farmers are currently experiencing. The Minister said this when ZNFU President, Dr Nguleka and her team presented an Issues paper on the increasing costs of maize production for the 2015/2016 crop at the Ministry of Agriculture on Friday 13^th November 2015. The Minister assured maize farmers that government will allow market forces (demand and supply) to operate in order to ensure farmers get a better price for their crop. Hon. Lubinda observed that farming is a business and government will continue to provide a conducive environment aimed at encouraging further investment in the sector.

I was at the recent IAPRI conference for Western and Southern Provinces (same day) and he (Hon. Lubinda) was in attendance. Welcome relief (I'm on Minister of Agriculture #4 or 5 since 2010) as he seems fairly straightforward, though no one could ever match Bob Sichinga's sensayuma. Anyway, if they want farming to be a business, GRZ needs to pull out of both FISP and FRA. Lubinda gets that, but maize subsidies are like holding the proverbial political wolf by the ears: you don't like it, but you sure as hell don't want to let go.

SUNFLOWER PRODUCTION: THE BLOOMING INDUSTRY

The oilseed stakeholders met on 11^th November at the ZNFU offices to review the market situation of soya beans and other oilseeds. Whilst expressing appreciation the importance of maintaining export relations, the stakeholders agreed that there was need for stakeholder consultations before any exports of soya beans could be allowed so as to support the growth of the soya beans value chain. During the deliberations, the farmers indicated that there was need for traders and processors to enter into pre-planting contracts with the farmers, as uncertainty over the markets affects the farmer’s decision on what quantities of the crop to grow. The farmers were assured that demand of soya beans would be high in 2016 and that some off-takers were ready to sign supply contracts with the farmers.

The stakeholders were informed that there was readily available sunflower market with the demand in 2015 projected at least 50,000MT by oilseed crusher with a potential to expand further should supply increase. Farmers were encouraged to grow high oleic sunflower varieties to attract premium prices.  Stakeholders however bemoaned the inadequate supply of high yielding sunflower seed varieties on the local market and proposed that seed companies should be engaged for sustainable growth of the sunflower industry.

I take some pride in being part of the introduction of sunflowers into Western Province in 2010 and 2011. However, despite it growing fine (if planted early) in Zambia with minimal inputs and efforts, it is still planted on a relatively low scale. The whole out-grower scheme would be ideal but for the fact that our farming season straddles the fiscal year turnover. The farmers have it right on this; knowing the price in advance would likely guarantee production, as marketing points for sunflower are not nearly as ubiquitous as maize.

 2015 WHEAT PRODUCTION ESTIMATED AT OVER 300,000 TONS

The ZNFU wheat and barley commodity committee met on Thursday 12^th November 2015 to review the 2015 wheat production estimates. Based on information captured through satellite imagery, the total area under wheat in 2015 was 46,156 hectares out of which, 42,564Ha was observed to be normal, 1,916Ha had somewhat stressed/below average wheat while 1,675ha had stressed wheat. The total production has been estimated at 309,100 of wheat while the 2015 barley crop harvest has been pegged at 8,800tons. The farmers expressed concern on the high levels of uncommitted wheat crop still available in the farmers’ hands with little propensity by the millers to purchase the crop. The meeting was further informed that the estimated national wheat consumption requirement is 387,193MT. It was however highlighted that due to load shedding, indication from the millers was that while there have been some attempts to invest in alternative sources of power, their normal production levels had dropped by about 30%. It was further stated that demand for flour and flour products was being affected by the rising cost of living.

Just a note ... nearly all wheat is grown by a relative handful of very large scale farmers (inclusive of quite a number of white ex-Zimbabweans) under pivot irrigation. It's sown just after the rains and irrigated throughout the early part of the dry season, then matures and dries under the later, hotter part of the dry season; usually they combine it in early October. It still is the strangest thing to go from a farmer working with a hoe on a quarter hectare to a person operating a 50 foot combine through 250ha of wheat in the same day.

WATER SHORTAGE HITS COPPERBELT

Copperbelt like many other districts in the country has experienced low water levels ever recorded with most perennial streams and wells drying up. Farmers in the countryside have expressed worry over the water crisis as most of their livestock depend on streams and wells for their water. Farmers have to walk long distances to fetch for water.  Others have resorted to drive to nearby towns to draw water in drums for their livestock, and for domestic use. A Mr. Mwale of Mufulira Murundu farming area explained that for the first time, he has witnessed a perennial stream drying up. "This is very sad, my animals are dying, vegetables completely wilting" Mr Mwale lamented. 

Meanwhile, a group of farmers in Ndola have mobilised themselves and have requested the regional office to assist in finding a borehole driller and negotiate the prices so that they can have boreholes in their farms as a measure to mitigate the water crisis. And a named borehole driller has since been approached and negotiations are currently underway.

Good thing climate change is just a myth ... right? More like what my friend Rolf Shenton says; Zambia's capacity to absorb rain is being destroyed as forests fall to charcoal and farms.

KATETE DC DISSOLVES ERRING CAC COMMITTEE

The District Commissioner for Katete district has dissolved the Camp Agriculture Committee (CAC) for Chilembwe Agricultural Camp after discovering that the CAC committee and the Camp Extension Officer could not account for k 20,000.00 contribution made by Cooperatives and other farmers groups for CAC activities. The CAC committee could not also account for 138 packs of fertilizer under the Farmer Input Support Program (FISP) which were allocated to the agricultural camp. During the meeting held on 6^th November 2015 the area Councilor for Chimwi Ward appealed to the DC through the DACO to consider replacing the Camp Extension Officer.

Typical FISP ... usually it doesn't get reported.

E-VOUCHER CARDS DISTRIBUTION ON COURSE

The distribution of FISP e-voucher in Mumbwa district has so far gone well with over 75% of the cards already issued to beneficiary farmers. More than 12,000 cards have been issued to the beneficiaries against the intended 16,239 beneficiaries as the exercise continues.

As usual, behind schedule ... 

At the same meeting last week, I was somewhat surprised by the tacit, subtle resistance to the e-vouchers, which have been in play by FAO, CFU, hell, even Concern since 2007ish. It's a relatively simple thing ... you get a credit card sized voucher with a fixed value, take it to a participating agrodealer, and redeem inputs against the value of that card ... agrodealers get paid fairly quickly, and there's zero transport costs to the government (the farmers collect the voucher). However, standard FISP distribution is a powerful expression of gift-giving (go read My African Friends and Money Matters) that accrues repute to the giver. Power. That's the tall beer. I have it figured they want it to fail because it deprives them of that power.

However, the exercise has faced a minor challenge in one agriculture camp of the district where a few farmers could not collect their cards due to some unexplained religious conviction. The farmers who could not pick up the cards belong to Mpusu Agriculture Camp north of Mumbwa district.

Huh...

FARMERS’ REPRESENTATIVE CALLS FOR INTRODUCTION OF THE FISP E-CARD IN ALL DISTRICTS

Kabompo District Farmers' Association (DFA) chairman, George Munyingu, has called on government to extend the use of the FISP e-voucher card to other districts in the country. Speaking during the Kabompo DFA executive committee meeting on Wednesday this week, Mr. Munyingu said the use of the e-card will bring sanity in the implementation of the FISP exercise. He further added that the use of the e-card will eliminate a lot of discrepancies currently being experienced under the FISP program. He cited some farmer organizations which do not have proven membership but are receiving huge amounts of input packs thereby disadvantaging real farmer organisations.

Read that vs. the bit above. Farmers like it because they are more in control of when they get their inputs.

FISP BENEFICIARY FARMERS STILL WAITING FOR SEED INPUTS

All the districts in North Western B region have not received the allocated seed. A check at the storage sheds in various districts found warehouse managers still waiting to receive the seed. The affected districts are Chavuma, Kabompo, Manyinga and Zambezi.

Another reason to switch to e-cards ... waiting on other people sucks.

Remember the poor.

10th November, 2015 - ZNFU Weekly Update and Agro-watch

The views expressed on this blog are the author's own, and do not reflect the views of Concern Worldwide. 

Bits and pieces of the weekly farm news that's fit to use from Agro-Watch, vol. 44 and the Friday Brief. As usual, my additions in red:

Agro-Watch 

Highlights [maize]

• Malawi’s grain marketing agency, ADMARC, adjusted their maize selling prices end of October from 3,000 Malawian Kwacha to K4, 000 per 50Kg bag (approx.US$7.19/50kg bag or Zambian Kwacha 93.5/bag). Maize prices have been rising on the Malawian market due to sporadic supplies with other private traders quoted to be selling for as high as K8, 000/ 50kg bag (≈US$14.38/50kg bag or ZMW187 per 50kg bag).
• With the close of the FRA maize purchase season on 31st October 2015, Zambia’s food reserve agency purchased a total of 596,081MT during the 2015/16 marketing season. Original target was 500,000MT, but their overruns were far less than last year's spectacular 400,000MT purchase ... I suspect the deepening currency crisis and the govt.'s lack of money have as much to  do with this as the smaller amounts available on the market. Pressure has continued to mount from the Millers for government to release maize on the local market at subsidized prices to lower [mealie-meal] prices . They are pressured by Zambia's very substantial urban population (and consequently, the Government ... everyone remembers that Kaunda's downfall was hastened by unavailability of food). So many Zambians purchase mealie-meal, it gets a bit worrisome. The initial indication that maize would be offloaded at K85/50kg bag has been put on ice as government reviews the matter further.
• Indicative local offer prices were averaging ZMW1.6/Kg with the highest offer pegged at ZMW2.3/kg on the ZNFU market price information system.
• Maize mealie-meal 25kg in Mayukwayukwa is selling at K130~140; 10kg is K50~55.

Friday Brief

CENTRAL REGION

METEOROLOGICAL DEPARTMENT CAUTIONS FARMERS

Meteorological Department in central province has urged farmers to approach this season with caution as weather forecasts are showing normal to below normal rains. Felix Imbwae who is the Provincial Meteorological officer for Central Province said this when ZNFU officers visited him at his office. He further said that farmers should consider planting drought resistant varieties and early to medium maturing ones. And Mr. Imbwae has urged farmers to go for conservation farming practices as they remain the best option in times of less rainfall. I wonder which practices; I've realized recently that almost everyone sees (literally) CA as planting basins. Soil cover is an afterthought, and crop rotation an outright puzzle. 

HEAVY DOWNPOUR SENDS FARMERS IN PANIC MOOD

Heavy rains that characterized most parts of central province have sent farmers mostly small scale into serious panic. The start of the rain season has found most farmers unprepared due to challenging circumstances. Funny, it starts pretty much the same time every year. How did this catch farmers unawares? Some farmers have indicated that they expect a challenging farming season due to high inputs prices and delayed FRA payments. Which of course, you can't do without ... right? Meanwhile, some farmers have complained that tractor owners have also taken advantage of the prevailing situation and adjusted prices for Land Tillage upwards. Last year most farmers in the province were charged between k300 to k400 for land tillage per hectare but now it’s between K500 to K650. Ah, the "Dollah" strikes again. Price of everything has climbed, sort of like a run on the bank. Everyone complains when the kwacha (and prices) rises in response to the dollar as they have the same amount of kwacha, albeit it is worth much less.

EASTERN REGION

PETAUKE FARMERS BEMOAN HIGH FERTILIZER PRICES

Farmers in Petauke District have lamented the rapid escalation in fertilizer prices and have since asked the government to intervene in the matter. Not so much the independent yeoman farmers of the Jefferson ideal. Farmers have described the situation as a hindrance to the growth of agriculture sector in the country, adding that if the situation is left unchecked then many rural households will languish in poverty because many of them depend on farming. Again, is there no way to do it without fertilizer? Fertilizer prices have increased by over 100% from last year’s prices. A bit of a stretch, but yes, it has gone up at least 50%. A check by ZNFU in the district found that D Compound was trading at k 420.00 while Urea at K 375.00. I'm surprised it's not worse ... in the West, these are more like K450 and K400.

KATETE RECEIVES HEAVY RAINS

Katete district this week on 3^rd of November 2015 received heavy rains. The rains which lasted for over 3 hours covered the entire district and this caused panic among farmers especially those that have not yet received their payment from the Food Reserve Agency where they supplied their maize. Not much structural agency assigned to farmers, but you see them stuck in the same ruts all the time. Always grow maize. Always sell maize to FRA. Always delayed wait for FRA to pay. Further delays waiting for FISP to arrive. Repeat annually for 8 years. Similarly Nyimba and Petauke districts also received some measured quantities of rains in most parts. 

NORTHERN REGION

FARMERS ANXIOUSLY AWAIT FISP DISTRIBUTION COMMENCEMENT

With the onset of rains, farmers in Mungwi are beginning get worried over the delay in the distribution of FISP inputs to various camps. The chairperson of Mungwi DFA, David Ng’andu has said that the delay in the distribution will negatively affect farming this season. And the DFA chairperson has expressed sadness (my heart does not go out to the better-off farmers who won't get subsidized inputs intended for the poor to whom my heart does go) at the reduced fertilizer allocation to the district at a time when the number of potential beneficiaries is increasing. [The] Government in Zambia is perceived by rural folks as a big yawning pocket full of money, largely because of its poor transparency in terms of how money is spent, and historically, Zambia's full-court press of socialism during the one-party state days. 

So far only Urea fertilizers have been delivered while D compound and seed have not yet been delivered to the district. That's helpful, they need Urea (top-dressing) around Christmas, but the seed and D needs to be around by two weeks ago. Again ... same thing every year. 

LUAPULA REGION

FARMERS BEMOAN DELAYED FRA PAYMENTS

Farmers in Mansa district have expressed disappointment over the delayed payments for the maize they supplied to the Food Reserve Agency (FRA).  The farmers have complained that the Agency had not adhered to the stipulated marketing modalities of paying them within two weeks after delivery of the commodity. Please tell me you notice the same theme I've noticed for over 8 years, and understand why I bemoan and am saddened by the state of farming in Zambia. 

October 8th, 2015 - An Ear of Maize Proper

(The views of the author are not those of Concern Worldwide)

This is week two of three weeks of Conservation Agriculture (CA) training to both our own staff, partner staff, and government extension officers. It's a welcome sign that the end to the hiring freeze in the camp staff in 2012 is starting to come to fruition; the back of the conference hall is peopled with young guys who are new to the game and want to make a real change.

However, it's a blast furnace outside in more ways than one; we hit 39C today (great for striding about the room, being the "CA Preacher" as one women called me), and the Zambia mealie-meal market, off the lease since 2013, has started to follow everything else on a upward trajectory, as reported by the Post today.

I refer again, as I always do, to the Zambian Coat of Arms (downloaded from Wikipedia https://en.wikipedia.org/wiki/Coat_of_arms_of_Zambia#/media/File:Coat_of_arms_of_Zambia.svg):

Having learnt about one of the more obscure part of any coat of arms, e.g., the compartment (the landscape upon which the supporters stand) for this coat of arms is designated as: "Green earth, and an ear of maize proper".

An ear of maize proper. If you haven't grasped this by now, dear reader (hi Mom), an ear of maize proper is the common denominator in this country. It is the gantry in whose shadow all other foods and/or crops appear Lilliputian. And now that great green edifice is crumbling; cracks are shooting up the walls, the ground heaves, and mealie-meal hikes upwards.

Maize as a staple food is the foundation of Mazlow's [Zambian] Hierarchy in that physiologically, Zambians must consume maize to survive (the reach of Zea mays up to and possibly into Self-actualization are both scary and tangential). When mealie-meal climbs, a shockingly urbanized nation starts to grumble in ways that ZESCO's load shedding / tariffs hikes and climbing import prices have yet to plumb.

September 28th, 2015 - Presidential Address to Parliament (19th Sep)

The views expressed by the author are his alone and do not reflect the views of Concern Worldwide. 

Notes from ZNFU Agro-Watch, volume #37 (Sep 22nd) ... author's comments in red. 

Cost of Agricultural Inputs Making Zambia Uncompetitive:

H.E Edgar Lungu The Republican President, His Excellency Edgar C. Lungu, opened the 5th session of the 11th National Assembly on Friday 18th September 2015. In his maiden speech, the President stated that Zambia needed to capitalize on its resources in order to become a regional agricultural hub and a global exporter of processed agricultural products. Some of the salient point made, with respect to agriculture, in the 74 paged speech include:

• Zambia’s high cost of production needed to be addressed. The dependence on imported inputs is making the country’s agricultural produce uncompetitive. There is thus need for more investment in local manufacturing of agricultural inputs. My guess is that they are referring to fertilizers which are inherently costly due to the fact that Zambia has a) no oil [it comes off tankers from Dar-es-Salaam], and b) a limited capacity to produce nitrogenous fertilizers, which in lieu of better farming practices, are to the average farmer the equivalent of a powerful drug to an addict. Without fertilizers and hybrid maize (also largely pegged in dollars, which is currently killing my project), there is essentially little hope of a marketable surplus barring expenditure in land and labour resources.

• The piloting of the Electronic Voucher System in 13 districts under the Farmer Input Support Programme; Only about five years or so after they FIRST promised to use it ... wonder how it will go this time around? The idea is good, but disliked by local party politicians, as it deprives them of a major opportunity for "gift-giving" at the rural level. 

• Directive to the the ministers responsible for Finance and agriculture to come up with a mechanisation Programme for small-scale farmers working in Collaboration with the private sector and civil society. This is with the aim of making small-scale farmers more self-sufficient; Admirable, but always curious ... those who can afford mechanization typically use it; those who can't, don't. How will the private sector work around that? Also, how does that lend itself to self-sufficiency? 
• Government will bring about 5,000 ha of land under irrigation each year to mitigate against the effects of climate change. 
• The movement of the Department of Cooperatives to the Ministry of Commerce, Trade and Industry from the Ministry of Agriculture and Livestock;
• Government plans to establish 13 milling plants nationwide to be managed by ZNS and Zambia Cooperative Federation (wait ... how will this help the private sector? A return to government-subsidized, artificially low-cost (and likely poorly run) milling companies will effectively subsidize consumption, pulling production along with it. Mono-cropping 25, crop diversity -10.
• Government plans on doubling the number of livestock breeding centers from the current 10 to 20 by 2023. The Breeding centers will be for mostly goats and sheep, targeting the huge goat and sheep market in the Middle East. Hope no one informs Rwanda, Burundi, Uganda, South Sudan, Kenya, Ethiopia, Tanzania, or Kenya of this plan, as they are a bit closer and have in some cases, ocean access. Are we going to truck or fly these goats? 
• The Sanitary and Phyto-sanitary Standards should be strengthened and strictly enforced to ensure that agricultural produce being sold on the market are safe and of good quality. I would ask, what's in it for the farmer to achieve phyto-sanitary acceptable foods? 
• Government is in the process of establishing two fish hatcheries in each province in order to support growth of fish farming. Further, government will establish one community fish fingerling nursery in each District and also train 1,400 fish farmers in fish Feed production. This is with the target of the nation reaching fish self- sufficiency in the next three years through an annual production of 80,000 tons of fish from fish farming and 90,000tons from natural fisheries. Okay, I hope they find some new rivers or lakes out there, because Luapula is fished out and the Barotse Floodplains are not that far behind. I also wonder if they are going to revamp Dept. of Fisheries into a going concern.

The republican President further stated that the country would soon ratify the Tripartite Free Trade Area which would make Zambia part of the largest Free Trade Area in Africa and that the nation was part of the negotiations for the Continental Free Trade Area which would offer a bigger market access to Zambian Entrepreneurs and innovators.

On Energy, H.E Chagwa Lungu indicated that despite the low water levels in Lake Kariba and the Kafue River the power shortage has been occasioned by Zambia's inability over the years to attract new investment in Electricity generation on account of the low electricity Tariffs. Government hopes that the revision of retail tariffs upwards from an average of 5.64 to 10.35 cents per kilowatt hour will attract more investments in the energy sector, particularly for those interested in renewable energy sources such as solar, wind and waste-energy projects. Hmmm ... those low tariffs purchased a lot of nice cars over at ZESCO. Also wonder if it's the slipping exchange rate which puts import costs (of which much of ZESCO infrastructure is reliant upon) way to high for them to afford conductors, transformers, etc.

In addressing the concerns over Zambia slipping back into a debt trap, the Republican President stated that the Zambian economy has grown from a US$ 3 Billon GDP in 2005 to a US$28 billion today and that the country was well within the acceptable international threshold of 40% of the Gross domestic product. He further stated that the nation had borrowed for long term investments that would spur national growth. In other words, China needs to get back on-track and purchase copper at $6,000/ton or we're in for it.

The theme of the President’s address was “Embracing a Transformational culture for a smart Zambia Now.” No time like the present.

August 14th, 2015 - The Food Reserve Agency (FRA) floor price set at K70 x 50kg bag

Zambia's Food Reserve Agency (FRA) announced its floor price yesterday, which I heard over the ZNBC news whilst enjoying a meal of rice and beans that was positively resplendent with cooking oil.

To clarify from what mi amigo Dr. William Burke told me years back, it's not really a true "floor price", or more appropriately (?), a "price floor" ... FRA's floor price is more appropriately, a pan-territorial price for a fixed weight / volume, the ubiquitous 50kg maize grain bag purchased by FRA at an approved depot or satellite depot anywhere in Zambia. This year it is ... drumroll ... K70 per 50kg bag, of which they will purchase a supposed maximum of 500,000 metric tonnes.

Hmm. As CSPR says, nothing exciting. No change from last year, especially considering two factors:

1. USD to ZMW exchange rate ... a year ago, the Zambian Kwacha (ZMW) was trading around K6.1 to $1.00, so a bag of maize was worth approximately $11.50. Today it just closed at K7.90 to $1.00 (gulp), meaning a bag of maize is worth about $8.86. This is a kick in the slegs to farmers who don't get subsidized maize support, as fertilizer and seed prices are often estimated in USD and then converted to ZMW. 
2. IT BARELY RAINED THIS YEAR IN THE SOUTHERN HALF OF THE COUNTRY. That means we have less maize and the FRA is paying less (in dollars) for it.

However, this is a glimmer of hope for us nut-jobs who harp on about diversification; in its own groping way, the government appears to be backing away from its deathgrip on Zambia's maizescape. It's likely (though no standing government would admit it) that their handling of maize through the FRA has been a significant distortion [read: wandering disaster] of the food market and a spectacular loss of taxpayer's money (state-to-state / donor aid usually lands in research and extension in some garbled way like moi).

We'll see ... my prediction is that maize cropping will drop somewhat depending on how well they stick to the quota of 500,000 MT, and if they are at their usual snail's pace of paying the farmers around December / January. FISP is still intact and far more of an expression of government largesse in rural areas, so it will likely stand politically.  

In the meantime ... maize grain is selling at K110 / 50kg (packed to 60-65kg) on the open market. Guess hunger and Adam Smith are moving the dial on their own ... 

July 15th, 2015 - ZNFU Notes, Fuel Prices and FRA

Excerpts from the weekly Agro Watch, Volume 28 2015

My notes in red.

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Fuel:

Diesel and petrol Prices hit K8.59 and K9.87 respectively. The Energy Regulation Board (ERB) has adjusted the pump price of petroleum products by K1.13 for petrol; K1.00 for diesel; K0.72 for kerosene and has maintained the price of low sulphur diesel (diesel), effective midnight of 13th July 2015. Consequently, the prices will now be as follows: Diesel pump price increases to K8.59 from K7.59; while Petrol pump price increases to K9.87 from K8.74. The ERB attributes the increase in oil prices to depreciation of the local currency (Kwacha) against major convertible currencies such as the US dollar. This is despite the fact that crude oil prices on the world market have continued to fall currently at US56.76 per barrel.

Maize:

• In Zambia, the Permanent Secretary for Ministry of Agriculture and Livestock has maintained that Government would only purchase 500,000MT of maize for the Strategic Reserve (they said the same thing last year and ended up buying 900,000MT).
• Ministry of Agriculture has urged farmers to take advantage of private sector maize buyers as opposed to waiting for FRA floor price. (It's not a "floor price" ... what that term means is the absolute minimum at which maize can be purchased is the floor price. What the Food Reserve Agency (FRA) does is set a pan-territorial [nationwide for all depots, satellite depots, etc.] price for a 50kg bag of white maize at 12% moisture content. In 2014, the price was raised from K65.00 / bag [the price from 2010] to K70.00 per bag ... this year's price remains to be seen.)
• FRA has reported that current maize stocks for strategic reserve stands at 393,393MT, and that the Agency will only buy maize in 4 provinces namely: Luapula; Muchinga; North Western and Northern Provinces. (I would have to check, but at least three of those voted for the ruling party in the last election). FRA indicated that the above provinces are not adequately covered by the private sector buyers compared to other provinces along the line of rail (Funny ... Eastern and Western Province don't have railroads. Of course, Western also lacks maize outside of Kaoma.)
• Local average maize price have continued to strengthen backed by the strong demand and limited supply of the commodity. The grain average price for the previous week was pegged at K1, 195/Mt. Prices of the commodity delivered to Lusaka are now averaging K1450/MT. The graph below shows average local maize price trends. (Kind of an obvious one ... the demand for maize in Zambia is equivalent to saying "the demand for oxygen"). 

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. 

Greetings my few readers! 

Here is an example of what we refer to as a political (and economic) agroecological context. 

Slightly over two months ago, the Zambian government (for reasons that remain a well of speculation) entirely dropped the subsidies on fuel and cut the subsidies for maize production / consumption. It was greeted at first with confusion that soon turned into anger, particularly with the 15% jump in fuel prices. The Zambian economy, including the small-scale farmers who are still consumers of things like sugar, cooking oil, clothes, etc., etc., suddenly saw their costs jump 20% literally overnight, as everything in this country depends on fuel. This was abetted in no small part by the fact that every can use fuel prices as an excuse to squeeze out some more profit, particularly as the chain from producer to consumer involves on average, four or five exchanges of goods (manufacturer -> regional wholesaler -> local wholesaler -> rural trucker -> retailer [tuck shop] -> consumer).

The maize subsidy reduction didn't kick up that much ruckus; however, my suspicion is that the cuts to FISP (Farmer Inputs Support Programme) won't be recognized until much closer to the farming season; oh, how will people holler when they have to pay half (rather than a fifth) of the price.

Anyway ... suddenness of the announcement caught everyone off-guard (including the government representatives, who appeared not to know about it). The sudden bump in consumer prices got everyone buzzing, and their was an order issued for government ministers to explain the reason for the reduction in subsidies; it is claimed that the money freed up will be used for rural development. 

As a guest in this country, I don't cross some lines of discussion, particularly in a public forum. I can say though that in my past experiences working around FISP, maize production and purchase subsidies have created a forcing context that seems to discourage crop diversification; this is particularly acute in the areas (esp. the current region, Western) that I've worked in that are marginal at best for maize production; to whit, our district average maize yield in Mongu was 0.38 t/ha ... that is like planting two football fields to maize and getting 8 x 50kg bags. To put that in context, farmers in Iowa achieve something like >8t/ha; even commercial farmers here achieve 5~6t/ha. Farmers grow maize due to it's historically monolithic support by the government, and any move away from that is a step in the right direction. Mark my words ... it will be a shock to the agricultural system of Zambia as significant as an ecological event. 

Below are scans of the leaflet released two weeks ago (the English version and the Lozi translation).