Mixed feelings over producer prices

31 Dec, 2021 - 00:12 0 Views
Mixed feelings over producer prices The producer prices are essential in terms of planning and should be competitive to enable farmers to recoup their expenses

The ManicaPost

Samuel Kadungure
Senior Reporter

THE new producer prices for strategic crops announced by Government last week need to be constantly reviewed in line with inflationary trends so that they remain fair and compare well with import parity prices, experts have said.

The pre-planting producer prices for 2021/22 marketing season announced by Grain Marketing Board (GMB) chief executive, Mr Rockie Mutenha pegged maize at $58 553, 25 per tonne, traditional grains $70263 90, soya beans $125 530. 17 and sunflower $150 636.

Last season, the pre-planting producer price for maize was $32 000 per tonne, while traditional grains were pegged at $38 000 per tonne, with soya beans pegged at $48 000.

“The viability of these prices in April 2022 will depend on a number of factors, but primarily on the local currency stability.

“If the local currency fails to maintain its stability and tumbles against major currencies, then the announced prices will not be viable.

“If the exchange rate runs amok and push the prices of other commodities up, the prices announced by GMB will cease to be viable.

“These are pre-planting prices and towards the marketing season all stakeholders need to sit down and negotiate new prices that are fair and compare well with the import parity prices,” said Zimbabwe Farmers Union (ZFU) executive director, Mr Paul Zakariya.

Makoni Small-scale Farmers Association chairperson, Mr William Chiripamberi said the inflationary pressure was anticipated to ease, though marginally in the coming months.

Mr Chiripamberi said while the economy was well on the revival path, the emergence of Omicron Covid-19 variant might unsettle the recovery trajectory in the short term and render the pre-planting prices unviable.

“The producer prices are essential in terms of planning and should be competitive to enable farmers to recoup their expenses.

“If the economy continues on the recovery trajectory, then farmers are guaranteed of viable markets for strategic crops.

“However, extenuating factors like the emergence of Omicron Covid-19 variant might affect the economic recovery trajectory and this may end up affecting the pricing matrix to warrant another upward review.

“The final prices should be a product of extensive consultations and must handsomely reward the farmers to enable them to go back to the fields next seasons,” said Mr Chiripamberi.

Rural development expert, Professor Joseph Kamuzhanje said the issues to do with accessibility and affordability of inputs, livestock health products, extension, funding, viable and sustainable producer prices were the basics of pushing the sector forward and are non-negotiable.

“Pay famers adequately and on time so that they are able to capitalise their enterprises. Agriculture is a business that should finance itself for it to be successful.

“If a farmer produces and sells, they should be able to recapitalise and refinance their enterprise without using their own resources,” said Prof Kamuzhanje.

 

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