The ManicaPost
Samuel Kadungure
Senior Reporter
ONE of the greatest success stories of the winter cropping season is its transition of the nation from a wheat-deficit to a self-sufficient one — an achievement that will significantly narrow or eliminate the import bill associated with the cereal crop.
Zimbabwe is expected to produce a record wheat harvest of 340 000 metric tonnes as efforts of Government, farmers, extension officers, irrigation water and electricity providers pay off to halt the strategic grain’s shortage.
Zimbabwe needs at most 400 000 tonnes of wheat per annum, and over the recent years, the country had failed to produce even a quarter of its annual national requirement.
The cereal crop’s production was on the brink of collapsing due to a plethora of factors, chief among them shortage of production inputs, especially seed, fertilisers, enough and affordable water and electricity to spur irrigation.
This was despite the fact that wheat is an important cereal crop that contributes to the diet of the general populace, especially with regards to bread, which is consumed as a major part of breakfast.
The deficit was bad for the nation as treasury had to commit millions of scarce foreign currency to import the cereal grain. This was not developmental as the country lost a lot of the little available forex.
Again, the huge import bill will exert pressure on efforts to reconstruct the economy.
Don’t mention bread shortages that Zimbabweans have experienced this for years.
Nobody wants a repeat of those sad days.
Fast forward to October 2021 – the current winter season is certainly going to produce one of the best cereal crop ever.
From a production perspective — the season is shining brightly — as more than half of the crop has already escaped from nature’s brutal wrath of drought and birds damage.
Using an average yield of five tonnes per hectare, the country can produce beyond the 340 000 metric tonnes targeted this season.
The majority of commercial farmers can produce a maximum yield of nine tonnes per hectare, meaning that the country will be near self-sufficient in terms of the cereal crop.
We thank our farmers who were consumed with the national responsibility to provide nation with sustainable food security.
Without the farmers’ contribution, the country could not have attained the economic status it now boasts, and it will be self-defeating to evade responsibility towards this largest productive community in the country.
Theirs was a strategic input to economic development — contributing to food security and political stability by generating a reliable food from domestic production; feeding a growing population and meeting its changing food consumption preferences as well as reducing the import bill thus, increasing foreign exchange retention.
Naturally farmers face two risks — production and price risks.
Production or risk of return — regards events of chance origin, related to nature, to which the producers are exposed.
These shocks are linked to either rainfall and climatic variations, invasions of insects or the occurrence of diseases.
The majority of farmers have escaped this risk which is particularly important for individual farmers.
However, yield risk may be reflected in the price risk.
This risk is due to price volatility.
This risk refers to unexpected price fluctuations that are so large and rapid that it becomes impossible to make expectations.
Are farmers guaranteed remunerative price for their produce?
Will they get a good price that sufficiently cover the cost of production per hectare, and on time?
It costs between US$1 500 to US$2 000 to commercially produce a hectare of wheat.
Government last week on Tuesday pegged the new producer price for utility wheat at $55 517 per tonne and $66 621 for a tonne of premium wheat.
Zimbabwe Farmers’ Union (ZFU) executive director, Mr Paul Zakaria said: “Farmers worked hard, invested in new technologies, and took radical steps to increase the productivity of their operations, and their efforts have been rewarded with the near record cereal grain yield — which must be complimented by the right produce price at any given point to ensure they return to the field. Farmer incomes have to rise to make agriculture more productive, competitive and lucrative.
“When the new price was announced, it was okay, but the challenge we are facing is that all the production inputs are indexed to the US$ black market rate. The effect is that this wheat price will fluctuate to around US$323 per tonne within two to three weeks, which speaks to erosion of value. There is therefore need to constantly review the price upwards, while ensuring that farmers are paid upon delivery,” said Mr Zakaria.
Zimbabwe National Farmers’ Union (ZNFU) chief executive officer, Mr Edwin Dune said while the producer price for wheat will bring huge relief to farmers, there was need address other macro-economic fundamentals such as the exchange rate.
“The open market is one of the greatest let down each time farmers receive a raise on producer prices. In order to ensure that farmers benefit from such a noble position, authorities should move to safeguard against the rising costs that will be influenced by the black market,” he said.
Wheat farmer, Dr James Chipunza, of Mubvakacha Farm, in Headlands, said farmers executed their job well and need to be rewarded with a competitive producer price.
“Key to success and increased profitability is to grow more food more efficiently. The record yields need to be accompanied by prices that sufficiently cover the cost of production. Farmers need to be offered a guaranteed remunerative price for their produce. A huge incentive serves as a critical pedestal to scale-up production for wheat next season. If farmers have produced enough wheat to significantly narrow or eliminate the import bill, what is wrong with rewarding them with a small percentage in foreign currency? This will motivate the goose to lay more golden eggs next season.
“Alternatively, they should allow us to have quick access to foreign currency at the auction market so that we can recapitalise our enterprise, enhance productivity and production,” said Dr Chipunza.
Rural development expert, Professor Joseph Kamuzhanje said the Grain Marketing Board (GMB) must pay famers adequately, and on time so that they are able to capitalise their enterprises.
“The challenges facing the agriculture sector are many and are at different levels. There is need to understand the whole agriculture value chain and address the bottlenecks in a holistic and integrated manner as well as devise policies and strategies that make it possible for all farmers to take advantage of the many opportunities existing in the sector.
“It is important to understand that agriculture is the mainstay, and driver of the economy. Therefore, all efforts should be directed towards supporting it. The producer price of crops must cover the production of costs to enable farmers to till the fields again. Pay famers adequately and on time so that they are able to capitalise their enterprises,” said Prof Kamuzhanje.
Grain Millers Association of Zimbabwe chairman, Mr Tafadzwa Musarara said the latest development will consolidate the prevailing economic stability.
“We are happy about the new price models. The good thing is that Government has committed to continue with the current subsidy which means there will not be any increases in the price of bread. Otherwise, the new price on wheat is very viable and welcome,” said Mr Musarara.
