Online Reporter
LOCAL farmers are expected to reap close to 3 million tonnes of summer grains and from that, there is likely to be a surplus of 812 000 tonnes.
This needs to be stored to start rebuilding our strategic grain reserves that were run down after last year’s drought.
The advice in the biblical book of Genesis to buy in the good years so you have food in the bad years still applies.
The last season that ended this year was reasonable by historic standards.
While a bit on the short side and, this seems to be something that we have to recognise, seems to be a permanent change with global warming, it did provide adequate rainfall for most dryland farmers, hence the record tobacco and grain crops and what is thought to be a reasonable cotton crop.
Of course, the upgrade in Government and private inputs schemes and the growing skills of farmers as they take on board modern research and training, means that the rain was put to good use.
This financing was especially important considering that some farmers had to write off much or even all of their crops last year, but the faith of the backers and farmers worked. The Government has been bringing in the private sector, basically the millers, to help fund the purchases of grain, by having the Zimbabwe Mercantile Exchange converted from theory to a functioning market place and allowing farmers outside the special Pfumvudza/Intwasa schemes to sell direct to millers.
While this helps to spread the load, the Government has also promised to be the buyer of last resort, that is guaranteeing a market for all grain, as well as buying the surplus from the Pfumvudza schemes where it is, in effect, the contractor having supplied the inputs.
So while the Grain Marketing Board no longer has a monopoly, it will be the biggest buyer, especially in a surplus year and will ultimately have to store much of the 812 000 tonnes that will be carried over to the next harvest, although some forward-thinking millers could build up their own longer-term stocks.
Silo capacity has been growing rapidly under the Second Republic, with renovations of the older complexes to make sure they are top-of-the-line, plus the new programme which saw the first modern structures commissioned this year.
The importance of storing grain safely and securely for longer than a year is becoming ever greater, and while in theory there is a limit to just how much grain we should store over the long term, we are certainly some way from any conceivable limit.
As a matter of practicality, carryover stocks from a previous season are the ones used first, before the new harvest is consumed, so that there is proper rotation of stocks.
In the past, the cost of more temporary storage, such as bags under shelter, required a lot more difficult maintenance with higher storage costs, or else see risks of storage that was less than ideal.
Temporary storage is probably fine for grain we will eat within a few months, but longer-term grain should be in silos.
Ideally, millers should also be building up their storage, so that they can buy their annual supplies when the harvest comes in, rather than relying on the GMB to do this and then buying from the GMB each month. This would increase storage capacity and allow the GMB storage to be for the longer term.
Cabinet this week also heard that the wheat harvest will almost certainly create yet another record, with 122 000ha planted.
This will add to the grain reserves and open more opportunities for local manufacturers to expand their range of products by including more wheat products along with those from maize and traditional grains.
Indeed, with traditional grain surpluses also rising, there appears to be some good marketing windows for manufacturers who can produce a wide range of products over and above basic white maize meals.
While freedom of choice is a right of consumers, a lot of products around the world have made good money for innovative manufacturers who have opened production lines of things people like to eat.
The Government is upgrading its efforts in the cotton sector where there have been far too many problems in the past over private companies delaying payment and farmers indulging in side marketing, which also includes buyers in such reprehensible practices.
One smart move has been to ensure that all cotton must be delivered to common marketing points, and 600 of these have been set up so no farmer is far from one, and no cotton can be sold outside these points hence, hopefully ending side-marketing.
The Agricultural Marketing Authority will be able to oversee both the delivery of contracted cotton and the payment of the farmers.
As tobacco has shown, private-sector contract farming of cash crops can be extremely effective when everyone is forced to obey the rules, and the rules are generally considered fair and properly overseen by a good regulator.
By enforcing all sales through the common buying points and making sure all buyers are totally on board by refusing to buy elsewhere, we should be able to end the side-marketing that has so bedevilled the industry.
Additionally, recognising that farmers often only resorting to side marketing when payments are delayed, we should make sure they are paid in full on time.
dyton mupawaenda