GMB maize intake rises 100 percent

Edgar Vhera, Specialist Writer — Agribusiness

THE Grain Marketing Board (GMB)’s maize intake has risen 100 percent between 1 April and 24 July this year, compared to the same period last year.

Statistics released by the Agricultural Marketing Authority (AMA) show that GMB had taken delivery of 23  631 tonnes this year against last year’s 12  175 tonnes.

Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka, disclosed earlier this week that the Government had so far mobilised ZiG137 million and US$13 million for farmers, who have delivered grain to GMB, with the parastatal expected to start processing payments this week.

The injection of funds by the Treasury is expected to ricochet intake of grain, with marketing expected to peak next month.

The GMB announced at the beginning of the marketing this year that maize and traditional grains would be bought at US$376,48 per tonne, soya bean at US$580 and sunflower at US$668,98.

Stockfeed Manufacturers Association of Zimbabwe executive administrator, Dr Reneth Mano, said in order to restore farmer confidence, GMB must now pay farmers cash on delivery with the availed funds, once it finishes paying those who have delivered earlier.

“For farmers to start trusting GMB again, it is important for the board to start paying cash on delivery to all farmers delivering maize for the strategic grain reserve (SGR) at all the 1 800 rural buying points.

“There are farmers, who delivered maize to GMB and were not paid within 14 days,” he said.

Before the injection of the money, farmers were lamenting the fact that GMB had no money for any grain delivery, yet they had other responsibilities requiring money, exposing them to middlemen who were offering sub-economic prices, which are way below the cost of production.

“It’s a sad story for maize marketing as payment delays are pushing some desperate farmers to sell maize to whoever wants it at various prices. 

“These prices range from US$200 to US$330 per tonne, way below the cost of production,” Zimbabwe National Farmers Union (ZNFU) president, Mrs Monica Chinamasa, said earlier this week before the announcement of the fund injection.

Knowledge Transfer Africa (KTA) chief executive officer, Dr Charles Dhewa, added his voice, saying: “Today, I had more than 100 calls from desperate farmers. When I asked them why they are not selling to GMB, they complained about the fact that GMB was not paying on time and by the time payment is received, all opportunities would have disappeared.

“Farmers in every district are stuck with grain, maize, mhunga, zviyo, sunflower, sugar beans and a diversity of other products.”

Zimbabwe Agricultural Think Tank (Zatt) secretary general, Mr Taruvinga Magwiroto, agreed that the agricultural space had been infested by opportunists called “makoronyera,” a symptom of market failure.

“In previous successful iterations of agricultural regimes, the whole point of policy infrastructure was to promote production, which means making it easier for the producer to produce food and other vital raw materials from the land to achieve food security.

“To incentivise the farmer, there is a need to take away the burden of marketing from them for food and nutrition security,” he said.

“The Government liberalised grain marketing this season and it can’t now abandon the markets. Market liberalisation must not result in farmers’ margins getting mercilessly squeezed by opportunists, who brag that there’s no money in farming but in marketing, as it will lead to everyone deserting farming.”

Meanwhile, AMA statistics show that total maize intake by GMB, Zimbabwe Mercantile Exchange (ZMX) and other buyers to date has risen 54 percent from 98 726 tonnes in 2024 to 152 047 tonnes this year.

 

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