Millers venture into contract farming

begins in two months time.
The project, which involves production of maize, wheat and soya, is expected to benefit farmer unions members.
Speaking at a Press conference yesterday, GMAZ national chairman, Mr Tafadzwa Musarara said the association would act as a guarantor to input suppliers.
“We will be working with farmer organisations, input suppliers and bankers and only members of the unions will benefit. We are going to buy at least 600 000 tonnes of maize from farmers so they are guaranteed of a market,” he said.
Mr Musarara said his association would be working with farmers unions as they have experts who can assist farmers with advisory services.
Farmers, he said, would be supplied with inputs and they will sell their produce to the Grain Millers Association and receive their payments within 21 days of delivery.
“Farmers will be paid through a stop order facility and inputs suppliers will be able to recover their costs,” he said.
The Grain Marketing Board is buying grain from farmers at US$285 per tonne.
Mr Musarara said he could not give the exact price but it will be announced at the end of the season.
“The price will take into consideration production costs and a mark up,” he said.
GMAZ has been advocating for the ban on grain importation to cushion local farmers from stiff competition from grain imports usually produced under lower production costs.
Recently Finance Minister Tendai Biti re-introduced a 10 percent customs duty on all imported maize meal to discourage imported maize meal to allow local industry to recover.
The local industry increased prices but Mr Musarara said there were serious anomalies with the Consumer Council of Zimbabwe’s statistics.
“We have thoroughly examined the CCZ statistics and noted serious anomalies in the shop sampling which is only concentrated on Harare Central Business District and does not carry input from other cities, towns and growth points,” he said.

 

 

 

 

“The report does not indicate where within the value chain the origin of price increases,” he said.
“We implore Government to continue sustaining the duty regime on maize meal in line with the SADC practice so that local millers can recover, local maize prices increases and avoid product dumping from other stronger economies.”
Mr Musarara said his association was ready to supply healthy food consumers although it was facing some challenges, which resulted in some manufacturers operating at 50 percent capacity.
He said local millers were producing 54 000 tonnes of mealie meal weekly when consumption was at 120 000 tonnes per tonne. Imports supplement local produce.