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The Herald, June 27, 1980
IN a move to encourage Zimbabwe’s farmers to grow enough food to meet domestic needs, the Government yesterday announced pre-planting producer prices, which include an increase of more than a third on last year’s price for maize.
In the House of Assembly yesterday, Agriculture Minister Senator Denis Norman announced a pre-planting producer price for the 1980-81 maize cropping season of $120 a tonne naked for Class A.
The figure, which is a considerable increase on last year’s price of $75 a tonne, was not as high as producers had requested and came under fire from white MPs.
However, Mr Norman emphasised he was satisfied that prices were “realistic in the context of the need to restore viability to the industry, engender confidence in producers and encourage levels of production which should ensure an adequate supply of maize to meet our requirements”.
The Minister also announced a large increase in the prescribed price of coffee, up $700 to $2 300 a tonne bagged.
Mr Norman told the House: “I believe that by these prices, in conjunction with the drought relief scheme announced recently, Government has given clear indication of its appreciation of the value and needs of the industry.
“I invite farmers to demonstrate their ability to produce crops that will not only meet our domestic requirements but provide surplus which will earn the nation valuable foreign exchange.”
Mr Bill Irvine (RF, Marlborough) objected. “Is the Minister aware that to meet Zimbabwe’s need for maize and leave a margin to make a start in rebuilding the stockpile, it will be necessary to grow maize in marginal areas where soil and weather conditions are not ideal?”
“And, if so, does the Minister believe pre-planting prices announced are sufficient to induce people to farm in these marginal areas?”
Mr Norman was applauded by black MPs when he said he was aware of the conditions referred to and was satisfied and confident farmers would be able to produce maize at the announced price levels.
LESSONS FOR TODAY
- A producer price is an amount that farmers will be paid upon delivery of their produce to institutions such as the Grain Marketing Board.
- The producer price is determined by an index that measures the average changes in prices received by domestic producers for their output.
- The producer price is essential as it works as a catalyst for farmers to produce.
Online Reporter