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The Rhodesia Herald,
July 8, 1971
A FINAL supplementary payment of 15,63 cents is to be made to producers to the Grain Marketing Board during the past intake year.
This will bring the producer price for the crop to $3 745, the highest price paid in six years.
This good news to farmers was given at the annual congress of the Rhodesia Grain Producers’ Association in Salisbury yesterday by the chairman of the Agricultural Marketing Authority, Mr W. Margolis.
He told delegates that the GMB’s accounts for the year ended on April 30 last showed a surplus of 15.63 cents per bag, delivered by producers.
He recalled that the producer price of top-grade maize initially prescribed by the Minister of Agriculture on May 1, 1970, was $3,25 per bag.
This was followed by a supplementary payment to producers in October of 34 cents per bag, to bring the price of top-grade maize of the 1970-71 intake of up to $3,59 per bag.
He said that in accordance with the maize price agreement between Government and the association, and on the recommendation of the AMA, the Minister had directed the GMB to make a final payment of 15,63 cents per bag to producers.
While Mr Margolis was making his announcement, the GMB’s cheques to producers were in the post.
Although the 1970 drought caused widespread crop failures and the lowest volume of sales to the GMB by African producers for 37 years, the total intake was nevertheless the third highest on record. The actual volume cannot be disclosed.
Mr Margolis said the GMB had overcome handling, storage, and disposal problems, and it was with some satisfaction that the AMA and the GMB viewed the trading results and passed on the benefits to producers.
Mr Margolis congratulated the general manager and staff of the GMB on the success of the year’s operations which, he added were conducted under very difficult circumstances.
LESSONS FOR TODAY
- A producer price is very important to the farmer because this is the amount that they will receive for a unit of the crop that they would have produced minus any VAT, or similar deductible tax, invoiced to the purchaser. It usually excludes any transport charges invoiced separately by the producer.
- People who determine producer prices need to always be cognisant of the cost of critical cost factors of production such as seeds, fertilisers and labour for them to come up with a meaningful figure that will allow the farmer to return to the field.
- For any agricultural venture to be successful and sustained, the producer or farmer should be the biggest beneficiary. Incentivising them is a major plus in boosting output and delivery of produce to the market.
- The Government recently did well by announcing a bonus and other incentives for maize farmers who deliver their crop to the GMB early. The move will create competition and boost the level of stocks in the national grain reserve.
Online Reporter