Online Reporter
Edgar Vhera
Specialist Writer – Agribusiness
WHEAT recorded its first trade on the Zimbabwe Mercantile Exchange weekly auction floor, registering an average price of US$400 per tonne as harvesting of the 2025 crop starts.
Statistics from the latest ZMX weekly bulletin show that farmers offered 1 000 tonnes of wheat while buyers required half of that amount.
At the end of the inaugural trading session, the crop was sold at an average price of US$400 per tonne.
ZMX revealed that this was a 6,9 percent drop from the earlier level of US$430 mainly driven by increasing supply as deliveries increase.
An African market overview shows that wheat was being traded at an average price of US$680 per tonne in Tanzania, while in Zambia its being sold at US$538,40.
The Johannesburg Stock Exchange (JSE) is trading at US$353,70 while the Nigeria Commodity Exchange (NCX) is on US$435,54 per tonne.
“Wheat import parity of US$454 per tonne is slightly higher than local levels but remains competitive relative to other markets,” said ZMX in the bulletin.
Government liberalised the trading of wheat and barley in 2023 under Statutory Instrument (SI) 130 of 2023.
SI 130 of 2023 [CAP. 18.14] Grain Marketing (Control of Sale of Wheat and Barley) (Amendment) Regulations, 2023 under section (3) reads: “A registered self-financed farmer who is a wheat or barley producer or seller (whether registered as an individual, statutory body, company, entity or other person) may sell or otherwise dispose of any wheat or barley — (a) through a certified warehouse registered with the Zimbabwe Mercantile Exchange; or (b) to the Grain Marketing Board; or (c) a processor, subject to such conditions incumbent on the processor as may be specified from time to time (such as the maximum quantity of wheat or barley for milling that may be received within a specified season or period from a registered self-financed farmer); or (d) a registered contractor except under the conditions specified in section 6(4).”
Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka, said wheat farmers had exceeded the target of 120 000 hectares by planting 121 449ha and over 600 000 tonnes of wheat were expected, subject to adherence to good agronomic practices.
Announcing the marketing and pricing system to be used in the sale of crops for the 2024/25 season, Minister Masuka said the selling would be based on the climate-proofed Presidential Input Scheme (PIS)(Pfumvudza/Intwasa), self-financed, private contractor financed, Agricultural and Rural Development Authority (ARDA) financed and National Enhanced Agriculture Productivity Scheme (NEAPS) financed by Agriculture Finance Corporation (AFC), Commercial Bank of Zimbabwe (CBZ) and NMB.
“GMB will purchase all strategic commodities financed under the PIS and will be the buyer of last resort,” he said.
Minister Masuka said all contractors, including the Food Crop Contractors Association (FCCA), CBZ, AFC and NMB, were obligated to buy back contracted crops at market prices.
He said self-financed farmers would sell to the best advantage on the market or to GMB, with the latter providing commercial warehouse receipt services to all players.
“The Zimbabwe Mercantile Exchange (ZMX) will provide a central warehouse receipt system and a spot market trading platform for agricultural commodities,” he said.
GMB yesterday announced that premium grade wheat would be sold at US$461.35 per tonne, while the utility and standard grade would be bought at US$451,35.
The Government had announced an incentive wheat planting price of US$451,35 per tonne at the start of the season.
The country achieved wheat self-sufficiency from local production since 2022 and the focus now has shifted to consolidating wheat quality and productivity.
The country requires 360 000 tonnes of wheat per year to be self-sufficient.
The country’s production of wheat has been above the self-sufficiency level with a total production of over 380 000 tonnes in 2022 to 467 905 in the following year and 563 961 last year.
