Farmers' associations differ over maize floor price

Two farmers associations - the Zambia National Farmers Union (ZNFU) and the National Association for Peasant and Small-Scale Farmers of Zambia have differed over the newly announced floor price for maize grain. Government last week announced that the floor price for maize this season would be ZMK65,000 (US$13) per 50kg bag. ZNFU has dismissed the figure as unacceptable and has rejected the floor price suggesting that FRA should have set the floor price at between K75,000 and K85,000 per 50kg bag.

Speaking at a press briefing on May 20 Rodger Phiri said more than 50,000 peasant and small-scale farmers are happy with the floor price of K65,000 per 50kg bag as they have pegged their farm price at K60,000. Association president Rodger Phiri said the floor price is fair to Government, millers, consumers and other stakeholders in the industry. He said the floor price of maize would assist in lowering the cost of mealie meal.
“What we mean by farm gate is that when buyers purchase the commodity from our farms they pay K60,000 but when we the farmers transport it to them, then we charge K65,000 per 50kg bag,” he said.

Phiri said since Zambia is a free market economy, farmers disatisfied with the FRA floor price are free to set their own price. He said most countries in the region namely, South Africa, Malawi, Zimbabwe and Zambia have recorded a bumper harvest and it will be unreasonable to sell maize at more than K65,000 per 50kg.

“As a country, we cannot afford to over-charge because we shall be out of business bearing in mind that other countries in the region have equally recorded a bumper harvest and their maize is being sold cheaply. Our association believes that Government cannot continue to subsidise consumption but should stabilise food prices,” Phiri said.

The Food Reserve Agency (FRA) chairperson, Costain Chilala on May 16 announced that his agency will pay K65,000 per 50 kilogramme bag of maize. Chilala said the agency will pay K65,000 per 50kg of maize and K60,000 per 40kg of rice, representing 18 per cent and 15 per cent increases over last year’s prices.