LIVINGSTONE MARUFU
The Treasury is expected to pay out ZWL$688.96m for wheat delivered to the Grain Marketing Board (GMB) between October and December, Business Times has established.
The development comes after GMB increased the wheat producer price to ZWL$8,612.08 per tonne, from ZWL$1,089 gazetted in April this year to woo farmers to deliver the cereal.
In a meeting held recently involving farmers’ representatives, GMB and Treasury officials, an amount close to ZWL$700m was set aside to purchase local wheat.
Wonder Chabikwa, the president of the Zimbabwe Commercial Farmers Union (ZCFU) told Business Times that farmers were optimistic that the GMB would pay farmers on time so that they could pay their bills and prepare for the forthcoming summer cropping season.
“The country’s wheat output is expected to be around 80,000 tonnes, which is half of last year’s output at 160,000 tonnes, and ZWL$688.96m has been set aside to purchase the local wheat. The price will be adjusted depending on the inflationary environment,” Chabikwa said.
Muriel Zemura, GMB Corporate Communications manager, says wheat deliveries are in full swing and that he expects the combine harvesters’ situation to improve in the next few weeks as cereal harvesting gathers momentum.
The country faces a subdued wheat production due to crippling power outages and dilapidated irrigation infrastructure. Consequently, the country downsized the wheat hectarage to 28 000 for winter wheat production, from the targeted 75,000 hectares due to power outages.
The private sector planted 13,000ha while the government under Command wheat programme managed 15,000ha. Zimbabwe is expected to import over 375,000 tonnes of wheat to meet the national demand of 450,000 tonnes.
This means that the country will use over US$300m to import wheat, otherwise serious bread shortages will occur.
Farmers are now queuing for the few combine harvesters available. They are anxious given the early rains which are expected by mid-month.
Early rains cause serious post-harvest losses to wheat farmers but with less than 15 combine harvesters available and diesel shortages in the country, there is a high likelihood of more wheat losses.
Zimbabwe’s wheat demand has risen to 450,000 tonnes from 400,000 tonnes in 2015 due to changes in lifestyle and the production of many foods which need wheat.
However, even if the country was to achieve the national requirement, it would still need to import wheat to make good quality bread as local wheat cannot make good quality bread due to conditions in which the wheat is grown. Local wheat is good for manufacturing self-raising flour and biscuits, among others.
Zimbabwe is expected to procure most of its wheat from Germany and Canada.
