…as government claims there shall be self-sufficiency in stock
Tinaani Nyabereka/Kimberly Kusauka
Wheat farmers in Masvingo have expressed concern over the recently announced new producer prizes for the commodity by government that they feel falls way behind their expectations in the wake of increased cost of inputs.
Recently Lands, Agriculture, Fisheries, Water and Rural Resettlement Minister Anxious Masuka announced the upward review of the producer prize set at ZW $ 55 517 for ordinary grade wheat while the premium grade will fetch ZW$ 66 621 during a cabinet briefing on September 28,2021.
Masuka also said the nation is expecting volumes of more than 300 000 metric tons against a national requirement of 360 000 metric tons.
“Zimbabwe is anticipating a volume of more than 300 000 metric tons of the cereal, against a national requirement of 360 000.
“This is on the backdrop of the current national wheat stocks which stand at 70 000 metric tons, making Zimbabwe wheat self-sufficient for the first time since 2005. Following extensive consultations with various stakeholders, including farmers’ unions, Cabinet has approved an upward review of wheat floor producer price to ZW$ 55 517,” he said.
He also said that the upward review was necessitated by changes in input prices that, in turn result in higher production costs.
“Farmers expect viability in their operations, and are grappling with cost increases in labour (51%), fertilisers both Compound D and Ammonium Nitrate (27%), and tractor and equipment (144%). The input increases have a net effect of 32 % on the total variable costs per hectare.
“The net contribution of inputs to total wheat production costs in 2021 is as follows: labour 3.19%, seed 5.14 %, fertilizers 26.15 %, chemicals 3.20% and operations 12.37%. The biggest driver of costs is the borrowing rate which stands at 40%,” added Masuka.
Mushandike irrigation scheme chairperson Denhere Bhusumani however said the market price for winter wheat is not enough to cover the expenses farmers incur when buying inputs.
“We bought all our inputs at a higher price so as farmers we are not pleased with the new prices set by government even though there has been a slight increase.
“We bought pesticides for quellia birds to protect our farms,” said Bhusumani.
Another farmer from the same scheme Wilson Makaha said the price of wheat at the Grain Marketing Board (GMB) need to be revised since inputs costs were high as compared to last season.
“I am not happy with the price for our produce at GMB because the inputs were a bit expensive as compared to the previous season.
“We need to then change the ZW$ into US$ since the harvest combiners need to be paid in forex,” said Makaha.
However, Minister Davison Marapira who also grew winter wheat said increase of the market price will contribute to a good profit margin and he is in the process of increasing hectares under irrigation.
“An increase in producer price means a good profit margin to our wheat crop, we are doing an average of 9, 3 tons which is a good margin.
“We are in the process of increasing our hectares under irrigation to 600 by leasing land from others,” said Marapira.
The harvesting of winter wheat is already underway and expected to be complete by end of November.
