By Tendai Chisiri
Ministry of Lands, Agriculture, Fisheries, Water and Rural Development (MLAFWRD) announced the 2022/23 pre-planting producer prices for strategic crops on Thursday.
The ministry in a press release said, “Maize, traditional grains, soyabean and cotton are strategic crops and play an integral role in the Zimbabwean economy”.
Pre-planting prices and marketing arrangements for maize, traditional grains, soyabean, sunflower and cotton for the production season are announced every year of the planting season.
This pronouncement is key to ensuring that farmers receive viable strategic crop producer prices. A viable pre-planting price will incentive farmers to commit more land under specific strategic crops.
The marketing and pricing system being proposed is consistent with achieving both food and nutrition security and macro economic stability.
Determination of maize and traditional grain prices is based on the approved pricing policy which uses a standardized maize production model, cost-plus pricing model, an average yield level of 5.5 metric tonne (MT)/ hectare (Ha), and a 15% margin above breakeven price.
The average yield for commercial farmers was 3.68 MT/HA in 2020/2021 and 3.89 MT/HA in 2021/2022 season.
Different models were used to determine pre-planting prices of the strategic crops .
The ministry recommended a 2022/23 season pre-planting producer price for maize of USD 335/MT.
“A 2022/23 pre-planting producer price for traditional grains for USD 335/MT derived from the determined maize pre-planting producer price”, read the press release.
Soyabean price is USD 597.59/MT, sunflower price is USD 687.23/MT giving farmers a 15% premium above the soyabean price whilst cotton is pegged at USD 0. 40/kg for grade C, USD 0. 41/kg for grade C, USD 0.43 for grade B and USD 0.46 for grade A cotton.
The ministry also recommended to issue a Statutory Instrument to compel the private sector to provide regular terms on imports, sticks and local purchases of strategic commodities.
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