Published by the government of Zimbabwe
1 July 2009
Harare — Zimbabwean farmers did well in the last season, more than doubling the maize harvest to at least 1,14 million tonnes,
Interestingly, the United Nations bodies most concerned with food production and making up deficits, the Food and Agricultural Organisation and the World Food Programme, have praised the Government for changes that helped boost the harvest.
Better rainfall was important, but the UN experts believe the changes, and especially the liberalisation of the maize market, backed by a GMB floor price, were more crucial.
So, Zimbabwe appears to be on the right track.
Farming, at least by competent farmers planting the right crops at the right time in the right place, has proved profitable again.
But the biggest single problem now is financing a crop.
Hyperinflation destroyed the bulk of the national savings and most farmers now find it hard to raise the money they need to buy all the seed, fertilizer and chemicals they need, and certainly what they need to expand production.
Prices will largely be set by the market, but the farmers will -- until there are adequate surpluses for export -- have a distinct advantage in that they do not have to transport their harvest long distances.
The market price for almost anything produced for purely local sale is the landed cost of an imported equivalent, and that is quite a lot above the world price for most grains, since shipping and rail charges can almost double the price of some crops.
With dollarisation, it is now easy to see how the economics work, and how Zimbabweans have to operate within well-defined parameters.
For most practical purposes, the days of subsidies are over.
If there was an adequate pool of loan money, even talk of subsidies and controlled prices, would be unnecessary. Farmers could either borrow to buy inputs, it being easy for both farmers and lenders to calculate risk and margins, or we would see ever more contract farming, the most likely solution, as we have now switched from estate or family farms.
But loan finance, either direct of through contract farming, is unlikely to be adequate for a while.
Both Malawi and Zambia have boosted food production dramatically in recent years, both now in fact being significant food exporters, through focusing on inputs, especially fertilizer.
Cheap fertilizer, largely subsidised through aid funds, has been the most critical factor in the turnaround.
Both countries have systems in place to prevent abuse of the programme.
Malawi's Government managed to get the message home when a cabinet minister and two MPs were jailed for abusing the fertilizer programme.
The cheap fertilizer is not intended to be a permanent part of the farming landscape of either country.
In effect, donors find it far more cost effective to ensure enough grain is grown locally than continue giving hundreds of thousands of tonnes of food each year.
At the same time the harvests, when sold, are building up the local savings pool and ensuring that a more normal system will be in place as donor aid retreats.
Zimbabwe could and should follow the same path. Donors have to believe that their aid to farmers, rather than gifts of free food, will be effective.
The report by the FAO and WFP is thus critical in persuading donors that things have changed and are continuing to change for the better.
The Government also now needs to persuade donors that aid will not be misused.
Malawi's example of jailing the first "big shots" who thought they could get away with it is one worth following.
The rest, tempted to use their influence and power, just backed off.
If the new inclusive Government can make it clear that it will do the same, then donors are more likely to want to be helpful in building farming in Zimbabwe, along with micro finance and all the other bits that are needed, rather than just shipping free grain.
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We are here talking about newly resettled, black A1, A2 and large scale commercial farmers who have now, against all odds, produced more than 100% of last season's produce. This is a remarkable improvement, (considering the fact that we are under sanctions) which can ONLY be attributed to the Zanu-pf government's policy of mechanizing farmers and providing them with inputs - seed, fertilizer and chemicals.
In particular, credit should go to Dr Gono for a job well done, for a well focused policy and for recognizing that “extraordinary situations require extraordinary measures”. When he started the policy of assisting farmers… [Read Full Text]
Tacky, you conveniently forget that he has admitted to stealing money out of private accounts and out of aid agency accounts, as well as being responsible for the extinction of the zimbabwean currency. The man is a thief.
Cde Ndebvu - typical of you, you have yet again read only parts of the article and made it try to fit your misguided perception of reality.
Point 1: "Better rainfall was important, but the UN experts believe the changes, and especially the liberalisation of the maize market, backed by a GMB floor price, were more crucial." - the unrealistic pricing and distortion of the market in the past (products of the zanu-pf government) have been remedied (product of the GNU) and voila! You cannot praise zanu-pf for removing its idiotic policies of the past.
Point 2: "Hyperinflation destroyed the… [Read Full Text]
Takunya has always heaped praise on his fellow terrorists for the real work which has been achieved by the MDC side of the GNU. Just like I said two months back. Mugabe will be happy to have the MDC do the work while ZanuPoof takes the credit. I will say good on the farmers but there would of been more food if the real farmers ( bought their farms off the government after 1980 with Mugabe's blessing) had of been allowed to farm the land.
Zungairwa;
You did not buy the estate (farms) you were under utilizing. You got those farms, first and foremost, because you are white and secondly, as a reward for being a mercenary during the war of liberation when you massacred and maimed innocent black Zimbabweans in an effort to protect the illegal, illegitimate and corrupt regime of racist Ian Douglas Smith.
You should therefore NEVER talk of buying any land after 1980 because you NEVER did that. How could you buy something that you already had; given to you because of the color of your skin?
Tacky, your attempts to discredit your opposition are just that, tacky. Anyone with a reading age above 3 can simply tell that you are lying. Apprently I work for the CIA, apparently I massacred Maoris, apprently I massacred Zimbabweans.... why do you make up such blatant lies that simply make you look silly?
Awt;
The only way out is to own up and repent. If you are remorseful God will forgive you but if you continue in that path you will reap what you sow - your choice and food for thought.
When you continued from where your forefathers left by exterminating the Maori people and made them a minority in their own country of birth you never thought that it would backfire. Apparently, as you said, there is no Maori to talk about in New Zealand today the "last pure blooded Maori" having been killed by your forefathers in 1905.
When you… [Read Full Text]
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You are right, anybody caught on the wrong side of the law abusing the inputs should just be thrown into prison and the onus is on them to prove their innocence instead of wasting state resources proving some of these criminals guilty. It should start with multiple farm owners and for this to work, all political parties should allow the police and judiciary to do their jobs unhindered.