Wheat farmers have commended Government's decision to buy this year's crop in foreign currency.
Farmers are saying the quoted price of US$450 per tonne was in tandem with the import parity rate and would enable them to retool.
In a recent press release, the Grain Marketing Board (GMB) said it would buy standard wheat grade at US$450 per tonne with the premium class fetching US$470.
Farmers will be paid 100 percent of their money in foreign currency.
"GMB will purchase all wheat financed under the Presidential Input Programme (PIP) and also from self-financed growers, wherein self-financed farmers will sell to the best advantage. In addition, GMB remains the buyer of the last resort and is working with the Zimbabwe Mercantile Exchange (ZMX) to provide commercial warehouse receipt services to all players. Contractors will buy back contracted wheat at market price," read the notice.
Zimbabwe National Farmers' Union president Mrs Monica Chinamasa said the payment modality was perfect and considerate, adding that farmers were just waiting to start delivering their produce after harvesting.
"Paying in United States dollars is icing on the cake. We can't wait to deliver the wheat," she said.
Zimbabwe Commercial Farmers' Union (ZCFU) president, Dr Shadreck Makombe concurred, saying the price was good.
"These are good prices especially for those who will get five tonnes and above per hectare. Those getting anything less might only break even after taking the cost of production into account. Farmers are happy with the 100 percent payment of their money in foreign currency and will be able to retool. Let it be as announced," he said.
Food Crop Contractors Association (FCCA) chairperson Mr Graeme Murdoch said the pricing acknowledged the increased costs in producing the crop and the payment modality will be appreciated by growers.
Agriculture expert, Dr Reneth Mano commended the price, saying it was in line with the prevailing import parity price.
"The Government must be applauded for granting GMB permission to pay wheat farmers in foreign currency given that it will still use foreign currency for imports if local production does not meet demand, hence it is noble to spend it on local producers.
"In 2024 we imported blending wheat at an average price of US$420 per tonne, a reduction from 2023's US$485," he said.
Dr Mano hailed Government for working towards lowering the cost of production by allowing farmers to import fertilisers directly from the same sources from which South Africa's farmers have been buying their fertilisers for many years.
"Further, Government worked tirelessly this year to reduce cost of water and electricity charges for irrigation winter wheat compared to 2023. Hence Zimbabwe's average cost of winter wheat production in 2024 was considerably lower than that of 2023, which translates to improved profitability," he observed.
Dr Mano said the country's commercial wheat producers were as competitive in producing irrigated wheat as their counterparts in South Africa in terms of output per hectare.
"The 2024 GMB wheat producer price is between 33 and 42 percent higher than South Africa's due to comparatively higher production costs locally, for example, South African farmers pay US$1, 10 per litre of diesel while Zimbabwean farmers pay US$1, 63 per litre for backup power generation," he added.