Agriculture, Mechanisation and Irrigation Development Minister, Joseph Made

ZIMBABWE has a 900 000 tonne grain surplus from the 2016/17 season, according to a crop assessment report.
Additionally, the country also had surplus yields of sweet potatoes, Irish potatoes, cowpeas, groundnuts and sugarbeans during the season.
The Crop Assessment Report indicates a cereal production (maize and small grains) output of 2,4 million tonnes against a cereal requirement of 1,5 million tonnes for human consumption, while cereal requirements for animal consumption are estimated at 350 000 tonnes.
Since 2001, Zimbabwe has been importing maize to meet its domestic demand of 1,8 million tonnes.
With the success of the 2016/17 season, Zimbabwe has had a surplus of 300 000 tonnes of maize from a harvest of 2,1 million tonnes.
While Zimbabwe can export 1,2 million tonnes, agricultural experts said the country should instead first ensure food self-sufficiency before targeting the export market.
Regionally, Zambia harvested 3,9 million tonnes of maize and is already selling its excess grain to Kenya, while South Africa has an excess of four million tonnes and Malawi harvested 3,5 million tonnes.
“Given the extent of surpluses in South Africa, current levels of international prices, logistical costs in relation to exports and competition for international markets, I cannot foresee net export prices, also called export parity in South Africa, exceeding approximately $100 per tonne,” said the World Farmers Organisation (WFO) president, Theo de Jager.
Whether markets will be readily available is also questionable.
Taiwan, Japan and South Korea have been some of the traditional export destinations for South Africa but other countries like Saudi Arabia, Malaysia and Yemen have been identified as potential markets.
Zimbabwe Farmers Union agricultural economist, Courage Marange, said it would be difficult for Zimbabwe to export grain this season considering that maize is a strategic crop and the country has been facing serious deficits over the years.
“The grain shortages is what prompted the government to initiate Command Agriculture with the aim to boost production and enhance food self-sufficiency. It being a strategic crop, its shortage causes social unrest,” said Marange.
He said maize was a key raw material in many industrial processes, such as stock feed manufacture, confectionaries and brewery.
“Most countries in the region have excess grain and Zimbabwe has a competitive disadvantage due to high production costs compared to other maize producing countries in the region, making it difficult for Zimbabwe to export,” Marange said.
He said Zimbabwe would pick up losses if it exported its surplus grain.
“It will be a disadvantage for government to export as it will be forced to reduce the prices below the production cost to be competitive with other major maize producing countries,” Marange said.
Contributing to debate in the Senate last week, Harare Metropolitan Senator, Theresa Makone, said government was already making a loss locally without even having to export the grain.
While the Grain Marketing Board (GMB) was buying grain at $390 per tonne, the same grain was being sold for $220 per tonne to millers.
“This means that government will be giving a subsidy of $170 per tonne. If GMB were to collect 2 million tonnes out of the success of the Command Agriculture initiative, there will be a subsidy of $340 million. What stops me as a miller from buying 10 tonnes at $220 and my young brother will bring the same 10 tonnes, resell it for $390 and continue doing the same thing? You will be thinking that you have bought 220 million tonnes but it is only 50 tonnes that is being circulated,” Makone said.
Stakeholders in the industry have repeatedly urged government to fully implement the ease of doing business reforms to ensure that cost drivers are lowered.
Production costs per hectare for maize can go up to $1 600 per hectare in the country.
“Focus should also be given on improving production and productivity. We are currently sitting on a very huge gap between the potential yield and the farmers’ yield,” Marange said.
De Jager said if Zimbabwe chose to export, it would do so at a loss.
“The Zimbabwean government through the GMB, having adopted an agricultural policy of self-sufficiency, implying control over prices and volumes often called quantitative control, will obviously have to decide on the extent, timing and markets to be considered in relation to possible exports. The Zimbabwean government, which is currently paying $390 dollars per tonne, has apparently sold some of the maize crop to millers at a significant discount implying losses to be financed by the fiscus,” de Jager said.