Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

***The views expressed in the articles published on this website DO NOT necessarily express the views of the Commercial Farmers' Union.***

Crop and livestock market update

Crop and livestock market update

Crop Sector
Despite the late rains and the Fall armyworm which will negatively affect yields, maize production for the 2016 /2017 season is anticipated to be substantially higher than in 2016 and preliminary forecasts are that the harvest may be between 1,2 – 1,4 million tonnes.

The Minister of Agriculture, Mechanisation and Irrigation Development has announced that the maize price for the 2016 /2017 season will remain at $390. The current stock levels are estimated at between 300 – 400 000mt and with the improved harvest, the need to import is expected to be minimal.

Soyabeans is trading at $650, a price which is not competitive when compared with the import parity price of $450 cash. Zambia is reported to have carry-over stocks of 100 000mt and a harvest of 300 000mt is expected.

Maize bran is presently unavailable on the market, although wheat bran is available. The cotton harvest is expected to be between 120 – 130 000mt, enough to yield 60 000mt of cotton seed. Price indications are $280/mt for cotton seed and $330 – 340/mt for cotton meal.

The supply of molasses is inconsistent as the sugar crushing plants are still in the shutdown period with milling expected to resume in May. Availability of offshore funds are determining the quantity of premixes and additives on the market and prices are highly fragmented as a result of supply bottlenecks.

Beef Sector

Based on figures obtained from the Department of Livestock Production and Development, the total number of animals processed in 2016 was 283 692, an increase over 2015, and reflects the increased off-take due to the drought. Abattoirs in Masvingo province processed the highest number of animals followed by abattoirs in Mashonaland West, while Matabeleland South recorded the third highest. Most (74 percent) of the animals marketed in December 2016 were in the lower classes being dominated by Economy (40 percent, average carcass weight of 156kg) and Commercial (24 percent, average carcass weight 186kg).

The average wholesale beef price was $3,92, an increase of eight percent over November. Wholesale prices were raised for the first time after a long period of soft demand, and in tandem with rising cattle producer prices in a very tight market for stock.

Macroeconomic conditions continue to deteriorate and while the introduction of bond notes has improved the liquidity situation, serious cash shortages persist. The preference for cash payments by producers in the smallholder sector has become a major problem.

The good rains across the country has improved grazing and body condition scores of livestock. However, some provinces are experiencing tight markets for stock as farmers are taking advantage of improved pastures for rebuilding their herd. Flooding has also made some roads impassable, further restricting access to cattle buying areas.

Pedigree Cattle Sector

In 2016 the Zimbabwe Herd Book, the registry for pedigree livestock, recorded the registration of 13 new studs. However, the number of registered breeding animals decreased by 14 percent over 2015. The stud industry continues to have a good representation of breeds available to service the commercial industry, and beef cattle are dominated by Brahman, followed by the indigenous Tuli and Boran breeds.

Congratulations to the Tuli cattle breeders who have taken advantage of BreedPlan®, a world leading performance recording platform, to undertake the first genetic analysis in the country. The individual genetic evaluations allow for a vastly improved measure of an animal’s genetic worth thereby refining the accuracy of selection of superior animals to be the parents of the next generation. This also offers the commercial buyer more accurate measures to select replacement breeding animals.

The date of the National Bull and Heifer Sale is Friday 28th July 2017. This sale is restricted to the elite bulls and heifers and well as sheep and goat seed stock, and offers the stud and commercial livestock industry some of the best genetic material available in the country. This premier event is expected to draw another capacity crowd of buyers and breeders of stud cattle.

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