Harare,(New Ziana) -The Zimbabwe government has pegged
the marketing price for the winter wheat at US$520.25 per metric ton, 75
percent of which will be paid in United States dollar and 25 percent in
the local currency.
Addressing a press conference in the capital on Monday, Lands,
Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious
Masuka said the marketing price is consistent with achieving both food
and nutrition security and macro-economic stability.
He said the price determination is based on approved pricing policy
which uses a standardised maize production model, cost-plus pricing
model, an average yield level of 4.8 metric tons per hectare, and a 15
percent margin above break-even price.
“Submissions from various stakeholders were also taken into
consideration. From the model, the total cost of producing a hectare of
wheat is US$2 090.04 and the breakeven price is US$452.39,” said Dr
Masuka, adding that the model uses a yield assumption of 4.6 metric tons
per hectare.
Dr Masuka said that 15 percent rate of return, at a yield level of 4.62
metric tons per hectare, the recommended and proposed 2023 marketing
season price of wheat is US$520.25 per metric ton, with the import
parity price for the commodity ranging from US$344 to US$462 per metric
ton.
When coming up with the planning, marketing and pricing system, Masuka
said Government took note of the four categories of the farmers such as
those financed under the climate proofed Presidential Input Scheme
(Pfumvudza/Intwasa), self-financed farmers, National Enhanced
Agriculture Productivity Scheme (NEAPS) financed farmers supported by
the Agriculture Finance Corporation (AFC) and Commercial Bank of
Zimbabwe (CBZ) as well as those financed by private contractors.
The Grain Marketing Board (GMB) will purchase all wheat financed under
the Presidential Input Programme as well as self-financed farmers will
be the buyer of last resort, he said, adding contractors may arrange to
sell their crops to the GMB.
“All contractors including the Food Crop Contractors Association (FCCA),
Commercial Bank of Zimbabawe (CBZ), Agriculture Finance Corporation
(AFC) are obligated to buy back contracted wheat at market prices,” said
Dr Masuka.
He said self-financed farmers will sell to the best advantage on the
market or to GMB, which will provide commercial warehouse receipt
services to all players.
Dr Masuka said the Zimbabwe Mercantile Exchange (ZMX) will provide a
central warehouse receipt system and spot market trading platform for
agricultural commodities.
“Government is issuing a Statutory Instrument that mandates private
players to provide returns on storage of grains to be able to track
national stock of wheat,” he said.
New Ziana
