Farmer’s Weekly – 30 August 2019

(Amelia) #1

Looming food insecurity


in Zimbabwe


D

roughts or floods always
have a devastating impact on
agriculture. But the second-
round effects on people’s livelihoods
are manageable in countries that are
economically stable, depending of course
on the magnitude of the impact.
However, for countries with economic
instability and low capability for
mitigation, the disaster continues months
after the extreme weather events.
This is precisely what we are witnessing
in Zimbabwe at the moment. To give some
context, it is important to mention that
Zimbabwe’s maize prospects, the country’s
staple crop, are not in good shape because
of a drought that delayed plantings at the
start of the 2018/2019 production season.
And when it finally rained, the downpour
was excessive, as was witnessed during
Cyclone Idai at the start of the year.

The 2018/2019 maize harvest is estimated
to be 800 000t, down 53% from the
previous year, according to data from
the US Department of Agriculture. The
hardships emanating from this poor
harvest, exacerbated by unstable economic
conditions, are being felt across the country.
The World Food Programme estimates that
more than one-third of Zimbabwe’s rural
population (or some 3,6 million people) will
be food-insecure by October. And this is set
to increase sharply to 5,5 million by January.
Had Zimbabwe been an economically
stable country (with efficient markets), the
effects of lower agricultural output would,
to a certain extent, have been buffered by
imports and government assistance.
But this is not the case in Zimbabwe.
The economy, political environment and
state resources remain fragile. The maize
markets cannot function efficiently, as
the state’s “hand is deep in the maize
bag”. Just last month, the Zimbabwean

government designatedthestate-owned
Grain MarketingBoardasthesolebuyer
of maize fromlocalfarmers.Thosewho
attempt to selltheirproduceoutsidethis
arrangementcouldfacepenalties.
While the governmentmighthave
introduced thismeasureasa wayof
ensuring consumers’well-beingafterfood
price inflationgallopedtomorethan126%
year-on-yearinMay,it is unlikelytowork.
Farmers arereportedlywithholdingtheir
produce insteadofdeliveringit totheGrain
Marketing Board.Thishadledtoa scarcity
of maize on themarket,andwillinevitably
not address thegovernment’sconcernsof
consumer well-being(affordablefood).

INITIATIVESAREYETTOMATERIALISE
Regardless ofwhereZimbabwe’sdomestic
maize policyends,thecountrystill
needs to importaboutonemilliontons
of maize in ordertofulfilitsannual
needs. It is notclearwhetherthisimport
activity has startedyet,asthelocal
authorities havenotpublishedanydata.
Looking atSouthAfrica’sexportdata,
which wouldbeoneofthekeycountries
Zimbabwe couldsourcesuppliesfrom,
Zimbabwe has,thusfar,notimportedany
maize from thiscountryinthe2019/
marketing year,whichstartedinMay.
Now that theGrainMarketingBoard
has been designatedasthesolebuyerof
maize from localfarmers,it is unclear
whether thispolicywillinfluenceprivate
businesses’ maizeimportactivities.
One organisationthatwoulddefinitely
purchase maizeonbehalfofZimbabweans
in the near futureis theWorldFood
Programme. Theorganisationrecently
indicated thatit wouldboostitshumanitarian
aid to ZimbabweuptoApril2020.South
Africa, ZambiaandMexicocouldbe
the potentialsuppliersofwhitemaize
to Zimbabwe.Asidefromwhitemaize,
there are a numberofcountriesthat
could potentiallysupplyyellowmaize
to Zimbabwe,withthemostlikelybeing
Brazil, Argentina,UkraineandtheUS.
These are allinitiativesthatareyet
to materialise.Asthingsstand,food
insecurity isloominginZimbabwe.

FARMERS ARE
WITHHOLDING
MAIZE INSTEAD OF
DELIVERING IT

AGRIBUSINESS


PERSPECTIVES
BY WANDILE SIHLOBO


Wandile Sihlobo is head of economic
and agribusiness intelligence at Agbiz.
Email him at [email protected].


OPINION & ANALYSIS


30 AUGUST 2019 farmer’sweekly 11
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