FRA OPENS MARKETING SEASON
A brief analysis by Amb. Emmanuel Mwamba
The Food Reserve Agency has announced the opening of the 2023/24 Crop Marketing Season and the purchase of designated agricultural commodities.
The exercise will run from 1st May 2023 to 31st October 2023.
The gazette notice issued doesn’t have the set floor price and of concern, the opening of the crop marketing season has come three (3) months earlier.
The Food Reserve Agency traditionally opens the marketing season in July and the exercise runs to September/October of the year..
This is because FRA has to monitor the maize moisture content so that the recommended 12.5 percent moisture content suitable for storage is achieved before FRA can start to buy and store the maize. This os to avoid substantial loss and waste.
I guess the announcement to buy the crops starting next week is due to the monumental national crisis where the country has exported almost all its crops including the national strategic reserves, and has been forced to buy maize far ealier taking the risks of stocking a crop that is not ready for storage and warehousing.
In Zambia farmers use natural elements to dry maize and other crops, hence the delay in opening Crop Marketing Season.
Storing maize that has not reached right moisture content attracts molds and diseases which results in extremely high post-harvest losses.
In the 2023/2024 marketing season, FRA will maintain the 1,255 satellite depots across the country. This is good for the farmer as it reduces the long distances that have to be covered to take the crops to the storage stands, sheds,or warehouses.
By law, the FRA is mandated to buy eight designated crop commodities which include white maize, orange maize, rice, sorghum, sunflower, groundnuts, soya bean and beans as strategic food reserves.
FRA buys using commodity prices which consider farm gate and open market prices,
factoring in the cost of inputs to reflective pricing as well as consultations with market
shareholders and players in the crop marketing value chain.
In 2022 FRA bought the crops using the following prices;
- White maize from the K160 per 50 kg in 2021 to K180 per K50 kg bag, which is equivalent to K3,600 per metric tonne;
- Soya beans remained at K11 per kg or K550 per 50kg bag; and
- Rice also remained at K5 per kg, which is K200 per 40kg bag.
CONCLUSION
FRA has targeted to buy 250,000 metric tonnes. This is far below the recommended minimum national strategic reserves.
For example,in 2021 Crop Marketing Season, FRA purchased 947, 777.55 metric tons of maize valued at K2.8 billion, 121.60 metric tons of soya beans valued at K1.2 million and 656.80 metric tons of rice valued at K3.2 million.
In order to secure the strategic food reserves, we have always urged the Agency to take up the responsibility of drying the crops and invest in such equipment and technologies as required and thereby enter the market at the earliest possible time in order to meet their targets and to avoid unscrupulous buyers taking advantage of the small-scale farmers.
I am aware that the floor price, set by the Minister of Agriculture, has not been announced yet. So what scenario price and factors has FRA used? And what’s the price they are buying the crops? The farmer needs to know.
FRA is not the only player in the market as millers and grain traders are also present and price discovery for this year is important.
