Source: Winter wheat output to rise | The Financial Gazette September 7, 2017
Local producers have failed to meet the country’s national demand of 450 000 tonnes for many years.
ZIMBABWE will this year import about 345 000 tonnes of wheat as preliminary data indicates that the 2017 winter crop will produce an estimated 105 000 tonnes.
The Grain and Feed Annual Report (GFAR) for 2017 indicated that the projected production of 105 000 tonnes would be an increase on the 60 000 tonnes produced last year.
It said this would largely be due to the command agriculture programme, which is targeting 70 000 hectares at average yields of five tonnes per hectare, according to a quarterly Treasury Bulletin for the first quarter.
“Due to the command agriculture programme, post estimates of Zimbabwe’s winter wheat production in 2017 is 105 000 tonnes, which is five times more than the wheat produced in the 2016/17 season,” the GFAR report said.
“However, Zimbabwe will still have to import wheat,” it added.
Local producers have failed to meet the country’s national demand of 450 000 tonnes for many years, with production declining to as low as 26 0000 tonnes in 2011 and 22 000 tonnes in 2012.
The balance has always been imported.
High costs of production, cheaper imports, funding issues, dilapidated irrigation infrastructure and high cost of electricity have been cited as some of the challenges affecting production.
Production costs per hectare can go up to $1 700 per hectare, of which 31 percent of the cost emanates from fertilisers.
“Major production constraints are the high cost of production coupled with relatively low capital returns,” the GFAR said.
Daily bread production by bakeries is currently estimated at about 850 000 loaves, while millers estimate the country’s monthly wheat consumption at about 25 000 tonnes.
Local bread prices have remained stable at between $0,85 and $1 per standard and superior loaf, respectively.
Zimbabwe National Statistics Agency data shows that for the first six months after harvest, between October 2016 and March 2017, Zimbabwe imported 150 511 tonnes of wheat mainly from Poland, Russia, Canada and South Africa.
Under the special import substitution scheme to fund wheat production, inputs such as wheat seed, fertilisers, chemicals and tillage services for producers with irrigation facilities were provided.
After harvesting the wheat, the farmers have an obligation to deliver a specified wheat tonnage to the Grain Marketing Board as repayment for the loan.
The producer price for wheat remains at $500 per tonne while international prices had declined from $343 to between $176 and $189 per tonne in July.
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