Source: The Herald – Breaking news.
Dr Shadreck Makombe 
Edgar Vhera, Agriculture Specialist Writer
FARMERS have welcomed producer prices announced by the Grain Marketing Board yesterday, indicating that there was a need for constant review in line with market dictates.
In an X (formerly Twitter) post, GMB said maize and traditional grains will be bought at US$376, 48 per tonne, with soyabean on US$580 and sunflower at US$668, 98.
The winter wheat incentive planning price was set at US$451, 35 per tonne.
GMB will primarily purchase produce from farmers financed under the Presidential Input Programme (PIP) and irrigation schemes.
“These prices are consistent with achieving both food security and macroeconomic stability. Contractors are expected to buy back contracted produce at market prices.
“Furthermore, GMB, working with the Zimbabwe Mercantile Exchange (ZMX), shall provide commercial warehouse receipt services to all players,” said GMB.
Zimbabwe Commercial Farmers Union (ZCFU) president, Dr Shadreck Makombe, said the prices were good but said there was a need to constantly review them upwards.
“At the time of announcement, the prices are fair on comparative terms with other markets in the region, but as time lapses there might be need for an upward review.
“The production costs are continually increasing as a result of rising input prices,” he said.
Zimbabwe National Farmers Union (ZNFU) president, Mrs Monica Chinamasa, said it was important that the payment modalities are also announced.
Mrs Chinamasa said it was unfortunate that inputs prices continued to increase eroding the farmers’ profits.
“Farmers should know if the payment will be 100 percent foreign currency or some split portion as well as time of payment after delivery,” she said.
Zimbabwe Women Farmers Trust president, Mrs Depinah Nomo, said they welcomed the prices but expected Government to review in line with the increases on inputs prices.
“We hope the prices will be reviewed from time to time so they remain viable. The major challenge is the price of inputs which is usually pegged in foreign currency.
“Maize and traditional grains are our staple food and the producer prices should motivate many farmers to produce at a commercial level,” she said.
An agricultural expert, Dr Reneth Mano, commended the new Government policy where the GMB will not be the sole buyer of the grain but only purchase to support the strategic grain reserve.
“Furthermore, it has tightened the categories of farmers it targets to buy grains from. There is an apparent positive and very deliberate policy move to deepen the liberalised free competitive domestic grains and oilseeds marketing system,” he said.
One such agricultural policy thrust has seen the strengthening of ZMX warehouse receipt system and ZMX daily spot auction market for grains and oilseeds.
Dr Mano said presently Zimbabwe has the highest grain producer prices in the region and the permanent solution is for Government to enact sober domestic policies that effectively work towards reducing domestic agricultural cost of production (fertiliser, fuel and bulk water prices as well as high interest rates on farm input loans to match those of the region).
ZMX is expected to become the central agricultural commodity marketing institution where large and small-scale commercial farmers freely sale their produce to private agro-processing companies at competitive market prices that are discovered through the willing buyer willing seller daily spot market auction system.
Dr Mano said efficient agricultural marketing and predictable pricing system is the most critical cornerstone of any successful national food and agricultural development strategy.
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