Outcry over maize seed price hike

09 Nov, 2014 - 06:11 0 Views
Outcry over maize seed price hike White Maize

The Sunday Mail

White Maize

White Maize

Farmer organisations have criticised the recent maize seed price hike which comes at a time when the country is calling on maximum land utilisation, saying the move is detrimental to food production.

A survey conducted by The Sunday Mail Extra revealed that some seed houses are now selling a 25kg bag at prices ranging from $68 and $113, up from between $57 and $76.

A 10kg bag now costs between $27 and $31, up from last season’s prices of $21 and $24.

High costs of production continue to rock the local farming sector. These prices have also affected retailers who told this publication in separate interviews that demand for seed has since gone down compared to last season.

“We usually increase our sales of seed maize from October to end of November, but this time around things have changed with people only enquiring about the prices and leaving without buying. We wonder where they are going to get the seed from, since they are leaving empty handed,’’ said Mr Boniface Tumbare, a shop owner along Rezende Street in Harare.

He cited that the price increase was the major reason why farmers were shying away from buying the seed. Zimbabwe Commercial Farmers Union president Mr Wonder Chabikwa expressed concern at the hike, saying the move was ill-timed.

“We are worried as this has been done in the middle of the season when farmers had already budgeted for the season. Surely to increase prices in October is just as good as throwing spanners in the way of the farmers,’’ he said.

Mr Chabikwa challenged the seed houses to justify the increase.

“At the moment farmers who are into seed growing are being paid less than $500 a tonne and we want to know if the price has also increased. They talk of production costs which they have failed to give us in turn. Unless if it is just an issue of profitability,’’ he said.

The ZCFU president said that the price hike would most probably see farmers resorting to using seed from their granaries. This, he warned, would result in a reduction in yield per hectare.

There is also the risk of having fake cheaper seed on the market.

With no meaningful schemes having been availed to date and the price increase, Mr Chabika does not foresee a prosperous season.

And as a result ZCFU is working on making the farmers a bit more comfortable this season.

The Union is holding marathon meetings with fertilizer companies and chemical companies to agree on a stop-order system that will see farmers getting inputs on credit.

“The companies have not yet agreed to our proposals but we are still engaging them. As we speak right now most of our farmers have absolutely nothing in terms of inputs with financial institutions also quiet on funding this season. We are in a dilemma right now,’’ he said. Zimbabwe Indigenous Women Farmers Association Trust president Ms Depinah Nkomo echoed the same sentiments and said the price hike would force farmers to look for cheap alternatives.

She said before the price hike there were no consultations between the producers, farmer representatives as well as other stakeholders.

“We are not going anywhere in farming because of the continued escalating costs of production. Farmers were paid $390 a tonne by Government and we were happy, but it looks like manufacturers want to take away all that money from us through hiking inputs so that we remain poor as indigenous farmers. We wonder whose interests these manufacturers are saving,’’ she said.

Ms Nkomo said it the situation in Zimbabwe was dire when compared to prices of inputs in the region.

A bag of fertilizer ranges between $10 and $15 regionally while seed ranges from $10 to $50 per 25kg, depending on the variety.

A 25kg bag can be used over a hectare.

She stressed that production costs have to be reviewed downwards so that the farming sector can blossom.

Efforts to get a comment from Seed Co were fruitless despite sending written questions.

Although some seed houses also could not respond to questions on why they had increased the price this season, insiders said management had cited high production costs.

“I am not in a position to give you a breakdown of how much it cost to produce a tonne of seed but management is saying that cost of production has gone up although we are still using the same methods and equipment.

“In fact we get our seed from farmers contracted to grow the seed,’’ said the insider who preferred anonymity.

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds