We have had a lousy season – adequate rainfall but the distribution was about as bad as it could be – good planting rains in November, followed by a dry December, then a wet January and a dry February – now rain right into the reaping season. Crop yields will be well below last year – about half of what we got in 2020/21. South Africa has had too much rain and the weather has not been kind to Zambia or Malawi. So, we will have to import a great deal of the maize we require, oil seeds and crude oil and it now looks as if we will not get even half of the wheat crop we grew last year because of funding problems and shortages of essential inputs, including power for irrigation.
Globally nearly all basic commodity markets for agricultural products are experiencing shortages and supply chain disruptions. Shipping costs have trebled and we are not going to find it easy to secure what we need. We normally buy our hard wheat needs – about 150 000 tonnes a year, from Ukraine. This is just one of the problems that confront us today. The shambles in our money market does not help.
What do we need to do to get our farm industry back on its feet? In my view the essential are as follows:
First, fix our money market. I may sound like a broken record but this is not rocket science. Nearly all of Africa has already done what is necessary. In my view we need to use our own dollar for all domestic transactions, convert all incoming foreign currencies on a real interbank market and lift all exchange controls.
Secondly, give our new farmers real security of tenure so that they will invest in the properties they occupy and not simply mine the land for a living; be able to borrow what they need to farm against the security of their farm assets. This is close, I have seen the new 99 year lease and I think this just about does it, but why 48 pages of legalese? Just use the Zambian lease – three pages.
Thirdly, work with our banks to provide the seasonal and longer term funding required to farm properly.
Finally, get the industrial industry, that previously supported our farmers with all inputs, farm machinery and markets, back on its feet.
Of course, there is much more needed, but these four issues are the fundamentals – if we cannot do this, then we will continue to wallow in poverty and to experience shortages and high costs for products that we are otherwise able to produce ourselves at globally competitive prices.
By Eddie Cross
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