June 26, 2014

Following the revised floor price by the government, Zambia National Farmers Union's president, Dr Evelyn Nguleka, said that the increased price was 'disappointing' in view of the rising costs of production. The farmers' body suggested the revis ed corn floor price to be at least US$0.015 per 50kg bag, a 7.8% inflation recorded during this year's corn marketing season.

PAZ's executive manager, Dominic Chanda, said that the revised floor price, in addition to other factors, such as the recently hiked electricity tariffs, would affect the profitability and competitiveness of the sector.

"The poultry sectoris not excluded; the costs of production will increase and some of the farmers will be out-competed. But ultimately, farmers will have to increase the price of poultry products. The average cost of a chicken in Lusaka is about US$0.005 per live bird. The highest figures are recorded in Mongu and Solwezi at US$0.0049 per live bird. With such an increase in corn floor price, we will see an increase in poultry products. It is (also) very likely farmers will increase the cost of the bird," Chanda said.

He said the projected increase in the prices was likely to lower consumption of poultry products which would also affect jobs in the sector.

"If the cheapest of all the meat, which is actually chicken, increases, then it is very likely that the capita consumption will reduce, and this has got an impact in terms of job creation because if farmers cannot find market for their birds, then it becomes difficult because they will be very uncompetitive," he said.

Chanda called on the government to halt exports of corn bran to help stabilise prices.

"The government can stop export of bran into Botswana and Namibia. But as long as the government continues to allow export of this major input in the production process, then we are killing the industry," Chanda warned.