September 28, 2010

Zambia's Food Agency buys 643,000 tonnes corn

Zambia's state-run Food Reserve Agency (FRA) has announced Monday (Sep 27) its purchase of 643,000 tonnes of corn from farmers nationwide by September 17 after a bumper harvest.

The agency has paid at least ZMK224 billion (US$46.1 million) to farmers out of the estimated value of ZMK836 billion (US$172 million) worth of corn it has so far received, FRA executive director Anthony Mwanaumo said.

Zambia saw a bumper harvest during the 2010-11 season which lifted output by 42% on year to hit 2.7 million tonnes, the highest levels registered in two decades.

The growth is attributed mainly to favourable weather conditions, timely distribution of inputs and Zambia's efforts to diversify its copper-reliant economy.

Agriculture Minister Peter Daka has said that to stabilise farm gate prices and ensure that the surplus grain does not go to waste, the government has increased funding to FRA so it can purchase and store surplus corn.

Corn is the staple food of Zambia's 12 million people. The bulk of the surplus corn is expected to be exported mainly to regional South African markets.

According to Mwanaumo the government has also committed itself to releasing at least ZMK130 billion (US$26.7 million) every week to the agency to enable it to pay farmers.

However, following the bumper harvest, the food agency is now faced with the challenge of securing adequate storage facilities for the grains. Last month, FRA advertised for storage facilities from private firms to secure all the stocks.