Agriculture expert Oliver Bulaya has hinted that […]

Agriculture expert Oliver Bulaya has hinted that while the country is expected to have a bumper harvest, the price of mealie meal may not be affected. In an exclusive interview with Zambian Business Times-ZBT, Bulaya said while a bumper harvest usually pushes prices down, other cost factors in the value chain are limiting that effect this year.

“This season, we are anticipating a bumper harvest more than we had even last year. Usually, when you have such a higher harvest, prices reduce,” Bulaya said.

He noted that millers are currently buying maize at around K200 per 50 kg bag. However, he said high fuel and electricity costs, which affect processing, are keeping mealie meal prices elevated.

 “These factors are perpetrated by fuel prices and the high cost of electricity. These are things that go into the processing of mealie meal. So overall, we still have a challenge to see how these prices can be lowered,” he said.

 Bulaya added that despite the anticipated harvest, prices may stabilize rather than fall significantly. He pointed out that mealie meal prices have remained relatively steady over the past three years, largely because of the high cost of processing.

 He also highlighted uncertainty around the government’s buying price through the Food Reserve Agency. Last year, the government bought maize at K340 per bag, while millers offered K200. Bulaya noted that with FRA expected to buy only 500,000 metric tons, the rest of the maize will likely go to millers and other off-takers.

 “In this case, the challenge is still there because farmers will not have many options. Many will offload maize to the Food Reserve Agency, but how much are they going to buy? Only 500,000 metric tonnes,” he said. Bulaya said the situation means farmers remain dependent on private buyers, whose pricing is influenced by the cost of milling and distribution.

Article by Francine Chibuye