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The Government dismissed claims by sugarcane millers that it lacks the power to set the revenue-sharing ratio between farmers and millers, reported <a href="https://www.herald.co.zw/govt-sticks-to-guns-on-sugar-pricing-mandate/">The Herald</a>.
Industry and Commerce Minister Mangaliso Ndlovu asserted that he is mandated to administer the Sugar Production Control Act, which includes setting sugarcane prices and regulating sugar manufacturing and delivery.
Tongaat Hulett owns 100% of Triangle and 51% of Hippo Valley Estates.
The new Division of Proceeds (DoP) favours farmers with an 80.5:19.5 per cent ratio, up from the 77:23 ratio recommended by Ernst &amp; Young (EY) in 2016.
Farmers sought validation of the new DoP, while millers wanted a review.
Baker Tilly conducted an interim validation and recommended the new DoP after EY declined due to a conflict of interest, having become the millers’ auditors in 2021.
Millers argue that Minister Ndlovu lacks the authority to set such ratios unilaterally and that the validation process was flawed and resulted in an unfair recommendation.
Said Minister Ndlovu:
<blockquote>
The DoP validation exercise w
as well-founded, regular, reasonable and just.
My actions were intra vires. As the Minister of Industry and Commerce, I acted within the scope of my authority in determining the Division of Proceeds.
Section 10 of the Sugar Production Control Act [Chapter 18:19] empowers me to set the price paid to farmers for delivered sugarcane…
Claiming that the ministry favoured one party (the farmers) is unfounded, as validation was essential before proceeding with the review.
The review will be conducted in due course as the MoU between the parties indicated that the review was to take place within a period leading up to March 31, 2025, and will be implemented on April 1, 2025.
</blockquote>
Millers claimed they weren’t given a chance to provide detailed submissions for validation but Minister Ndlovu argued that the same submissions initially given to EY were used by Baker Tilly.
EY declined to conduct the validation due to a conflict of interest.
The technical working group, including milling companies, decided no new information should be introduced for the validation process.
Both farmers and millers had to submit the same data they had previously provided to EY.
Farmers resubmitted their information in March 2024, unchanged from October 2023, except for a later cover letter date.
Ndlovu deposed that millers and farmers have a long history of disputes over various issues, often turning to the ministry for mediation when they are unable to reach an agreement.
These ongoing conflicts arise from the competing interests of both parties, who frequently view decisions that do not favour them as unjust.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

The government says it has the power to decide how to share money between sugarcane farmers and millers. The new sharing ratio gives more money to farmers. The minister in charge, Mangaliso Ndlovu, believes he can make this decision. A company called Tongaat Hulett owns some of the sugar farms. The millers say they were not given a fair chance to share their opinions. The argument is ongoing between the farmers and the millers. A new review will happen in 2025.

Government Stands Firm On Sugar Pricing Mandate

The government’s efforts to promote the use of the Zimbabwe Gold (ZWG or ZiG) faced a major setback last week when the Grain Marketing Board was compelled to pay wheat farmers exclusively in United States dollars.
Farmers rejected payment in local currency, citing its sharp depreciation against the US dollar and arguing that they purchase their inputs in foreign currency.
Economists have warned that paying wheat farmers in US dollars could lead to a broader rejection of the local currency by other farmers and exporters, undermining efforts to build foreign exchange reserves.
Sources cited by <a href="https://www.newsday.co.zw/local-news/article/200032453/govt-in-a-fix-as-farmers-reject-zig">NewsDay</a> revealed that wheat farmers threatened to withhold their harvest in protest over payments made in ZWG, fearing potential losses.
During the 2023 winter wheat season, farmers received US$440 per tonne, with payments split 75% in US dollars and 25% in Zimbabwe dollars at the prevailing interbank rate.
This season, the new producer prices for wheat are set at US$450 per tonne for standard grade and US$470 for premium grade, with payments made exclusively in US dollars.
Former president of the Zimbabwe Commercial Farmers Union, Wonder Chabikwa, told NewsDay that payments in US dollars would alleviate the financial burden of farming costs. He said:
<blockquote>
As wheat farmers, we have always preferred to be paid in USD directly because we are always seized with recapitalising our farms in terms of irrigation infrastructure and farming inputs.
To be able to acquire these things, we need foreign currency. Most providers of these services want to be paid in foreign currency so it is making life very difficult for us.
</blockquote>
Zimbabwe National Farmers Union president Monica Chinamasa said the GMB should pay farmers timeously so that they hedge against losses. She said:
<blockquote>
We prefer to be paid in the USD component because all our financial obligations are in USD.
We pray and hope it will be paid in time, not six months down the line when interest will have accumulated on our obligations.
</blockquote>
The Zimbabwe Gold (ZiG), introduced in April 2024, marks Zimbabwe’s sixth attempt in 15 years to establish a stable currency.
Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu said that the ZiG would be backed by foreign exchange and gold reserves.
At its launch in April, the ZiG was trading at 1:13.50 against the US dollar. Currently, it has reportedly depreciated significantly, trading between 1:25 and 1:30 on the black market.
This depreciation has led some service providers to price their goods exclusively in US dollars.
Retail chains have largely abandoned the official exchange rate, opting instead to charge prices based on the street rate and have also increased prices in USD.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The government wanted farmers to use a new currency called ZiG, but wheat farmers didn't like it and wanted to be paid in US dollars. Economists worry this could make other farmers and businesses stop using the local currency. Farmers say they need US dollars to buy things for their farms and pay their bills. The new currency ZiG was meant to be stable, but it has lost value quickly. Now, some stores only accept US dollars and prices are going up. It is important for farmers to be paid on time in the currency they need to avoid losing money.

Government's Currency Reform Stalls As Wheat Farmers Reject ZiG

The Matabeleland Development Initiative (MDI) has urged the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development to increase awareness among villagers and rural farmers about its proposed cattle auction centres.
This comes after the Ministry of Agriculture announced a ban on household and village-level cattle sales last month, stating that all cattle must be sold at ward-based cattle sales
Speaking in Parliament last week, the Minister of Lands, Agriculture, Water and Rural Resettlement, Anxious Masuka, said that this move is intended to protect farmers from unscrupulous buyers who exploit their desperation to purchase livestock at very low prices.
Responding to questions from <a href="https://cite.org.zw/mdi-calls-for-clarity-on-centralised-cattle-auctions/">CITE</a>, MDI Chairman and Founder, Freeman Ncube, said the government should provide adequate information about the move. Said Ncube:
<blockquote>
Although we are concerned that not enough information regarding the sale of livestock was disclosed to villagers or rural folk to understand the processes of selling their livestock, including how they will be taxed and the movement of livestock.
There is a lot of confusion regarding all this, and we believe that there was not enough time to educate people about the selling of livestock and the processes involved.
</blockquote>
Finance, Economic Development and Investment Promotion Minister, Mthuli Ncube, recently scrapped the 15 per cent value-added tax (VAT) on live animal sales, a move that was welcomed by farmers.
Presenting the 2024 mid-term budget policy review last week, Ncube proposed the exemption of VAT on the sale of live animals to restore demand for meat while at the same time promoting formal trade in the livestock sector.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The MDI wants the government to explain the new rules about selling cattle. The Ministry of Agriculture says all cattle must be sold at specific places, not in villages. This is to protect farmers from unfair buyers. But the MDI says people need more information about this change. The government should tell villagers how to sell their animals and what rules to follow. The Finance Minister removed a tax on selling live animals to help farmers. The MDI thinks people need more time to understand the new rules.

Matabeleland Development Initiative Calls For Clarity On Centralised Cattle Auctions

The Grain Marketing Board (GMB) on Monday, 27 May, said it had paid US$10 million to wheat farmers, bringing the payments so far to US$38.3 million.
In a statement, GMB CEO Edson Badarai said the parastatal is prioritising the clearance of the outstanding balance of US$5.3 million. He said:
<blockquote>
The Grain Marketing Board advises our esteemed farmers and stakeholders of the significant progress made in clearing wheat farmers’ payments. Today, GMB paid USD 10 million to farmers, bringing the payments so far made to USD 38.3 million.
The consistent release of funds from Treasury demonstrates Government’s commitment to its promise to support farmers; towards wheat-based food security.
In the same vein, clearance of the outstanding balance of USD 5.3 million is a top priority. GMB appreciates the dedication and resilience of our farmers, and will continue playing its key role in the agriculture transformation agenda.
</blockquote>
This comes as some wheat farmers have failed to prepare and participate in the ongoing winter wheat cropping season due to the government’s failure to pay them for wheat delivered last year.
This will likely impact negatively on the Government’s target of putting 120 000 hectares under winter wheat this season from which 600 000 tonnes are expected.
In a recent interview with <a href="https://www.businessweekly.co.zw/govt-fails-to-pay-for-wheat-deliveries/">Business Weekly</a>, the Zimbabwe Commercial Farmers Union president, Shadreck Makombe, said:
<blockquote>
Some farmers who should have planted wheat this season have not been able to do so because they have not been paid for deliveries made to the Grain Marketing Board last year.
Most of the farmers who are meant to be doing the winter wheat are not participating and this is likely to affect the area that the Government is targeting under the crop and the projected yield will be negatively affected.
Wheat production is a process that we think with the planting window the targeted 120 000ha was achievable or may even be surpassed, had all the traditional wheat growers participated.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

GMB Pays $10M To Wheat Farmers, Total Reaches $38.3M

Farmers in Matabeleland have implored the Government to review its policy of destroying livestock driven into another zone without permits or proper clearance.
Some of the farmers who spoke to <a href="https://newsday.co.zw/southerneye/local/article/200023867/farmers-want-livestock-policy-reviewed">Southern Eye</a> said the policy is too harsh and retrogressive.
Nkayi Community Parliament deputy speaker and communal farmer, Nkosilathi Ncube, said cattle should only be destroyed if they are diseased. Said Ncube:
<blockquote>
I am against the killing of animals but I suggest the government must impound the animals and if it’s the owner, they can fine the owner and give them back their animals.
If it’s an unknown person the cattle must be forfeited to the state. Unless they have some disease, then they can be quarantined or destroyed.
We must use the local Neighbourhood Watch committee members to assist in the clearing of cattle and put in place community policing forums to ensure that the cattle that are transported are properly cleared and those who are caught stealing cattle must face the mandatory jail term.
</blockquote>
Matabeleland South farmer and Kirton Farmers Association chairperson, Moketsi Basuthu, said:
<blockquote>
The modus operandi of getting a vet permit and stock clearance from the police needs to be better oiled so that farmers don’t struggle when they have to move their livestock.
</blockquote>
Destruction of livestock to farmers naturally speaks to loss of livelihood.
<blockquote>
Again, we don’t expect a farmer who has his livelihood at heart and that of his fellow farming community to will-nilly move their stock without requisite authority.
The Fencing Provisions Act is poorly enforced, yet it should be there to augment the Disease Management and Livestock Movement Act.
</blockquote>
Another farmer from Matabeleland South Province Ben Moyo, however, expressed his support for the policy of destroying impounded livestock. He said:
<blockquote>
People need clearance to move cattle. We simply have to follow the law which will enable our animals to be healthy and as farmers, we can make more money from them.
If our cattle for example were to stray into Botswana, because cattle are big business in Botswana they will shoot them.
</blockquote>
On 24 February, the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development issued a notice calling on farmers to desist from illegally moving livestock without proper documentation.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Farmers Implore Govt To Review Livestock Policy

Commercial farmers across the country have bemoaned the move by the Zimbabwe Electricity Supply Authority (ZESA) to disconnect those who have not been paying for electricity consumed.
Unions representing farmers who spoke to <a href="https://businesstimes.co.zw/farmers-feel-zesa-heat/">Business Times</a> said the ZESA disconnections have effectively hampered prospects of good yields.
Zimbabwe Commercial Farmers Union president Dr Shadreck Makombe blamed delayed payments from the Grain Marketing Board (GMB) for farmers’ failure to pay ZESA on time. Said Makombe:
<blockquote>
ZESA is not consistent. We understand farmers should pay because without payments ZESA would also find it difficult but now to disconnect farmers who have crops in the field does not make sense at all.
They should negotiate because those farmers are going to sell their produce and ZESA will then be paid.
They should make arrangements for those stakeholders, but it would appear some overzealous ZESA officers are acting contrary to arrangements on the ground.
…To disconnect them while the product is in the field is really kind of unproductive.
</blockquote>
The chairperson for the Zimbabwe Commercial Farmers Union in Mazowe, Daniel Chinyemba, said:
<blockquote>
ZESA disconnections in conjunction with ZINWA irrigation pump locking are impacting badly on the Presidential and ARDA Inputs schemes which were launched to ensure food security to the nation.
Most farmers with functional irrigation schemes have not received their payment as yet for their wheat delivered to both GMB and several millers.
Farmers received only the ZWL component paid at the prevailing bank rate of ZWL$6 000 at that time whilst the black market was rating the dollar at ZWL$15 000 causing farmers to incur huge losses.
The ZWL component was supposed to be equivalent to 25% of their wheat sales but ended up being equivalent to less than 7% and the amount was insufficient to clear or even the electricity and ZINWA bills and many other obligations which faced the farmers.
</blockquote>
He said farmers are still waiting for their payments from GMB and millers but service providers are cutting them off.
Chinyemba said due to the El-Nino-induced drought, the crop situation is dire and farmers are in a critical situation as they are failing to irrigate their crops as they are being cut off by ZESA and ZINWA.
A Ministry of Energy and Power Development official told Business Times that consumers should pay for electricity so that the power utility meets its electricity demand and pays import bills. Said the official:
<blockquote>
ZESA is trying to make sure that it meets its obligations that include monthly instalments on repayment of Hwange expansion debt to avoid disconnections which has greatly increased the electricity situation in the country.
</blockquote>
The complaints by farmers come as ZESA has embarked on an aggressive blitz which has no sacred cows. ZESA is reportedly owed US$300 million by customers.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZESA Switches Off Farms... Farmers Blame GMB Payment Delays

The Government has advised farmers to stop planting saying the 2023/24 summer cropping season will be “short and sharp”.
Speaking to <a href="https://www.sundaynews.co.zw/expect-a-short-sharp-season-as-el-nino-subsides/">The Sunday News</a>, Ministry of Lands, Agriculture, Water, Fisheries and Rural Development Permanent Secretary Obert Jiri, however, said that the El Niño weather phenomenon is not as severe as had been anticipated. Said Jiri:
<blockquote>
We have witnessed that there has been an increase in rainfall from December 24, with the country experiencing normal and above-normal rainfall. If there was a severe El Niño, we would not be experiencing this.
This year’s El Niño phenomenon is based on a model that is not as severe as we had anticipated.
So, yes, there is El Niño, but it is not as severe. It seems it is weakening, but that does not mean we are out of the woods yet.
We expect that we are going to continue receiving rains, but they might end abruptly at the end of February into early March. We will have a short, sharp season.
Those who had prepared should also consider short-season varieties since we have a short season.
</blockquote>
Meteorological Services Department (MSD) head of forecast James Ngoma recently told The Sunday News that the second half of the season has a high probability of rains and cooler days. He said:
<blockquote>
Humidity over Zimbabwe tends to increase in December, January and March. Fortunately for Zimbabwe, this is coupled with cloudy and wet conditions.
These rains tend to cool the daytime conditions over the areas they fall on. Thus, the next few months have a high probability of rain and cooler days.
A few dry spells may also result in high daytime temperatures on odd days, but heatwaves are highly unlikely.
So, rainfall is still expected at different intervals in different areas during this period.
It should be noted, however, that the rains may be erratic, especially over natural regions 4 and 5 since we are in an El Niño season.
It is advisable to note that the public should rely more on three-day and ten-day forecasts issued by the MSD.
</blockquote>
Climate expert and University of Zimbabwe lecturer Walter Svinurai explained that El Niño is not climate change. He said:
<blockquote>
El Niño itself is not climate change as people are describing it. It is a natural phenomenon, but its impacts and occurrences are now worsened by climate change.
Although it is still early to consider this a good season, it is still a sparing drought year and a not full-blown drought per se.
The relationship between El Niño and rainfall over Zimbabwe is misunderstood by many and most people are of the view that El Niño implies drought.
</blockquote>
Climate researcher Shingirai Nangombe said that El Nino is not always associated with a drought. Said Nangombe:
<blockquote>
A closer analysis of the past 21 El Niño years of Zimbabwe rainfall was undertaken; it is quite interesting to note that out of the 21 El Niño years which occurred in the past 60 years, eight (38 per cent) had above-normal rainfall, while 13 (62 per cent) had below-normal rainfall.
These statistics clearly show that the eight episodes where above-normal rainfall was received during an El Niño episode explain that the El Niño episode and below-normal rainfall is not a one-on-one relationship.
Lastly, it is important to note that the worst meteorological drought was experienced during the 1991-92 summer rainfall season, which was not even an El Niño episode.
</blockquote>
The weakening of El Nino, as has been reported, is expected to bring relief to farmers because the weather phenomenon had threatened to cause a severe drought this season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Expect A Short, Sharp Season - Govt Tells Farmers

The Grain Marketing Board (GMB) has failed to pay farmers the outstanding ZWL$54 billion several months after they sold grain to the parastatal.
With the 2023/24 summer cropping season just around the corner, GMB’s failure to pay farmers has likely hampered preparations for the new season.
Zimbabwe Farmers Union (ZFU) executive director Paul Zakariya said the issue of delayed payments has negatively impacted farmers’ cash flow. <a href="https://businesstimes.co.zw/anxiety-as-gmb-fails-to-pay-farmers/">Business Times</a> quoted Zakariya as saying:
<blockquote>
We are at a stage where farmers would require to ensure that cash flows continue to be positive on the farms and that they meet other expenses like labour costs and repairs to machinery and equipment as well as ensuring that the farms are ticking so these delayed payments have actually become quite a bother on many operations.
</blockquote>
Last week, GMB finance director Clemence Guta told Parliament that of the outstanding payments, ZWL$ 21 billion was for maize deliveries. Said Guta:
<blockquote>
We have an outstanding balance of ZWL$54bn of which ZWL$21bn relates to maize deliveries and we got US$ 25mn which is outstanding as well about US$ 8.7mn relates to traditional grains with the balance being for wheat deliveries…
We are continuously pursuing the Treasury so that they release funds so that our farmers are able to go back to the fields.
</blockquote>
He also said the GMB has started inputs for the Presidential input scheme but was lagging behind in terms of payments to transporters.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

GMB Fails To Pay Farmers

The Government is reportedly withholding payments for farmers who delivered their grain to the Grain Marketing Board (GMB) for fear that the payments might cause the Zimbabwe dollar to fall sharply.
However, the decision may negatively affect farmers’ preparations for the upcoming 2023–2024 summer cropping season.
<a href="https://businesstimes.co.zw/government-struggles-to-pay-farmers-creating-a-worrying-backlog/">Business Times</a> reported multiple GMB officials as saying the parastatal has a month-long payment backlog.
A GMB senior official who requested anonymity was quoted as saying:
<blockquote>
We last paid the farmers who delivered their grain on July 8, since then we haven’t been able to pay farmers due to the little amounts we are receiving from the Treasury.
We don’t know what the farmers will do but we will pay according to the disbursements from the government.
</blockquote>
Local contractors also expressed concern about the delay in payments.
Economist Gift Mugano told Business Times that the current stability is unsustainable. He said:
<blockquote>
This is a massaged stability as you can’t starve the children and claim to be saving a great deal of money.
The government should pay farmers and contractors in batches so that they can use it as working capital for their businesses.
The authorities should allow supply and demand law to take centre stage here, not suppress supply to create demand.
It’s a tragedy that the purported stability came at the expense of aggregate demand and bringing the economy to a grinding halt as people are going to the informal businesses that do not pay taxes and rates resulting in fiscus losing significant revenues.
</blockquote>
Mugano warned that if the current liquidity squeeze continues the country’s economic activities will slow down.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Delays Payments To Farmers To Maintain Zim Dollar "Stability"

The Food and Agriculture Organisation (FAO) of the United Nations says it is ready to assist farmers in Matabeleland South Province in managing rangeland degradation.
Rangeland degradation is a decrease in plant species diversity, plant height, vegetation cover and plant productivity.
FAO Zimbabwe International resilience specialist Alexander Carr said rangeland productivity has declined, leading to reduced carrying capacity for livestock.
He urged the Government to ensure that policies and regulations are in place to support rangeland conservation while FAO equips farmers with the skills and knowledge to achieve this.
Carr was speaking during a meeting with some of the farmers in Bulawayo on Friday last week. He said:
<blockquote>
Rangelands play a crucial role in supporting the livelihoods of pastoral communities, providing grazing land for livestock and a source of income from meat and dairy production hence they should be of utmost priority be preserved.
Changes in temperature and precipitation patterns have altered the distribution and abundance of plant and animal species, leading to changes in ecosystem dynamics.
As a result, rangeland productivity has declined, leading to reduced carrying capacity for livestock and lower yields of meat and dairy products.
This may include practices such as rotational grazing, improved water management as well as the use of alternative sources of livelihoods to reduce pressure on rangeland resources.
</blockquote>
Speaking at the same event, the permanent secretary for Provincial Affairs and Devolution for Matabeleland South, Latiso Dhlamini-Maseko said:
<blockquote>
By restoring degraded rangelands, we can increase their productivity and resilience, improve the livelihoods of pastoral communities, safeguard biodiversity and reduce the risk of land degradation and desertification.
</blockquote>
Matabeleland South Province receives low seasonal rainfall which makes the rangeland highly susceptible to degradation.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

United Nations' FAO Pledges To Assist Farmers In Matabeleland South

Two tobacco farmers in Mashonaland Central Province were targetted by armed robbers recently and lost thousands of cash in United States dollars.
Mash Central provincial police spokesperson Sergeant Major Samuel Chikasha told <a href="https://www.herald.co.zw/tobacco-farmers-targeted-by-armed-robbers/">The Herald</a> that a family in the tobacco farming business from Batsirai village under Chief Nyamaropa was robbed recently.
Sgt Major Chikasha said Green Bhaira (36), Bridget Nyakupfuka (34) and their 15-year-old daughter were sleeping when Timothy Chikomba (34) of the same village and nine others approached their homestead at around 9 PM.
Chikomba allegedly called for Bhaira saying he was wanted for bailing tobacco belonging to Julias Chikuni.
Bhaira refused to open the door and the robbers forcibly broke down the door. 
Police said Bhaira tried to fight back but was assaulted with an iron bar all over his body.
He escaped and went to his neighbour Lamech Chemusora (40) seeking assistance.
The robbers also assaulted Nyakupfuka with an unknown object on the forehead demanding cash. She gave them US$3 200 and the accused left.
When Bhaira returned with Chemusora the robbers were gone. The matter was reported at Madziwa police base and Chikomba was arrested.
Bhaira and his wife sustained swollen foreheads and were taken to Shamva Hospital where they were treated and discharged.
In another incident that occurred in Mt Darwin, Sgt Major Chikasha said armed robbers pounced on Patricia Kadirire (43) of Kushinga village C under Chief Kandeya.
Kadirire was sleeping with her two children aged 10 and 3 when she was woken up by loud banging at the door at around 1 AM.
Police said the accused, Luckmore Kimbili Murombedzi (32), of Hukama village under Chief Chihota in Chikomba and two others forcibly entered the house.
Kadirire and the children were sprayed with an unknown substance causing them temporary blindness.
The robbers demanded US$4 000 which they said Kadirire received from tobacco sales but she offered them US$735.
While the robbers were busy loading groceries from Kadirire’s tuckshop, the shopkeeper Petros Moffat untied himself and ran to inform Paul Kamukombe who mobilised villagers.
The robbers who were on foot went to the Harare-Mukumbura highway with the loot and were looking for transport.
The villagers managed to apprehend Murombedzi but the other suspects disappeared into the darkness.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Armed Robbers Target Tobacco Farmers

The Government has rejected calls by the opposition to pay farmers for their produce exclusively in United States dollars.
Speaking during a Question and Answer session on Wednesday, Kuwadzana East MP Chalton Hwende (CCC) asked the Government to consider paying farmers in USD to enable them to buy inputs for next season. <a href="https://www.newsday.co.zw/local-news/article/200011744/dump-the-failed-zimdollar-mps">Said Hwende</a>:
<blockquote>
The RTGS will not enable these farmers to buy inputs for the next cropping season.
Why is the government not considering paying them in United States dollars for all their produce just like what is being done beyond the borders?
Right now, the government is paying farmers RTGS and expects them to go to shops where prices are being inflated.
</blockquote>
In response, Justice, Parliamentary and Legal Affairs Minister Ziyambi Ziyambi, who is also the leader of Government business in Parliament, said the Government will not abandon the Zimbabwe dollar. He said:
<blockquote>
Honourable Hwende is in other words encouraging government not to pay in RTGS (Real Time Gross Settlement), but in US dollars. The truth is that we cannot stop paying farmers in RTGS.
We cannot, therefore, say we are no longer paying in RTGS. We cannot dump the RTGS because it has lost value and we adopt another currency.
That is not possible. We have to promote our own currency if we want to control our own economy.
We can only put measures to control and stabilise the inflation rate on the parallel market.
If you look at all the countries around the world, Zambia for example, has once done it, but eventually moved away from that decision and opted for its own currency, the Kwacha.
</blockquote>
Last month, the Government announced that grain farmers will be paid at US$368 per metric tonne.
US$200 will be in foreign currency and the remaining US$168 in Zimbabwe dollars at the interbank rate.
When the local currency was reintroduced in June 2019, it was trading at 1:1 with the US dollar but has since fallen to $1 407 on the official auction market and more than $3 000 on the black market.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Rejects Legislators' Call To Pay Farmers Exclusively In US Dollars

White farmers who lost their land during Zimbabwe’s chaotic land redistribution exercise have made some changes to the government’s proposal of paying the US$3.5 billion compensation through a 10-year commercial paper.
The former farmers rejected the proposal and have made some changes to suit the age profile of the supposed beneficiaries.
Speaking to <a href="https://businesstimes.co.zw/ex-farmers-turn-heat-on-govt/">Business Times</a> on Wednesday, Commercial Farmers Union (CFU) president Andrew Pascoe said they are currently engaging members to get their views on the Government proposal. Said Pascoe:
<blockquote>
We made some new changes to the government’s proposed deal and currently, we are carrying out surveys with our members to see if they agree to the new proposals.
</blockquote>
In 2020, the Government pledged to compensate the former farm owners in phases.
The first installment of US$1.75 billion was supposed to be paid in 2021 and the balance was to be paid in four equal installments of US$437.5 million per year.
The Government failed to fulfill the promise to the formers farmers and has shifted goalposts on several occasions.
Moreover, critics argue that the compensation does not go far enough to address the harm caused by the land reform programme.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

White Former Farmers Scrutinize Compensation Deal

Zimbabwean white former farmers have rejected the Government’s new compensation proposal of paying in government securities over a 10–year period.
When the agreement was signed in 2020, the government initially wanted to offer payment terms of 20 years but has since decided to expedite the process.
A source privy to the information told <a href="https://businesstimes.co.zw/ex-farmers-reject-govt-deal/">Business Times</a> that the former farm owners want urgent cash payment as most of them are now in their 80s. Said the source:
<blockquote>
Ex-farmers have rejected the Treasury Bonds as they need cash payments with much shorter periods which allow them time to plan with their money due to their age profiles which are between the 80s and 90s.
For that reason, they are not taking any deal which does not include cash in the shortest possible time.
</blockquote>
In February this year, Finance and Economic Development Minister Mthuli Ncube, said the compensation will be financed through a Treasury bond, which will have prescribed-asset status and not be liable to any form of taxation as a way to entice investors.
He said farmers will hold a referendum on the matter soon and the bond will be issued once outstanding details are finalised.
Finance and Economic Development deputy minister Clemence Chiduwa told <a href="https://businesstimes.co.zw/ex-farmers-reject-govt-deal/">Business Times</a> that engagements between the parties are continuing. He said:
<blockquote>
At the moment, I am not aware of this position but what I know is that there were some engagements this week and an agreed position will be reached soon as both parties continue to engage to find common ground for compensation to take place.
</blockquote>
Business Times said they could not get a comment from Commercial Farmers Union president Andrew Pascoe as his mobile number went unanswered.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Former Commercial Farmers Reject Revised Govt Deal

Thousands of Belgian farmers from the northern region of Flanders parked tractors in the CBD of the capital, Brussels, on Friday in a protest against a new regional government plan to limit nitrogen emissions.
Many tractors, about 2 700, were decorated with big signs reflecting the farmers’ anger, according to <a href="https://www.reuters.com/world/europe/tractors-descend-brussels-farmer-protest-over-plans-limit-nitrogen-emissions-2023-03-03/#:~:text=BRUSSELS%20March%203%20(Reuters)%20%2D,streets%20of%20Brussels%20at%202%2C700.">Reuters</a>.
Agricultural organisations said in a joint statement that the nitrogen agreement as it now stands “will cause a socio-economic carnage“. They wanted the agreement to better reflect future prospects for the farming sector. Watch the video below:
<div>
<video controls="controls" height="360" preload="metadata" width="640"><a href="https://zero.pindula.co.zw/wp-content/uploadsVcs7W0f5FCr7H.mp4">https://news.pindula.co.zw/wp-content/uploads/2023/03/91Vcs7W0f5FCr7H.mp4</a></video></div>
Livestock and heavy use of fertilizers, as well as traffic and construction, have led to levels of nitrogen oxides in the air and water in both Belgium and the Netherlands that are higher than EU regulations and that threaten the environment.
The planned move to limit emissions in Flanders has caused a crisis within the Flemish regional government.
In the Netherlands, farmers have refused to cooperate with the government on measures to limit nitrogen emissions, which would significantly reduce livestock in the country.
 It is expected to impact between 5 000 – 15 000 jobs. 
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

Thousands Of Belgian Farmers Park Tractors In CBD Over Proposed Law

White former commercial farmers, whose land was compulsorily acquired during the fast-track resettlement programme, have expressed worry about the new payment terms offered by the government.
Last month, the Government proposed new payment terms to compensate the farmers for improvements made on the farms before they were seized at the turn of the Millenium for re-distribution.
Commercial Farmers Union (CFU) president Andrew Pascoe last week said the proposed new payment terms are “completely” different from schedules outlined in the initial deal, also known as the Global Compensation Deed signed in 2020.
Under the original agreement, the farmers were to receive a total of US$3.5 billion between 2020 and 2024.
Half the money had to be paid during the first year, followed by four US$437.5 million annual instalments.
The Government, however, failed to fulfil its obligation. Said Pascoe:
<blockquote>
We have engaged our financial and legal advisors and our biggest worry is that the compensation was going to be much faster than the new terms.
We have proposed some safeguards, which we want to be included in new payment terms; we are waiting for a response from the Government so that discussions can start.
But the major issue is that we want to see if the Government can provide additional safeguards.
</blockquote>
Pascoe did not disclose the finer details citing confidentiality and protocol issues.
Finance and Economic Development Minister Mthuli Ncube said in the 2023 Budget Statement in November last year the Government was still on course to raise the funds.
He said US dollar Treasury bonds would be issued this year to raise US$3.15 billion. | <a href="https://www.businessweekly.co.zw/govt-white-farmers-head-for-showdown/">Business Weekly</a>

Govt, White Former Farmers On Collision Course

Farmers have been urged to plant short-season varieties and late-season crops to catch up with time.
Former Zimbabwe National Farmers Union vice president Edward Dune advised farmers to plant late-season crops such as sunflowers, cowpeas and sugar beans. Dune said:
<blockquote>
We are encouraging farmers to go for shorter-season varieties of crops.
They have to wrap up planting now and speed it up to catch up with the time.
Farmers are also encouraged to grow crops which are late season crops like sugar beans, sunflowers and cowpeas.
</blockquote>
Zimbabwe Indigenous Women Farmers’ Trust president, Depinah Nkomo, urged farmers to use fertilisers sparingly if the moisture is inadequate. She said:
<blockquote>
I urge farmers to speed up planting but short-season varieties are ideal at the moment.
If the rains improve, l do not commend farmers to put fertilizers if there is not enough moisture.
Farmers need to speed up planting so that they utilise the rains they received.
I recommend farmers also plant sunflowers which can be planted into the late season.
</blockquote>
The Meteorological Services Department (MSD) on Monday forecasted heavy rains across the country between Thursday 29 December 2022 and Tuesday 3 January 2023 beginning in the north and spreading southwards. | <a href="https://www.herald.co.zw/farmers-urged-to-plant-short-season-varieties-2/">The Herald</a>

Farmers Urged To Plant Short Season Varieties

Wheat farmers are accusing the government of abandoning them and leaving them at the mercy of “unscrupulous” millers and contractors.
The government set the producer price of wheat at US$620 per tonne for the ordinary grade but millers and contractors are reportedly offering them between US$450 and US$500 per tonne.
A farmer who refused to be named told <a href="https://www.newsday.co.zw/agriculture/article/200004379/wheat-farmers-cry-foul-over-price">NewsDay</a> that the Grain Marketing Board (GMB) is not buying wheat but has only offered storage facilities to the wheat farmers. Said the farmer:
<blockquote>
Government said the producer must be paid US$620, but it is only on paper. GMB said it is not buying any wheat and the millers are offering way below the stipulated prices.
The bumper harvest that we experienced is now a curse and most farmers have vowed not to plant wheat again next year.
</blockquote>
A representative from one of the millers’ associations said the government announced the new producer prices without consulting them. Said the representative:
<blockquote>
The US$500 is the indicative price. The problem with our government is that it just announces the price without consulting.
Sometimes it becomes cheaper to import wheat of high quality than to buy it locally.
The other thing is that most of the wheat farmers are contracted. They have a prior arrangement with their contractors which stipulates the amount of money they are getting paid.
</blockquote>

Grain Millers Buying Wheat Below Stipulated Price - Farmers

The government has urged farmers in drier regions of the country to grow small grains that are more drought-tolerant instead of maize.
Lands, Agriculture, Fisheries, Water and Rural Development Minister, Anxious Masuka, said farmers in regions 4 and 5 should not grow maize unless they are doing it under irrigation.
Masuka assured farmers that they will be allowed to exchange their small grains for maize at their nearest Grain Marketing Board (GMB) depot.
He was speaking at the handover of plots to farmers who were displaced when Greenfuel took over the ARDA estate in Chisumbanje, on the back of a joint venture agreement around 2009. Said Masuka:
<blockquote>
We know people like maize sadza. When we say farmers should not grow it unless their conditions permit, we are not saying they should forgo eating maize.
We have come up with a plan, in which farmers will take their sorghum to their nearest GMB (Grain Marketing Board) and for every bucket of sorghum, millet, or rapoko, they will get one bucket and a gallon of maize.
</blockquote>
He added that the government has put in place a system to ensure that the grain swaps are done at every GMB depot in the country. | <a href="https://www.sundaymail.co.zw/new-govt-introduces-grain-swap-facility-as-efforts-to-push-up-small-grains-adoption-intensity">The Sunday Mail</a>

Govt Introduces Grain Swap Facility To Encourage Production Of Small Grains

The government has urged resettled farmers under-utilising land to consider joint ventures with investors or risk revocation of offer letters.
The Minister of Lands, Agriculture, Fisheries, Water and Rural Development Minister, Anxious Masuka, said his ministry has already developed a template for the joint venture agreement. Said Masuka:
<blockquote>
The ministry is encouraging joint ventures, so if you think you do not have the capacity to farm, Zimbabwe wants production on your farm, so find someone who is able to assist you to farm.
The ministry has established a Joint Venture Unit and we have developed a template for an agreement between a farmer and someone who has the capacity to farm.
We are also creating a database of farmers who have offer letters, but who are not fully utilising their land and creating another database of those people who do not have land but have the capacity to farm.
So that we can do the matching of the farmer who has the land but not sufficiently utilising it and the investor who has the investment and finance, but has no land so that this government does not resort to saying each time we come to your farm, you are not productive, we withdraw your offer letter and give it to someone.
</blockquote>
He said the template of the joint venture agreement was available on the ministry’s website.
Masuka urged farmers to take advantage of initiatives provided by the recently reestablished Agricultural Finance Corporation (AFC). He said:
<blockquote>
The Agricultural Finance Corporation has been reestablished to provide financing through the land and development bank.
But also because we realised that one of the issues is capacity at a farm level, you might not have the capacity to purchase a tractor at the farm level and we have given AFC initially 210 tractors.
Three weeks ago, we gave them an additional 400 tractors so that they can assist farmers with tillage operations this season.
We will add more, we think if AFC is leasing 1 500 tractors at any given time it means no farmer can fail to plant on time saying they have failed to receive adequate tillage.
</blockquote>
|<a href="https://www.newzimbabwe.com/utilise-land-or-risk-losing-farm-offer-letters-agric-minister-warns-lazy-farmers/"> NewZimbabwe.com</a>

"Use It Or Lose It," Agriculture Minister Urges Farmers To Consider Joint Ventures

Farmers have expressed concern over high input costs, especially fertiliser, and have implored the government to intervene and eliminate “profiteering” by businesses.
<a href="https://businesstimes.co.zw/concern-over-high-farming-input-costs/">Business Times</a> has established that a 50kg bag of top dressing fertiliser is now selling at US$60, a 33% increase from US$45 last year.
The price of basal fertiliser has also gone up by almost 50% to between US$35-45 per 50kg from around US$25-30 last season.
Zimbabwe National Farmers Union (ZNFU) secretary general, Stewart Mubonderi called for “sensible pricing”. He said:
<blockquote>
We have an excessive profiteering problem in our nation, where individuals want to earn a lot of money in one night, but there will be very few buyers due to the high prices.
So we ask the corporations doing this to be sensible and provide farmers with fair pricing, and also the government to engage them constructively and ensure that these unwarranted price increases we are seeing are stopped and avoided.
</blockquote>
The president of the Zimbabwe Commercial Farmers Union (ZCFU), Shadreck Makombe, said the high input prices would negatively affect the 2022/23 season. Makombe said:
<blockquote>
There is a need for the government to intervene in the short term through targeted and time limited input subsidies so as to alleviate the plight of vulnerable farmers and to ensure affordable and viable inputs.
It [the price of diesel] has been going down. We would have expected the prices of goods to also go down in tandem with the going down of diesel, which is one of the major inputs in prices.
Unfortunately it’s not happening that way. So at the end of the day farmers are the ones who are suffering.
</blockquote>
Makombe proposed that manufacturers of farming inputs deal directly with farmers to eliminate middlemen in order to reduce the high prices.

Farmers Bemoan High Input Prices

The Grain Marketing Board (GMB) has increased the local component producer prices for 2022/23 summer crops.
The producer price of maize has been increased to ZWL$100 000 plus US$90 per metric tonne from ZWL$75 000 plus US$90 per metric tonne.
The producer price of traditional grains has also been increased to ZWL$100 000 plus US$90 per metric tonne from ZWL$75 000 plus US$90 per metric tonne.
The price of soya beans has been increased to ZWL$228 660 plus US$90 per metric tonne from ZWL$171 495 plus US$90 per metric tonne.
The price of sunflower has been increased to ZWL$274 392 per metric tonne plus US$90 from ZWL$205 794 plus US$90 per metric tonne.
GMB chief executive officer Rockie Mutenha said the new prices are effective 03 August 2022. He added:
<blockquote>
GMB is encouraging farmers to immediately deliver their crops to the nearest depot or collection point.
We are further encouraging farmers who had not opened their Nostro accounts to do so to enable us to deposit the foreign currency component.
</blockquote>
<table class="table table-bordered table-hover" id="table_1" style="width: 95.9813%; height: 136px;">
<tbody>
<tr>
<td title="Character Accurarcy=99.91">Commodity</td>
<td title="Character Accurarcy=99.98">From</td>
<td title="Character Accurarcy=99.85">To</td>
</tr>
<tr>
<td title="Character Accurarcy=99.85">Maize</td>
<td title="Character Accurarcy=98.53">ZWL75,000 + USD 90.00 per Mt</td>
<td title="Character Accurarcy=99.15">ZWL 100,000.00 plus USD 90.00 per Mt</td>
</tr>
<tr>
<td title="Character Accurarcy=99.69">Traditional Grains</td>
<td title="Character Accurarcy=98.63">ZWL 75,000 + USD 90.00</td>
<td title="Character Accurarcy=98.39">ZWL 100,000.00 plus USD 90.00</td>
</tr>
<tr>
<td title="Character Accurarcy=99.62">Soya Beans</td>
<td title="Character Accurarcy=99.09">ZWL 171,495 + USD 90.00</td>
<td title="Character Accurarcy=99.11">ZWL 228,660.00 plus USD 90.00</td>
</tr>
<tr>
<td title="Character Accurarcy=99.89">Sunflower</td>
<td title="Character Accurarcy=98.76">ZWL 205 794 + USD 90.00</td>
<td title="Character Accurarcy=98.54">ZWL 274,392.00 plus USD 90.00</td>
</tr>
</tbody>
</table>
<img alt="Image" decoding="async" src="https://pbs.twimg.com/media/FZPaO2mUsAA5UFW?format=jpg&amp;name=900x900"/>

GMB Increases Producer Prices Effective 03 August

The Zimbabwe National Farmers Union (ZNFU) has welcomed the US$90 incentive for early grain deliveries recently announced by the Government but said it falls short of their expectation of over US$300 per tonne.
On Tuesday, Cabinet resolved that farmers who deliver maize to the Grain Marketing Board (GMB) before the end of July will get an incentive of US$90 per every tonne delivered.
The US dollar incentive is in addition to the ZWL$75 000 per tonne producer price announced several weeks ago.
The ZWL$75 000 is equivalent to about US$166 using the parallel market exchange rate which the farmers use to buy their inputs such as fertilisers, pesticides and seeds.
Speaking to Business Times, the Zimbabwe National Farmers Union chairman Stewart Mubonderi, said:
<blockquote>
While this is a welcome development, we still feel that the government has to do more. The reason being that when we were growing the crops almost every input was in US$ up until harvesting.
I would like to believe that between US$300/MT and US$400/MT would be the best price.
If they say US$300 then the other one can be in ZWL$ and it will be okay with our farmers because that would be 80%.
</blockquote>
Mubonderi said the Government is buying maize from other countries for about US$350 per tonne, yet the local farmer is getting US$150 from GMB. He said:
<blockquote>
Why not give US$300 to the farmer or US$280 to the farmer? Then the farmer is motivated to grow, we save foreign currency that way, and all the crop is brought into the country and is handed over to the GMB.
</blockquote>
The GMB is notorious for making late payments to farmers and their proceeds would have been eroded by inflation by the time the cash lands in their bank accounts.
<h4>More: <a href="https://businesstimes.co.zw/farmers-reject-govt-incentive/">Business Times</a></h4>

Farmers Welcome USD Incentive... But Plead For More

Unions representing farmers said the ZWL$75 000 per maize tonne being offered by the Grain Marketing Board (GMB) is too little.
On Tuesday, acting Information Minister, Jenfan Muswere told reporters in a post-Cabinet briefing that maize farmers will be given a fixed incentive of US$90 per tonne for early deliveries to GMB in addition to the ZWL$75 000.
Last month the Government also announced that grain farmers will be paid 30 per of their proceeds for deliveries to GMB in US dollars, with the rest being paid in Zimbabwe dollars.
Speaking to NewsDay on Tuesday, Zimbabwe Commercial Farmers Union (ZCFU) president Shadreck Makombe said:
<blockquote>
As it stands, the value of the $75 000 (US$150 parallel market rate) producer price has already been eroded.
Given the trend in terms of the exchange rate and inflation, I don’t foresee farmers managing to go back to the fields.
There is, therefore, a need to review the producer price to be in tandem with the movement of the exchange rate.
Farmers are lobbying for an increase in producer price, but it’s premature for me to say how much.
</blockquote>
Zimbabwe Farmers Union (ZFU) Manicaland provincial manager Dennis Chisevure said:
<blockquote>
With the current producer price, it won’t be possible to afford inputs.
However, the government is making plans to cushion farmers and to review the producer price.
This follows a push from farmers and unions.
</blockquote>
Norton Farmers Association chairperson Orphias Matibhiri said some farmers end up selling their maize to individuals in US dollars for them to afford inputs.
A 25kg bag of seed maize now costs between $30 000 and $42 000, while 50kg Compound D fertiliser costs US$35 or $17 500; and Ammonium Nitrate is now pegged at US$70 or $35 000.
<h4>More: <a href="https://www.newsday.co.zw/2022/06/govt-dangles-us90-incentive-for-maize/">NewsDay</a></h4>

GMB Maize Producer Price Too Little - Farmers

The Grain Marketing Board (GMB) has warned farmers and producers of controlled grain such as maize, soybeans, wheat and barley that selling their produce to any buyer other than GMB is an offence.
In a statement on Wednesday, 1 June 2022, GMB chief executive officer Rockie Mutenha said all farmers or producers of controlled grains are required to deliver products to any nearest GMB depot. He said:
<blockquote>
Farmers/producers who intend to retain a portion of the product for farm feed or another commercial usage shall apply for exemption from GMB.
No one is allowed to sell or buy maize and any controlled product other than through GMB unless one is a bona fide contractor registered with the Agricultural Marketing Authority of Zimbabwe (AMA).
</blockquote>
Mutenha also said that all farmers, producers and contractors are required to apply for a movement permit if they want to move their grain from one area to another. Said Mutenha:
<blockquote>
Trading in controlled products (buying or selling) without the authority of the GMB is an offence.
All stores, millers, stock feeders and any other users of controlled products are required to register with the GMB before engaging in such business.
</blockquote>
<h4>More: <a href="https://www.sundaymail.co.zw/new-farmers-warned-on-illegal-grain-trading">The Sunday Mail</a></h4>

Farmers Ordered To Get GMB Exemption To Consume Their Grain

The Grain Marketing Board (GMB), the custodian of the country’s grain reserves, indefinitely suspended grain allocations to millers for unclear reasons, reported NewsDay.
The publication quoted players in the grain industry on Tuesday as saying GMB reduced maize allocations to millers from 100% to 75% in February and further cut them to 50% last month.
A miller who wanted to remain anonymous was quoted as saying:
<blockquote>
We have gone for more than six weeks without an allocation. We are getting supplies every four weeks.
We used to apply and get allocations each month, then submit returns around mid-month. We started getting 75% three months ago, then last month, it went down to 50%.
On Friday last week, we made payments and waited for allocations, but everything just stopped.
They didn’t give us any reasons, but we are told by people at GMB that they want to increase the maize producer price in order to attract deliveries because the $75 000 is now very low.
We are also told stocks are running out and it’s obviously true and that’s why they allowed us to import freely.
</blockquote>
A top executive with one of the country’s major millers who preferred anonymity said:
<blockquote>
Things were normal and I can confirm the allocations were just stopped and we don’t really know why. I wouldn’t want to lie, but we can only speculate.
</blockquote>
Another senior official with a top milling firm told NewsDay that authorities should allow millers to access foreign currency at the RBZ auction. Said the official:
<blockquote>
The question for us major millers is that we move huge volumes and our shareholders will be worried about this scenario, where you import maize in US dollars and then you don’t know if you are allowed to sell in US dollars to recover your money without having to then go to the black market and risk huge exchange rate losses.
It would be better if they allowed us to go on the auction like what oil expressers are doing.
</blockquote>
Grain is in short supply due to inadequate rainfall in the 2021/22 season as well as the withholding of produce by farmers who want more cash for their harvest.
GMB increased the maize producer by 50% to $75 000 per tonne and the government said it would be paying 30% in US dollars and the rest in local currency.
However, farmers immediately demanded a 50% US dollar payment for their grain.
<h4>More: <a href="https://www.newsday.co.zw/2022/06/hunger-looms-as-grain-runs-out/">NewsDay</a></h4>

Hunger Looms As GMB Runs Out Of Grain

Economic commentators say the Grain Marketing Board (GMB)’s monopoly on the marketing of maize is killing the market, especially small-holder farmers.
Agricultural economist Mandivamba Rukuni said that the Government should offer farmers 50% part payment for grain in US dollars.
The Government has offered to pay farmers 30% in US dollars and 70% in Zimbabwe dollars for delivered grain. Said Rukuni:
<blockquote>
I think the issue has been about pricing. I hope government will review the prices to 50% payment in forex because it would cost the country US dollars anyway to import grain. It’s a win-win situation for both and government and farmers.
</blockquote>
Another economic commentator, Victor Bhoroma said the price of all agricultural products should be determined by market forces. He said:
<blockquote>
Well, the challenge we have with the GMB monopoly on maize is that it kills market access for small-holder farmers, dents viability, creates inefficiencies in the economy and leads to rent-seeking behaviour by those with access to GMB or authorities.
Pricing for any agriculture commodity needs to be set by growers or be determined in an open market such as the commodity exchange.
Anything else will lead to a decline in production and food insecurity. GMB cannot set a competitive price, and pay for the grain on time and efficiently.
History will tell you. Millers cannot operate through buying from GMB as long as the price is above market price.
</blockquote>
Last week, the Government resolved to use soldiers and police to seize grain from farmers to prevent the side-marketing of grains.
<h4>More: <a href="https://www.newsday.co.zw/2022/05/proposed-raids-on-grain-farmers-raises-stink/">NewsDay</a></h4>

"GMB Monopoly Killing Market For Small-holder Farmers"

Grain farmers have welcomed the decision by the Grain Marketing Board (GMB) to pay 30 per cent of their proceeds in US dollars but have pleaded for the forex component of the payments to be raised to 50 per cent.
Zimbabwe Farmers Union (ZFU) president Abdul Nyathi told NewsDay that all farming inputs are now being sold in US dollars. Nyathi said:
<blockquote>
We welcome the 30% offered although we would have wanted it to be 50% for a start. We hope in the next season or when it comes to the selling season it will be revised maybe to 50%.
We welcome the government’s move that it has at least understood that the purchase of all supplies, in fact, all inputs is in the USD.
It was very difficult for farmers to use the parallel exchange rate even the bank rate was too little to make anything towards the cost of inputs so with this move that has given us 30%, we welcome that and we also hope that they will also see that it needs to be improved as times goes on.
</blockquote>
Zimbabwe Commercial Farmers Union (ZCFU) president Shadreck Makombe said it would be ideal if farmers get 100% of their payments in foreign currency. He said:
<blockquote>
The granting of 30% is in the right direction for a start by the government, however, as farmers, we would want to recover our costs if we look at what is prevailing in the economy, the fluctuations and the inflation are indicating that we may not go back to the field.
Yes, we are happy with the 30%, but we are hoping that it adds up to 50% and 70% and eventually 100% as it is saving imports expenses.
</blockquote>
Last week, GMB advised farmers that it was paying them 30% for their maize and traditional grains in United States dollars and 70% in Zimbabwe dollars.
<h4>More: <a href="https://www.newsday.co.zw/2022/05/maize-farmers-plead-for-a-50-usd-payment/">NewsDay</a></h4>

Grain Farmers Plead For A 50% USD Payment

The Grain Marketing Board (GMB) has urged farmers to open Nostro accounts to enable them to receive US dollar payments for grain deliveries.
In a statement, GMB chief executive officer Rockie Mutenha said:
<blockquote>
The GMB is encouraging farmers to update their Nostro banking details with our supply chain managers at all depots throughout the country for timeous payments.
For those with GMB farmer cards, the Nostro accounts will be automatically generated in our system.
</blockquote>
On Saturday, Finance and Economic Development Minister Mthuli Ncube announced that farmers who deliver their grain to GMB will get 30 per cent of their proceeds in US dollars and 70 per cent in Zimbabwe dollars.
Ncube said the payment will be calculated at the prevailing willing buyer willing seller rate. He said:
<blockquote>
In the quest to incentivise farmers and encourage early deliveries of maize and other grains to the Grain Marketing Board, the government has taken the decision to pay the maize farmers 30% of the amount due on grain delivered in United States Dollars and 70% in domestic Zimbabwe dollars.
The US Dollar payment will be calculated at the prevailing willing buyer willing seller rate published by the Reserve Bank of Zimbabwe on the date of delivery.
The payments will be backdated to the date of the first deliveries of this season’s maize to GMB.
</blockquote>
<h4>More: <a href="https://www.sundaymail.co.zw/open-nostro-accounts-gmb-tells-farmers">The Sunday Mail</a></h4>

GMB Tells Farmers To Open Nostro Accounts

Farmers in Midlands Province have rejected the new Grain Marketing Board (GMB) grain prices that were announced by the government last week.
Farmers who spoke to Southern Eye said that the prices do not allow them to break even and they would rather sell their maize to the highest bidders.
Last month the Government<a href="https://news.pindula.co.zw/2022/04/27/grain-soya-bean-producer-prices-go-up/"> announced an upward review of the floor producer prices of maize, soya beans, traditional grains and sunflower</a>.
The producer price for maize and traditional grains was raised to ZWL$75 000 per tonne.
Previously, the floor producer price of maize was ZWL$58 553 while that of traditional grains was ZWL$70 263.90.
In US dollar terms, the new price of grain is around US$180 using black market rates.
Herbert Choruma, a Gokwe farmer said the Government should consider paying farmers for their produce in foreign currency. He said:
<blockquote>
The producer prices should be pegged in US dollar because our local currency is not stable.
</blockquote>
Another farmer Sheila Muronziwa said the Government cannot expect farmers to deliver their grain to GMB considering the “uncompetitive” prices on offer. Said Muronziwa:
<blockquote>
The maize and traditional grains producer prices of $75 000 per metric tonne by GMB are uncompetitive.
We are now contemplating on selling our produce on the black market.
Government cannot expect farmers to produce when it is paying such low prices for grain. 
The production chain will be hamstrung.
</blockquote>
Farmers claim that it costs US$100 to prepare a hectare of land and two applications of herbicides also cost US$100. Kwekwe farmer Misheck Shumba said:
<blockquote>
That farmer also requires labour to remove weeds and tender the crops. Farmers are simply going to sell their produce to the highest bidder.
</blockquote>
Meanwhile, t<a href="https://news.pindula.co.zw/2022/04/30/farmers-ordered-to-deliver-grain-to-gmb-within-14-days-of-harvesting/">he GMB recently said all maize, soya beans, wheat and barley farmers should deliver their produce to any nearest GMB depot within 14 days of harvesting.</a>
GMB also warned that those who ignore the directive risk prosecution as well as losing their produce.
<h4>More: <a href="https://www.newsday.co.zw/2022/05/midlands-farmers-reject-new-grain-prices/">NewsDay</a></h4>

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