Sun, 03 Sep 2017 12:53:41 +0000
By OSCAR MALIPENGA
WHEAT growers have recommended an increase of U$S20 to U$S30 per ton this marketing season because of 75 percent increase of electricity tariff and have vowed to sell the commodity at a regional price.
Zambia Wheat Growers chairman Donald Burton said the growers made the recommendation after taking production cost aspects into consideration.
This means that the price of a loaf of bread would also rise.
He told Sunday Nation that wheat growers were importing fertilizer and chemicals from South Africa and that electricity had been increased by 75 percent, hence the recommended increase.
This means millers will now be buying wheat from growers at a minimum of U$S420 per ton this season compared to U$S370 regional price per ton.
Mr Burton, explained that although the regional price was cheaper, millers were still paying more than U$S420 to U$S450 on imported wheat from the South Africa because of extra charges such as transport, port and duty.
“We have to sell at least U$S240 in order to make a profit. We are not asking them to pay us U$S450 but that is what it will cost them to bring wheat in Zambia from South Africa,” he said.
He said it was true that wheat from South Africa was costing U$S370 but when importing it to Zambia on a truck it would cost them another U$S100 plus duty charges.
Mr Burton said wheat growers in Zambia were actually asking for less than imported wheat.
“We are asking for less price. Between U$S400 and U$S420 is what farmers will be happy to sell wheat for,” he said.
He said the reason why the growers had decided to increase was because they had to transport fertilizer by road from South Africa to Zambia, adding that fertilizer cost was more expensive for Zambian growers than South African growers.
Mr Burton said wheat from South Africa was not even locally grown as they were also importing from Ukraine and Russia because they also did not have enough wheat to feed their nation. “We just want a fair price and they must also know that the price in Zambia must include all the production costs because we import almost everything just to grow wheat in Zambia. They are saying we must sell at the same price as South Africa, how can we sell at the same price as South Africa when we have to import fertilizer into Zambia?” he said.
Mr Burton said wheat growers had already started harvesting in Mpongwe, adding that the commodity was already on the market.
