Feature - Wheat shortages to continue

Shortages of wheat are set to continue in Zimbabwe as preparations for the 2003-2004 planting season have been described by agricultural experts as largely inadequate. The shortages have so far affected millers and bakeries with adverse consequences on food security and employment. Low harvests from the 2002-3 crop have also led to serious bread shortages and a price hike of the commodity. Experts say that only 80,000 mt of wheat will be produced this year, compared to 130 mt in 2002. To encourage wheat growing the government has increased the producer price from Zim $70,000 (US $85) to Zim $150,000 (US $182) a tonne. Farmers, however, say the cost of inputs are still not matched by the recently announced prices. This year shortages of fuel and fertiliser has meant that fewer fields have been planted. Those that can afford it have been forced to turn to the parallel-market. A spokesperson for the Zimbabwe Farmers Union told IRIN that the Ministry of Energy had supplied farmers with fuel but the rations were not enough. Former managing director of the state-run Grain Marketing Board (GMB) and opposition MP, Renson Gasela, said the problems facing wheat farmers cannot be seen in isolation. "We have to look at the fuel problems, the power shortages and how the economy is performing in order to find solutions to the wheat shortages," he told IRIN. Hardest hit was the irrigated crop, which requires electric power to run the pumps. In April, an economist at the Commercial Farmers Union (CFU), Kuda Ndoro, said only a quarter of the irrigated wheat crop had been planted due to power shortages. "At the moment industry, including the agriculture sector. is operating at only 30 percent of capacity because the Zimbabwe Electricity Supply Authority is unable to meet power demands. There is no power for irrigation on the farms. If nothing is done to augment supply this will affect the performance of the winter cereals," Ndoro said. Away from the fields, bread shortages continue in most of Zimbabwe's cities and towns. Until last month when bakers unilaterally increased the price of bread without the consent of the government, bread was found mainly on the parallel market at almost twice the government gazetted price. In May the government pegged the price of a loaf at Zim $250. This is a far cry from the Zim $350 to Zim $500 that is charged on the parallel market. The Consumer Council of Zimbabwe has since January 2003 been urging Zimbabweans to boycott bread which it says is being overcharged by bakers. The Council suggested Zimbabweans consider options such as sweet potatoes. Such a call, however, would have done little to avert the job losses facing thousands in the industry. Tuckshop owners in Harare's high-density suburbs, who rely mostly on selling bread, said business was poor and many had contemplated closing down. Bezel Gandiwa owns a tuckshop in Harare's high-density suburb of Mbare. "The supply of bread has been very erratic. In some cases we have gone for a week without receiving any bread at all," Bezel said. Wheat is the second most important cereal crop consumed in Zimbabwe after maize. The shortages forced the GMB in May to import 62,000 mt at a cost of Zim $15 billion (US $18.9 million), and has made a request for foreign currency to the Reserve Bank to purchase a further 100,000 mt of wheat from Brazil. To cover needs, the import bill could climb to US $55.2 million. But many small-scale bakeries have closed shop already, complaining that they cannot access enough supplies. Large milling and baking companies are equally feeling the pinch with the GMB only supplying a maximum of 6,000 mt per week to Zimbabwe's three big milling companies. Although the government latest economic revival initiative, the National Economic Revival Programme has agriculture as its foundation, farmers say it will not work as long as fuel and foreign currency shortages persist.