Food Prices

News reports all over the world are reporting that there is a global food shortage on the planet.

Rice, the staple Asian food is in short supply and emergency stocks have to be transported to areas where the need is greatest. Maize, on the African continent is also becoming scarce such that many countries have put a block on exports in order to ensure domestic food security during 2008.

A factor that is exasperating the situation is the cost of energy that directly increases the prices of food worldwide. A barrel of oil is now selling at USD122 thus making transportation a major input in food production and distribution.

Well, if you come from a developed country the situation is not so disastrous since the only change you have to make is in respect to what choice of food you can eat. There is always and alternative when there is money in your pocket to make the various choices.

However, on the African and Asian continents the situation is quite different. The choices are limited and the cash in our pockets is insufficient therefore reducing the number of options away from nshima, beans, meat, fish and traditional vegetables.

Zambia is a country endowed with untold mineral resources, vast areas of arable land, a huge water resource capacity, and able bodied citizens.

One often wonders why we should be suffering from ever rising food prices and at times even a national food shortage.

The Government of the day has various programs to support and encourage agriculture in Zambia in an effort to produce more food to satisfy the local demand and to service the export markets.

A key link in the development chain for food production is that one from producer to consumer via several intermediaries such as consolidators and processors.

This is where our grand plan seems to fall flat on its face.

Year in, and year out, we often read reports of maize being stranded in some province due to lack of transport to markets, or lack of a market in that particular production area.

There is need for us to look at food production beyond the farmer. We need to develop the supply chain from the farmer to the markets through a set of different buying agencies, transportation logistics, and produce trading companies that do this work as a business in itself. We need to support and facilitate various processing and packaging companies to convert our bumper harvests from perishable produce to processed and packaged products that have a much longer shelf life and can be easily transported and sold in various markets.

Some years ago, the United States Government came up with a brilliant idea to support Africa by offering US markets to Africa’s producers of goods and services. This initiative known as the African Growth and Opportunity Act (AGOA) was never taken seriously by many of the African countries and the option to develop their economies and their food production capacity was only discussed at conference tables but very little was done on the ground to actually stimulate and motivate production. Zambia was no exception. Even today the endeavour still stands very much as an opportunity that we are missing and continue to ignore.

This opportunity offered us the ability to market our produce in the US and to process much of it into a value added exportable form. The net result would have been more exports for Zambia and a food security mechanism at the local level to ensure that our food would always be available to all. This abundance of this food in the economy would result in stable and affordable prices.

It’s not too late. Oil prices will continue to increase in the foreseeable future. The population of the world is growing with quite rapid growth coming from Africa. We need to move from clasping our begging bowl and doing the rounds in Europe and North America, to using our brains and resources to make things happen in Zambia.

As the financial sector opens up to more foreign direct investment, the motivation to finance the private sector in agribusiness and agro processing becomes more interesting to our commercial banks and financial institutions.

If the Government can see the opportunities that local trading and processing offers towards developing food security, then a proactive program can be put in place to support, encourage and facilitate this drive through the Zambia Development Agency, the Development Bank of Zambia, and the Citizens Economic Empowerment Commission.

Zambian based farmers are very keen to grow more food, produce more milk, raise more livestock, plant more vegetables and fruit, and develop a budding fisheries sector, if only they can be assured of stable markets for their produce.

The dynamics for rapid development in this sector are already in place thanks to the efforts of the Zambia National Farmers Union and other Business Associations operating in the agriculture sector.

There are many initiatives supported by collaborating partners to increase our food security and to develop some form of self sufficiency. These are at best, complementary efforts to the national agriculture development program, and at worst, a diversion from our own programs in favour of some foreign grants and resources.

Food security and affordable food prices don’t happen by accident. It is a well calculated strategy that requires investment and nurturing, and is the direct responsibility of Zambia and Zambians.

Published 13 May 2008