ZFEA APPROVES 14.8% INCREASE IN MINIMUM WAGES FOR FARM WORKERS GOVERNMENT UNVEILS A ZMW64.5 BILLION NATIONAL BUDGET FOR 2017

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1 FRIDAY BRIEF WEEK 46, 2016 This Week s Highlights. ZFEA APPROVES 14.8% INCREASE IN MINIMUM WAGES FOR FARM WORKERS GOVERNMENT UNVEILS A ZMW64.5 BILLION NATIONAL BUDGET FOR 2017 ZESCO DEFERS IMPLEMENTATION OF POWER FACTOR SURCHAGE TILL 31 ST DECEMBER SEE DETAILED UPDATES BELOW. ZFEA APPROVES 14.8% INCREASE IN MINIMUM WAGES FOR FARM WORKERS The Zambia Farm Employers Association (ZFEA) approved a 14.8 % increase in Minimum wages for all employees covered under the collective agreement between ZFEA and its social partners - National Union for Plantation, Agricultural and Allied Workers (NUPAAW), Zambia Union of Sugar Industry and Allied Workers(ZUSIAW) and the Grains and Meat Workers Union of Zambia (GRAMUZ). The minimum wage increase which is subject to approval by the Ministry of Labour is effective 1 st November,2016. Details of the new wage scale are available at the Zambia National Farmers Union Head office. GOVERNMENT UNVEILS A ZMW64.5 BILLION NATIONAL BUDGET FOR 2017 Government has unveiled a ZMW 64.5 billion National Budget for the year The new budget was presented to parliament this afternoon by Hon Felix Mutati, Minister of Finance. The Minister of Finance announced that ZMW billion of the total budget will be financed through domestic resources. Key 2017 national budget allocations to the agriculture sector include the following; ZMW 2.9 billion for FISP; ZMW428.5 million for irrigation support; ZMW942.5 million for the Food Strategic Reserve under FRA; US$40 Million fund for Emergent Farmer Mechanization Programme; ZMW18.3 million for aquaculture entrepreneurship, among others. In terms of revenue measures, government proposed the following; 1

2 Increase capital allowance for plant, equipment and machinery used in the agriculture sector by 100% from 50%. Increase Top Marginal Tax Rate from 35% to 37.5%. On Value Added Tax (VAT) and Customs duty, the following measures were announced; Make input VAT non-claimable for all supplies acquired before registering for VAT. Make input VAT on petrol non-claimable. Limit claimable threshold on diesel to 90%. Increase excise duty on air time from 15% to 17.5%. Increase customs duty from 5% to 15% on spare parts for various machinery and equipment. 5% surcharge tax on selected imported goods which are locally produced. Increase import duty on imported semi-processed edible oil from 5% to 15%. Introduce 10% export tax on maize exports. Suspend customs duty for three (3) years on various aquaculture equipment. Increase duty on plastic shopping bags from 25% to 40%. ZESCO DEFERS IMPLEMENTATION OF POWER FACTOR SURCHAGE TILL 31 ST DECEMBER 2016 ZESCO has deferred implementation of power factor surcharge on farmers and all other Maximum Demand (MD) consumers to 31 st December This was revealed during the ZESCO/ZNFU Committee meeting that was held at ZNFU Head Office this morning. During the meeting, members were also informed that water storage capacity at Itezhi-Tezhi, Kafue Gorge and Kariba dam was currently at 35%, 7%, and 19% respectively. In terms of power generation, members were informed that Itezhi-Tezhi, Kafue Gorge and Kariba were generating 80MW, 750MW and 600MW on average respectively. NEWS FROM ASSOCIATIONS THE DAIRY ASSOCIATION OF ZAMBIA DAZ MEMBERS MEET WITH ZABS TO REVIEW ZABS DAIRY STANDARDS Selected DAZ members met at the ZNFU conference room on 11 th November 2016 to review ZABS Dairy Standards. Standards reviewed were for Pasteurized milk (ZS 730), UHT Milk (ZS 735), Yogurt (ZS 731) and Raw milk (ZS732). This is to come up with improved dairy standards that will ensure supply of quality and safe dairy products to the consumers whilst developing and growing the local dairy industry. Proposed amendments to the earlier listed ZABS standards will be tabled at the Dairy Standards stakeholder workshop to be held in conjunction with ZABS early next month. Venue and date for this workshop will be communicated in due course. 2

3 ************************************************************************************************** ALERTS!!!!!!!!!!!! FARMLAND FOR SALE 130 Hectares virgin land for sale in along Nakonde Mbala Road near Mbala Farmers Training Centre, I kilometre from the Nakonde Road turn-off. About 10 hectares of the land is in a dambo area. Asking Price K2000 per hectare. For enquiries, contact Mr. G.T Chikopela on ; sichiko6@gmail.com *************************************************************************************************** NEWS FROM THE REGIONS NORTHERN REGION WORLD VISION HANDS OVER A WEIR AND CANALS TO FARMING COMMUNITY World Vision Zambia working in collaboration with stakeholders such as the Department of Water Affairs, ZNFU Northern Regional Office, the Ministry of Agriculture, Ministry of Lands and Natural Resources and Misambo community in Kasama has launched a food security project which covers Mwamba chiefdom of Kasama district. The project which is named Secure Zambia s Future focuses on food security, economic empowerment and livelihood activities targeting the rural poor smallholder farmers. Partnering with the farming community in Misambo area, the project has supported the construction of a permanent Weir and two canals in Misambo Zone along Milundu stream in Kasama. The infrastructure will supply irrigation water to more than 300 farming households covering above 300 hectares of arable land to increase irrigation farming among rural smallholder farmers. The handover of the Weir and Canals was held this week and the event graced by the Permanent Secretary for Northern Province, Hlobotha Nkunika, who represented the Minister of Agriculture, Honourable Dora Siliya. Others who attended the event are the Paramount Chief of the Bemba speaking people, His Royal Highness Chitimukulu, and delegates from World Vision. The Permanent Secretary urged the farming community in Misambo Zone to make good use of the infrastructure and improve production and productivity of crops. MPULUNGU DISTRICT RECEIVES FISP FERTILIZERS Mpulungu district in the Northern Province of Zambia has received most of the fertilizer allocation under the Farmer Input Support Programme (FISP) for this year s farming season. Both D compound and Urea fertilizers started arriving in the country in August this year and so far, all the expected 3,004.2 metric tonnes of D compound fertilizers have been received. The district has also received 2,650 metric tonnes of Urea fertilizers out of the expected 2,826.3 tonnes. However, some farmers have expressed worry over the delayed delivery of seeds to the district. But when reached for a comment over the matter, the District Marketing Officer, Rebecca Kapembwa said 3

4 that seeds will be received in good time and that the distribution of inputs will start as soon as possible as transporters of inputs have already been engaged. TUTA ABSOLUTA INFESTATION DESTROYS TOMATO FIELDS IN KASAMA Several hectares of Tomato fields in Kasama district have been wiped out by a pest known as Tuta Absoluta (Leaf miner). A check by the ZNFU regional staff in Northern Province revealed that the pest has wiped out almost 100% of the crop in affected fields. The development has saddened the affected farmers. Meanwhile the affected farmers have been advised by ZNFU field staff to purchase pesticides for control of the pest from MRI Syngenta who have an outlet in Northern Province. The farmers have also been advised to uproot and destroy all crop residue from affected fields to avoid the spread of the pest. NORTH WESTERN REGION FRA RESUMES PAYING FARMERS The Food Reserve Agency (FRA) in North Western Province has resumed making payments to farmers who supplied maize and paddy rice to the Agency. A check by ZNFU staff in various districts of the province found that most of the farmers who are owed by the FRA are receiving their payments through the banks. Some farmers whose names are not on the latest payment schedule have appealed to the FRA to hasten up the process of paying farmers as they need to prepare for the farming season. Meanwhile, all parts of North Western Province have started receiving enough rainfall capable of supporting plant growth. CHAVUMA DFA IMPRESSES SAPP PROVINCIAL INSPECTORS A provincial team of inspectors from the Ministry of Agriculture and the Ministry of Fisheries and Livestock in North Western Province this week visited a SAPP supported rice polishing project being implemented by Chavuma District Farmer Association (DFA). The team of inspectors showed satisfaction with the progress made by the DFA. Chavuma DFA received a matching grant from the Smallholder Agribusiness Promotional Program(SAPP) to implement a rice polishing and marketing project which has so far been progressing well. The team of inspectors led by the Provincial Livestock Coordinator, Dr. Situmbeko was happy with the way the DFA has showed accountability, stack to procedures, and meeting targets within the stipulated time. The DFA chairman, Richard Manjimela, assured the team of inspectors that the DFA will religiously adhere to the recommendations given to them so that the project becomes a success. WESTERN REGION CONCERN WORLDWIDE PROGRAMME TO PHASE OUT OF KAOMA Concern Worldwide has been implementing the Integrated Poverty Reduction and Women Empowerment Programme in Kaoma district since The organization has announced that the programme is coming to an end in December The programme which has been running for four years now focuses on empowering women but has ended up benefiting men as well. An end of programme evaluation which has been carried out has indicated significant successes scored by the programme in Kaoma district. 4

5 CENTRAL REGION KAPIRI FARMERS TO BENEFIT FROM SAPP MATCHING GRANTS The Smallholder Agribusiness Promotional Program (SAPP) announced this week that 4 farmer groups from Kapiri Mposhi district have been earmarked to benefit from the matching grants facility after their applications were approved. The SAPP matching grant facility works in such a way that a farmer group contributes 20% towards a group enterprise while 80% is funded by SAPP. SAPP has been helping organized farmer groups implement viable farming projects through the matching grant facility. EASTERN A REGION SUBBRIDGE TOBACCO TO BUY 220,000 KGS LEFT-OUT TOBACCO A company named Subbridge Tobacco has announced in Chipata, Eastern Province that they will buy the tobacco crop which was left-out in the previous tobacco marketing season. Subbridge Tobacco has since written to the Tobacco Board of Zambia (TBZ) for an extension of the marketing season to allow them buy the tobacco from farmers in Chipata. Over 220,000 Kilograms of Tobacco which has not yet been sold by independent growers will be bought by the company. The TBZ on the other hand has confirmed receipt of the letter from Subbridge over their intentions to buy the tobacco from the farmers. However, the TBZ through its Board Secretary said that they are wondering where the tobacco is coming from as TBZ had bought all the remaining tobacco from the farmers in the province before the closure of the tobacco marketing season in September. Meanwhile, the TBZ has not yet paid some of the farmers that sold their tobacco to them. TBZ owes farmers over k5,000,000 (5 Million kwacha) for the tobacco supplied by farmers in the province. ZNFU TO START DISTRIBUTION OF THE FISP e-cards IN CHIPATA SOON The ZNFU in Chipata has recruited 20 interns to help in the distribution of e-cards to farmers who will be participating the Farmer Input Support Programme (FISP) in the 2016/2017 farming season. The exercise of recruiting the interns was done by the ZNFU regional office and the office of the District Agriculture Coordinator in Chipata. The distribution exercise will commerce once all the e-cards for Chipata district are ready and the ZNFU have been assured that the cards will be ready soon. 5