FRIDAY BRIEF WEEK 38, 2015 INDUSTRY UPDATES. THIS Week s Highlights

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1 FRIDAY BRIEF WEEK 38, 2015 THIS Week s Highlights ZISC PAYS OUT K3M TO FARMERS FARMERS BEMOAN THE INFLUX OF IMPORTED FRUITS AND VEGETABLES DAIRY FARMERS ASK PROCESSORS TO INCREASE THE PRICE PAID TO MILK SUPPLIERS LABOUR UPDATE MINIMUM WAGE AGREEMENT... SEE DETAILED UPDATES BELOW INDUSTRY UPDATES ZISC PAYS OUT K3M TO FARMERS The Zambia State Insurance Corporation (ZSIC) General Insurance has paid about K3 million in claims to over 6,000 farmers on the Zambia National Farmers Union Lima Credit Scheme who suffered crop failure in the 2014/15 farming season. The 2014/15 farming season saw a lot of farmers, both large and small scale, suffered crop failure brought about by drought. ZISC General Insurance managing director Mr. Charles Nakhoze said the total K5.1 million is expected to be paid out to farmers in a quest to cushion the impact of crop failure. He said this when he presented a cheque worth K3, 042, to ZNFU on Tuesday this week. He said the payment will be broken down to cover affected farmers from Kawambwa, Chienge, Monze, Chibombo, Livingstone, Kazungula, Samfya, Milenge, Chongwe and Chipata. Other areas are Kaoma, Lundazi, Chadiza, Kapiri Mposhi, Katete, Chinsali, Nakonde, Mpika and Isoka. During the same occasion, ZNFU executive director Ndambo Ndambo said prolonged dry spells reduced the national maize crop by about 22 per cent to 2.6 million tonnes and severely affected the soy beans yields to less than a tonne per hectare for the small scale farmers. And Mr. Ndambo said 1

2 innovative farm risk mitigation measures are necessary if farmers are to mitigate the effects of climate change. Mr. Ndambo said the Lima Credit Scheme farmers were not spared as 9,292.5 hectares of 38,000 plus hectares of financed crop in 2014/15 season were negatively affected by the prolonged dry spells across the country. He added that the ZNFU-ZSIC partnership has since 2008 resulted in the insurance company paying out premiums worth K8.2 million. He said it was gratifying to see an increasing number of small scale farmers beginning to appreciate the role of insurance in farming. DAIRY FARMERS ASK PROCESSORS TO INCREASE THE PRICE PAID TO MILK SUPPLIERS Dairy farmers in Zambia have asked processors to increase the price they pay to farmers supplying milk through the different Milk Collection Centres due to escalating costs of production. Dairy farmers noted that the current ZMK3.40/litre and ZMK 3.20/litre that processors pay milk suppliers for grade A and Grade B milk respectively is too low for farmers to break-even. Dairy farmers indicated that feed constitutes 65% of total cost of production and the increase in stock feed prices has undermined the viability of dairy farming in the country. Farmers expressed these concerns during the 6 th Dairy Association of Zambia (DAZ) Annual General Meeting held during the week at the New Government Complex in Lusaka. Meanwhile ZNFU President Dr Nguleka warned that livestock sector and dairy farming in particular was facing a huge risk as a result of a number of regulatory fees currently proposed by the Zambia Medicines Regulatory Authority (ZAMRA). In a bid to raise resources to fund the operations of the Zambia Medicines Regulatory Authority, the institution has proposed a number of fees for the different categories of veterinary medicines suppliers. The ZNFU president warned that such measures will only serve to destroy the dairy sector leading to job losses and corresponding decreases in production among rural households. To this effect, the ZNFU president urged farmers to ensure that they work together to confront any such measures by statutory bodies that seek to raise the cost of doing business by levying fees on farmers. Dr Nguleka said this when she officiated at the DAZ AGM. FARMERS BEMOAN THE INFLUX OF IMPORTED FRUITS AND VEGETABLES Fruits and Vegetables remain widely grown by many farmers in Zambia as they offer a regular and additional source of income to households. However, farmers are dismayed at the rate at which some of the fruits and vegetables are being imported by some chain stores. The importation of unwashed potatoes through the Nakonde boarder further poses a serious SPS risk to Zambia. This came to light during the ZNFU s fruits and vegetables commodity committee that was held in Lusaka at ZNFU main office. The farmers have therefore among others implored; Government to regulate importation of fruits and vegetables that can be produced locally such as Potatoes, Tomatoes, Onions, Bananas and Oranges in order to safeguard the growth of this sub-sector. Government through ZARI to remain vigilant and subject importation of Irish potatoes to SPS measures as they cause a serious threat on commodities like tomatoes, tobacco and Zambian grown Irish potatoes that are prone to same diseases and viruses. LABOUR UPDATE MINIMUM WAGE AGREEMENT The new minimum wage scale effective 1 st October 2015 for one year has been agreed with NUPAAW and GRAMUZ. The wage scale sets out the minimum wages for employees, whether unionised or not, of members of ZFEA. 2

3 The minimum wages have increased by 12%. The new basic daily wage for seasonal and casual workers is K20.53/day, and for Group 1 permanent / fixed-term workers it is K25.02/day. For workers being paid above the minimum it was agreed that their annual increase should not be less than inflation i.e. their wage in Oct-15 should be higher than their wage in Oct-14 by a percentage not less than inflation - currently at 7.3% but a new figure will be released by CSO by 25 th September. Signed copies of the wage scale are available to paid-up members of ZFEA. To clear up some misunderstandings: membership of ZNFU does not automatically entail membership of ZFEA. Subscriptions to ZFEA must be paid separately, at the rate of K500 p.a. for up to 50 full-time workers, K750 for workers, and K1, 000 for over 100 workers. Contact Billy and Grace at ZNFU; bmudenda@znfu.org.zm, grace@znfu.org.zm or call for payment arrangements and copies of the agreement. ALERTS!! ZAMBIAN FARMER TV PROGRAMME Don t miss next week s episode of the Zambian Farmer TV programme featuring Cattle Auction Sales conducted in Southern Province. The Zambian Farmer is a ZNFU sponsored programme which is aired every Monday at 18:25hrs on the national broadcaster, ZNBC TV1. You can also buy DVDs of your favorite Zambian Farmer TV program episodes from the ZNFU Head Office or you can make an order through your respective DFA offices. HERDBOOK SOCIETY OF ZAMBIA The annual Herdbook Society Stanbic sale will take place on the 19 th September 2015 at the Lusaka Showgrounds. Viewing of the animals starts at 08.00hrs and the Auction starts at 12.00hrs On sale will be Bulls from the following breeds: Tuli Santa Gertrudis Boran Brahman Simmental Beef Master Also on auction will be Rams/Bucks, Dorper and Boer goats. EXCITING NEW FINANCE SOLUTION FOR FARMERS & AGRIC CONTRACTORS John Deere Financial a wholly owned subsidiary of Deere & Company, Zanaco, Zambia National Farmers Union and AFGRI closed an alliance which is marked as a milestone in Zambia enabling access to finance for emerging famers. We are pleased to introduce John Deere Financial as a dedicated solution to meet your finance needs for the acquisition of John Deere equipment. This collaboration provides customers of AFGRI Zambia, (your authorized John Deere Dealer in Zambia) a unique finance solution to acquire John Deere equipment. Benefits of John Deere Financial: Access to professionals who understand John Deere equipment and the various business segments John Deere serves. This is now combined with a financial solution to suit your specific business needs. Access to a broad range of financial structures, flexible payment options, and competitive rates through our alliance with Zanaco. 3

4 Competitive interest rates subsidized with up to 3%* Access to exceptional service from a dedicated team of professionals at Zanaco and AFGRI providing a one-stop shopping experience. We will also visit your business to discuss your finance requirements. Immediate access to required assets Release of working capital Asset backed finance (additional collateral not necessarily a requirement). Finance your complete planting package for this season and receive a free fertilizer spreader* We would be eager to meet with you to discuss your equipment financing needs. If you would like more information, please feel free to contact any of the undersigned companies. Zanaco Agri Business Unit AFGRI Zambia ZNFU Elijah M. Kangwa Tel: +260 (0) Tel: +260 (0) /62 Tel: +260 (0) elijah.kangwa@zanaco.co.zm afgri@afgri.com.zm * Terms and conditions apply. DAIRY ASSOCIATION OF ZAMBIA DAZ 3 rd Agribusiness Financial Faire in Choma at the Choma Sports Club on 24 th -25 th September 2015 DAZ Business Planning Training in Choma 21 st to 22 nd September 2015.Shortlisted Cooperatives will be contacted. CENTRAL REGION CHISAMBA LABOUR OFFICER ASSURES FARMERS OF IMPROVED WORKING RELATIONS The Chisamba Labour Officer Mrs. Blessings Chipego interacting with the ZNFU on 17 th th September, 2015 gave assurances that she will work at improving working relations with Chisamba farmers. She regretted that the farming community has expressed deep concern at the tainted relationship with her office and pledges to work closely with ZNFU to improve the situation. She assured the ZNFU that she will look into farmers concerns and work at enhancing gains the agricultural sector has achieved in the district. She has since expressed interest to meet with farmers and iron out any differences. Meanwhile, the Chisamba DFA chairperson Mr. G. Menage indicated that despite deteriorating relationship between the labour office and the farmers in Chisamba district, the DFA will make frantic efforts to improve the situation. He indicated that he will soon call for a meeting with the Labour Officer to discuss concerns from the farming community and find an amicable way forward. The Chisamba farming community has for a while now complained of deteriorating relationship with the district Labour Office. CHIEF CHISOMO LAUDS THE ZNFU Chief Chisomo of the Lala speaking people in Serenje district has praised the Zambia National Farmers Union for spearheading innovation aimed at mechanizing the agriculture sector. This came to light when he visited the ZNFU office to apply for agricultural equipment under the Bunjimi Assets plus Loan. The chief said that for a long time, his subjects were unable to access equipment due to lack of collateral as demanded by financial institutions. He has since invited the ZNFU to visit his chiefdom to conduct wide spread awareness meetings. The chief will soon access a tractor, trailer, disc plough and a hammer mill through the scheme. 4

5 MAL/ZNFU CONDUCTS AGRO-DEALERS TRAINING Ministry Of Agriculture and Livestock (MAL) and Zambia National Farmers Union (ZNFU) this week trained Agro- dealers in Chisamba, Kapiri Mposhi, Chisamba and Kabwe on use of the Electronic Visa Card under the Farmers Input Support Program (FISP). The trainings which centered on how farmers will access inputs and use of Point Of Sale machines were attended by 120 Agro-dealers. During the trainings, the Agro-dealers commended government for giving them an opportunity to supply inputs under the program. COPPERBELT REGION PRICE FLUCTUATIONS WORRY APPLICANTS OF FARM ASSET LOANS Farmers on the Copperbelt applying for the ZNFU/NATSAVE Bunjimi Asset plus loans have expressed worry on the unstable prices of farm assets which have kept on changing due to the ever changing Dollar to Kwacha exchange rate. Meanwhile, 4 farmers belonging to Mpongwe DFA have benefited from the Bunjimi assert plus loan facility; 2 of the beneficiaries got 2 Sonalika Tractors supplied by Keegy Investments, 1 got an irrigation set and the other one got a Sheller supplied by CAMCO. This has brought the total number of beneficiaries to 9 in Mpongwe alone since the facility began a year ago. MAIZE BRAN PRICE INCREASED FURTHER The price of Maize Bran, a major ingredient in Livestock feed formulation, has been increased again in just a space of 3 weeks. Farmers have expressed dissatisfaction at this development accusing millers of being insensitive, adding that the increase is unjustifiable because the price of maize has remained the same and the current depreciation of the Kwacha against major currencies cannot be attributed to this price adjustment. They have however appealed to ZNFU to engage the stakeholders to resolve this problem, as a further increase is anticipated if the millers are not reminded of this unrealistic adjustment. A check around the province revealed that a bag of the commodity is fetching between K25 and K30 per 30kg bag. Chimanga Changa in Ndola is selling a 30kg bag of Maize Bran at K24 and K25 as wholesale and retail respectively. EASTERN B REGION KATETE FARMERS HAPPY WITH CONSISTENT FRA PAYMENTS Farmers who supplied maize grain to the Food Reserve Agency in Katete district have called on FRA to remain consistent in paying the farmers. The farmers have expressed happiness in the manner the FRA has been making payments from the time they started buying maize and the farmers hope that the trend continues. So far the FRA in Katete has bought 200,000 by 50kg bags of maize out of their targeted 234,000 by 50kg bags of maize. DAPP TO HELP 20,000 SMALL SCALE FARMERS IN PETAUKE The Development Aid from People to People (DAPP) organization in Petauke district has embarked on implementing a project named Integrated Soil Fertility Management Technology (ISFMT) which is aimed at contributing to increased and sustained agriculture productivity, food and household income to smallholder farmers. The project is scheduled to conduct trainings with the farmers on ISFM technologies in two agricultural blocks within the district in the next two weeks. And 20,000 smallholder farmers are expected to benefit from the project. 5

6 LUSAKA REGION FRA STARTS PAYING FARMERS The Food Reserve Agency (FRA) has begun paying farmers for Maize grain supplied to the Agency in Chongwe District. FRA begun paying the farmers through the National Savings and Credit (NATSAVE) Bank on Monday 14 th September And the farmers getting paid have expressed happiness at being given their money on time and are hoping that similarly the other farmers be paid in good time. SAO CALLS FOR PROACTIVE EXTENSION SERVICES Kafue Senior Agricultural Officer, Mrs. Monica Mulenga has appealed to staff in the Ministry of Agriculture and Livestock (MAL) to be proactive in delivering agricultural extension services to smallholder farmers in the district in order to enhance productivity. The SAO said this during a Women Improved Market and Asset Control (WIMAC) training workshop for MAL extension officers in improved productivity for Soybeans and Groundnuts held at Aninas Executive Lodge held in Chilanga this week. The overall goal of the WIMAC project is to help women lead better lives through training, market access and career opportunities, ultimately allowing them access to the economic opportunities they deserve. The training attracted extension officers at camp and block level from Kafue, Chilanga and Lusaka west. The ZNFU Kafue district office also participated. KAFUE DC URGES FARMERS TO USE CONSERVATION FARMING PRACTICES The acting District Commissioner for Kafue, Mr. Mwanji Chellah has called on farmers to use conservation farming practices to achieve better yields as the meteorological department have predicted that Kafue district will receive normal to below normal rainfall for the 2015/16 farming season. He said this at the DAC meeting held in Kafue on 17 th September, 2015 where a new DAC chairperson was ushered into office. He further urged the farmers to diversify and look at growing alternative crops other than maize as the effects of climate change were being experienced more now. SOUTHERN A REGION CHOMA/KALOMO FARMERS ASSOCIATION EXECUTIVE RETAIN SEATS The Choma /Kalomo Farmers Association held its annual general meeting on 16 th September 2015 where a number of pertinent issues were discussed. Presiding over the elections for the DFA executive committee members during the AGM was the ZNFU Executive Director, Mr. Ndambo Ndambo. The elections went on smoothly and all the members of the last executive committee retained their positions. The association will continue to be led by Mr. Graham Mulders as the chairperson and Mr. Hamish Ross will continue as the vice chairperson. Among other issues discussed, the AGM urged the government through the Zambia Police to increase the number of anti-stock theft officers in the two districts of Choma and Kalomo so that the problem of increased stock theft is addressed. SOUTHERN B REGION AGRO DEALERS TRAINED IN READINESS FOR FISP The Ministry of Agriculture and Livestock (MAL) in collaboration with Musika and the ZNFU conducted an awareness meeting for Agro dealers yesterday in Mazabuka. Following the initial selection process, 10 Agro dealers have so far been identified and were yesterday trained in readiness for inputs 6

7 distribution by use of the E-Voucher under the FISP programme for 2015/2016 farming season. The 10 Agro dealers will service both Mazabuka and Chikankata districts. Also in attendance were representatives from ZANACO bank, UBA, FNB, Stanbic and ECO bank. The team of facilitators later proceeded to Monze where a similar meeting will be held. ACF FORMS NAMWALA BEEF ASSOCIATION The Agricultural Consultative Forum this week held its meeting in Namwala with Beef farmers. The meeting was aimed at looking at means of addressing some challenges faced by beef farmers. The meeting was held in two wards of the district namely Namwala central and Baambwe. The committee was formed and it will be reporting to the Namwala District Farmers Association. Among the issues the committee will try to address are the controversial cattle levies and beef pricing. The committee will mobilize beef producers in addressing the different challenges they are experiencing as well as coming up with policies that will favor the increment in beef processors. During the meeting it was resolved that the association should affiliate to Zambia National Farmers Union through the District Farmers Association. MAL CONDUCTS VACCINATION AGAINST CORRIDOR DISEASE The Ministry of Agriculture and Livestock (MAL) in Monze has completed phase 1 vaccination of cattle. The Ministry has vaccinated about 13,016 cattle against corridor disease. This is way above the target of 10,000 animals which was planned. The animals vaccinated were calves ranging between 2 months and 1.5 years old. Farmers are now being encouraged to start paying for the second phase which is targeting 5,000 cattle. In another development, Monze district has started preparing for the World Rabies Day which falls on 28 th September. Sensitizations meetings will be held a week before in Schools around the district. LUAPULA REGION CHIENGE DISTRICT RECORDS DROP IN CROP YIELDS Farmers in Chipungu Camp of Chienge district have described crop yields in the last 2014/2015 farming season as one of the lowest in the history of crop farming in the district. And Chipungu Camp Agriculture Committee Chairperson, Mr. Donald Kapoma has attributed the low yields to the long dry spell experienced during the rainy season. The poor maize yields are reflected at FRA satellite depots where the Agency has bought less than the target of 10,000 by 50kg bags of maize. In the case of Chipungu Satelite depot, the FRA has only bought 8,779 by 50kg bags of Maize compared to 19,780 bags they purchased last season. NORTHERN REGION HIGH COST OF INPUTS WORRY FARMERS Farmers are worried with the escalating prices of inputs in the province. A check conducted by ZNFU in Northern Province has revealed that prices for both Seed and Fertilizers prices have gone up drastically. Currently a 50kg bag of D- Compound fertilizer is selling at K330 in the province whereas it was costing K230 last year. This development has worried a lot of farmers who are now wondering how they are going to afford to buy the required inputs for the coming season, as the new prices are quite excessive for most small scale farmers. FRA BUYS 110,648.5 METRIC TONS OF MAIZE IN NORTHERN The Food Reserve Agency (FRA) in Northern has bought 110,648 metric tons of maize as at 18 th September, According to the Provincial Marketing Coordinator for FRA in Northern, Mr. Martin Mangenda, the Agency has purchased more maize in Northern Province than in any other Province. 7

8 NORTH WESTERN B REGION KAPOMBO DFA TO SIT ON FOOD SECURITY PACK COMMITTEE The Department of Community Development in Kabompo district has appointed the Kabompo DFA as member on the Food Security Pack programme in the district. This was contained in a letter written to the ZNFU Regional Office by the District Community Development Officer, Mr. Moffatt Ng'uni. MUCHINGA REGION MUSIKA HANDS OVER TWO MOTORBIKES TO AGRO DEALER IN ISOKA Musika has officially handed over two motorbikes and a small storage shed to one prominent agro dealer in Isoka district. This was done under the Musika Agro-Dealer Extension Program which is being implemented by Musika countrywide. The recipient, Mr. Lawrence Sichande, runs a shop called Chandes Agro Dealers in Isoka District. With the tools given to him, the agro dealer will now be expected to offer better extension services to the farming community in Isoka. Speaking during the handover ceremony, the District agricultural coordinator (DACO) for Isoka, Mr. Victor Siame, thanked Musika for the gesture and also congratulated Mr. Lawrence Sichande and advised him to take good care of the properties given to him. 8