Zimbabwean wheat farmers have finally received their outstanding payments from the Grain Marketing Board (GMB) after months of delays. The announcement, made on Tuesday, brings some relief to farmers who faced financial difficulties due to late payments and are now preparing for the upcoming planting season. However, the saga highlights ongoing challenges in Zimbabwe’s efforts to achieve self-sufficiency in wheat production.
GMB Clears Arrears, Farmers Look Ahead
The GMB announced that all outstanding payments for wheat delivered during the 2023 winter crop season have been settled. The total amount paid out stands at US$44 million, with a final tranche of US$5.3 million released this week to clear the remaining arrears.
“The GMB appreciates the support it received from the treasury in mobilizing resources and making farmers payments a top priority,” the statement from the GMB reads.
The delays in receiving payments caused significant hardship for many wheat farmers. Some reported struggling to finance essential inputs like fertilizer and seeds for the upcoming planting season. Others expressed regret for participating in the 2023 winter wheat farming season, citing concerns about potential losses due to the late payments and a drop in wheat prices.
Wheat Self-Sufficiency Efforts Face Hurdles
The GMB’s announcement comes amidst Zimbabwe’s ongoing efforts to achieve self-sufficiency in wheat production. The country enjoyed a successful harvest in the 2022 season, producing 375,000 metric tonnes of wheat. This achievement allowed the government to suspend wheat imports, with Agriculture Minister Anxious Masuka declaring Zimbabwe self-sufficient in the cereal.
However, these efforts were hampered by a policy reversal in March 2024. The government reopened borders for wheat imports, negatively impacting local millers. The influx of imported wheat led to a drop in demand for domestically produced wheat, causing millers to scale down production or even shut down entirely. This not only hurt millers but also raised concerns about the long-term viability of Zimbabwe’s wheat self-sufficiency goals.
Looking Forward: Balancing Imports and Local Production
While settling the outstanding farmer arrears is a positive step, it does not address the underlying challenges facing Zimbabwe’s wheat sector. The government must now find a way to balance the need for affordable wheat with the need to support domestic production.
Some experts suggest a quota system for wheat imports, allowing a specific amount of imported wheat to enter the country while reserving the majority of the market for domestically produced wheat. This approach could help stabilize prices for both farmers and consumers.
Additionally, the government could explore options to support local millers. This could involve providing financial incentives or tax breaks to help them compete with imported wheat.
Source: New Zimbabwe
