EMBRACE PRIVATE MARKETS FOR MAIZE, MTONGA URGES FARMERS
EMBRACE PRIVATE MARKETS FOR MAIZE, MTONGA URGES FARMERS
UPND member George Mtonga has said farmers should not be discouraged from increasing maize production on the assumption that Government must buy every bag produced.
Mr Mtonga said such an argument was based on a misunderstanding of how an economy operates, stressing that Government was only one participant in the agricultural market.
“Government is only one participant in the economy,” Mr Mtonga said
He explained that when Government establishes a floor price, private buyers could offer farmers higher prices where profitable opportunities, including exports, existed.
Mr Mtonga said the focus should instead be on changing farmers’ mindset and helping them understand that their market extends beyond Government and the region.
“The world is their market; not just the government and not even just the region,” he said.
He said small-scale farmers could be aggregated into larger commercial units capable of entering supply agreements with processors, exporters, off-takers and international commodity traders.
Mr Mtonga further said Zambia should develop deeper agricultural markets where maize could be contracted before planting, allowing producers to secure markets in advance.
“That is the market we should be building,” he said.
He said the long-term incentive for farmers to significantly increase production should come from private capital pursuing profitable opportunities rather than Government purchasing everything produced.
“The private sector pursuing profit is what will ultimately drive agricultural production at scale,” Mr Mtonga said.
Mr Mtonga said Government’s role should be to provide infrastructure, regulations, market access and a trading environment capable of supporting private investment.
“When there is money to be made, buyers will come,” he said.
He added that increased production would subsequently stimulate processing, exports, logistics, storage and job creation.