as imports damage local industryA flood of cheap GMO imports has under-cut the maize producer price,
resulting in farmers withholding their maize. over the low prices offered by
the Grain Marketing Board (GMB) and other grain merchants.
GMO maize fetches less than US$265 per tonne, the maize producer price in
Zimbabwe, a figure that local farmers say is too low.
The government relaxed the importation of maize imports to minimise the
impact of grinding food shortages faced by the country for over a decade.
“We are having problems in selling our maize from last year because of
competition from a flood of cheap GMO maize from South Africa,” said Donald
Khumalo, the Zimbabwe Commercial Farmers Union secretary general.
“Our maize is more expensive because of the high cost of our inputs, but now we have to compete with cheap products from South Africa, which has seen prices dropping
very low. As a result, farmers are holding on to their crop.”
Khumalo said increasing the import duty for maize would minimise GMO imports and stimulate local maize production.”
President Robert Mugabe is a critic of GMO foods. Recently, the Consumer Council of Zimbabwe launched an operation in Bulawayo against GMO foods.
The low producer price for GMO maize has also impacted negatively on the
milling industry, which has complained that the uncontrolled importation of GMO
mealie-meal posed a major threat to the survival of the local milling industry.
“We need to protect the local industry by raising our tariffs and re-introducing import permits. Such measures will not only protect the milling industry, but the packaging
sector as well,” said Tafadzwa Musarara, the Grain Millers Association chairman.
Zimbabwe’s various industries are struggling to find a bottom after successive years of under-production due to the harsh economic climate. Attempts to revive local industries will take a long time, say analysts, because they face stiff competition from cheap finished products coming from neighbouring countries mainly South Africa – Natasha Hove
Post published in: Economy