Prices for summer crops to beat record

THE prices expected at harvest for summer crops this season are set to achieve record prices, according to the First National Bank (FNB) Zambia.

According to the Bank, this was for both small-holder and commercial producers, which it stated that was good for overall income for farmers.

It however indicated that the income was set to be scaled back because there had been a simultaneous increase in the cost of production in key inputs – Chemicals and fertilisers. This is according to the FNB monthly agribusiness report. “These increases area close to 25 percent to 30 percent compared to production costs in 2021. Compounding this, is the increase in the cost of fuel products as price revisions by the Energy Regulation Board (ERB) now occur monthly under a “cost-reflective” model of pricing for fuel products,” FNB said.

The Bank stated that the increase in price of good and the cost of products would be borne by the consumer.

It indicated that inflation that was both for food and nonfood items had seen a down-ward trend from 2021 which now currently stood at 14.2 percent.

“This figure, under the current local and global conditions is set to come under pressure – global inflation has seen a marked increase in the past year as well. Consumers must brace for an expected increase in consumer goods as the year progresses,” it stated.

Meanwhile, FNB stated that expected tight supply of wheat on the global market was bound to have a trickledown effect onto the Zambian market, available stocks were trading for US$580 per ton.

It indicated that the import price parity for delivery to Lusaka stood at US$650 per tonne which still gave local producers premium before the local price began to trade at import parity prices

“Wheat producers are also keeping a firm eye on Zesco and water levels at the Kariba Dam - low water levels may necessitate load management by the power utility, which would directly affect the gross output of wheat in the country,” FNB said.