Knowledge Center Catalog

Changes in the marketing and pricing policy of wheat in Zambia and effects on national wheat production

By: Contributor(s): Material type: TextTextPublication details: Addis Ababa (Ethiopia) CIMMYT : 1999ISBN:
  • 92-9146-058-3
Subject(s): Summary: For many years, unti11993, the price of wheat was controlled by Government. The National Milling Company (NMC) was the only official buyer and miller. NMC had an obligation of buying all the wheat in Zambia. In 1993, the Government of Zambia (GRZ) introduced a liberalized market economy. Government does not set the price of wheat any more, and NMC neither has the obligation of buying all the wheat nor is it the only buyer/miller. According to Nwonwu (1996), liberalization of the Cereals market is advocated to increase output and to guarantee the stability of prices in the market. At the beginning of the liberalized marketing system, farmers could not sell most of their wheat because NMC, a monopoly miller then, opted to import wheat, which was cheaper than the locally grown wheat. Farmers became very frustrated. Wheat area and production declined from 13,656 ha (61588 t) in 1993 to 11,566 ha (54,173 t) in 1994. Area and Production further declined in 1995 to 7,821 ha and 33,795 t, respectively. In 1995, other buyers/millers such as Amanita Zambiana, entered the wheat market. Wheat is also sold through the Agricultural Commodity Exchange (ACE), another private entity. Consequently, wheat area and production started rising again in 1996. Hectarage increased from 7,821 ha in 1995 to 10,327 ha in 1996 whi1e production rose from 33,795 to 51,196 t over the same period.
Tags from this library: No tags from this library for this title. Log in to add tags.
Star ratings
    Average rating: 0.0 (0 votes)

For many years, unti11993, the price of wheat was controlled by Government. The National Milling Company (NMC) was the only official buyer and miller. NMC had an obligation of buying all the wheat in Zambia. In 1993, the Government of Zambia (GRZ) introduced a liberalized market economy. Government does not set the price of wheat any more, and NMC neither has the obligation of buying all the wheat nor is it the only buyer/miller. According to Nwonwu (1996), liberalization of the Cereals market is advocated to increase output and to guarantee the stability of prices in the market. At the beginning of the liberalized marketing system, farmers could not sell most of their wheat because NMC, a monopoly miller then, opted to import wheat, which was cheaper than the locally grown wheat. Farmers became very frustrated. Wheat area and production declined from 13,656 ha (61588 t) in 1993 to 11,566 ha (54,173 t) in 1994. Area and Production further declined in 1995 to 7,821 ha and 33,795 t, respectively. In 1995, other buyers/millers such as Amanita Zambiana, entered the wheat market. Wheat is also sold through the Agricultural Commodity Exchange (ACE), another private entity. Consequently, wheat area and production started rising again in 1996. Hectarage increased from 7,821 ha in 1995 to 10,327 ha in 1996 whi1e production rose from 33,795 to 51,196 t over the same period.

English

0007|AGRIS 0101|AL-Wheat Program|AL-Economics Program

Jose Juan Caballero

CIMMYT Publications Collection


International Maize and Wheat Improvement Center (CIMMYT) © Copyright 2021.
Carretera México-Veracruz. Km. 45, El Batán, Texcoco, México, C.P. 56237.
If you have any question, please contact us at
CIMMYT-Knowledge-Center@cgiar.org