Stock-feed producers brace for shortages

Published: 24 July 2014

Stock Feed Manufacturer Association (SFA) has advised its members to stock up on maize as the local crop is running out and imports are yet to be approved.

In a recent meeting of members, the association advised members that maize stocks were anticipated to run out soon as procurement was on a hand-to-mouth basis.

"…collections at depots around the country have already declined and the estimated harvest is likely to be way below the expected 1,2 million metric tonnes," the association said.

SFA said maize was trading at $300 per metric tonne with a cash-on-delivery price of $280 per metric tonne in Harare and considerable volumes of the commodity were coming into Harare.

"The dry-land crop was significantly affected by the dry spell resulting in a yield deficit. The general feeling is that not enough investment was provided for the small scale sector and their harvest was low," said SFA.

Other countries in the Southern African Development Community (SADC) are anticipated to have a surplus harvest and their supply will be primarily influenced by the import policy which may also drive the price upward.

Maize is reportedly trading at $170 per mt and $200 metric tonne in South Africa and Zambia respectively on the spot market and the price is expected to increase to $320 mt by January next year.

The SFA said the soya bean market was drying up and stocks being delivered have a moisture content of between 6 to 7%, indicating that they have been kept in storage for a long time.

"The price has been fairly static at $500 - $520/mt for beans crushed into full fat meal. It is likely that the price will increase soon."

It said local soya meal is trading at $620 - $650/mt depending on volumes procured and negotiated payment terms, matching parity import price.

The market for soya meal has come to an end with only about 2,000mt left to mop up and there is likely to be a shortage in the coming months.

However, there seems to be sufficient solvent extracted meal stocks to last until January next year and all crushers are operational, the SFA said.
- Zim Mail