Silo Foods increases grain producer price to RTGS$4 000 per tonne

Published: 02 October 2019

Silo Foods Industries is now buying maize and small grain from farmers at RTGS$4 000 per tonne, representing a 90.47% increase from RTGS$2 100 being offered by its parent Grain Marketing Board (GMB).

Silo Foods Industries was this year unbundled from GMB to become a stand-alone business unit.

With a view to cushioning farmers from inflationary pressures which have been obtaining in the economy since October 2018, the Zimbabwe government reviewed producer prices of maize, wheat, cotton and soya beans in April 2019.

In June this year, a further review was made on maize producer prices wherein the prices increased to RTGS$2 100 per tonne from RTGS$736 per tonne.

Speaking to the media after launching the Cassava Smartech VAYA Tractor platform, Lands, Agriculture and Rural Resettlement Minister Air Chief Marshal Perrance Shiri said the new price will enable farmers to go back to their fields in the forthcoming farming season.

"Processors of agro products have announced an improved producer price. Silo Foods for instance, is now buying maize at RTGS$4 000 which is a great improvement from the RTGS$2 100 which is being offered by GMB and if farmers sell their produce to Silo Foods, it will enable them to buy the inputs," he said.

The state-owned firm which started operating as a fully-fledged commercial business unit in April this year opening 84 shops across Zimbabwe has been encouraging farmers to continue delivering maize and small grains.

Recently, Government noted that it shall continue to make necessary adjustments to producer prices of the various crops in line with changes in the macroeconomic fundamentals. However because of the drought and the low producer prices, GMB deliveries had declined to 184 757 tonnes from 810 173 tonnes at the end of August.

Meanwhile, fintech giant, Cassava Smartech launched the EcoFarmer Equipment Hire Platform. The digital platform deployed in partnership with TroTro of Ghana will facilitate efficient utilisation of farm equipment which is a prerequisite for increased production and productivity. The service is available on *902#.

Cassava chief executive Edmore Chibi said the platform will provide capacity to accurately measure the hectarage the tractor would have done.

Over the past 6 months, Cassava has been running a pilot program that has 2 000 tractors on the platform. In the past 3 months, the fintech giant has contracted over 4 500 hectares.

Zimbabwe has a deficit of 33 000 tractors, 10 000 planters, and 500 combine harvesters.

The EcoFarmer platform is now sitting on about 1.4 million subscribers.
- finx

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