Friday, 30 November 2012
Zambia's FRA To Start Selling Maize
Zambia's Food Reserve Agency (FRA) will, as of December, enter the market as a seller in the hopes of stabilizing maize prices. Some areas of Zambia have been experiencing shortages and volatile prices. The shortages appear to have been localised. The FRA argues that their actions are in line with "the Agency's mandate of stabilising food prices and ensuring stable supply". The is likely to be controversial. Already commercial agriculture in Zambia and regional industry players are frustrated with what they see as the FRA overstepping their mandate by acting in the market. The role played by the FRA in producer prices and their dominance as buyer are a concern for corporate interests. This further market action is unlikely to make organised commercial agriculture happy. It remains to be seen whether it will make anyone else (or everyone else?) happy by successfully stabilising prices.