Drought scares farmers from BAMB's sweetened deal

Farmers have experienced rrunning droughts since 2014
Farmers have experienced rrunning droughts since 2014

Only 200 farmers signed up to Botswana Agricultural Marketing Board (BAMB) contracts this season, despite improved prices offered and a new initiative under which even damaged crops will be bought. The farmers are simply exhausted from years of drought and the threat of another poor harvest on the way. Staff Writer, MBONGENI MGUNI writes

For farmers, the BAMB’s contracts are a type of hedging or security, offering a guaranteed market and price for their produce, while it is in the ground. The scheme is open to those producing five tonnes or more of sorghum, maize, cowpeas or beans.

Last season, more than 400 farmers participated in BAMB’s contract farming, but this year, the numbers are down to just 177. This is despite the BAMB offering contract farmers a premium on the South African benchmark prize called SAFEX. Producers of white maize under contract farming for this season will receive P2, 500 per tonne, compared to about P2, 300 on the SAFEX benchmark.

Editor's Comment
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