BAMB eyes 48 000 tonnes from farmers for 2011

Mbongeni Mguni
Staff Writer | Monday August 16, 2010 00:00

Senior BAMB officials will soon conduct their annual seasonal outlook and projections, which will determine the prices the parastatal will offer farmers for the 2010/11 farming season.  The prices will then be offered to farmers by way of contracts, which when signed indicate the amount and type of commodity to be delivered and the price the BAMB will pay.

The contracts thus provide market security for farmers and insulate them against downward fluctuations in the price of commodities. 

Under the contract system, farmers are paid the agreed prices regardless of subsequent drops in the commodity's price; in the event that the commodity's price rises, the BAMB pays farmers the higher price.

Produce worth 11 000 tonnes was secured via a contract system when the BAMB initiated it in 2007, with the figure rising to 18 000 in 2008 and 38 000 in 2009.

BAMB Public Relations Officer, Boipuso Nyatshane told Monitor that price projections and seasonal outlooks would soon be done, with a view to commencing the signing of contracts with farmers towards the end of September.

She explained that the BAMB's confidence of securing 48 000 tonnes in contracts stems from the increasing interest and appreciation of the system within the farming community.

'I can confidently say we will increase the amount of tonnes under contracts by 10 000 tonnes in 2011.  Farmers are seeing the value of this system,' she said.

'Farmers are already seeking funding for their various inputs for the forthcoming season and they use these contracts as their market guarantees to secure funding

'Last year, we spoke to farmers about the contracts and some said the prices being offered were low compared to previous years. Our projections showed that the market would be depressed and this has happened.

'Having experienced this and the advantages of the contracts, we see more farmers coming forward.  In addition, the size of the acreage under crop will increase the quantities put forward for contracts.'

As an example, Nyatshane said the BAMB had signed contracts for cowpeas at P320 per bag last year.  The price has since increased on the market to P350 and the BAMB is paying contract and other farmers the higher price.

Nyatshane said the BAMB was confident of securing the 38 000 tonnes due from contract farmers for the current season, as no reports of obstacles have yet been received.

'If there's something that will be a problem in terms of delivering the agreed quantities, the farmers inform us.  Thus far, none of the farmers have come forward to report anything; they have started delivering.

'We have received deliveries from contract farmers Kanye and Pandamatenga, with the latter producing 80 percent of the country's maize, sorghum and millet,' she said.

Cereal producer prices for the current season have been depressed as a result of a three million tonne surplus from South Africa.  The BAMB benchmarks its price on the South African prices and cereal prices in that country are lower this season, owing to a surplus in the market.

BAMB benchmarks its prices against the South African market, in order to attract farmers who would otherwise send their produce to the larger market.

Local farmers are showing more interest in BAMB contracts PIC: COURTESY OF PESTED.IFAS.UFL.EDU/NEWSLETTERS/JULY2007/MAIZE