By Majaha Nkonyane | 2018-03-01
The National Maize Corporation is accused of only benefitting commercial farmers whilst consumers are losing out.
Local farmers are also said to lose more than what producers are gaining, which is quantified to be a 21 per cent loss against what producers are gaining. This is according to the SEPARC study
“The study finds that the maize marketing system controlled by the NMC is responsible for consumer losses and benefits only commercial farmers.
On average, the loss in maize per consumer was E94.22 per year, resulting into an average consumer loss of E166 975 312.30 per year, almost half the maize industry production. Producers gain E35 651 178.21 per year.
This indicates that consumers lose approximately 21 per cent more than what producers gain, also 9.9 per cent is lost by the growing of crops sector due to high consumer losses,” the report said.
The report further revealed that, the average cost to the society approximates to E22 788 736.15 per year, which is about 1.9 per cent of the growing of crops sector. Which is an indication that the economy loses as a result of the NMC and SDB.
On the other hand in the milk industry, the study found that on average, consumer losses were E243 676 441.51, almost 70 per cent of the local production. Milk producer gains of E35 545 181.85; implying that producers are gaining at the expense of consumers.
“The individual milk consumer losses amount to E197.90 per year. Milk consumer losses are high representing 21 per cent reduction in the animal production sector. Moreover, the total cost to the society amounts to E2 719 144.23, which is 0.2 per cent of the animal production sector; implying that consumers spend more than they should on milk. This is in line with a prior expectation, as only the few elite farmers producing at economies scale benefit from the SDB prices,” the report said.
Furthermore, the report revealed that the SDB and Parmalat are causing excess burden to consumers, while a minority of efficient producers are benefiting.
“The presence of the boards is clearly a huge loss to the economy, thus failing to support the National Development Strategy (NDS) of 2014 objectives, cognisant of the improvement of the agriculture sector.
“Therefore, policy makers need to design policies and strategies that comply with the century’s heterogeneous markets in order to benefit consumers and producers.”
share story
Post Your Comments Below
BEAUTY Pageant Eswatini Chairman, Sandra Ismail, officially passed over the Miss Eswatini title t...
Status Capital Building Society shareholders are once again being asked to take part in an audaci...
While things are falling apart at the Pigg’s Peak Government Hospital, the ministry of heal...
Eswatini along with many other African nations is under scrutiny for failing to meet its commitme...
All material © Swazi Observer. Material may not be published or reproduced in any form without prior written permission.
Design by Real Image Internet