ZAMBIA mvam Market Bulletin #3: August 2016
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- Rudolph Burns
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1 Increased control of exports brings maize prices down Key points: Maize prices fell in most districts in August, but prices are still higher than in August 2015 and higher than the national five-year average. In Katete district, maize was 18 percent more expensive in August than in July. The fall in bean prices in July was reversed in August: Petauke and Katete in Eastern Province reported the highest prices. Groundnuts were most expensive in Mpongwe (Copperbelt Province), Kapiri Mposhi (Central Province) and Nakonde (Muchinga Province). Photo: WFP/Photographer WFP/Rein Skullerud Methodology Map 1: Surveyed districts, July 2016 WFP Zambia s in-house call centre has been operational since May 2016 as a part of WFP s mobile Vulnerability Analysis and Mapping (mvam) initiative. The centre conducts telephone interviews with key informants to collect weekly information on the price of food including maize, rice, groundnuts, cassava and beans, as well as information on general food availability and market accessibility. The surveys are carried out with a sample of 51 traders across 24 districts. The call centre collected 155 responses in July and 230 responses in August Phone surveys contain inherent response biases; therefore, the bulletin reports patterns and trends rather than precise estimates. 1
2 Maize Prices Fall in Most of the Country In August, maize prices generally decreased in most of the surveyed districts compared to July (Figure 1). This fall in prices is attributed to the government s increased control of exports, in recognition of the fact that the National Food Reserve Agency has not procured the target amount of maize (1,000,000 mt) for its strategic reserves, as much of it has been bought by private traders. However, prices did rise in a few districts such as Katete (+18 percent), Serenje (+7 percent), Sesheke (+6 percent) and Monze (+5 percent). Figure 1: Maize prices (ZMK/kg) for monitored districts, July and August 2016 Although maize prices have fallen in most areas, they remain higher than the national five-year average (August 2010 to August 2015) of ZMK1.47/kg and higher than the average in August 2015 (ZMK1.27/kg). (Source: FAO GIEWS). Map 2: Maize prices by district 2
3 Beans Still Most Expensive in El Nino-affected Areas The prices of beans in almost all surveyed districts (except Chadiza and Mwandi) increased in August 2016 compared to July 2016 (Figure 2). The highest prices of beans were observed in Petauke in Eastern Province (ZMK 11.88/kg), Sesheke in Western Province (ZMK 10.67/kg) and Katete in Eastern Province (ZMK 10.57/kg). The highest percentage increases were recorded in Chipili (41%), Kawambwa and Mkushi (38%), Kasama (33%), Chipata (23%) and Luwingu (22%). The survey shows that the highest prices for groundnuts were observed in Mpongwe in Copperbelt Province (ZMK 8.25/kg), followed by Kapiri Mposhi in Central province (ZMK 7.30/kg) and Nakonde in Muchinga Province (ZMK 7.25/kg) (Table 1). Figure 2: Prices for beans (ZMK/kg) across monitored districts Figure 3: Prices for groundnuts (ZMK/kg) across monitored districts 3
4 Traders Report High Transportation Costs and Limited Storage In August, traders biggest concern remained high transportation costs. Limited access to storage facilities and markets was also mentioned often (Figure 4). Some traders are still concerned about the sale of maize to neighbouring countries, but most traders observed slight reductions in maize prices thanks to increased government controls on exports. In terms of availability, traders said that maize has remained readily available in markets, partly because of the export restrictions. However, they thought that beans were still expensive because farmers preferred to grow maize. Figure 4: Word cloud of open-ended responses, August 2016 Photo: WFP/Rein Skullerud 4
5 Table 1: Food Prices Across Surveyed Districts (ZMK/kg) Districts Beans Maize Groundnuts Current July % Change Current July % Change Current July % Change Kaoma Sesheke Kapiri Mposhi Mkushi Serenje Chadiza Chipata Katete Lundazi Petauke Chiengi Chipili Kawambwa Mansa Kasama Luwingu Choma Kalomo Mazabuka Monze Mpongwe Mafinga Nakonde Mwandi For further information: Allan Mulando Arif Husain allan.mulando@wfp.org arif.husain@wfp.org mvam Resources: Website: Joao Manja joao.manja@wfp.org Blog: mvam.org Andrew Odero andrew.odero@wfp.org Toolkit:
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