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ZIMBABWE:
Filling food gap an 'enormous challenge', says report
IRIN
News
May
24, 2005
http://www.irinnews.org/report.asp?ReportID=47278
JOHANNESBURG
- Vulnerable Zimbabweans will need assistance to overcome another
failed harvest, but a foreign currency shortage remains a stumbling
block to importing adequate food stocks, says the Famine Early Warning
Systems Network (FEWS NET).
Already struggling to cope with the combined impact of HIV/AIDS
and an economic crisis, smallholder farmers in Zimbabwe were hit
by a dry spell that wiped out much of their crops, and commercial
farming has not recovered from the controversial fast-track land
reform that began in 2002.
The World Food Programme (WFP) spokesman in Zimbabwe, Makena Walker,
told IRIN the agency was already providing food aid to around one
million beneficiaries.
"This includes people affected by HIV/AIDS, schoolchildren, supplementary
feeding for malnourished children under five - which is being done
in 40 health centres in Bulawayo and Harare cities - and we are
also supporting orphans and vulnerable children," she said.
In December last year WFP conducted a once-off food aid distribution
to another 1.5 million people.
FEWS NET noted that the number of people in need of assistance could
rise this year.
"The majority of farming households will harvest nothing and are
already dependent on the market for all their food requirements,
at a time when own crop production would normally be their dominant
source of food," FEWS NET said in its latest report, which classified
the situation in Zimbabwe as an "emergency".
Compounding the problem is the fact that "income opportunities in
rural Zimbabwe will be more limited this year than they were last
year, making it difficult for many to compensate for their crop
losses through purchases, even if the food is available on the market",
because poor cash-crop production has limited rural incomes.
"Cotton and tobacco normally provide important seasonal cash income
to smallholder farming households, but production ... is expected
to be down this year," the report observed.
A combination of poor rainfall and limited credit support to cotton
farmers by marketing companies during the 2004/05 cropping season
"resulted in a smaller area planted to cotton, as well as a decline
in yields," the US-funded network said.
The Zimbabwe Cotton Producers Association estimates the 2004/05
cotton harvest at between 140,000 mt and 150,000 mt, down from last
season's harvest of about 333,000 mt.
"While this will reduce cash income for better off cotton farmers,
it also limits the capacity of these households to pay for casual
labour supplied by the poor households, thereby reducing poor households'
capacity to make up for the food gap they are facing this consumption
year," the report explained.
In urban areas, shortages of basic commodities on both the formal
and informal markets during April meant consumers had to pay "exorbitant
prices" for cooking oil, sugar, milk and maize-meal. "The price
increases have continuously drained the meagre disposable incomes
of poor urban households," FEWS NET noted.
In March 2005 the cost of the monthly basket for a low-income urban
household of six, monitored by the Consumer Council of Zimbabwe,
stood at Zim $2.1 million (US $233). "Given recent fuel shortages,
transport costs are likely to go up as well," the report added.
To counter deepening levels of vulnerability in both urban and rural
areas, the bulk of Zimbabwe's 1.8 million mt maize requirement will
have to be imported.
"It will be critical for the government, private sector and the
humanitarian community to create effective partnerships to ensure
adequate in-country distribution of this food," said FEWS NET, as
this would require "substantial foreign currency resources".
The early warning unit added that "considerable improvement" would
be needed in the "operational efficiency of the Grain Marketing
Board (GMB) and its capacity to move and distribute grain within
the country, and a widening of the range of players in the distribution
of food in the country to include greater private sector participation".
Zimbabwe's foreign currency shortage "has been deteriorating steadily
since 1999, with a deficit of over US $600 million reached in 2004".
Since the beginning of 2005, the demand at foreign currency auctions
has grown to about US $215 million, far outstripping the US $11
million usually made available by the Reserve Bank of Zimbabwe.
"The low average prices for tobacco so far this year, and the fall
of world cotton prices from about US $0.75 last year to about US
$0.58 this year, puts further constraints on the foreign currency
reserves," FEWS NET pointed out.
Apart from needing forex to import food, the county also has to
find enough money to bring in fuel, electricity and medical supplies.
"Given the current shortages, importing adequate food for the nation
in the current consumption year is going to be an enormous challenge
for Zimbabwe," the report concluded.
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