IT is preposterous to see screaming headlines in some of our daily tabloids attributed to some associations cum lobby groups bemoaning government’s latest interventions in the quest to manage the ever escalating prices of mealie meal on the market.

Instead of the stakeholders applauding the latest development as one brilliant move which will help mitigate the ever soaring price of our dear Nshima, the Millers Association of Zambia (MAZ) are shockingly one of the first to protest and express concern saying that, and I quote: “ what the government has done will create some distortions and discomfort in the market”. Discomfort that the huge profits have stopped coming?
The MAZ further contends that the decision is in clear violation of the competition Act. Compete with a government which in the first place has clearly laid down a good foundation for fair business practice?
Excuse me, but I have a big problem here. and I will tell you why.
Is the MAZ, the only shareholder in the maize value chain which is not seeing that in the past few months, the citizens have been enduring and lamenting the escalating cost of mealie meal which, had it
continued rising unabetted would have caused a real food crisis in the nation leading to social discontent or mayhem?
Is it not some members of the same MAZ, who, after agreeing in good faith with the government that they would be the sole recipients of subsidized maize from the strategic Food Reserve Agency (FRA), failed to curb the escalating prices, and were instead found out to be in cahoots with illegal mealie meal smuggling rings into neighboring countries such as the Democratic Republic of Congo (DRC) and other countries at extremely exorbitant prices. sometimes four times more than what they would ideally sell a bag for locally?
They abused the trust that the government had placed in them, and even to the detriment of the suffering Zambian people caused serious shortages of the commodity at home.
Trucks laden with thousands and thousands of bags of mealie meal bags bearing distinct logos of milling companies, some of which were members of the MAZ were intercepted and forfeited to the state by the security wings.
The strategy failed because some millers, in total disregard of the protocols agreed upon with government failed to honor their side of the deal, and in connivance with some unscrupulous members of the public embarked on a profiteering ring minting millions of kwacha, much to devastating effect, leaving Zambians reeling with the pangs of hunger.
On several occasions and forums, the national leadership appealed to all stakeholders to desist from hoarding the commodity or selling it across the border, but to no avail. It was a roaring business for them, while it lasted, and all the while, the Zambian people were becoming increasingly angry and disoriented because of the illegal trade and the attendant fall out of high prices and persistent shortages.
The government had to bear the brunt and looked at lasting solutions to end the crisis, but because some stakeholders such as the MAZ were being less than candid in their approach to dealing with government, they seemed to have developed some immunity to the cries of the people.
Now, the government is wiser and has figured that, they could actually use their own systems without dislocating any value chain, from growing the maize, to harvest and ultimately through to storage, milling and selling at wholesale price and even by retailing directly to the Zambian, the consumer.
And it is simple, in all this matrix, the Zambian miller was playing a subtle but dangerous game by remaining conspicuously quiet, receiving the cheap subsidized maize, milling it, then selling it to the market at those high prices- They were the ultimate beneficiaries.
So, with the plight of the ordinary Zambian citizen at the heart of government, a new strategy is mooted to de-escalate and forestall the ever rising price of maize. It has decided to enter the fray and be an active competitor in the business. And all this they are doing in the best interest of the people.
ZNS is summoned as may be the case in any emergency situation, It was ordered and instructed to grow maize in huge proportions, beyond what they would usually grow, they were also tasked to commission milling plants which would
churn out maize meal at normal prices, as would be expected of any decent law abiding business outfit.
The ultimate beneficiaries would be the Zambian people and by that account, government would have achieved its mandate.
However, the frantic and desperate calls which are being heralded by the MAZ today, do not fit too well with the status quo because they, for selfish reasons seem to be pushing an agenda that, they alone, as an association must benefit.
The government recently announced the floor prices of maize, and in doing so, took into consideration the actual grower of the maize (the subsistence farmers), who for a long time had been relegated to slave maize grower farmer status, only receiving a paltry, dismal return on all the toiling and hard work they endured.
It was in the spirit of spurring interest in maize growing as a lucrative venture that the floor price was upped considerably. In the regard, government felt that, the new lucrative competitive prices would see a renaissance, where even the commercial farmers who had long lost interest in the growing of maize took keen interest.
This off course, was seen as a long term intervention and in increasing productivity, the simple understanding is that, there would be more maize on the market. Following the laws of supply and demand, the prices would naturally come down. It was also envisaged that any excess produce, would then be exported to our more hungry and desperate neighbors.
As for the immediate and mid term, what government is doing is simply bringing in a cheaper alternative to what is obtaining on the market.
And unless I and those complaining out there do not understand simple economics, they better just keep quiet and enjoy the free market economic space that the government has put in place.
It boggles my
mind to notice MAZ complain when, government had earlier supplied the same cheap maize to them, which has now been similarly allocated to ZNS to ease the high prices obtaining and they failed to rise to the occasion.
The interest of the government is to ensure that Zambians are able buy cheap affordable mealie meal, and not get engrossed in the cheap politics of market forces or unfair competition.
For instance, Why did MAZ not complain when they enjoyed receiving the so called cheap mealie meal from FRA? and in any case, has the playing field not been levelled because, FRA pays on the average, the same price for maize, just as the MAZ members pay for the same bag of mealie meal.
Government has a solemn duty to protect the interests of the citizens and ensuring that they buy cheap affordable mealie meal from outlets, then they would have been fulfilling their mandate.
To allow the MAZ, the so called market forces to out –rightly determine what the price of mealie meal should be, in the name of market forces would be political suicide of the highest order, and gross negligence of the government of the worst kind.
At the end of the day, the MAZ as an association will one day find itself without any members because you would have killed yourselves out of business, in the name of market forces and competition.
Why does it seem to weigh too heavily on MAZ that a cheaper Eagle mealie meal brand has entered the fray, and that government is keen to see this intervention begin to bear fruit. To follow market forces clearly and to the book, the MAZ must direct its members to reduce their mealie meal to the ZNS/ Shoprite stores recommended K190 per 25Kgs of roller meal and K230 for a 25Kgs breakfast meal, if they are to stay in the business, and then, we can see real competition.