The BBC carried a story today about the rise in global food prices. The IMF stated that on average prices for food had risen 36 per cent this year and among these was a 74 per cent increase in maize prices. In the past, perhaps since about 1950, Zimbabwe had enjoyed a situation where by and large agricultural prices were set at export parities and global food prices were themselves already quite low. As a consequence we became accustomed to relatively cheap food and this was clearly apparent when you crossed the border into any of our regional neighbours.
After independence in 1980, the policies that had created that situation were maintained and agriculture was the main contributor to national growth and development. In 2000 all that changed, commercial farmers and their 350 000 workers were made the target of a campaign that in the past ten years, has seen some 7 000 farms deliberately invaded and taken over by force. They were then occupied by so called A1 and A2 farmers, the former small scale and the latter large scale squatters.
Since then the majority of these farms have become largely defunct, their homesteads and farm building derelict and their arable lands have returned to bush or been the subject of subsistence style agriculture. Although the land audit promised in the GPA has not been carried out because of Zanu opposition, it is known that perhaps as many as half these properties have been abandoned after their assets had been looted.
As a consequence, agricultural output has collapsed to about 20 per cent of the levels that had prevailed in the era before the farm invasions. Zimbabwe, for the first time in half a century is now a net importer of all types of food and agricultural products. Cotton and tobacco being the sole exceptions.
As a result food prices are dictated by import costs and are therefore higher than in our neighbouring countries. Remember that import parity prices means that you pay the world market price PLUS the cost of transporting the product to Zimbabwe - sometimes over thousands of kilometres. Export parity pricing means that you pay prices set at world market levels LESS the cost of transport to the overseas or regional clients.
The commercial farmers that own the farms that are invaded and occupied by this rag tag collection of people, had built some 10 000 dams on their properties and could, when required irrigate their crops when normal rainfall failed. To do this they had the pumps, pipelines and irrigation equipment to irrigate up to 267 000 hectares of land.