THE relationship between land access and agricultural products prices, in this case, food prices in Zimbabwe is in itself a complex dance.
If we are the product of what we eat, then the derivation of food prices by the end user at the top of the food chain is vital as it has a direct bearing on the dietary, the health and thus the general well-being of our people.
Food prices are dependent on a kaleidoscope of factors, some of which are beyond the purview of both the producer and the consumer.
Agribusiness has to be a sustainable economic endeavour and the government needs to safeguard the profitability of the agricultural industry lest the country becomes food insecure.
The issue of who owns the factors of production in agriculture and who constitutes the market merits serious consideration in the determination of prices of food and other basic commodities.
Zimbabwe is riding on the back of a new land tenure policy that was recently gazetted into law.
The government has made it law that land allocated to resettled farmers on a 99-year lease is now saleable, transferable and can be bankable — used as collateral by financial institutions for the offsetting of loans and other financial obligations.
This has an effect on agricultural production and/or prices as many people, particularly those without the agriculture know-how, have access to land that they do not necessarily have the expertise to utilise.
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What is more, land which had little to no real monetary value is now a huge factor as far as increased production costs is concerned — this is on the production side of the farmer or the business.
Thus, profit on the side of the farmer is not as much as it ought to be had the land not held increased monetary value.
For any economic endeavour to become viable, particularly in the long-run, there is a need to reduce barriers to entry and exit in any particular industry.
This economic blueprint is jeopardised now that land can be sold to anyone who wishes to own it and use it in any desired way.
This is one of the reasons why farmers in Zimbabwe are producing more of a particular crop at the same time than the dwindling consumer market can consume at a given time — grossly violating supply and demand principles.
This is the major reason why the agricultural market is becoming more of a buyers’ market than a sellers’ market as supply is always overwhelming demand for a particular agricultural product.
This explains the plunge in potato prices in Zimbabwe at this point in time with prices slumping by almost 100 percentage points compared to prices of recent years.
Hence, with everyone — even those skilled and qualified in other industries, trying their hand at agriculture, there is no distinction as to who constitutes the market and who represents the producers of the agricultural produce and this happens at the expense of the farmer who is facing increased costs, unreliable climate conditions and a shrinking market base owing to rising input costs, depressed incomes and a lack of barriers to both entry and exit in the agricultural industry.
It has to be noted that Zimbabwe is one of many African countries with the widest gap between the rich and the poor.
Land redistribution through the selling of land that was once parcelled out for free can and will give rise to deepening socio-economic classes within the Zimbabwean society with the wealthy benefiting from both the sale and acquisition of agricultural land, while the poor will endure the economic burden through high food costs, generally increasing their already astronomical costs of living given their paltry salaries and roughshod monetary systems and tax regime.
Hence, we have a situation in Zimbabwe where the average household cannot afford basics such as three meals on a given day whereas rich people have more than they deem necessary.
So the issue of a dwindling market for agricultural produce is not merely a scenario of demand and supply factors, but of effective demand, which can be defined as a purchase requirement backed by the actual ability to pay.
Since Zimbabweans are becoming poorer by the year, they are having to find alternative sources of food to supplement their need for basic commodities — which are available in shops, but are too expensive for the majority of the population, particularly those in rural areas.
It is tantamount to a betrayal if we fail to mention the impact that this new land tenure will have on land consolidation and that this will ultimately have a huge bearing on food prices.
Before the change of policy, the land reform programme was under government control, deeming the State the sole custodian of the land.
This meant that the government could determine who did what with land.
However, the State has loosened its grip on a land that has a huge waiting list with various land ownership and usage which have an effect on food availability and ultimately on prices.
The private sector’s appetite to produce that which is profitable and not that which is needed by the people is a given.
Hence, we have seen a huge shift in cropping preferences from basics like maize and wheat to cash crops like tobacco and potatoes, which is a cash crop.
In or near urban areas, we are witnessing changes in land use as people and businesses alike are servicing farms and arable land into other economic structures such as residential stands and industrial modifications.
Inasmuch as these have the positive impact of providing employment and economic leverage to our people, food prices are compromised as more and more arable land will no longer be used for its original purposes amid growing populations, increasing food demands and uncertain climates.
What then is the message for the coming cropping season as we all emerge from a drought that was classified as the worst in the region for over 40 years?
At all times, what collective responsibilities do we have in ensuring that land is in the hands of those able and willing to exploit it for the greater good of society and not only for the rich, the connected and those in it solely for speculation and personal gain?
What do we do to make sure that no one within the length and breadth of our motherland suffers from hunger and malnutrition?
How can those with more than enough farming resources be able to assist and benefit those not as privileged so as to somewhat narrow, even by a small margin, the burgeoning gap between the rich and the poor?
What can the government do to regulate prices so as to combat food inflation in Zimbabwe?
What technological advancements can we put in place to maximise food production in the midst of difficult economic and climatic conditions?
What trade-offs are there between ensuring food security and addressing land access complexities?
I know the answers to these questions are a food for thought!
