Background
The wheat subsector has achieved remarkable growth leading to the achievement of self sufficiency status since 2007. This performance has been due to a combination of the effects of a number of factors including favourable agro-ecological conditions, favourable policies and economic environment. Production has risen from just below 100,000 MT in the year 2000 to estimated levels of about 230,000 MT in 2010.
Wheat production in Zambia is concentrated in the four provinces of Central, Copperbelt, Lusaka and Southern. The Central province is the largest producing province with Mkushi contributing the largest and holding the largest potential for expansion.
On the demand side, wheat consumption has risen to reach current estimated levels of between 200,000 and 240,000 MT per year. However, neither comprehensive wheat consumption studies have been done in Zambia nor are there data records from CSO, NFNC or MACO to help establish actual wheat consumption requirements and patterns. Comparing current production and consumption figures, it can be safely stated that local production is able to meet local demand for wheat products.
It has been established that the quality of Zambian wheat on international and local markets, is of very good quality for manufacturing purposes into flour for all types of wheat based products for human consumption. As such there is no justification currently for importing wheat for blending purposes.
Despite the achievements attained, the subsector is still characterised by a high cost structure arising from high production input costs such as fertiliser (33-40% of variable costs), irrigation (7-23% of variable costs), finance (6-13% of variable costs), fuels and oils (5-7% of variable costs) , seed (3-11% of variable costs)and transportation (7-8% of variable costs).
Erratic increases in input prices have a strong bearing on production. In this regard stability in prices and favourable price levels are essential in attaining sustainability and competitiveness in production through out the wheat value chain.
