The K340 FRA price a double tragedy – Sean Tembo

Tonse Alliance Spokesperson Sean Tembo says the maize floor price announced by Food Reserve Agency (FRA) is not addressing anything.

Tembo says the K340 for a 50kg price for maize is a double tragedy as none of the parties – farmer, Miller and Consumer will have a relief.

In his analysis below seen by Zambian Eye, Tembo says the solution is to reduce the cost of production by having locally produced fertilizer.

Tembo says the future for Zambia is SET and his opposition grouping Tonse Alliance.

2025/2026 ESTIMATED PRICE OF MEALIE MEAL CALCULATION:

By Sean E. Tembo

-FRA price for 50kg bag of maize = K340
-Estimated cost of transport, insurance, administration & storage (30%) = K102
-Estimated Landed cost of 50kg bag of maize at millers’ premises = (K340+K102) = K442
-Estimated amount of breakfast mealie meal that comes out of a 50kg bag of maize = 80% x 50kg = 40kg
-Estimated cost of milling (labour, overheads, packaging, distribution) (40%) = K177
-Estimated total cost to miller of 40kg breakfast mealie meal before profit mark-up = (K442+177) = K619
-Estimated profit mark-up by millers = 15% x K619 = K93
-Estimated selling price by miller for 40kg of breakfast mealie meal = (K619+K93) = K712
-Estimated selling price by miller for a 25kg bag of breakfast mealie meal = K712/40 x 25 = K445
-Estimated profit mark-up by retailers = 5% x K445 = K22

ESTIMATED SHELF SELLING PRICE FOR A 25KG BAG OF BREAKFAST MEALIE MEAL FOR THE 2025/2026 PERIOD = (K445+K22) = K467

Conclusion: With an FRA buying price of K340, the farmer makes a loss and the consumer cannot afford the mealie meal. In short, it’s a double tragedy. The solution is to reduce the cost of farming inputs by producing all the fertilizer locally through a state parastatal like Nitrogen Chemicals of Zambia. Anyway, TILI TONSE 🤝 and the Future is SET ✌🏽

SET 03/06/2025