Oct 06, 2025 (The Herald/All Africa Global Media via COMTEX) --
THE recent announcement of the new maize incentive price of US$380 per tonne has pushed the crop's breakeven yield to 3,25 tonnes per hectare, backed by high productivity levels translating into equally high profits.
At the breakeven point, revenue generated from an investment covers exactly all costs incurred, resulting in no profit or loss.
The Grain Marketing Board (GMB) recently announced the approved incentive planning prices for the 2025/26 season and marketing price for winter wheat.
"Following extensive consultations with stakeholders, the Government has approved the incentive planning prices for the 2025/26 summer season and marketing price for winter wheat.
"The incentive planning price of maize and traditional grains is US$380 per tonne, while that for soya bean is US$580 and sunflower at US$668," said GMB.
Zimbabwe Commercial Farmers' union (ZCFU) president, Dr Shadreck Makombe, welcomed the prices, saying they should motivate farmers.
"The prices are fair if not good, even if you consider the import parity price and farmers selling through GMB must be paid timeously so that they use the money while it still has value," he said.
Agriculture expert, Dr Reneth Mano, said the local cost of production was high and the Government should tackle this area rather than the output support price as that does not stimulate yield increases.
"Given that the Southern African Development Community (SADC) seasonal weather forecasters are anticipating a weak La Nina season with normal to above normal rains, Zimbabwe ought to be planning to provide farmers with adequate access to appropriately priced agricultural input credit facilities to match the average yields of maize, soya beans and sunflower crops that Zambia, Malawi and South Africa are already achieving.
"The GMB maize price of US380 is already 46 to 58 percent higher than Zambian 2025 domestic maize prices," he said.
Dr Mano said due to low average maize yields, the Government was setting higher grain prices in a desperate effort to ensure continued production of the crop.
"This producer pricing policy runs the danger of creating moral hazards by diluting the financial incentive for farmers to strive to get out of loss positions by increasing crop yields rather than appealing to Government for higher maize producer prices.
"Zimbabwe is effectively pricing itself out of the SADC market for staple grains and higher value manufactured consumer food products by overpricing its grains by regional and global standards," he said.
Dr Mano noted the country was falling far behind its SADC regional comparator nations in terms of agricultural price competitiveness in the African grains and processed food markets.
The country must regain its breadbasket status in Southern Africa rather than surrender the dream to countries like Zambia, Tanzania and South Africa.
A gross margin analysis of the budget of maize as of yesterday shows that from cultivation to harvesting, a hectare of maize costs about US$1 234 without considering transport and irrigation.
This means that for a buyer like the GMB, the announced prices work well with a breakeven yield of 3,25 tonnes per hectare. The figure is, however, much higher than the average yield for most years, which is below one tonne per hectare.
COMTEX_469316251/2029/2025-10-06T08:10:19
by Edgar Vhera, Agriculture Specialist Writer
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