From Africa Recovery, Vol.11#2 (October 1997), page 17 (part of special feature on Agriculture in Africa)

SADC cereal goal: more trade, smaller reserves

By Mercedes Sayagues

The working definition of "food security" has been shifting in recent years, from referring almost exclusively to the amount of food physically available in-country, to now also encompassing people's access to food. "The access side of the coin means that household coping strategies, income generation and safety nets are much more on the agenda," says Mr. Roger Buckland of the Southern African Development Community (SADC) food security unit.

This has led to a major change in concerns about strategic grain reserves (SGRs). In the 1980s, countries felt safe only when they held in their silos enough maize for a year's consumption. But storing maize is expensive (one estimate puts it at $62 a tonne per year). Also, today's earlier weather forecasts allow for better planning, making it less necessary for governments to have large stocks. For example, in July, when the first warnings of another drought were issued, South African and Zimbabwean traders began scouting world markets for cheap maize.

The UN Food and Agriculture Organization (FAO) and the World Bank recommend an SGR covering three or four months' consumption, coupled with a cash reserve to import food. By August, Zambia held an SGR of 130,000 tonnes; Mozambique and Tanzania, 50,000 tonnes each. The smaller countries, Namibia, Botswana, Lesotho and Swaziland, have scarcely any reserves at all; in the words of one food security expert, "if in need, they pick up the phone and place an order in South Africa." However, landlocked Zimbabwe and Malawi, where food shipments take up to three months to arrive from coastal ports, prefer to hold on to larger stocks (180,000 tonnes for Malawi; a minimum of 500,000 tonnes, going up to 930,000 tonnes for Zimbabwe).

In July, SADC ministers of food, agriculture and natural resources agreed that the existing regional food reserve scheme should be transformed into a financial facility. This follows the shift from national self-sufficiency to a trade-based regional approach. The Trade Protocol signed by SADC countries in 1996 makes food movements among countries nominally easier. But trade is still hampered by protective tariffs and complicated border and customs regulations. "We need bold decisions: free flow of people and goods among SADC countries," says Mr. Reginald Mugwara, SADC food security sector coordinator.

Today, food commodities appear on the region's young commodity exchanges. Grain prices are quoted on Zimbabwe's television evening news. But, to date, liberalization has been more of an internal process. "It is too early to see signs of greater inter-regional trade," says Mr. Caesar Chidawanyika of the World Bank.

To boost trade, experts argue, public and private investment is needed for roads, railways, storage and training of traders to improve the marketing chain. The region's transport network is not yet geared to low-value, high-volume food staples.

Tough plant and animal health standards and controls also must be enforced so pests do not spread through the SADC region. There is a bad precedent: one uninspected food aid shipment from Tanzania to Zambia introduced the dreaded larger grain borer. This bug, now firmly established in southern Zambia and northern Zimbabwe, can reduce yields by up to 40 per cent.

Severe trade imbalances and an unequal trading environment cause problems within the region. South Africa, for example, gives incentives to its agricultural exporters, making it harder for producers in other countries to compete. Meanwhile, SADC grain trade patterns are highly variable, going from large maize surpluses to large deficits when drought hits.

Commercial traders, food security experts and aid agencies agree on one thing: market transparency and coherent government policies are essential. "Politicians try to sidetrack market liberalization to look after their own constituencies, but governments need to stick to decisions," says Mr. Mark Smulders, an FAO food security expert. "Better governance goes hand-in-hand with market liberalization."

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