Dear Friends:

Some very good news out of Zimbabwe from WFP with regard to maize production and
the inflation, which has incredbily dropped to "zero" from an equally incredible
56 million percent.

Jack Shepherd


FAO/WFP News Release
25 June 2009

ZIMBABWE: HIGHER PRODUCTION
BUT FOOD INSECURITY PERSISTS

ROME ­ High food insecurity persists in Zimbabwe in spite of improvements
in agricultural production and a more liberal import policy this year,
according to a report issued today by the United Nations Food and
Agriculture Organization (FAO) and the World Food Programme (WFP).

Good rainfall meant 2009 production of the staple crop, maize, is estimated
to have more than doubled -- to 1.14 million metric tonnes -- an increase
of 130 percent on the record low harvest of 2008, the report said. But the
report also includes forecast production of winter-season wheat of only
about 12,000 tonnes, the lowest ever, reflecting the high cost of
fertilizers and quality seeds, farmers' lack of financial liquidity and the
uncertainty of the electricity supply for irrigation.

In March 2009, the Government of Zimbabwe abandoned the Zimbabwe dollar and
announced the liberalization of most sectors of the economy. Adoption of
the US dollar and South African rand as legal currencies has brought the
annual rate of inflation down to zero from its 2008 high, calculated by the
World Bank at 56 million percent.

Grain market reform includes free movement and buying and selling of grain
in the country, removal of import duties and designation of the government
Grain Marketing Board as a buyer of last resort to maintain a floor price
for maize and protect domestic producers. This has filled the shops with
products and reduced prices. Still, for most households without access to
foreign currency, basic necessities remain out of reach.

"Liberalization of the grain market is the most important change in a
decade for the improvement of agriculture sector in Zimbabwe," said FAO
Economist Kisan Gunjal, co-leader of the UN mission to Zimbabwe in early
May that produced the report. "But the full impact of the reform on
production next season remains to be seen, especially in light of financial
liquidity constraints and other problems of economic transition."

"This year's improved harvest comes after two consecutive years of poor
production," said WFP's Jan Delbaere, also a co-leader of the mission.
"Having depleted their food stocks and sold livestock and other assets to
cope with the effects of recent crises, many rural households are still
struggling to survive."

The significantly better cereal production comes in spite of the fact that
inputs such as quality seeds and fertilizer were in short supply and
expensive. However, production at household level did not reach its
potential due to use of retained grain, including some food aid, as seed,
and lack of fertilizers, fuel and draught power, which resulted in late
planting and cultivation of smaller plots by subsistence farmers.

The report provisionally estimates that about 2.8 million people will face
food shortages in the 2009/10 marketing year (April/March) and will require
some 228,000 tonnes of food assistance, including 190,000 of cereals. The
mission cautions, however, that these figures may need to be revised based
on the findings of a proposed Zimbabwe Vulnerability Assessment Committee
assessment in August.

The report estimates total domestic cereal availability for 2009/10 at 1.39
million tonnes against a projected total utilization of 2.07 million
tonnes, leaving an import requirement of 680,000 tonnes. To meet this gap,
cereal imports of about 500,000 tonnes, mostly by the private sector, are
expected, providing there are no import restrictions.

Given the uncertainty of imports in the new economic environment, the
mission recommends that the national cereal balance sheet be reviewed and
updated periodically.

The mission recommends emergency assistance by the Government and the
international community in acquiring fertilizer and quality seed for
delivery in September 2009, and dipping chemicals for the control of
tick-borne livestock diseases.

Investing in sustainable food production in Zimbabwe will require
re-establishment of its domestic seed industry, promotion of conservation
agriculture, rehabilitation of irrigation facilities, and support to farm
mechanization and agricultural extension, the report concluded.

# # #

WFP is the world's largest humanitarian agency and the UN's frontline
agency for hunger solutions. In 2009, WFP aims to feed 105 million people
in 74 countries.

WFP now provides RSS feeds to help journalists keep up with the latest
press releases, videos and photos as they are published on WFP.org. For
more details see: http://www.wfp.org/english/?n=999.

WFP now has a dedicated ISDN line in Italy for quality two-way interviews
with WFP officials.

A full copy of the CSFAM report is available online at:
http://www.fao.org/docrep/011/ai483e/ai483e00.htm.

For more information please contact):
Erwin Northoff, FAO Media Relations (Rome), (+39) 06 570 53105, (+39) 348
252 3616, erwin.northoff@fao.org
Teresa Buerkle, FAO/Washington, Tel. +1 202 653 0011, Cell. +1 202 294
6665, teresamarie.buerkle@fao.org

WFP (email address: firstname.lastname@wfp.org):
Peter Smerdon, WFP/Nairobi, Tel +254 27 622 179, Cell. +254 733 528 911
Gregory Barrow, WFP/Rome, Tel. +39-06-65132330, Cell. +39-3481325018
Emilia Casella, WFP/Geneva, Tel. +41-22-9178564, Cell. +41-792857304
Jennifer Parmelee, WFP/Washington, Tel. +1-202-6530010 ext. 1149, Cell.
+1-202-4223383