Africa’s copper producer, Zambia is currently grappling with hyperinflation in the tomato market which has seen the standard price of a box balloon 15 times to K300 from K20 levels (a price move translating to 1400%). This has been attributed to anemic supply in the face of massive demand exacerbated by the autopsy effects of the poor rainfall outcome.
One of Zambia’s leading tomato farmers Maria Zileni Zaloumis proprietor of Tuzini farms, forecast that the tomato deficit will extend to July in the medium term. She attributed the deficit to the poor precipitation pattern which has impacted supply and as such is inadequate to meet rising demand resulting in the sharp spike in pricing to K300 for a box of the commodity.
The tomato cycle is reflected in Zambia consumer price index with periods of excessive rainfall of erratic patterns not good for the crop as tomato leaves are incompatible with water. Heavy rainfall is said to disrupt growth of the tomato fruit as such will impact supply.
Tomato forms a critical part of the food basket for Zambians and as such the price uptick could weigh the consumer price index adversely impacting overall inflation between May and July. Headline inflation for the month of April printed at 7.7% a few points below the upper boundary of the Bank of Zambia targeted band of 6-8%.