Farmers can use ZAMACE to access inputs

Sat, 27 May 2017 11:09:46 +0000

By BUUMBA CHIMBULU

ELEVEN warehouse receipts with the total quantity of 10,000 tonnes of maize grain worth US$2.6 million from the Lusaka certified storage site have been issued by the Zambia Agriculture Commodity Exchange (ZAMACE).

And ZAMACE has certified five warehouse operators with a total storage capacity of 425,000 tonnes for the warehouse receipt system.

ZAMACE executive director, Jacob Mwale, explained that the transaction involved maize grains sitting on a warehouse receipts being used as collateral to access inputs such as seeds, fertilizer and chemicals.

 “As you may be aware ZAMACE guarantees both delivery of quantity and quality grains on one side of the transaction and cash settlement on the other side of the transaction.

“This is now a fully-fledged facility that can be used by those holding a warehouse receipt to access a number of goods and services while they wait to sell their crops,” he said.

Mr Mwale said in an interview in Lusaka that the transaction would be concluded next month with an off-taker of maize grain on warehouse receipts being a milling company that had been settling its obligations to the farmer through ZAMACE.

He explained that some of the goods that could be procured with warehouse receipts were implements, tools and equipment in addition to fertilizers, seed and chemicals.

He said AFGRI Corporation, CHC Commodities Limited, NWK Commodity Services Limited, United Africa Grain Limited and Zdenakie Limited were the certified warehouse operators in Zambia so far.

Mr Mwale explained that NWK Commodity Services Limited had sites in Kabwe, Mpongwe, Katete and Petauke while AFGRI Corporation was in Mpongwe, Mkushi and Petauke.

“ZAMACE’s platform has been welcomed by most farmers as it is a transparent mechanism to trade their commodities through ZAMACE as long as they have been deposited in a certified warehouse,” he said.

Mr Mwale further said the small holder farmer and cooperatives could store the crops without fearing that they would be damaged as these storage facilities were certified and inspected constantly by ZAMACE.

He said there were several opportunities for the various players in the value chain to take advantage of by using
ZAMACE.