Presentation is loading. Please wait.

Presentation is loading. Please wait.

EASTERN AFRICA GRAIN COUNCIL (EAGC) Grain Value Chain in EA. Gerald Makau MASILA, Executive Director, EAGC Presented to the E.A Agric Value Chain Investment.

Similar presentations


Presentation on theme: "EASTERN AFRICA GRAIN COUNCIL (EAGC) Grain Value Chain in EA. Gerald Makau MASILA, Executive Director, EAGC Presented to the E.A Agric Value Chain Investment."— Presentation transcript:

1 EASTERN AFRICA GRAIN COUNCIL (EAGC) Grain Value Chain in EA. Gerald Makau MASILA, Executive Director, EAGC Presented to the E.A Agric Value Chain Investment SUMMIT 4th – 6 th Dec 2012, Kampala, UGANDA

2 Contents Grain Sector in EASTERN AFRICA Intro to EAGC Who, Why & What Grains Investment Opportunities

3

4

5

6

7 Grain Sector in E. Africa MAIN GRAINS/CEREALS MAIZE WHEAT RICE BEANS TEFF SORGHUM MILLET FINGER MILLET SOYA BEANS SIMSIM..etc...

8 GRAIN VALUE CHAIN..... PRODUCTION /FARMERS POST HARVEST MGT/STORAGE TRADE NATIONAL /IMPORT/EXPORT PROCESSING/ MILLING /MANUFACTURE CONSUMER/ DISTRIBUTION/ MARKETING PRODUCTION ( SMALLHOLDERS 70-80%) INPUTS(SEEDS, AGRO-INPUTS, FERTS HIGH POST HARVEST LOSSES FEW STORAGE SYSTEM/SOLUTIONS LOW FINANCE & MARKET ACCESS LACK MKT INFORMATION RISK MANAGEMENT PRICE VOLATILITY, PESTS & DISEASES DROUGHTS & FLOODS COMPETITION (INTERNATIONAL/REGIONAL POLICY – MACROECON FISCAL MONETARY NATIONAL POLICIES IMPORT/EXPORT REGIONAL POLICIES(RECS) AFRICAN UNION(AUC) IGAD,COMESA,EAC SADC, ECOWAS etc

9 Grain Sector CHALLENGES & OPPORTUNITIES PRODUCTION ISSUES – QUANTITY & QUALITY – SAFETY & NUTRITION TRADE IN FOOD – LOW – MARKET ACCESS – CROSS BORDER TRADE HIGH TRANSACTION COSTS FARMER INCOMES – LOW FINANCE COSTS - HIGH INVESTING IN AGRIC – CAADP - AUC – MDGs STRUCTURED TRADE – STDS & GRADES – PHH& M, WRS – COMMODITY EXCHANGE ENABLING POLICIES HARMONIZATION REG. INTEGRATION

10 EAGC –Who we are…. Grain Value Chain Actors..GETTING TOGETHER Inclusive… Farmers/Producers – small holder and large Traders, Handlers, Warehouses Processors/Milling/Manufacture As Members of EAGC…Active, Affiliate, Associate EAGC is a Regional Council for Grain Value Chain, Not for Profit Company, Ltd by Guarantee Object – develop and promote regional structured grain TRADE and advocate for an enabling environment, reduce transaction costs trade barriers, increase incomes/reduce poverty, improve food security

11 Why EAGC. Grain Sector Issues – Global/Regional/National Cross Border Trade Barriers Frequent Bans on Cross Border Maize Tariff and Non Tariff Barrier Informal Cross Border Trade Access to Markets & Price Risks/Volatility Standards/Quality/Grading/Safety/Aflatoxins Post Harvest – Storage, Preservation, losses Market mechanisms (ss/dd) vs State regulations

12 EAGC Scope and Relevance Apex regional organisation for the grain industry providing a voice for farmers, processors and traders. Influencing regional integration of the grain trade through harmonisation, trade facilitation and market development. Development and provision of a Market Intelligence System on the grain industry A unique forum for food value chain policy advocacy Development of a national and regional Structured Trading System for grains

13 Key EAGC Initiatives Structured Trading Systems (STS) Grades and Standards Storage and warehousing Warehouse Receipt System, Grades and Standards Standard grain trading contracts Arbitration mechanism Financing Systems –Inventory Credits -Collateral Management Commodity Exchange Market Information Systems (MIS) Regional Agricultural Trade Intelligence Network (RATIN) Electronic Grain Trade (EGT Africa) Capacity Building Training on WRS, Grades and Standards, market information sourcing and disseminate,trade contracts, rules trade and the process of arbitration Trade Policy Policy Dialogue Regional harmonization of Trade Policies Regional Food Balance Sheet Removal of Trade barriers

14 Structured TRADING System SILOS STORES WRS SILOS STORES WRS FARMERS/ TRADERS PROCESS/ MILLING STANDARDS & GRADING RULES OF TRADE/CONTRACTS/ARBITRATION MARKET INFO. SYSTEM TRADING PLATFORM/ COMMODITY EXCHANGE TRADING PLATFORM/ COMMODITY EXCHANGE BANKS ENABLING POLICY ENVIRONMENT/LEGAL & REGULATORY FOR STS

15 Grain Sector Investment Opportunities Level 1 - PRODUCTION – Farmer Services – Seed, Inputs, Mech, Tech Trans Level 2 – POST HARVEST – Drying, Cleaning, Grading, Storage, WRS Services – Bulk Grain Handling, sea port/inland, Level 3 – PROCESSING/MANUFACTURING – Milling, Cereals, Animal Feeds, Distillation, Brewing Level 4 – TRADE, MARKETING, SUPPLY CHAIN – Logistics – in/out bound, Branding, Level 5 – FINANCE, ICT, INSURANCE

16 1. Kenya - Regional Head Office Est 2006, 50+ members STS program, WRS, MIS(RATIN) Draft WRS bill, ABE 2010/11/12 2. Tanzania Est 2008, Dar & Arusha office 20+ members, TWLB, COPA,ABE Uganda Est 2008, Kampala office, 30+ members, UCE, ABE 2010/12 4. Rwanda/Burundi Kigali office, Est Aug South Sudan – Est 2012, Juba office 6. Ethiopia – Est 2012, Addis office 7. DR Congo, Zambia, Malawi, 8.AGT Summit, 2005, 2007,2009,2011 EAGC IN ESA REGION

17 FOOD SECURITY AVAILABILITY ACCESS ADEQUACY EAGC & FOOD SECURITY QUANTITY QUALITY VARIETY AFFORDABLE MKT ACCESS MKT INFO. NUTRITION ACCEPTABLE SOC-CULTURAL

18 EAGC Benefits A unique FORUM for Grain Stakeholders – TO ADDRESS COMMON ISSUES & CREATE PARTNERSHIPS – SET OWN PRIORITIES AND DESTINY FOR THE SECTOR – HAVE A VOICE/SAY IN THE POLICY DIALOGUE AFFECTING YOUR BUSINESS – ACQUIRE SKILLS/TRAINING IN STS, REGIONAL TRADE – BUSINESS TO BUSINESS (B2B)LINKAGES – SUPPLY CHAIN & SERVICES A link to the REGIONAL GRAIN value chain – Larger Regional Market – More Sales/Profits – Regional Integration & Harmonization (Trade Policies, Standards etc – Regional & Continental Trade SUMMITS – Share best practice in the region – COMMODITY EXCHANGE! A link to the REGIONAL Market Information System (RATIN) – Access market and Trade info for ESA region, RFBS

19 EAGC Benefits BenefitsFarmerTraderProcessor Millers Financial Inst Consumer Market Information (RATIN) Grain Bulking, Market Access Better Prices Price Risk Mgt (WRS/Commodity Exchange) Finance Access (WRS, Inventory Credit) Storage, Handling, Safety Quality, Supply Guarantee Policy/Enabling Environment Transaction Costs Reduced (Working Capital, Multi -Transact Increased Incomes More Organised Clients

20 EAGC - Vision To be the leading voice for the grain industry in Africa Mission..... To advocate for an enabling environment and promote structured grain trade for optimum stakeholder benefits

21 SIDA ( Sweden) USAID – USAID/Compete – USAID/MLI – USAID/Lead FSD AGRA FAO WFP CGA/UCE UNCTAD RESAKSS ASARECA ICRISAT CTA ACDI/VOCA/KMPD Nile Basin Initiative EAC COMESA African Union Donor Support Partners Asante Sana...

22 E.A AGRIC VALUE CHAINS STAKEHOLDERS.... IT ALWAYS SEEMS IMPOSSIBLE, UNTIL IT IS DONE Nelson Mandela


Download ppt "EASTERN AFRICA GRAIN COUNCIL (EAGC) Grain Value Chain in EA. Gerald Makau MASILA, Executive Director, EAGC Presented to the E.A Agric Value Chain Investment."

Similar presentations


Ads by Google