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Effective Grain Storage in Eastern and Southern Africa: Selected Policy Issues by J. Govereh; T. Tefera & H. De Groote.

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Presentation on theme: "Effective Grain Storage in Eastern and Southern Africa: Selected Policy Issues by J. Govereh; T. Tefera & H. De Groote."— Presentation transcript:

1 Effective Grain Storage in Eastern and Southern Africa: Selected Policy Issues by J. Govereh; T. Tefera & H. De Groote

2 Outline Outline 1.Food security outlook in ESA 2.Post harvest losses – the forgotten factor 3.Efficacy of alternative storage technologies 4.Policy essentials 5.Incentives to promote on-farm storage 6.Public investments that “crowd-in” private investment 7.Expected outcomes

3 Food Security Outlook in Eastern and Southern Africa Food Security Outlook in Eastern and Southern Africa 1.Surge in food prices since Drought in North America Continuing price and volume volatility Developing countries who are net importers will face financial burden 3.Risk of intermittent food shortages Inability to adapt to climate change 4.With continuing low productivity and growing demand, long-term structural deficiencies emerging

4 Harvesting and drying 1. Birds 2. Rodents 3. Insects 4. Missing grains 5. Excessive drying 6. Insufficient drying Threshing and shelling 1. Cracking 2. Brakeage 3. Missing 5. Rodents 6. Birds Transport to store 1. Spillage 2. Breakage 3. Leakage On-farm storage 1. Insects 2. Rodents 3. Moulds 4. Birds 5. Mites Marketing 1. Spillage 2. Rodents 1-4% loss 1-2% loss6-16% loss1-2% loss Transport to market 1. Spillage 2. Breakage 3. Leakage 4-10% loss Overall Cumulative Loss 14-36% Maize post-harvest losses – a forgotten factor

5 $Billion PHL is a silent killer as losses do not make headline news Large grain borer is now an epidemic Postharvest losses: How big is the problem?

6 Metal silo SGBs-GrainPro Farmers/ Normal bag Grain storage technologies

7 Benefits of new methods

8 Metal Silos & Super bags to be deployed (2012 – 2016)

9 Policy Imperatives Policy Imperatives 1. Better technology to reduce PH losses necessary but not sufficient to induce greater storage for the market 2. Improved storage and PH handling practices require removing market disincentives 3.It is economic rather than physical losses that matter 4.Successes elsewhere not replicable everywhere Cultural sensitivities a factor

10 Promoting on-farm and trader grain storage Promoting on-farm and trader grain storage 1.Clear & greater incentives to storage Reduce risks on storage investments o Prices marketing boards pay or receive do not reflect value addition o Export bans, tariff waivers, levies etc., not transparent and predictable

11 Intra-seasonal average chronological value of grain Intra-seasonal average chronological value of grain

12 Promoting on-farm and trader grain storage Promoting on-farm and trader grain storage 1.Clear & greater incentives to storage Reduce risks on storage investments o Prices boards pay or receive o Make export bans, tariff waivers, levies etc., transparent and predictable Reduce initial cost of technology to improve returns o 60% of cost is imported metal sheet

13 Reducing cost of Metal Silos Reducing cost of Metal Silos 1.Tax incentives Zero rating for VAT purposes grain handling equipment and technologies o Metal sheets are multi-purpose, difficult to isolate for tax rebates Accelerate phasing down of duty on equipment and raw materials imported outside region

14 Promoting on-farm and trader grain storage Promoting on-farm and trader grain storage 1.Clear & greater incentives to storage Reduce risks on storage investments o Prices boards pay or receive o Make export bans, tariff waivers, levies etc., transparent and predictable Reduce cost of technology to improve returns o 60% of cost is imported metal sheet Redress imbalance in subsidy expenditure o Storage inputs in subsidy package

15 Investment in public services Investment in public services 1.Establish a functioning and upgraded quality assurance and regulatory systems Civic education and human safety 2.Further investments in research and development New storage technologies, new instruments and grain quality standards 3.Develop local capacity to assess magnitude and nature of PHL Baseline data on post harvest losses Regionally standardized loss assessment approaches

16 Outcomes of EGSP -II Outcomes of EGSP -II 1.Increased uptake of metal silo technology building on lessons learnt in phase 1 2.Alternative and affordable postharvest technology tested and introduced to farmers

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