1. EASTERN AFRICA GRAIN COUNCIL (EAGC) Grain Value Chain in EA
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 – 6th Dec 2012, Kampala, UGANDA

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

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..... PROCESSING/ /MANUFACTURE TRADE NATIONAL
MILLING
DISTRIBUTION/
CONSUMER/
MARKETING
PRODUCTION/FARMERS
POST HARVEST
MGT/STORAGE
TRADE NATIONAL
/IMPORT/EXPORT
PRODUCTION ( SMALLHOLDERS %)
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
INVESTING IN AGRIC
CAADP - AUC
MDGs
STRUCTURED TRADE
STDS & GRADES
PHH& M, WRS
COMMODITY EXCHANGE
ENABLING POLICIES
HARMONIZATION
REG. INTEGRATION
PRODUCTION ISSUES
QUANTITY & QUALITY
SAFETY & NUTRITION
TRADE IN FOOD – LOW
MARKET ACCESS
CROSS BORDER TRADE
HIGH TRANSACTION COSTS
FARMER INCOMES – LOW
FINANCE COSTS - HIGH

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,
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
TRADING PLATFORM/
COMMODITY EXCHANGE
PROCESS/MILLING
BANKS
SILOS
STORES
WRS
FARMERS/ TRADERS
MARKET INFO. SYSTEM
RULES OF TRADE/CONTRACTS/ARBITRATION
STANDARDS & GRADING
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. EAGC IN ESA REGION.......... Kenya - Regional Head Office
Est 2006, 50+ members
STS program, WRS, MIS(RATIN)
Draft WRS bill, ABE 2010/11/12
Tanzania
Est 2008, Dar & Arusha office
20+ members, TWLB, COPA,ABE 2012
Uganda
Est 2008, Kampala office,
30+ members, UCE , ABE 2010/12
Rwanda/Burundi Kigali office, Est Aug. 2012
South Sudan – Est 2012, Juba office
Ethiopia – Est 2012, Addis office
DR Congo, Zambia, Malawi ,
AGT Summit , 2005, 2007,2009,2011

17. EAGC & FOOD SECURITY FOOD SECURITY QUANTITY QUALITY VARIETY AFFORDABLE
AVAILABILITY
ACCESS
ADEQUACY
QUANTITY QUALITY
VARIETY
AFFORDABLE
MKT ACCESS
MKT INFO.
FOOD SECURITY
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......... Benefits Farmer Trader Processor 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. Asante Sana... SIDA ( Sweden) USAID FSD AGRA FAO WFP CGA/UCE UNCTAD
Donor Support
Partners
FAO
WFP
CGA/UCE
UNCTAD
RESAKSS
ASARECA
ICRISAT
CTA
ACDI/VOCA/KMPD
Nile Basin Initiative
EAC
COMESA
African Union
SIDA ( Sweden)
USAID
USAID/Compete
USAID/MLI
USAID/Lead
FSD
AGRA

22. E.A AGRIC VALUE CHAINS STAKEHOLDERS....
....YES WE CAN!
“IT ALWAYS SEEMS IMPOSSIBLE, UNTIL IT IS DONE” Nelson Mandela