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NMB chief stresses efficient supply chain for agricultural development
2008-03-31 10:16:15
By Guardian Reporter
National Microfinance Bank (NMB) chief executive officer Ben Christiaanse has underscored the importance of an efficient supply chain in achieving sustainable agricultural development in the country.
Christiaanse issued the remarks in Mbeya recently at a function to launch the warehouse receipt system in Mbeya Region, which will be facilitated by a funding arrangement to farmers from his bank.
``I see creating an efficient supply chain as one of the most important steps in creating a sustanable future for the agriculture industry of Tanzania,`` said the CEO, stressing:
``Without an efficient supply chain there are only two options: One, Tanzania products will become too expensive for the world market and the local market will be flooded by cheap imports. And two, if the price that consumers pay remains at world market prices the farmers will lose out.``
Elaborating, he said the reason for that was that all players in the supply chain would create costs and want to make a profit.
``This is not a challenge for farmers in Tanzania alone. Even in some developed countries, farmers receive less money compared to farmers on the continent of Europe because they were properly organized,`` he noted.
Christiaanse commended the government for cooperation and assistance that enabled cashew nut farmers in Mtwara region, where the system is already in use, for facilitating effective execution of the system there.
He said an agreement to help farmers with funding between the government and his bank, through Industries, Trade and Marketing ministry, underlined commitment towards agriculture in general and towards the farmers in particular.
``NMB is very committed to the farming industry. It has been supporting more than 100,000 farmers in the sugar, coffee and cashew nut industries alone. We have started with warehouse receipt financing,`` he said.
Last year, he said the bank was successful in financing the cashew nut crop in Mtwara through warehouse receipt system and in testing the system for coffee in Mbozi and Mbinga, and after achieving positive results the institution had decided to make the facility available for all coffee farmers’ organizations in Mbeya and Ruvuma regions.
Launching the warehouse system, Industry, Trade and Marketing minister Dr Mary Nagu said the government had introduced the system to make farmers embarking on cash-crop growing get better prices for their crops.
``Implementation of the warehouse system needs financial institutions (banks, SACCOS, etc) as an integral part in ensuring that farmers are paid their money to satisfy their needs before selling their crops,`` she said.
Dr Nagu commended the NMB for supporting government efforts in ensuring that the system was established in Mbeya and Ruvuma regions by facilitating the buying of coffee through cooperative societies in Mbinga and Mbozi districts.
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