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Eastern Africa set to become global grain basket
2008-05-15 09:19:16
By Felister Peter
The eastern African region has all the potential to supply the global markets with grain, as long as governments lend their support to small scale farmers.
This was said in Dar es Salaam Tuesday by the East Africa Grain Council (EAGC) Country Director Ben Moshi during the launch of EAGC Tanzania chapter.
For that development to happen, he said, it requires policy makers to do their homework effectively by addressing the issue of grain production because the most challenge that East African countries are facing now was wholly related to low productivity.
Moshi lamented that even up the current 21st century, small scale farmers are still applying outdated farm technologies such as hoes while the use fertilizers is uncommon in most areas.
In Tanzania for instance, he said small scale farmers do harvest 1.5 tones of grain per acre instead of 5 and 6 tones from same unit of land because are using old-fashioned methods.
``The EAGC will help supporting these farmers by providing them with modern farming equipments and fertilizers``, he contended.
However, he noted that EAGC is geared to promote a structured grain trading system in Eat Africa, free movement across borders for grain exporters and provide price and crop updates for all traders within the region.
From last year, according to Consultative Group on International Agricultural Research (OGIAR), wheat prices rose 120 percent while rice rose 75 percent and there is no indication the prices would come down.
The region could hugely benefit from ongoing market fundamentals if it had grain surpluses to sell to global markets.
Unfortunately, it is reeling from net deficits as a result of climatic factors.
Meanwhile, the EAGC`s Executive Director Anne Mbaabu said during the launching ceremony that EAGC in Tanzania would help to promote better functioning of regional supply chain, focusing on trade issues across all sectors while building a platform for reducing constraints which are seen hindering regional grain trading.
Over the longer runs, EAGC looks forward to seeing emergence of well structured agricultural marketing and investment system propped up by modern innovations such as warehouse receipt systems and commodity exchanges.
She said that through warehouse receipt system farmers would be able to use their grain stocks as bonds to getting loans from banks.
``We are still negotiating with some of the banks in Tanzania so that the new loan system starts immediately``, said Mbaabu.
She said the system already functions in Kenya, a proof that it can as well apply in Tanzania, where an enabling law, the Tanzania Warehousing Act No. 10 was passed in 2005 is in place.
Developments are underway to make the law operational, including preparation of operational manuals and setting up of a regulatory body.
EAGC draws its members from Kenya, Uganda, Tanzania, Malawi, Zambia, Sudan Ethiopia and South Africa.
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