emrc nick hutchinson eagc

Grain Industry Investment:Underpinning Livestock Market Development

1

EMRC Agribusiness Forum 2010Kampala, October 3-6

Background

Established (2006) as an USAID-funded RATES program initiative – with the active encouragement and participation of key stakeholders, including service providers, in the grain value chain. Currently receives funding support from SIDA, USAID COMPETE

& DFID’s Financial Sector Deepening (FSD) program

2

Role

Promote free trade in grain under a harmonized trade regime providing small farmers with improved market access;

Enable expansion and harmonization of agricultural market information systems;

Enable harmonization of agricultural trade policies;

Build capacity for trade and farmer organizations; and

Promote structured grain trading systems e.g. rules of trade, standard contracts, collateral management and enabling environment, where warehouse receipt systems and commodity exchanges can emerge.

3

Membership

All stakeholders along the grain value chain

Producers, Processors, Traders (ACTIVE) National Associations representing producers,

processors and traders (AFFILIATE) Service Providers e.g. warehouse operators,

inspectors, collateral managers, input suppliers, banks, insurers (ASSOCIATE)

72 subscription paying members from across Eastern Africa

29 farmer groups

4

5

KIBAIGWA MARKET-TANZANIA

Livestock Feed

Key Sectors: Poultry Dairy Pig & Fish (emerging)

Key Raw Materials: Maize – grain & bran Wheat – bran & pollard Sunflower seedcake Cotton seedcake Soybean meal Fish Meal Bone Meal

6

Maximising On-Farm Return

Ensure Market & Price Discovery regional market information before planting,

during growing and after harvest Minimise Post-Harvest Losses

Grain Quality (moisture, aflatoxin)

Drying Grading & Testing Storage (Segregation) Traceability

7

ON-FARM CAPACITY COMMUNITY CAPACITY AREA CAPACITY

etc .……………..

Warehouse Receipt System

Kenya Supported by FSD 3 warehouses EAGC certified; 12 inspected & in-

process Collaboration with Government in drafting

legislation to enable WRS and COMEX Uganda

Collaboration with Uganda Commodity Exchange (UCE)

Tanzania Collaboration with Warehouse Licencing Board

(TWLB)

8

Participation in EAC Standards Technical Committee (development & harmonisation of regional staple grain standards) Incorporate standards for Livestock Feed grade raw materials Aflatoxin

Raw Material v’s Finished Product (consider dilution effect) Current: Human: 10 ppb with B1 maximum of 5; Livestock : 10 ppb with

no B1 specification Suggested: Livestock – 20 ppb; permit use of approved mycotoxin

binders

9

Standards

Yellow Maize (QP White Maize) White Sorghum Cassava Yellow Sweet Potato Soybeans Pigeon peas/cowpeas

10

Alternate Crops

The SecretariatEastern Africa Grain CouncilP.O. Box 218 - 00606Nairobi

Tel: +254-20-3745840 Fax: +254-20-3745841grains@eagc.orgwww.eagc.org, www.ratin.net

Maple CourtWestlands Close, off Westlands Road

11