Trip Report: Community / Regional coordinators oversight visit

The primary mechanism for small-scale farmers to sell their products was to small holder traders and the government's Food Reserve Agency (FRA). The FRA, which typically sets a limit to their purchases each year, had last year bought over 80% of the total tradable maize in the country and at a higher market price than the private commercial grain buyers. This discouraged the private sector from effective participation in the small holder maize marketing, leading to the perception by small scale farmers that the price set by FRA was the national floor price of the commodity. The marketing season in 2011 was expected to follow the same trend due to the fact that it was an election year and the Government would have to be seen to purchase the crop regardless of how uneconomical the commodity price would be. Most commercial buyers spoken to were very skeptical to venture into the maize market this year. In response to these challenges, ZAMACE planned to employ new strategies for smallholder engagement in the 2011 marketing season. These strategies included venturing into commodities such as soya beans, sorghum, sunflower, and mixed beans with more potential output markets and setting up forward contracts with buyers. ZAMACE also planned to procure polypropylene empty bags at a discounted rate and sell them to cooperatives and farming communities at a small margin, passing on the discounted benefits in comparison to the local retail market. This was intended to encourage the use of the exchange and provide a financial cushion for farmers until after the revenue from maize sales would be realized. Additionally, ZAMACE aimed to create a demand-driven loan-based community aggregation shed rehabilitation program to deserving cooperatives and farming communities. During a visit to the southern region of the country, particularly Monze, it was observed that community sheds constructed in the early 1970s had not been rehabilitated since. A preliminary assessment was made on the condition of two community sheds in MUJIKA and BASANJE communities, which had successfully aggregated maize last year. The northern region of the country was found to be deficient in community sheds, requiring more investment in construction and funding. ZAMACE also planned to conduct crop surveys in Monze, Kabwe, and Mkushi districts to consolidate resources and focus on commodities with more potential output markets. The goal was to provide market access for alternative crops and offer a rotational crop for enhanced soil fertility. The successful participation of small-scale farmers in the marketing of alternative crops this year on the ZAMACE platform was expected to prime them for future use of ZAMACE when the Government's FRA reverts back to procure maize for only strategic reserves. The visit to the region also focused on ensuring that regional coordinators were guided to meet with cooperating partners such as MACO, warehouse operators, cooperatives, farming communities, ZNFU, smallholder traders, and disseminate the correct information. The regional coordinators were tasked to consolidate orders for empty grain bags and forward them to ZAMACE for procurement. An intensive community sensitization through radio programs was recommended to provide market information to smallholder farmers. Training programs were also planned to offer farming community trainings in finance and business, and bringing brokers to training. Regular stakeholder meetings were recommended as a continuous monitoring tool.