Grain VOL 1
ISSUE 1 JANUARY 2014
A PUBLICATION OF THE EASTERN AFRICA GRAIN COUNCIL
MAIN FEATURE
WAREHOUSE RECEIPTS FINANCING AGRICULTURAL PRODUCERS HARMONISATION OF STANDARDS OF
GRAIN COMMODITIES
BREAKING BARRIERS
IN WOMEN TRADE BIOLOGICAL
DIVERSITY
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contents 3 Message from the Editor 4 Message from the Chairman 5 Message from the Executive Director 6 EAGC in 2013 EAGC ACHIEVEMENTS 2013 5th AFRICAN GRAIN TRADE SUMMIT EAGC AGRIBUSINESS EXPOS
EAGC Services and Products 9 Regional Agricultural Trade Intelligence Network (www.ratin.net) Regional Food Balance Sheet (RFBS) Real time Volume Tracking System (RTVT) EAGC RATIN SMS system 10 Eastern Africa Grain Institute (EAGI) Agricultural Trade Policy in Eastern and Southern Africa ( ATPAF-ESA)
GRAIN SECTOR – TOPICAL ISSUES 12 WAREHOUSE RECEIPTS: FINANCING AGRICULTURAL PRODUCERS 15 THE IMPACTS OF NON TARIFF BARRIERS TO GRAIN TRADE IN TANZANIA 16 BREAKING DOWN BARRIERS FACING AFRICAN WOMEN IN TRADE BIOLOGICAL DIVERSITY: THE ULTIMATE SOLUTION TO FOOD SECURITY IN THE REGION 18 REGIONAL HARMONIZATION OF STANDARDS FOR GRAIN COMMODITIES 20 NEW MEMBERS 2013 21 EAGC Calendar 2014 23 EAGC in Pictures - 2013 List of EAGC Members
Vol 1 | Issue 3 | January - Feb 2014 A Publication of the Eastern Africa Grain Council - EAGC Chief Editor: Gerald Masila Compiled and Edited by: Janet Kalulu Ngombalu Contributors: Erickson Oduya, Janet Kalulu Ngombalu, Samwell Rutto, Sheila Mulli, Philip Barasa , Gertrude Nyanzi, Design, Layout and Printing: Capital Colors creative design ltd 2
From the Editor
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he Horizon of the Grain Sector in Eastern Africa continues to beam and rise higher since the establishment of the Eastern Africa Grain Council (EAGC). Having worked progressively in the sector for the last couple years, I am a witness to the improvements that we see in the sector today. In this particular issue of the EAGC Grain Newsletter, we highlight some of the great achievements of the exceptional men and women in the region who continue to support EAGC in meeting its mandate. We allow ourselves to review the past, but yet remain optimistic about the future. The year 2013, was indeed a great and triumphant year on many fronts for the grain council and the sector in general. It was the year that EAGC hosted a very successful and colourful 5th Africa Grain Trade Summit, and also the year; when through efforts by the EAGC and its partners saw the Gazettement of the EAC Staple foods Commodity Grades and Standards. In the region, 2013, was a year where we collectively worked to improve trade among our member countries. We all saw trade among the EAC member states double to USD 4 Billion in 2013 compared to USD 2 Billion in 2010, as stated by the EAC Secretary General. The bloc also registered growth in Foreign Direct Investment from USD 2.6 Billion in 2010 to $ 3.8 Billion in 2013. For this, we all part ourselves on the back, as this are some of the results we have been hoping to get over the years, as we strive to improve grain trade in the Eastern Africa region.
“ 2013, was a year where we collectively worked to improve trade among our member countries. We all saw trade among the EAC member states double to USD 4 Billion in 2013 compared to USD 2 Billion in 2010, as, as stated by the EAC Secretary General. �
In addition, this issue of the newsletter highlights the topical issues that continue to impact on the grain sector and ways in which we can address some of them. These issues include financing grain trade through the warehouse receipt system, the impacts of non tariff barriers to grain trade in Uganda, the barriers to women in trade in Africa, biological diversity in Agriculture and the regional harmonisation of the standards for grain commodities. Producers of grain in the region have always struggled with storage and other household needs which lead them to sell off their commodity immediately after harvest, when the price and potential for profits are at their lowest. However, a financing solution has been introduced, which seeks to cushion the producers against such eventualities. Read the main story on Warehouse Receipt, Financing Agricultural Producers, to learn more. Trade is an engine for economic growth and agricultural development but harnessing this power in Tanzania still remains a challenge. Tanzania has the potential to become a major exporter of grain, but this potential is still a pipe dream. In this issue of the grain newsletter, we have reviewed of the parameters that hinder this growth, and outlined some of the envisaged solutions. We invite you to read in detail on the impacts of non tariff barriers to Grain trade in Tanzania, as outlined in this issue. Investment in Agriculture is a topical issue in the sector today. The big focus has been on agribusiness. However, we all remember in 2013, the Kenya Food Basket, the North rift, witnessed one of the worst disease outbreaks in history. This could have been caused by use of one variety over a period of time. In this issue, we analyse some of the causes that led to this and provide probable solutions to mitigate future outbreaks such as the one witnessed in Kenya. The EAC recently gazetted the Regional Harmonized Standards for Grain Commodities. In this issue, we provide in detail the standards that were harmonized and discuss on the implications, on the grain sector. Read more and engage with us, as we prepare to disseminate the grades and standards to all the stakeholders in 2014. And now, as we look into 2014, we invite each one of you to continue working with us in this Journey - the journey towards a structured trade in the grain industry. The year promises to be full of great success and achievements. We promise to work together towards a thriving grain sector in Africa, modelled on greatness and innovations towards structured grain trade and food sustainability for all. We thank all of you for your continued support and ask you to use this forum - your forum, the Grain Newsletter - to exchange and interact with other stakeholders in the region, and to have your opinions voiced, as we stand together as a people fostered collectively towards food, trade and a sustained grain sector for all.
Janet Kalulu Ngombalu
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From the Chairman’s Desk
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t is with great satisfaction and gratitude that we once again present this edition of the Grain Newsletter to our members and stakeholders of the Eastern Africa Grain Council (EAGC).
EAGC has continued to pursue her mandate of promoting structured grain trade and advocating for an enabling environment for the Grain sector in the Eastern Africa Region. In general, the year 2013 saw favourable production and harvests of grain and cereal crops in the Eastern Africa region. However, we still experienced food shortages in some parts of the region especially Northern part of Kenya. Intra Regional Trade in the EAC for grain and staple food continued facing the usual cross border trade challenges with most of trade being informal. We salute the people of Kenya for the peaceful elections held in March 2013. This has increased investor confidence not only in Kenya, but the entire region and we urge our leaders to continue working for a peaceful region. The unfortunate senseless and barbaric attack at the Westgate Mall in Kenya has left deep scars to all in the region, but our spirits have emerged with stronger resolve to promote peace and harmony in the region as this is the only sure way of improving the living conditions of our people. On the more positive note we are pleased to report a very successful year 2013 for EAGC. First, for expanding our horizons in the region by establishing presence in South Sudan and Ethiopia and having members register in EAGC from these two countries. I wish to welcome to EAGC in a very special way the Ethiopia EAGC Chapter represented in the Board by Ms. Hadia Gondji and the South Sudan EAGC Chapter represented by Mr. John Chuol, who were both elected into the Board at the last members Annual General Meeting in April 2013. Secondly, we thank you the members for your active participation in EAGC programs activities during the year. The EAGC Agribusiness Expos in Uganda, Tanzania and Kenya were well attended and a big success setting the stage for higher standards in 2014. The 5th African Grain Trade Summit reported elsewhere in this Newsletter was a resounding success and we most sincerely thank all the delegates, sponsors and government officials who supported EAGC. We will follow through the implementation of the resolution of the summit on the issue of regional Grain Trade Policy reforms so that trade in foods especially grains and cereals is enhanced, such that we do not have food going to waste in one part of the region while people are suffering with hunger in another part, simply because barriers to trade prohibit movement of food thus denying the farmers a better price and a paying consumer food to eat.
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We will step up our efforts in engaging policy makers in the region through regular purposeful and transparent policy dialogue sessions at the national and regional levels and ensure the voice of the sector is not only heard but also heeded. We will also continue with efforts to create an enabling policy environment for the grain sector producers, traders and processors to thrive and so that together we can delight our consumers.
‘‘ We will follow through the implementation of the resolution of the summit on the issue of regional Grain Trade Policy reforms’’ We would like to thank and appreciate all the stakeholders who participated in the regional harmonization of standards for the 22 staple foods that were gazetted by EAC early December 2013. The grain sector has taken the lead in harmonizing quality standards as part of the effort for enhancing regional integration within EAC. With these new harmonized standards, we expect that stakeholders will adopt and apply them in trading across borders. Gone now will be the days when standards were used as non tariff barriers to trade and we laud the EAC for this great achievement. We will continue working closely with our partners in pursuing our shared vision of a food secure Eastern Africa region and commit to continue upholding and being accountable by espousing the highest standards of governance and ensure that EAGC truly and continuously strives to serve our members. We therefore would like to remind you to always give us feedback in order for EAGC to continue growing from strength to strength in relevance, efficiency and effectiveness in the pursuit of our vision “to be the leading voice of the grain sector in Africa”.
Mr. Judah arap Bett CHAIRMAN, EASTERN AFRICA GRAIN COUNCIL.
Executive directors note
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his is yet another issue of the Grain Newsletter published by the Eastern Africa Grain Council for the purposes of enhancing communication and interaction among members and stakeholders. Previous editions of the Grain Newsletter have covered diverse issues especially on policy matters affecting the Grain Sector in the Eastern Africa Region and we have received very positive and constructive feedback from the readers. The challenges in the grain sector at all levels of the value chain continue to exist and concern stakeholders. At the production level, small holder producers who are subsistence oriented and who use rudimentary means of production, continue to be the majority producers. At the post harvest level, we are still experiencing high post harvest losses and facing challenges of handling and storage of grains. The trade and processing levels also continue to face their challenges of ensuring continuous supply of grains to keep the factories running all year round. Consumers have not been spared either. Price volatility perpetrated by the seasonality nature of grain production against a growing demand from the rising population. Our programs and interventions at EAGC are designed to address the above challenges so as to support the grain sector to surmount the challenges and grow into the future and ultimately contribute to the achievement of food security in the region. To address some of the production and post harvest challenges and also linking farmers to markets in a manner that increases efficiencies in the supply chain, we at EAGC believe that Structuring the Trade by integrating producers with buyers through various systems holds the promise to significantly improve the performance of the sector. Structured Trading Systems (STS) in the context of the grain sector starts with aggregating and bulking produce among the various smallholder producers into village aggregation and bulking centres where quality if also affirmed. The aggregated produce is then moved on into a certified warehouse where it is handled professionally so as to guarantee quality while in storage. The buyers then are connected to the warehouses and buy directly from the warehouse a commodity that is already bulked into economical quantities and has already been graded so that upon purchase the buyer does not need to do any further handling or cleaning and if they are millers they proceed straight to milling. Meanwhile, the depositor of the produce who has been issued with a Warehouse Receipt can go to a participating bank and obtain a credit advance of upto 60% of the prevailing market value of the produce. The prevailing price generally dips at harvests and rises as scarcity ensues going to the next harvest. The credit advance, which is secured by the warehoused commodity, is then recovered a few months later when the depositor chooses to sell their produce. To achieve Structured Trading, an enabling policy environment that recognises and supports a free market – willing buyer willing seller and with minimal distortions is necessary. Policy issues for consideration include fixing of producer prices without due consideration to the market forces and the farmers gross margin analysis, trade restrictions through import and export bans or tariffs and non tariff barriers to trade such as standards, sanitary and phytosanitary(SPS) issues.
“ To achieve Structured Trading, an enabling policy environment that recognises and supports a free market – willing buyer willing seller and with minimal distortions is necessary. ” We have however; come a long way in the region and especially since the establishment of EAGC in 2006. Our membership base and country coverage has continued to grow from strength to strength. EAGC now has presence not only in the five EAC member states, but also in Ethiopia, South Sudan, Zambia, Malawi and DR Congo. We have continued to implement specific programs to address the above challenges and offer services to our members and Stakeholders. Our market information service through the Regional Agricultural Trade Intelligence Network (RATIN) continues to function and improve in service delivery and response to stakeholder needs. The Regional Food Balance Sheet – RFBS and Real Time Volume Tracking – RTVT, are the two latest products into RATIN which we expect will provide evidence for policy advocacy efforts by EAGC. We plan to promote and increase usage of the RATIN SMS system whose awareness and usage is still low but with great potential to grow and generate revenues for sustainance of the system. The Warehouse Receipt Systems (WRS) as a concept is now widely popular in the region and many stakeholder in partnership with EAGC are making efforts to implement. EAGC has certified 10 warehouses in Kenya with over 63000 metric tonnes capacity and over 25000 metric tonnes of produce deposited in the warehouses over the last two years. Over USD 1Million advanced to over 12500 farmers as credit on warehouse receipt financing using the deposited commodity. More financial institutions have joined the Warehouse Receipt Systems process with the latest entrant being Chase Bank.
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We celebrate the recent achievement of the gazettement of 22 regionally harmonised staple food standards and acknowledge and thank all partners and stakeholders who have greatly contributed to, and supported the process, especially the USAID and Sida for their financial support to the process and the EAC Secretariat as well as the Bureaus of Standards of the EAC member states. To us in the private sector, the gazettement of the standards signifys the start of a race on a level playing ground and it marks the beginning of the real work which is implementing and application of the standards and using these standards to be able to trade regionally. We see much more work ahead of us with regards to increasing the awareness of the standards among all stakeholders and above all capacity building and harmonizing the grading and testing procedures and protocols to achieve the parameters set in the standards. The EAGC policy division, the Agricultural Trade Policy Advisory Forum for Eastern and Southern Africa – ATPAFESA has continued to rally more stakeholders into the forum and forge for a coordinated approach to addressing policy issues in the region. ATPAF-ESA held a regional consultative forum which resulted to the formation of clusters along the four pillars of the forum with partner institutions taking the lead in each of the pillars. Going forward, clusters coordinated by EAGC will develop workplans aligned to the specific mandates of the partner institutions and pool resources towards the implementation of the agreed action plans to achieve the overall objective of creating an enabling policy environment of the grain sector. The EAGC training and capacity building division, the Eastern Africa Grain Institute (EAGI) has continued to offer training to EAGC members and stakeholders and also conduct study tours for visiting delegations to the region. EAGI is now an accredited examination centre for Supply Chain
Management Course examined by the Kenya National Examinations Council (KNEC) and will be launching the inaugural class for this program in due course. EAGI in partnership with SATGURU and Cornel University will be offering a Seed Training course in Uganda during quarter 2 of 2014 and appropriate communication to stakeholders and target trainees will be disseminated accordingly. We at EAGC look forward to a very exiting 2014 with several programs and activities lined up for the year beginning with the Annual General Meeting (AGM) scheduled for 11th April 2014, in Nairobi, Kenya and Agribusiness Expo 2014 in Mbale, Uganda and Kabarak University in Nakuru Kenya. We thank all the EAGC members for their continued active participation in EAGC programs and activities and to all our partners and stakeholders including the Governments and the National and Regional level without their support it would be impossible to achieve any of the results that EAGC is proud of. The 5th African Grain Trade Summit –AGTS which took place in Mombasa, Kenya in October 2013 was a great success thanks to the members, partners and stakeholders. The 2013 EAGC Agribusiness Expo in Kenya, Uganda and Tanzania were also very well attended and exhibitors and attendance expressed their satisfaction and appreciation looking forward to the 2014 edition. I welcome you all in 2014 to partner, participate and collaborate with EAGC in our shared vision and mission and towards achieving our common goals for the betterment of the Grain Sector in Eastern Africa.
Gerald Makau Masila,
Executive Director, EASTERN AFRICA GRAIN COUNCIL
EAGC MEMBERSHIP GROWTH 2007-2014
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trade among the private sector in Africa. EAGC was privileged to host key guests and dignitaries from Kenya and the EAC region to grace the summit. The Chief Guest at the summit was the Cabinet Minister East Africa, Trade and Tourism Mrs. Phyllis Kandie, of the Republic of Kenya, who officiated the opening of the summit, while Hon. David Wakikona, the State Minister of Trade, of the Republic of Uganda, was the chief guest at the official closing ceremony. Other key dignitaries included the Deputy Secretary General EAC Hon. Jesca Eriyo, the Ambassador of Mexico to Kenya, Luis Javier Campuzano, the Chief Executive of ASARECA Dr. Fina Opio and Mr. David Magwaro, Deputy Director, Representing Dr. Wilson Songa, Principal Secretary, Ministry of Industrialization and Enterprise Development, Republic of Kenya. We appreciate all the guests, for their great and continued support to EAGC. The summit attracted over 190 top level delegates from the Private Sector including grain Traders, Millers and Farmers, Top Government Representatives and officials, bilateral agencies including EAC and COMESA, Research and Academia, Development Partners such as USAID, SIDA, CTA and AGRA, Financial Institutions including local commercial banks and the World Bank.
EAGC in 2013
We are pleased to inform you that over 20 African Countries and other countries across the globe participated in the summit which included Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, Ethiopia, Somalia, Togo, Mali, Botswana, Senegal, Cote d’voire, Ghana, Niger, Burkina Faso, Ghana, the Netherlands, Denmark, UK, Netherlands, Norway, and the USA.
5TH AFRICA GRAIN TRADE SUMMIT By Janet Kalulu Ngombalu: Regional Manager: Marketing Information Systems and Communications
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he Eastern Africa Grain Council (EAGC) and its regional partners hosted the 5th Edition of the African Grain Trade Summit (AGTS) from 1st to 3rd October 2013 at Sarova Whitesands Beach Resort & Spa, Mombasa, Kenya. The theme of the summit was “Africa: The Emerging Frontier for Global Investments in Grain Trade”.
The overriding objective of the summit was to provide a forum where all key sector players in the grains industry meet on a regional basis to map out a regionally focused strategy for grain trade market development. The main areas of discussion were; Advocating for a predictable agricultural trade policy & price environment –the key to public private partnerships for Investments along the value chain, Dismantling barriers to regional integration & market access to optimize market opportunities & Food Security, Opportunities for innovation and technology adoption to address constraints and increase agricultural investments in Africa, Linking African agriculture to global trading systems-the alternative to aid and Scaling up agribusiness financing in Africa through Structured Trading Systems. The EAGC - Africa Grain Summits have grown in leaps and bounds over the years and are now recognized at the highest levels as the only forum for addressing the challenges and expounding on the opportunities of grain
5th Africa Grain Trade Summit
One of the overriding goals of the grain summits is to ensure and engage with high quality speakers at the summit. A very intense selection process is done to ensure that only the top quality team of speakers are appointed. This year, we received overwhelming interest and eventually selected a very well structured team of over 30 multi-sectoral experts to speak at the summit sessions. EAGC also engaged a team of professional experts to moderate and guide the sessions, hence the great success of the summit. We thank all our speakers for the great work.The summit also interested a myriad of partners who included the Swedish International Development Agency (SIDA), the United States Agency for International Development (USAID), The USAID East Ab (formerly known as USAID COMPETE), the Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA), the Agribusiness Initiative Trust (ABI) Uganda, the Alliance for a Green Revolution
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in Agriculture (AGRA), Association for Strengthening Agricultural Research in Eastern and Central Africa (ASARECA) and the USAID Ethiopia Agricultural Markets Development Project. The accomplishment and achievements of the summit, were made possible by the Key sponsors who included USAID - East Africa Trade Hub, the CARANA Corporation, Seaboard Overseas and Trading group, the International Finance Corporation (IFC), Bunge East Africa Limited, Capital Reef Kenya Limited, the East Africa Breweries Limited, The East Africa Exchange (EAX), Cimbria East Africa, Intertek Commodities Ltd, Lesiolo Grain Handlers Limited, Cereal Growers Association, Mama Millers Ltd, Post Harvest Services Limited and Farm Concern International.
Launch of the Structured Trade Systems Handbook
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he Structured Trade Systems Handbook was launched at the 5th Africa Grain Trade Summit opening ceremony. The manual was developed by 17 contributors, all specialists in various aspects of grain handling and structured trading in Africa. The manual describes how structured trading systems work for grains such as maize, sorghum and millet, as well as commodities such as groundnuts and soybeans, Africa’s most important staples. It explains how the system works, from postharvest handling and warehousing to trading on a commodity exchange as well as describing the mysteries of standards, explains how market information is used, and explores the details of trade contracts and dispute resolution. The manual is an output of
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by enduing sufficient and efficient transport system that allow food to retain good quality Explore technologies that can be innovated for small holder farmers Take stock of what our farmers are doing to identify opportunities for emerging markets Scale up agribusiness financing through structured trading system through more South to South collaboration and replicating best practices.
1. Summit Presentations http://www.graintradesummit.com/index .php/about/ agenda/5th-agts-presentations 2. East Africa Food Price Portal http://www.eafpdp.org/ 3. Media Coverage http://graintradesummit.com/index.php/media-and-press/ press-coverage 4. Structured Trade Hand Book http://publications.cta.int/media/publications/ downloads/1749_PDF.pdf.
Feedback from the delegateS We at EAGC are excited for having received overwhelming comments, feedback and encouraging comments from the delegates and all who attended the summit. One of the delegates commented that “the evidence that the Summit was very well planned and executed was the ease at which they saw things done in an easy and stress free manner. These are just but a few comments sent to us.
Asanteni sana EAGC, I thoroughly enjoyed being amongst you all in Mombasa. Thanks once again to you and your team for the opportunity, especially Janet & Hellen for the support when needed, & I hope that our paths will cross once again in the future.
CTA’s new “Value Chains” programme, which is designed to support the development of more efficient chains for priority commodities in African, Caribbean and Pacific regions. It will also form an important component of courses offered by EAGC’s Eastern Africa Grain Institute.
Best Patricia Amira
Dear EAGC, As we ponder and before we find faults that will mar and reverse the present mood, let me take the opportunity to thank you all for the great function organized by the team. I Field Trips have attended many of such functions, and this one high top The Delegates visited the Kenya Ports Authority and the on the list of very well intended and organized. The purpose Mombasa Grain Bulk Handlers limited. was clear and I think we can push through the and conclude them with the team members. It was more than grain, as all Summit Recommendations the productive forces of Africa came on At the end of the summit, the delegates agreed on the following board to play their game. So then, let key action areas: EAGC play the music and make Africa dance herself into glory. • •
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To advocate for a predictable agricultural trade policy & price environment, there is need to develop strategies that enable Africa take advantage of the food price volatility Rethink whether we have policies and strategies and their ability to address the challenges facing the agriculture sector Dismantle barriers to regional integration and market access to optimize market opportunities and food security
Asante Philip Idro
EAGC AGRIBUSINESS EXPOS EAGC organized two-day agribusiness forums that took place in Tanzania, Uganda and Kenya. This brought together over 20,000 stakeholders in the agricultural industry in all the three countries. The agribusiness expos were designed to increase interaction, dialogue and rapport between the farming, community and the manufacturers of agricultural inputs and implements and service providers and also to create market linkage opportunities. Most of our members were involved in these expos and we highly appreciate your attendance and participation for future expos. For more information on the expos log on to http://www. eagc.org/index.php/services-programs/abfexpo/kenya.
KENYA AGRIBUSINESS EXPO EAGC Services and Products EAGC Regional Agricultural Trade Intelligence Network (EAGC RATIN) EAGC’S RATIN Integrated Regional Marketing Information System has continued to be a one stop - shop for Market Information and Trade in the Region under the EAGC MIS programme. It is said to be the source of accurate information to its users all over East and Central Africa. A feedback from one of our members-Serge Muhato from the chambers of commerce in Burundi reckons that “RATIN is the best invention on real time price data globally”. The SMS service offered to the region by RATIN has continued to be a convenient and flexible facility that connects farmers, traders and processors to the market. Currently, the most users of RATIN SMS are farmers who cannot access the prices through the web. This year the RATIN website has had 3,940,538 visitors in total. To receive RATIN prices through SMS send a text to the following numbers. Burundi: +257 716 888 888 Tanzania: +255 757 100 992 Kenya: +254 705 606 666 Rwanda: +250 784 599 980 Uganda: +256 777 014 800
UGANDA AGRIBUSINESS EXPO
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PICTORIALS
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SPONSORS AND PARTNERS
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Eastern Africa Grain Institute (EAGI)
This division of EAGC has continued providing Training, Capacity Building and Consultancy Services in grain Structured Trading Systems to key stakeholders across the grain value chain on a sustainable basis. This year the institute has had 3 major trainings that were conducted in Kenya, Uganda and Tanzania, done through EAGC partnership with different sponsoring organizations including USAID COMPETE and AGRA. In a letter dated 29th November 2013, the Directorate of Technical Assurance and Quality Assurance (DTAQA) approved and recommended to the Ministry of Education to issue EAGC institute with an accreditation certificate following an assessment of the Eastern Africa Grain Institute was conducted on 7th May 2013. EAGL will now pursue registration with the National Industrial Training Authority under the Ministry of Labour and the Directorate of Industrial Training under the Ministry of Industrialization and Entrepreneurship. The accreditation will pave way for collaboration with other Universities/Institutions e.g KNEC. Since the inception of EAGI, the following 10 course outlines have been developed and the process of developing the related content is ongoing:
• Post Harvest Management • Warehouse Operations Management • Collateral Management • Grain Trading & Marketing • Grain Value Addition • Grain Logistics Management • Agribusiness Financial Services • Commodity Exchange, Futures & Options Markets • Risk Management & Mitigation • Agricultural Trade Policy Analysis &Impact Assessment EAGI has in the past conducted the following trainings among others; Regional training on MIS Methodology Harmonization, Warehouse operators training and Fumigation training. Several consultancies have been conducted namely; Situational analysis on Grain Maize Warehousing and Processing Capacity in Eastern Africa, Trade and Processing Survey, Situational Analysis of Legumes and Pulses in Kenya and Profiling Farmer Organizations and Training in Structured Trading Systems in Kenya, Uganda, & Tanzania. More information on EAGI and 2014 training calendar log on to http://www.eagc.org/index.php/services-programs/eagi
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The Agricultural Trade Policy Advisory Forum for Eastern and Southern Africa (ATPAF-ESA) The Agricultural Trade Policy Advisory Forum for Eastern and Southern Africa (ATPAF-ESA) an initiative coordinated by EAGC and in partnership with various international organizations notably the UN-FAO held a Consultative Meeting Policy Advisory Forum for Eastern and Southern Africa (ATPAF-ESA) an initiative coordinated by EAGC and in partnership with various international organizations notably the UN-FAO held a Consultative Meeting on 29th October 2013 at the Nairobi Safari Club Hotel. The objective of the meeting was to promote an inclusive and participatory policy dialogue between private and public sector for improved regional agricultural trade in ESA. EAGC set the stage on cluster formation by highlighting the ATPAF – ESA’s four pillars, and how they fit in the Strategic Objective 4 of EAGC’s Strategic Plan 2013 –2017 that is set to improve the enabling policy & regulatory environment for structured grain trade, through five elements. The five elements focus on: developing the structures of coordination, e.g. the unit and the core member inclusive platforms; establishing partnerships with relevant institutions to form the supporting technical pool, for consultative platforms on specific agricultural policy issues, enhancing support to regional policy evidence gathering, enhancing agricultural trade policy formulation & dialogue at national & regional levels, and supporting private public dialogue mechanisms on Eastern and Southern Africa agricultural policy collective action. The ATPAF - ESA Scoping Study Report can be accessed using the following link: http://www.eagc.org/index.php/services-programs/
“The objective of the meeting was to promote an inclusive and participatory policy dialogue between private and public sector for improved regional agricultural trade in ESA.”
atpaf-esa
EAGC REGIONAL OFFICES EAGC Uganda
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AGC Uganda has accomplished great milestones. This year among other achievements EAGC Uganda was awarded a grant from aBi Trust in form of a fully set up mini laboratory to test for mycotoxins. The grain analysis laboratory will be used to provide grain testing services at a subsidized fee to enable members and non-members to test grain and obtain certification for trade. The laboratory will also be used to train graders and create wide stakeholder awareness of mycotoxin control and grading in line with the EAC Standards.
EAGC Tanzania
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AGC Tanzania has continued to achieve its goals through different avenues. An examples is the Grain stakeholders forum was held on the 30th of October 2013 in Dar es Salaam with the main agenda to Create the awareness on the new 22 EAC standards recently approved by the East Africa Standards Committee (EASC) and identify partners to work with, in the implementation of the new standards for significant grassroots reach, Review Tanzania’s National Food Balance Sheet, current grain supply position and cross-border trade opportunities, discuss the prevailing policy issues in the rice industry. The forum brought together stakeholders from the government, the private sector and civil society organizations and the media houses. Above are a few of this year’s highlights which could not have been achieved without you as our members. More details will be availed to you on our upcoming news letter.
EAGC Rwanda The year 2013 has been a fruitful one for EAGC Rwanda. Three quarterly meetings under Regional Food Balance Sheet were held in Kigali on 16th January, 25th April and 22nd November, 2013. Registered private sectors got to understand the value of the system in the national, regional as well as how EAGC works closely with the Ministry of Agriculture and Animal
Resources (MINAGRI) under Food Balance Sheet System. Two Grain stakeholders Forums were also held in Kigali 28th May and 22nd November, 2013. Attendance was by 60 delegates all from the private and public sector. From this forums EAGC got five members; two have registered and paid other three in process. Also this year the SMS RATIN was presented to a number of buyers and cooperatives trained by USAID Rwanda PHHS at MINAGRI in February. This has set the ball rolling for the use of the RATIN SMS hence increase the knowledge on cross border trade and building more partnerships in the region.
EAGC Burundi The EAGC office in Burundi has been of great assistance to the regional food balance sheet. This has been through updating the RFBS with estimates of local crops and livestock production, food imports and exports, as well as consumption patterns. This helps predict surplus or deficiency within the country or region.
EAGC South Sudan Plans to operationalize the Eastern Africa Grain Council, South Sudan Chapter are underway. EAGC has a big role to play once it sets up shop in the new countries in terms of strengthening the grain value chains. Collaboration on market information systems is one area that has already been agreed upon and will be able to serve these countries with regional market information.
EAGC Ethiopia Plans to operationalize the Eastern Africa Grain Council, Ethiopia Chapter are underway. EAGC has a big role to play once it sets up shop in the new countries in terms of strengthening the grain value chains. Collaboration on market information systems is one area that has already been agreed upon and will be able to serve these countries with regional market information.
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Warehouse Receipts: Financing Agricultural Producers
By Philip Barasa: Program Intern at EAGC
INTRODUCTION Small-scale farmers in Eastern Africa have always struggled to pay their debts, often selling off their goods when harvest season begins so they can hold onto their crops until the lean season, when the price and potential for profits are at their highest. However, improper preservation or drying techniques, coupled with inadequate storage facilities, can force small farmers to let commercial or foreign traders reap the rewards of seasonal price swings. With the use of warehouse receipt financing, also known as inventory credit, small farmers gain an advantage on the playing field. Experience from around the world illustrates that warehouse receipts can make a difference to farmers. Warehouse receipts are often administered to producer groups, instead of individuals, which helps the flow of market information. Warehouse receipts also can create price transparency which empowers farmers to make informed sales decisions rather than waiting for “farm gate” buyers who often offer below- market prices.
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The Eastern Africa Grain Council through its Warehouse Receipt System advocates and has trained farmers across Kenya on the use of the system to improve their livelihood by storing their produce in a reliable warehouse until the price increases by
using the goods as loan collateral, farmers may access funds before they sell their goods. Microfinance institutions (MFIs) also have a strong incentive to offer warehouse receipt financing. With this system, their risk is reduced because the system has a built-in use of collateral that can retain a high Commercial value and be liquidated quickly. But warehouse receipt financing is, in essence, a speculative activity as several producers often choose to wait until the market has reached its perceived peak to gain the highest profits. This activity often leaves the farmer with the bulk of the harvest as prices begin to decrease, leaving the farmer with the smallest possible profits. Preventing this type of speculation is critical to making warehouse receipts a success and the key is to ensure that a few critical factors by ensuring a good warehouse system and careful monitoring are in place.
TYPES OF WAREHOUSE RECEIPTS Non-negotiable receipts Some types of warehouse receipts are “non-negotiable”; the depositor has to go to the warehouse to pick up the grain.
Negotiable receipts Other warehouse receipts are “negotiable”. The receipt document itself conveys the rights to the grain. That means the depositor can sell it to a buyer, who can then go to the warehouse to collect the grain. This is risky because someone may steal or forge a paper receipt and go to pick up the grain
or take out a loan.
Transferrable receipts Other types of receipts are “transferrable”. They are more restricted than the fully negotiable type above. The depositor is required to countersign it before giving it to someone else, who can then go to the warehouse to pick up the grain. The new owner must return the countersigned receipt to the warehouse operator, who cancels the original receipt and issues a new receipt in the name of the new owner.
TYPES OF WAREHOUSES Warehouses operate in a number of ways. Each type of warehouse provides the customer with a different range of security and services. The five basic types of warehouses are:
Public warehouses
Are open to anyone on a non-qualifying basis. Any person who brings in agricultural goods may store them in a public warehouse. At field warehouses, an operator manages a warehouse on the premises of another business. This occurs in industries such as milling or cotton spinning where the industry finances the acquisition of raw materials, while someone else controls the stock for the bank.
Dual-key warehouses Provide secure storage as both the bank and the depositor have control over the warehouse. Both parties hold keys to the storage facility, and both keys must be presented to access the facility.Self-managed or single-key warehouses provide depositors with complete control over their goods at the storage facility. Typically, a bank or an MFI provides some supervision.
At trading warehouses The warehouse operator trades the stored commodity on the depositor’s behalf. This may seem to be a conflict of interest for the warehouse operator, but these facilities have operated
‘‘Warehouseses provide the customer with a different range of security and services.’’
successfully in North America for many years.
WAREHOUSE RECEIPTS ADVANTAGES AND DISADVANTAGES As in all types of microloans, there are advantages and disadvantages for the MFI and the client with warehouse receipts. The advantages include:
advantages • Decreased risk: • Warehouse receipts provide entrepreneurs with instant collateral to guarantee a loan. Having this type of collateral with a high market value is attractive to MFIs, which usually rely on group pressure to ensure loan repayment, especially when lending to first-time loan clients who do not have a proven track record. • Reduce seasonal price variability: • The warehouse receipt system has the effect of smoothing out seasonal price variations throughout the year for a specific agricultural product. As this occurs, more people will become involved in the warehouse system, which can result in shorter and more competitive supply chains. • Liquidity: • Unlike real estate or other forms of collateral, the warehouse receipt is liquid. It can be converted into cash either at a bank or at the marketplace. This is especially attractive to MFIs, which may have difficulty collecting repayments from the farmer.
Disadvantages • Decreasing profitability: • Experience has shown that some warehouse receipt programs help market prices level out and the overall price remain steady. In methodologies where the loan amount is tied to the estimated worth of the product, a decreased price decreases the loan amount available to the farmer and the interest that the MFI collects. Warehouse operation: • This system works only if there are reliable warehouses in place. An MFI can establish or manage a warehouse, but experience has shown that this is usually not sustainable for the MFI. If an MFI must step in to build or manage a warehouse, it should proceed cautiously and add this cost to the price of its inventory credit program.
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For The Farmer Advantages • •
• •
• •
Profitability Warehouse receipts allow small-scale farmers to delay the sale of goods, allowing them to take advantage of large seasonal price swings for produce while obtaining cash when the harvest begins. Price transparency A side effect of the warehouse system is that farmer group’s work together with the warehouse operator to establish prices based on the product’s market value. This empowers farmers by providing them with upto-date information on prices throughout the season. The farmers gain additional knowledge about current prices and can become “price setters” rather than “price takers.” Food security Farmers can realize savings by “buying back” their produce from the warehouse for home consumption during the lean season when food prices are high.
KEY REQUIREMENTS TO ENSURE A SUCCESSFUL SYSTEM Implementing a successful warehouse receipt program can be done easily if a few key factors are in place. These are lessons learned from the experience of MFIs in Ghana, South Africa, and other African countries.
THE WAREHOUSE RECEIPT FINANCING PROCESS Build discipline and trust in the warehouse: •
•
• •
Disadvantages • •
• • •
•
•
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Speculation Warehouse receipts promote speculative activity on the seller’s part because the farmer tries to maximize profits by holding the produce until the price reaches its peak. Once the price peaks, the rush of additional inventories into the market causes the price to fall almost immediately. This practice may catch farmers With more than half of their inventory selling at the lowest, instead of the highest, price. The net effect is to substantially decrease overall profits. Shortage of small-scale drying or preservation technologies for agricultural products: This is especially true in rural areas, where the technology can be scarce or expensive; as a result, the stored product is at risk for spoilage, loss from pests, and quality depreciation. An unreliable supply or shortage of storage chemicals: that are needed to preserve agricultural goods can decrease the farmer’s total volume of usable produce and compromise the product’s total value, thus decreasing the farmer’s ability to receive the best price for the produce. Transporting of goods to the warehouse is an added expense to the farmer. In rural areas where trucks and fuel are expensive and difficult to obtain, transporting the goods for storage in the next village or closest town poses a major challenge. High transport costs will make farmers less likely to store their goods.
• •
If the warehouse operator is trustworthy, MFIs can rely on the receipt with confidence as loan collateral. Trust in the warehouse also provides the entrepreneur with a sense of security. Operate on a large scale: The cost of warehouse receipt administration and oversight decreases with scale. The more warehouses available, the lower the cost of monitoring the system. Understand that appropriate product pricing is critical for the MFI On average, the cost a farmer is expected to carry—that is, the interest on the loan plus warehouse storage fees—typically averages around 25 percent of estimated total profits at the beginning of the harvest season. This is a very high percentage for MFIs to pass on to their customers. MFIs do need to charge what is necessary to cover their costs, but successful MFIs will look for ways to cut costs. One way is to work in a region where there are already established and trustworthy warehouses. Warehouse oversight and management are extremely costly and almost never sustainable when the MFI manages the process. Advocate for appropriate regulation and supervision of the sector: Regulation is critical to the success of warehouse receipts, and government must be committed to finding the correct balance of regulatory oversight. There are two main approaches to regulation: the minimalist approach, which involves low regulatory oversight, and the maximum approach, which involves high regulatory oversight.
THE IMPACTS OF NON TARIFF BARRIERS TO GRAIN TRADE IN TANZANIA By Josephat Magita: Programme Officer, EAGC Tanzania
T
rade is an engine for economic growth, poverty reduction and development but harnessing this power has been difficult for Tanzania and other East African countries. Domestic supply and demand constraints have increasingly been identified as constituting major impediments to export growth in low-income Sub Saharan African countries such as Tanzania. According to the 2012 World Bank report, agriculture and agribusiness are projected to be a US$ 1trillion industry b Sub Saharan Africa by the year 2030.In order for this dream to be achieved, good policies, conducive business environment and strategic government support can help agribusiness rich its potential. Tanzania stands a great chance of becoming a major exporter of grains such as rice and maize in the East and Central Africa region as the demand for grain imports across the region keeps on growing. Total imports of maize and rice by EAC countries currently stand at 1.4 million tons and 1.2 million tons respectively (Stryker et al 2012). Tanzania is also strategically located as a major transport gate way to the rest of the region. Despite these key advantages, Tanzania has failed to harness these opportunities and steer the country towards the middle income countries through promoting grain trade in which most rural farmers are major players. The agriculture sector through promotion of agribusiness has been seen as a key starter towards jump starting African economies through development of agro based industries which has been triggered by continued existence of non tariff barriers such as export bans, duty free importations of commodities such as rice, import and export permits. These Non Tariff Barriers remain a challenge to the grain trade growth and development in Tanzania as they erode the country’s attractiveness to both national and international investors in the agriculture sector as well as erodes Tanzania’s competitiveness in regional and global grain trade. Reports show that the costs arising from Non Tariff Barriers are averaged at 40% of costs of trade logistics in the EAC region (Mwapachu 2012). The World Bank 2010 ranks Tanzania 95th in its Logistics Performance Index. Long queues at weighbridges like Kibaha have been a big obstacle for grain traders in the country to efficiently transport their commodities to within Tanzania and across borders. Such delays increase business operational costs and reduce the profit margins and expansions of business as commodities do not reach their destination in time. Poor infrastructure especially roads linking the major grain production areas in the south to the rest of a country remains the key non-tariff barrier as major maize production areas such as Songea, Mpanda have very poor roads. This makes transportation of grains very costly to major markets across the region given the state of infrastructure. Currently in Tanzania, numerous institutions are involved in testing exports of agricultural commodities such as; The Plant Health Department of the Ministry Of Agriculture Food Security and Cooperatives, the Tanzania Nuclear Energy Agency, Tanzania Foods and Drugs Authority, Tanzania Bureau of Standards. This also contributed to the delays at border posts and increases the costs. Roadblocks along the central corridor are also still a very big menace to grain traders using this route; they are estimated to be 30 between Dar es Salaam and Rusumo.
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BREAKING DOWN BARRIERS FACING AFRICAN WOMEN IN TRADE Gertrude Nyanzi
W
omen are important economic actors today with 54% of working age women in the labour force. These statistics do not come close to telling the whole story though. They do not include women working in what economists call the informal and household sectors. The ILO (International Labour Organization) has estimated that if only the value of unpaid work that is done by women were counted, global output would be almost 50% greater. Whereas women play an important role as workers and entrepreneurs to growth and the economic security of households, they remain confronted with various challenges and barriers that affect both the quality and quantity of their products and services; financial aspects; gender roles; social inequality; entrenched cultural and traditional practices; technology; legal; institutional and policy levels, among others. Most of these challenges are specifically on Africa women due to the gender discrimination issue that have yet to be addressed. Various measures that can be taken to address the challenges facing women in trade today include but are not limited to supporting women entrepreneurs with business development services like training, business advisory and marketing services, opening various channels of accessing
‘‘Women are important economic actors today with 54% of working age women in the labour force.’’
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funds with low interest rates. The government should also put in place favorable policies, proper transport networks to enhance social mobility, enhanced security, smoothening the process of ownership of property and getting permits. Women’s participation in politics, decision-making positions, economics and social administration must also be improved so that factors inhibiting their participation in trade can be clearly isolated and addressed. So why break down the barriers? Breaking down the barriers and challenges facing women creates economic empowerment in women to participate in, contribute to and benefit from growth processes in ways which recognize the value of their contributions, respect their dignity and make it possible to negotiate a fairer distribution of the benefits. This empowerment increases women’s access to economic resources and opportunities including jobs, financial services, property and other productive assets, skills development and market information. It is important to note that women’s economic empowerment is a prerequisite for sustainable development, pro-poor, growth and the achievement of all the MDGs.
BIOLOGICAL DIVERSITY; THE ULTIMATE SOLUTION TO FOOD SECURITY IN THE REGION By Erickson Oduya In 2013, Kenya’s Food Basket, the North Rift, witnessed one of the worst disease outbreaks in the recent times. With the modern methods of pests and disease controls, it was quite difficult to understand how the disease could wipe the over 15,000 hectares of maize plantations in less than 2 months. The matter was further complicated by the fact that a team of researchers and government experts couldn’t lay their hands on the cause of the disease even after the tests were carried out both local and overseas. However, the manner in which the disease struck and invaded farms clearly point to the to the fact that the outbreak could have been as a result of using one variety of seeds over a very long period of time leading to loss of genetic adaptability.
With the population in the region being on an upward trend and pressure to feed the huge population remaining a reality, crop destruction or failure is something that should not be taken lightly bearing in mind that East Africa Community is one of the most food insecure regions in the world. In fact, any factor that contributes in any way to crop failure and/or loss to crops pose a real threat to the people’s own existence. Therefore investment in Agriculture without resources allocation to biological research that could lead to genetic diversity in crop production is a mere gimmick to regional food security. It is high time, the attention shifts to crops that are not only resistant to pests and diseases but can also withstand the harsh weather condition synonymous with most parts of EAC region. Some traditional plants especially in the grass family are quite resistant to diseases and the genes of most of the undomesticated plants could be the ultimate solution to food security that the region has been waiting for, to provide the improved crops that will feed, not just the region but the world’s population. A case in point is the Indian rice ‘relative’ that was used to confer resistance to various rice varieties that is currently grown in most Asian rice fields. The simple fact that if undomesticated plants are allowed to grow alongside crops, the crops will always be out-competed for the valuable resources such as light, water and nutrients means that these plants possess features that are quite important in the survival of plants. Well studied agricultural practices that can confer the resistant genes from the ‘wild’ plants to domesticated plants and still provide crops with high yields would therefore suffice. A good example of how this can be achieved is through the out-crossing whereby a genetically modified plant passes their new traits to a wild relative, the relative is then changed in a way to potentially enable them to be able to out-compete other species. However, there are crop modifications that offer short term solutions to food security but in the long run they compromise plant biodiversity leading to low resistance to stress conditions. Through genetic engineering, researchers have ended up conferring new traits that bring about advantages leading to the widespread use of a few crop varieties and loss of extinction of the other (cultivar biodiversity) varieties. The phenomenon, in most cases especially in the developing countries, could easily lead to problems such as higher susceptibility to widespread outbreaks of plant diseases and pests. The seed companies MUST therefore take keen interest not to release few cultivar varieties with a new genetically engineered trait but breed many different cultivars and be watchful in the long run.
REGIONAL HARMONIZATION OF STANDARDS FOR GRAIN COMMODITIES By Samwel Rutto Where are we? The harmonization of East African Standards has been going on from 1999 when the first standards for wheat flour and maize grains were harmonized. This process was intensified in November 2009, where Eastern Africa Grain Council (EAGC), the USAID East Africa Trade Hub and the National Bureaus of Standards in each of the five EAC countries worked together under the auspices of East African Standards Committee (EASC) to develop regional standards. The harmonization process entailed mounting national stakeholders’ consultative meetings to arrive at national positions regarding the standards. Subsequently, regional meetings were held to harmonize national positions and adopt the regional standards.
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The harmonizing of standards for grain commodities has been finalized and a total of 22 harmonized draft standards for maize, wheat, rice and other cereals are available. In July 2013, the East Africa Standards Committee (EASC) met and approved the 22 standards as the new EAC standards pending gazettement. Once the standards are gazetted, the EAGC will commence the process of promoting their adoption at the national level. To ensure successful national implementation and adoption of the standards, EAGC will work with its partners to develop public awareness materials that will be translated into local dialects to enable the small actors particularly the small-scale farmers understand and apply the new standards.
Which standards were harmonized? The standards harmonization process involved developing standards for commodities which are mostly produced and traded among the five EAC Partner States or sourced and traded in the international markets. These commodities are categorized into two: •
Maize Grains
•
Dry Beans & Pulses
•
Rough Rice –Paddy
•
Dry Soybeans
•
Finger Millet
•
Dry Whole Peas
•
Milled Maize products
•
Dry Split peas
•
Brown Rice
•
Chick Peas
•
Pearl Millet
•
Cow Peas
•
Wheat grain
•
Pigeon Peas
•
Millet Flour
•
Wheat Flour
•
Sorghum Flour
•
Green Grams
WHY HARMONIZED STANDARDS ARE ESSENTIAL FOR THE REGION The key aim for harmonization of grain standards was to facilitate trade among the Partner States of the EAC. Regional grain standards are an essential part of structured trade. They eliminate unnecessary barriers to trade in the region as well as promoting confidence among trading partners with regard to the quality of products offered for trade. The pre-requisites for increasing the efficiency of the domestic and regional markets lie in addressing the prevailing constraints in commodity markets. One of these constraints has been lack of regional standards. The new EAC grain standards are therefore expected to catalyze cross-border trade since they will support the grain marketing systems e.g. Trade Contracting, Warehouse Receipts Systems and Commodity Exchanges. These marketing systems rely on consistent and transparent reference prices that are pegged on commodity grades-without grades and standards there is no fair and transparent trade. With grades and standards in place, grain buyers know the quality and safety of the commodities on sale. Safety of grains is neither negotiable nor compromised. High incidences of aflatoxin cases in the region are reported-reason why these new standards should be implemented and enforced to the later to guarantee food safety. Are there anticipated challenges in the adoption? To ensure successful adoption of the harmonized grain standards by EAC partner states, it is imperative to tackle some of the limitations. In the first place, the procedures for sampling and grading need to be harmonized and validated by the National Standards Bureaus. This harmonization will eliminate duplicate physical inspections by the exporting and importing country. Coupled to this, is the limited capacity of inspection firms and bureau of standards officials at the market place and at cross border points to test certain quality parameters. This requires an intensive capacity building through training on testing methods and provision of modern equipment to avoid differences in test results. Different government agencies are involved in regulating trade of agricultural commodities for food safety purposes. These agencies e.g. National Nutrition Authorities, Crop protection agencies, Weights and Measures agencies, Customs Authorities, Food and Drug Authority among others need to work in harmony with the bureaus of standards to avoid conflicting regulations. Finally, lack of knowledge among the value chain actors on the regionally harmonized has been seen as a constraint that need to be addressed by developing and offering appropriate training programs on post-harvest handling and storage management. For instance farmers need to learn how to shell or thresh produce to avoid the issues of grain breakages.
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•
Milled Rice
•
Lentils
•
Sorghum Grain
•
Faba Beans
THE GENETICALLY MODIFIED FOODS DEBATE By
Sheila Mulli
T
he safe consumption of Genetically Modified foods has been the hot topic around the world for several years as fears of dangerous side effects are proposed in the numerous researches and studies done. African countries in particular have been against genetically modified foods and some even banning the importation of GM foods due to fears of the risk to human health and environmental concern, the impact of GM crops for farmers and the effect of pesticide resistance. In July 2011, the Kenyan government issued an immediate ban on GM imports and products citing the Seralini study released by a French university linked cancer in rats to the consumption of Monsanto’s Roundup Ready GMO corn suffered high rates of fatal cancers. The Kenyan Medical Research Institute, under MOPH (Ministry of Public Health), also supported the ban based on this study. The President accepted her recommendation, and decreed the ban. The study was published in the journal Food and Chemical Toxicology (Volume 50, Issue 11, November 2012, Pages 4221–4231). A battle over genetically modified organisms (GMOs) is building in Ghana after the government recently completed regulations that could allow modified cowpeas and other selected crops to be grown following confined field trials (CFT). The choice of this crop is important as it plays a vital role in the nutritional needs of Ghanaians and the government seeks to contribute to food security and improved livelihoods of smallholder farmers by reducing
pods damage and promote grain quality. However, opposition groups and party have positioned themselves to fight against this introduction due to misinformation of the side effects. They argue that Ghanaians do not need to start cultivating GMOs because the people can feed themselves by exploring other agricultural opportunities. In mid 2013, the Minister of Agriculture, Mr Akinwumi Adesina presented his ministry’s score card to Nigerians, and informed the country that they would start the importation and use of genetically modified food products from 2014. This was faced with uproar from activists who were opposed to the use of the technology in Nigeria. Arguments from the environmental concern point of view are that the introduction of GM crops would contaminate the natural soil and pose a risk to the entire country. In the last few years, Nigeria has witnessed the influx of multi-national supermarkets originating from countries where GM crops and foods are allowed. The implication of this development according to experts is that GM products are already passing through the back door into the country. In 2013, the Seralinin study was discredited by the Global Scientific Community due to lack of scientific procedures and the article has been retracted from the journal of Food Chemical and Toxicology. Members of the Africa Biotechnology Stakeholders Forum in Kenya, in collaboration with other stakeholders are urging the government to lift the GM importation ban in the face of the serious food insecurity the country faces as a result of failed rainfall and disease. Furthermore, GM foods have undergone toxicity tests and been assessed by the World Health Organization and has been found to be safe for human consumption.
The voice of the grain sector in Kenya 21
STAFF APPOINTMENTS Johannes Osarya Country Program Manager based at the EAGC Tanzania Country Office in Dar es Salaam, Tanzania He has over 10 years work experience in management of program activities and he holds a Bachelor of Science degree from Sokoine University of Agriculture, Tanzania. He previously worked with CARE International in Tanzania as Agriculture Technology Transfer Coordinator in Magu District Livelihood Security Project from October 1998 to July 2001 after which he moved to Misungwi Income and Food Security Project holding the same position within the organization until February 2003. He thereafter joined World Vision International in Tanzania in August 2003 as Programme Coordinator and finally Manager where he continued to work in Agriculture projects until the programme phased out in September 2010. In April 2012, Johannes joined United Nations Development Programme (UNDP) in Tanzania where he worked as Programme Associate until July 2013.
Gideon Murenga Program Officer, Capacity Building and Training – Eastern Africa Grain Institute He has over 2 years work experience in training and he holds a Bachelor of Education degree from Egerton University. He previously worked at School Master ICT Company as a Corporate Training and Capacity Building Officer from January to June 2011. Thereafter he moved to Bridge International Academies Ltd. as a Corporate Training and Recruitment Officer from July 2011 to March 2013. In March 2013, Gideon moved to Bentleys International Consulting Ltd. as a Training Coordinator where he worked until December 2013.
RATIN APPLICATION SCREENSHOTS 22
EAGC MAIN EVENTS 2014 EASTERN AFRICA GRAIN COUNCIL
APRIL
JUNE
Annual Ge ner Meeting (A al GM) April 11th
27th-28th
June
NOVEMBER
JULY ribusiness EAGC Ag ya Expo-Ken 14th & 15th
s ribusines EAGC Ag a d n Expo-Uga
July
East Afric a Food Festival 5th-7th No vember
grains@eagc.org. www.ratin.net, www.eagc.org
LAUNCH OF THE COOKBOOK
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MAIN EVENTS 2014 Annual General Meeting (AGM) April 11th EAGC Agribusiness Expo -Uganda 27th - 28th June EAGC Agribusiness Expo -Kenya 4th - 15th August East Africa Food Festival 5th - 7th November
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