Eastern Africa Grain Council (EAGC)
“EAGC Secretariat Support and Institutional Support”
Maize remains the major staple food in Kenya, Tanzania, Malawi, Zambia, and the Southern Africa region. The regional grain trade is faced by fragmented un-coordinated system that impedes the free flow of maize from surplus countries to deficit areas. The trade regime has many constraints ranging from import bans, non tariff barriers, un-harmonized standards and no institutional capacity to articulate and expand grain trade and resolve trade disputes. These impede the commercial movement of food commodities.
A major problem facing small-scale maize producers and traders throughout the region is lack of market information on prices, volumes and crop projections. These small-scale producers sell at harvest time at reduced prices and repurchase the same at a price almost double in a few months time. EAGC aims to fill this vacuum and institute systems that will make maize/grain trade a profitable business. Market information will be disseminated through the Regional Agricultural Trade Intelligence Network (RATIN).
The council will work towards achieving a well functioning grain trade. The rationale behind the promotion of structured grain trading is to seek ways of improving risk management and credit access to both producers and traders. By using commodities as collateral, a producer can reduce the pressure to sell during the harvesting period leading to reduction in price volatility in the market. With a functional warehouse receipt system, a processor or food relief agency may not need to take physical stock positions because they can access known quantities at their time of need. EAGC is coordinating a pilot Warehouse Receipt Initiative in Kenya that will be rolled out to other countries.
The goal of this grant is to promote and support the establishment of a structured grain trading system as well as strengthening the capacity of the secretariat.
Country: Regional – East Africa, office based in Nairobi
1st grant: July 1st, 2009 – June 30th, 2010
2nd grant: March, 2011 - Dec 31, 2012
1st grant: $405,000
2nd grant: $698,000