Online Reporter
Moffat Mungazi
Farming Reporter
THE Grain Marketing Board (GMB) has unveiled an innovative marketing model aimed at strengthening grain value chains, reduce costs and ensure dependable access to quality produce for processors and increase food security countrywide.
GMB chief executive officer, Dr Edson Badarai said the development is a game-changer in enhancing grain trade efficiency, empowering farmers and increasing convenience for processors.
The model will see 89 depots and 1 804 grain buying points being registered with GMB and be involved in third-party purchase and storage for farmers, millers, stock feed manufacturers and other grain processors.
“This model assists farmers to access the market at low cost while benefiting grain processors from GMB’s aggregation. After registration, participating client entities will deposit funds into the GMB account at the agreed price per tonne, and GMB’s stocks serves as collateral for the millers. Leveraging on GMB’s nationwide footprint, the processors can collect the prepaid grain at nay nearest GMB depot to their own processing centres. This also ensures grain availability and reduced logistics costs.
“The model supports Rural Development 8.0 with women, youths, village business units and school business units at the centre of aggregation. A nominal fee 10 percent is charged for the services,” said Dr Badarai.
He said GMB’s silo storage capacity, which is set to rise to over 1,5 metric tonnes from the current 862 000mt upon completion will ensure food security countrywide.
Dr Badarai added that the arrangement has several benefits to clients and stakeholders.
“GMB has reduced storage fees to US$2,90 per metric tonne per month to encourage grain processor participation. Contractors can participate by allowing their contracted farmers to deliver grain to the nearest GMB depot, thereby reducing costs and minimising side marketing. The contractors on board can also take advantage of GMB’s fleet to fulfil their transport needs.
“Client entities served by GMB under third party grain purchase model can also take advantage of storage facilities at favourable conditions. Grain stored under third party is ring-fenced and enforceable under law through contract,” said Dr Badarai
By combining nationwide reach, competitive pricing and world-class storage, GMB is positioning Zimbabwe as a hub for grain trade in the region, Dr Badarai added.
