By Simon Munyeki
Collective aggregation
and marketing of cereals usually ensures that farmers have better negotiating
power for better terms of trade as well as easy access to large and structured
markets outlets.
Despite the many benefits
of grain bulking, most warehouses in Laikipia County are operating under capacity.
Ndurumo Cereal Bank, Sipili Cereals and
Marketing Cooperative Society, Ol-Moran Cereal Bank, Ng’arua Cereals and
Produce Cooperative and Ng’arua Millers have a combined capacity of 26,000 bags
although currently less than 2,000 bags are in the warehouses.
In order to improve grain
storage in Laikipia West the Agricultural Sector Development Support Programme
(ASDSP) in collaboration with the Eastern Africa
Grain Council (EAGC) and the Ministry of Agriculture, Livestock, and
Fisheries, organized for a training on grain bulking at Kinamba Catholic Church
in Githiga Ward for eight maize value chain groups on May 26, 2016.
Mr. Kipyegon Kipkemei,EAGC training farmer representatives on grain bulking |
Speaking during the
training Mr. Kipyegon Kipkemei, EAGC urged farmer organizations to aggregate
their cereals instead of selling cheaply to traders. He said that EAGC is working
with cereal banks in the ward to ensure that they receive Warehouse Receipt System
certification.
He noted that Ng’arua
cereals and Produce Cooperative Society is already enjoying the benefits of
warehouse receipt system. This has helped to mobilize agricultural credit by
creating collateral for the members.
“Utilizing the available
storage facilities would reduce post-harvest losses as it would reduce cases of
pest infestation, aflatoxin and cereals would be dried to the correct moisture
content,” said Mr. Kipyegon.
Members of the
cooperative are able to access better storage facilities as well as reduced
risks in the agricultural markets. He said that the members of the cooperative have
the option to sell when they can get the best price for their cereals.
This reduces exploitation
during the harvest season when the farm gate prices are low. He said that while
waiting for prices to appreciate, the depositor could access loan from
financial institutions of up to 60-80% of the current market value of the
grains stored.
He said that good and
sustainable bulking requires adequate stocks, quality stocks, proper storage
facilities, proper grain handling equipment, proper records, and good disposal.
“Bulking is about quality
as it would ensure that the stored grains are cleaned and graded. It also helps
to access both the home grown school meal market and other structured demand
markets,” said Mr. Kipyegon.
Mr. Bob Aston, Arid Lands Information Network (ALIN)
addressed the challenges faced by farmer organizations. He cited governance,
lack of entrepreneurial skills, poor financial management skills, and lack of
sustainability mechanisms as some of the issues that has prevented the
utilization of cereal banks in Laikipia West.
“We hope that through
such trainings the warehouses will be utilized next season. On-farm storage
facilities are a challenge as most farmers lose their cereals through post-harvest
losses,” said Mr. Aston.
During the training, the
management committee of the warehouses agreed to formulate plans that would
ensure communities benefit through the warehouses. A starting point is to
ensure that all the warehouses receive warehouse receipt system.
Training communities on bulking and marketing of cereals can play a critical role in ensuring farmers receive better prices for their cereals. Most farmers who usually sell as individuals always sell at low prices thus failing to benefit from their enterprises.
Training communities on bulking and marketing of cereals can play a critical role in ensuring farmers receive better prices for their cereals. Most farmers who usually sell as individuals always sell at low prices thus failing to benefit from their enterprises.