Palm | Kelapa Sawit

Source East African Standard

Published on 20/09/2009

The National Cereals and Produce Board (NCPB) is setting up a commodities exchange. NCPB Managing Director Prof Gideon Misoi said the exchange will run in the same fashion as the weekly coffee and tea auctions, which are the only commodity exchanges. Speaking on Saturday in Nairobi at a workshop on Kenya’s food situation organised by the East African Grain Council and the Tegemeo Institute, Prof Misoi said the Government is setting up a warehouse receipt system that will allow maize farmers use facilities to store their harvest. Misoi says the system would reduce the amount of grain lost in post-harvest processes. It is estimated that farmers lose between 30 and 40 per cent of maize harvested annually due to poor storage. "The system will also enable farmers to hold their produce in our warehouses and sell when the market prices are right," he said. He said warehouse receipt system and the commodities exchange would reduce the number of middlemen in the grain supply chain and ensure that farmers and consumers "The large number of middlemen has seen farmers paid dismal amounts for their products while consumers buy flour at high prices," he said.
The two initiatives are expected to play part in improving the food security situation in the country. The warehouse receipt system is expected to be in place by end of November, which according to Misoi, will be in time for this season’s harvest. The warehouses managed by the board can hold up to 21 million bags, but Misoi said currently, only 30 per cent of this capacity is being used.