U.S. Ambassador visits
ACE
By Frank Kadzakumanja
On 14th January, 2012,
U.S. Ambassador to the UN Food and Agriculture Agencies in Rome,
David Lane visited Agriculture Commodity Exchange for Africa (ACE)
to learn more about ACE and its impact to the Agriculture sector in
Malawi. Ambassador Lane was accompanied by Ambassador to Malawi,
Janine Jackson and World Food Programme (WFP) officials. During the
visit, Ambassador Lane had a chance to observe a Bid Volume Only
(BVO) in session in which World food Programme (WFP) placed a bid
to buy 1327 MT of maize. Also present were farmers, business
community as well as representatives from Farmers Associations.
Speaking at the function, Principal
Advisor for ACE, Kristian Schach Moller said that ACE is working
hand in hand with farmers across Malawi to avoid losses made soon
after harvest by enabling them to store grain in certified
warehouses and sell at better prices later when the demand is
low. He said that when famers deposit their grain, they
also have access to a loan of up 70 % of their commodity value to
offset immediate cash needs. "The facility is open to all and it is
100% transparent" .He said. Also speaking at the same function was
World food Programe P4P Coordinator, Irene del Rio Huerta who said
that World Food Programme (WFP) uses ACE because of the BVO element
which produces more timely, accurate and usable data and that it
gives smallholder farmers and traders direct access to commodity
exchanges in a manner which is transparent and competitive. "When
the session is done, WFP compares prices and transport costs, and
then selects the most competitive offer or offers." She said.
Farmers who have benefited from the system also took the time to
explain their experiences. Speaking on behalf of the farmers, Mr
Michael Banda, a farmer in Dowa said that he was very privileged to
have been one of the first users of the system in Malawi. "Before I
used to sell my commodity to vendors soon after harvest, but now
with the coming of ACE I was able to deposit my maize and then I
got a loan to build a house. When I wanted inputs I was also given
fertilizer and seed using my receipt". He said.At the end of the
meeting, Ambassador Lane hailed ACE for the positive impact of the
warehouse receipt system in Malawi.
|
 Principal Advisor for ACE,
Kristian Schach Moller explaining WRS value using a pie Chart
|
 A farmer, Mr
Kanyenge explains his experience as Ambassador Lane looks
on
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Apart from Warehouse Receipt System (WRS), Agricultural
Commodity Exchange for Africa (ACE) added a "Bid Volume Only" (BVO)
component to its trading platform with the help of a USAID COMPETE
partnership Fund grant. World food programme (WFP) started
procuring through ACE in February 2010 and it has been a success.
Among other things, Agricultural Commodity Exchange (ACE) also
disseminates Market price information across 28 markets in Malawi
to help farmers make informed decisions about when to sell or buy
their commodities.