As part of a Strategic Partnership Grant with USAID’s Southern Africa Trade Hub, Cargill has partnered with Empresa de Comercialização Agrícola Ltd (ECA) in Mozambique to create market linkages for smallholder farmers living in rural Africa.Farmers in Mozambique, particularly smallholders, have limited access to markets and face many barriers to improving their incomes and livelihoods, due to infrastructural constraints and a history of conflict.
Cargill aims to provide a reliable option for farmers to sell their crops and receive immediate payment at transparent, fair market prices. Through a network of buying stations, Cargill will be able to collect and store the maize and/or soybean crop, providing the farmers in the areas with a local market and guaranteeing a reliable supply of maize for the ECA Maize Milling plant that brings maize meal into the local retail market.
- It is expected that up to 10,000 smallholder farmers will be able to access viable markets through the Cargill buying stations established as a result of the grant.
Results and Outcomes
- In Catandica, new grain dams have been constructed and filled with grain as part of the upgraded Cargill-ECA facility, bringing the total number of dams on site to 40. The increased capacity has enabled Cargill to increase their purchasing from 7,000 tons of maize last year to a projected 15,000 tons for the 2015 season.
- The Trade Hub facilitated the development of the pilot Warehouse Receipts System (WRS) with Cargill-ECA through the Catandica grain storage site. The first ever electronic warehouse receipt in Mozambique was issued to a maize farmer at the site in May 2015. Banco de Oportunidade de Mocambique financed the warehouse receipt, and the farmer was able to receive finance using the web-based system and his mobile phone. Working closely with Cargill-ECA, USAID’s Southern Africa Trade Hub also conducted a training activity in May 2015 for Cargill warehouse managers from around the country.
A market information system (MIS) will also be implemented through the WRS facilitated and funded by USAID’s Southern Africa Trade Hub working closely with ECA and Cargill.
Photo: Each new grain dam at the Cargill-ECA site holds 130-135 tons, increasing the site capacity to approximately 5,200 tons