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Effective Grain Storage Effective Grain Storage in Eastern and Southern Africa:in Eastern and Southern Africa:
Selected Policy IssuesSelected Policy Issues
byby
J. Govereh; T. Tefera & H. De GrooteJ. Govereh; T. Tefera & H. De Groote
OutlineOutline
1. Food security outlook in ESA2. Post harvest losses – the forgotten factor3. Efficacy of alternative storage technologies4. Policy essentials5. Incentives to promote on-farm storage6. Public investments that “crowd-in” private
investment7. Expected outcomes
Food Security Outlook in Food Security Outlook in Eastern and Southern AfricaEastern and Southern Africa
1. Surge in food prices since 20062. Drought in North America
• Continuing price and volume volatility• Developing countries who are net importers
will face financial burden3. Risk of intermittent food shortages
• Inability to adapt to climate change4. With continuing low productivity and growing
demand, long-term structural deficiencies emerging
Transport to market
1. Spillage2. Breakage3. Leakage
4-10% loss
Overall Cumulative Loss 14-36%
Maize post-harvest losses – a forgotten factor Maize post-harvest losses – a forgotten factor
•PHL is a silent killer as losses do not make headline news•Large grain borer is now an epidemic
Postharvest losses: How big is the problem?
Metal Silos & Super bags to be Metal Silos & Super bags to be deployed (2012 – 2016)deployed (2012 – 2016)
Countries Yr 1 Yr 2 Yr 3 Yr 4 TOTAL Kenya & Malawi
1000 1800 2800 3120 8720
Zambia & Zimbabwe
300 900 2100 4100 7320
1000 Super bags to be distributed each year in each country for four years
Policy ImperativesPolicy Imperatives
1. Better technology to reduce PH losses necessary but not sufficient to induce greater storage for the market
2. Improved storage and PH handling practices require removing market disincentives
3. It is economic rather than physical losses that matter
4. Successes elsewhere not replicable everywhere
• Cultural sensitivities a factor
Promoting on-farm and Promoting on-farm and trader grain storagetrader grain storage
1. Clear & greater incentives to storage
• Reduce risks on storage investments o Prices marketing boards pay or receive do
not reflect value additiono Export bans, tariff waivers, levies etc., not
transparent and predictable
Intra-seasonal average Intra-seasonal average chronological value of grainchronological value of grain
800
900
1000
1100
1200
1300
1400
1500
1600
1700
1800
January February March April May June July August September October November December
Kw
ach
a p
er k
g
Months
Promoting on-farm and Promoting on-farm and trader grain storagetrader grain storage
1. Clear & greater incentives to storage
• Reduce risks on storage investments o Prices boards pay or receiveo Make export bans, tariff waivers, levies
etc., transparent and predictable
• Reduce initial cost of technology to improve returnso 60% of cost is imported metal sheet
Reducing cost of Metal SilosReducing cost of Metal Silos
1.Tax incentives• Zero rating for VAT purposes grain handling
equipment and technologieso Metal sheets are multi-purpose, difficult to
isolate for tax rebates• Accelerate phasing down of duty on equipment
and raw materials imported outside region
Promoting on-farm and Promoting on-farm and trader grain storagetrader grain storage
1. Clear & greater incentives to storage
• Reduce risks on storage investments o Prices boards pay or receiveo Make export bans, tariff waivers, levies
etc., transparent and predictable
• Reduce cost of technology to improve returnso 60% of cost is imported metal sheet
• Redress imbalance in subsidy expenditureo Storage inputs in subsidy package
Investment in public Investment in public servicesservices
1. Establish a functioning and upgraded quality assurance and regulatory systems • Civic education and human safety
2. Further investments in research and development• New storage technologies, new instruments and
grain quality standards3. Develop local capacity to assess magnitude and
nature of PHL• Baseline data on post harvest losses • Regionally standardized loss assessment
approaches
Outcomes of EGSP -IIOutcomes of EGSP -II
1. Increased uptake of metal silo technology building on lessons learnt in phase 1
2. Alternative and affordable postharvest technology tested and introduced to farmers