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Functions in detail
1. Management of Storage Facilities
- Utilize, rent or sale to raise income for maintenance and repairs. There are over700 storage facilities consisting of Sheds and Grain Silos through out the country with a total capacity of almost 2, 000, 000 metric tones. The sizes of these storage facilities in terms of capacity range from 20 to 5,000metric tones. The equipment includes Stacking machines, Scales, Weigh Bridges and Bagging machines
2. Marketing and market facilitation
- Marketing
- Crop marketing support in rural areas
The Food Reserve Agency is a major channel of distribution of wealth to Zambia’s rural population through crop purchases. During the 2006/7 marketing season, the Agency paid more than K286 Billion for maize purchases through out the country.
- Market access for the disadvantaged without price controls
The Agency operates crop purchase depots in many far flung areas of rural Zambia. This reduces farmer’s transportation costs thereby enhancing their net earnings. The Agency’s programme also protects farmers from some socially insensitive traders who offer very low prices which work against sustained production and food security.
Considering that many farmers do not have adequate on-farm storage facilities, the Agency’s purchase exercise mitigates possible on-farm losses.
- Promote rural markets and bulking Centres
The Agency’s programmes have significantly facilitated the development of rural areas. The increased rural incomes arising from FRA programmes have attracted a number of services such as banking, communication and transport services. There has also been a marked improvement in general goods trading in rural areas. The Agency has thus contributed to enhancement of rural living standards.
- Import and export of selected crops as per market conditions in collaboration with the private sector
In collaboration with the Private Sector the Agency monitors the supply and demand of essential commodities and in the event that the private sector is unable to meet the local demand, the Agency shall release reserve stocks on the market. The stocks may also be released on the export market. In the case of exhaustive utilization of the reserves in non- production conditions e.g. Drought, floods e.t.c, the Agency may import essential commodities as designated by the Ministry of Agriculture and Cooperatives.
2.1 Market facilitation
- Promotion of grades and standards for designated agricultural commodities. This will encourage farmers and traders to deal mainly with first grade quality food products demanded on the export market.
- Provision of market information(market intelligence)
The agency collects marketing information on grain trading, processing, stocks and prices on the local and international market, and disseminates such information for the purpose of meeting requirements of Government, consumers, producers, traders or other persons interested in the designated commodities.
- Promotion of linkages between various stakeholders, strategic partnerships
The Agency in consultation with other collaborating partners promotes internationally accepted standards for grain commodities. This assists producers to adequately market their commodities complying with uniform grade and weight standards. This encourages farmers and traders to deal with first grade quality food products demanded on the export market.
3. Administering a ‘National Strategic Food Reserve’- NSFR
- Innovatively combine:
- Physical stocks
- Cash reserves
- Future market trading instruments
- Warehouse receipts
- Maintain and administer NSFR
- Sell and buy stocks
- Import maize in cases of food deficit
The main function of the Food Reserve Agency is Securing National Food Reserves for the country. In executing this function, the Agency purchases crops from small scale farmers in rural Zambia. The Agency’s crop purchase programme encourages farmers to produce more thereby facilitating sustained food security at both national and household levels. The Agency’s programme contributes towards improvement of household food security.
Other
- Respond to local shortfalls in supply of designated commodities through community sales and to Millers.
- Stabilise Food Prices
- Guarantee a reliable supply of designated commodities
- Respond to Food emergencies caused by natural disasters. E.g. Floods
* Designated commodities are crops deemed essential for food security of the nation, chosen at the beginning of each marketing year by the Ministry of Agriculture & Cooperatives. The crops are published in the National Gazette. |
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