Transcript Document

Effective Grain Storage
in Eastern and Southern Africa:
Selected Policy Issues
by
J. Govereh; T. Tefera & H. De Groote
Outline
1.
2.
3.
4.
5.
6.
Food security outlook in ESA
Post harvest losses – the forgotten factor
Efficacy of alternative storage technologies
Policy essentials
Incentives to promote on-farm storage
Public investments that “crowd-in” private
investment
7. Expected outcomes
Food Security Outlook in
Eastern and Southern Africa
1. Surge in food prices since 2006
2. Drought in North America
• Continuing price and volume volatility
• Developing countries who are net importers
will face financial burden
3. Risk of intermittent food shortages
• Inability to adapt to climate change
4. With continuing low productivity and growing
demand, long-term structural deficiencies
emerging
Maize post-harvest losses – a forgotten factor
Harvesting and
drying
1. Birds
2. Rodents
3. Insects
4. Missing grains
5. Excessive
drying
6. Insufficient
drying
4-10%
loss
Threshing
and shelling
1. Cracking
2. Brakeage
3. Missing
5. Rodents
6. Birds
1-4% loss
Transport to
store
On-farm
storage
Transport
to market
1. Spillage
2. Breakage
3. Leakage
1. Insects
2. Rodents
3. Moulds
4. Birds
5. Mites
1. Spillage
2. Breakage
3. Leakage
1-2% loss
6-16% loss
1-2% loss
Overall Cumulative Loss
14-36%
Marketing
1. Spillage
2. Rodents
1-2% loss
$Billion
Postharvest losses: How big is the problem?
•
•
PHL is a silent killer as losses do not make headline news
Large grain borer is now an epidemic
Grain storage technologies
Metal silo
SGBs-GrainPro
Farmers/
Normal bag
Benefits of new methods
Metal Silos & Super bags to be
deployed (2012 – 2016)
Countries Yr 1 Yr 2 Yr 3 Yr 4 TOTAL
Kenya &
1000 1800 2800 3120 8720
Malawi
Zambia & 300 900 2100 4100 7320
Zimbabwe
1000 Super bags to be distributed each year
in each country for four years
Policy Imperatives
Better technology to reduce PH losses
necessary but not sufficient to induce greater
storage for the market
1.
Improved storage and PH handling practices
require removing market disincentives
3. It is economic rather than physical losses that
matter
2.
4.
Successes elsewhere not replicable everywhere
•
Cultural sensitivities a factor
Promoting on-farm and
trader grain storage
1. Clear & greater incentives to storage
•
Reduce risks on storage investments
o
Prices marketing boards pay or receive do
not reflect value addition
o
Export bans, tariff waivers, levies etc., not
transparent and predictable
1800
Intra-seasonal average
chronological value of grain
1700
1600
Kwacha per kg
1500
1400
1300
1200
1100
1000
900
800
January
February
March
April
May
June
July
Months
August
September
October
November December
Promoting on-farm and
trader grain storage
1. Clear & greater incentives to storage
•
•
Reduce risks on storage investments
o
Prices boards pay or receive
o
Make export bans, tariff waivers, levies
etc., transparent and predictable
Reduce initial cost of technology to improve
returns
o
60% of cost is imported metal sheet
Reducing cost of Metal Silos
1.
Tax incentives
• Zero rating for VAT purposes grain handling
equipment and technologies
o 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
trader grain storage
1. Clear & greater incentives to storage
•
•
Reduce risks on storage investments
o
Prices boards pay or receive
o
Make export bans, tariff waivers, levies
etc., transparent and predictable
Reduce cost of technology to improve returns
o
•
60% of cost is imported metal sheet
Redress imbalance in subsidy expenditure
o
Storage inputs in subsidy package
Investment in public
services
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 standards
3. Develop local capacity to assess magnitude and
nature of PHL
• Baseline data on post harvest losses
• Regionally standardized loss assessment
approaches
Outcomes 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