The Sunday Mail
Sunday Mail Reporter
The GOVERNMENT has listed soyabeans on warehouse receipt and commodities trading platform, the Zimbabwe Mercantile Exchange (ZMX), to boost the crop’s production and promote development of a liberal agriculture marketing system.
This development is expected to increase soyabean production, as the cooking oil industry, which is a major consumer of the crop, is receiving only 82 000 tonnes annually, against a requirement of 600 000 tonnes.
Soyabean trading on ZMX will initially start as a pilot project that will allow policy makers to draw lessons to set modalities for subsequent trading of other strategic grains on the platform.
The trading scheme will bring soyabean farmers, buyers and retailers together and close existing arbitrage gaps caused by middlemen.
GMB and Bak Logistics will provide transport, logistical, and storage facilities for farmers.
Five banks are already on board to offer credit services to farmers on the strength of issued warehouse receipts.
The banks include CBZ, FBC, CABS, AFC and Virl Microfinance.
In a statement at a briefing to launch the trading platform, Ministry of Lands, Agriculture, Fisheries, Water and Rural Development Permanent Secretary Dr John Basera said the market will cut out speculators and side marketing.
“The GMB will be at the centre of the trading mechanism as the Market Maker. In this role, GMB will be the seller to every buyer and the buyer from every seller.
“Farmers and sellers will deliver their produce to designated GMB depots where they will be issued with warehouse receipts against their produce.”
“Farmers have long been taken advantage of by middlemen and the introduction of soya beans on the ZMX platform guarantees viable returns as well as providing support mechanisms for increased production.
“The warehouse receipt system and commodity exchange will facilitate the acquisition of soya beans without putting pressure on the fiscus. It will promote timely delivery of agricultural produce into centrally managed infrastructure to enhance quantification, monitoring, control, and distribution of national stocks thereby reducing post-harvest losses and unlock financing by both the public and private sector through the warehouse receipts as collateral,” said Dr Basera.
He added that the facility will not only make it easier for farmers to access financial services as part of the national financial inclusion agenda, but will also allow them to use their crops as collateral thereby enhancing economic activity all year round.
At the same event, Oil Expressers Association of Zimbabwe chairman Mr Busisa Moyo said the trading platform will help in establishing a market-driven price discovery mechanism which will improve production of soya beans.
“As producers and consumers of soya beans we are ready to participate on the platform. These markets allow for price discovery, which is a good thing.”
