Linking farmers to markets: Facilitating sorghum trade on behalf of farmers in Tanzania
Highlighting the power of markets to improve the livelihoods of smallholder farmers, ICRISATHOPE project partners in Tanzania negotiated a forward contract agreement for the purchase and supply of 200 tons of sorghum grain between the Kwamtoro Farmers’ Sacco and the Dunia Trust Ltd, a commodity trading company. Spearheaded by Tanzania’s Department of Research and Development (DRD), District Agricultural and Livestock Development Office (DALDO) and ICRISAT, the meeting was held in Kwamtoro in Kondoa District on 27 January.
Dunia Trust agreed to purchase from the farmers 200 tons of white-grained Macia sorghum, an improved ICRISAT variety released in Tanzania. The farmers will deliver the sorghum to Kwamtoro town in June and July at a price of US$ 0.2 per kg. In case of price increase, Dunia Trust agreed to adjust the price to a maximum of 10% increase.
Threats to the implementation of the contract, as well as resolution measures, were discussed during the meeting. It was also agreed that there would be a continuous monitoring of the progress by project partners, and that farmers’ training on crop management, postharvest handling, business planning and marketing, and input supply management would be held in the month of May.
Among those present at the meeting were: Dunia Trust Managing Director Daniel Gisiri; Kwamtoro Sacco Chairman Saidi Husseni; 23 office bearers of five affiliate Saccos in Kwamtoro Division; Willbroad Karugaba (World Food Program/P4P); Donald Munisi and Pancras Swai (DALDO); Peter Sulumo (DRD); Patrick Audi (ICRISAT-ESA); and Hamisi Kitonka (RUDI-Rural Development Initiatives).
ICRISAT and Dunia Trust will finalize the contract document to be signed by parties concerned by 15 February, 2012.
Story submitted by Patrick Audi, ICRISAT