Business

ZAMACE calls on farmers to form co-operatives

TRYNESS TEMBO, Lusaka
THE Zambia Agricultural Commodities Exchange (ZAMACE) Jacob Mwale has called on farmers to form co-operatives to benefit from the agreement signed with the JSE Limited, a South African stock exchange.

Last year, ZAMACE signed a partnership agreement with the JSE futures market to boost liquidity in the Zambian agricultural commodity market.

Mr Mwale said small-scale farmers are big producers, but for them to successfully participate on JSE, they need to establish groups and put together their produce.
“Co-operatives are able to consolidate small-scale farmers as they are major producers and need to aggregate their crops. Currently, the aggregation is happening among big players.
“Small-scale farmers also need to be patient when planning to sell their produce to effectively participate on JSE and look at a broader picture,” he said this on the Zambia National Broadcasting Corporation programme dubbed Sunday Interview.
He said participating on JSE will enable farmers have a futures market, which is a central financial exchange where people can trade standardised futures contracts.
Mr Mwale said a farmer can have a view of what to plant and remove the rushed pressure to sell, as the crops are safe and once they deposit their grain with the exchange, they will be issued with a warehouse receipt that can be used as collateral to acquire finance and inputs.

 

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