Poorva Pandya
POLICY SEMINAR
Virtual Event - COVID-19, global markets and African agricultural trade: Impacts on growth and food security
Organized by IFPRI, with support from the United States Agency for International Development (USAID)
SEP 17, 2020 - 09:30 AM TO 11:00 AM EDT
The U.S. Budget and Economic Outlook (Presentation)
Covid-19 Impact on Supply Chains
1. EXPORT TRADING GROUP • AGRI INPUTS
Covid-19 Impact on Supply Chains
EXPORT TRADING GROUP
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2. ETG Overview
Founded in 1967, ETG is a diversified agricultural conglomerate, owns and
manages a vertically integrated supply chain across five continents.
3. EXPORT TRADING GROUP • AGRI INPUTS
ABOUT US
Export Trading Group
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ETG is globally recognised as one of the fastest growing integrated agricultural
supply chain groups. Our multinational operating entities are strategically located
across 40 countries and are responsible inter alia for procurement, warehousing,
processing and/or manufacturing of finished goods. We also specialise in
transporting and distributing our products, driving brand growth.
Our Strategy
Enhancing the agricultural potential of
smallholder farmers in emerging economies
Our Journey
Founded in Kenya in 1967, ETG has
emerged as one of Africa's largest
Agricultural Conglomerates
Our Vision & Mission
Facilitate production of high-quality crops &
provide a market for all surplus commodities
Our Presence
ETG operates in more than 40 countries
globally and 20 countries in Africa
5. 5LINKING SMALL HOLDER FARMERS TO REGIONAL MARKETS
• Organisation into groups
• Linking co-ops to financial
institutions
• Input financing
• Agronomy support
• Minimum price offtake
contracts
• Logistics services
• On-farm aggregation, quality
checks and uplift
• Affordable financing through de-
risking of supply chain
• Improved yields through
appropriate agronomy
• Cost visibility and development of
sustainable agri-preneurs
6. EXPORT TRADING GROUP • AGRI INPUTS
CHALLENGES
For small scale agriculture to be sustainable, supply
chains need to be formalized to drive efficiency
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Small scale agricultural value chains
are high risk resulting in unaffordable
financial products.
Input costs can be prohibitive resulting in
below optimal yields. Knowledge gaps
result in cost inefficiency
Logistics are one of the highest costs in
agricultural value chains in Africa.
Economies of scale improve efficiency.
Policy interference in market prices
increases speculation and price volatility
while incentivizing inefficiency
7. Your Logo or Name Here
About ETG Farmers Foundation (EFF)
Linked to Export Trading Group (ETG) as a non-profit
development arm and operational since 2013.
Collaborates with smallholder farmers in producing a
range of food and cash crops in various value chains.
How EFF collaborates with
smallholder farmers
• Provides training and extension in basic business skills
and good agricultural practices, while strengthening
farmer organizational capacity;
• Supports the creation of a sustainable agricultural
environment and promotes the concept of ‘farming as
a business’;
• Boosts community socio-economic development;
• Connects smallholders to input providers, financial
services and the market;
• Stimulates the use of innovative technologies and
mechanization tools and services;
• Collects farmer data and promotes digitization on
customized ICT platform.
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8. Your Logo or Name Here
Focus Areas
Innovative
interventions
Modern innovative
solutions for strategic
value chain development
interventions,
feasibility studies and
impact analyses
Capacity
building
Technical training
and good agronomic
practices to ensure
improved crop
quality and
increased quantity,
and a reduction in
post harvest losses
Stakeholder
engagement
Networking and
advocacy;
partnerships and
participation in
development
initiatives to bring
positive socio-
economic change
Finance & data
collection
Developing financial
inclusion models;
digitisation and data
management for
monitoring and
evaluation and
marketing
Community
development
Gender equality;
job creation and
youth employment;
sustainable agriculture
and land-use; green
energy solutions;
education and health
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Risk
mitigation
Risk management
and shock absorption
to preserve income
stability for
smallholder farmers in
view of changing
global markets
and the effects of
climate change
9. • Reduced efficiencies of external stakeholders (public sector & international agencies) resulted in delays; unpredictable
shifts in procedures leading to slowing down of movement and contract finalization
• Lockdowns in various countries (Sudan, Nigeria, Togo) impacted timely shipments and deliveries; costs increased;
documents delayed impacting Sesame trade
• ETG China: processing plants operational since end of March - with lag in production and lingering fear resulting in slow
pickup of demand, emerged a situation of over-supply in the market
• ETG India: processing plants for essential commodities processing & movement never stopped, but resulted in increased
logistical and operational costs related to staff capacity building and managing production during lockdown
• Farm to fork supply chains impacted with reduced buying power due to:
• loss of employment
• fear of uncertain economies
• fluctuation in local currencies
• consumers opting for cheaper products so higher priced non essential food item consumption has dropped
• Regional movements in the last six months have improved, with varying impact on a range of commodities (food security
crops, cash crops)
ETG Perspective: Impact of Covid-19
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10. Employee Safety First1. Personal Protective Equipment
2. Hygiene procedure
a. Wash hands
b. Thermal screening
c. Social distancing
4a
4b
4c
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12. • Stock Feed plants in some countries were down as high as 60% (March to July) but now slowly picking up: largely due to
buying power of the local population with lock downs/loss of jobs
• Other impact is seen on delays in getting spare parts required for processing plants & other operations from SA, India,
and China resulting in lower production capacity (despite the demand for lower value food products)
• Production of soybean, maize and beans not severely affected as planting had already been done in many parts of Africa
• Cash crops: small scale farmers have reduced costs (schools closed, crops harvested, immigrants had to return to
hometowns). Farmers reluctant to sell due to uncertainty, expectation is with situation normalizing, farmers will need to
sell crops to pay for schools
• Pulses export market from Africa to India: demand higher than production hence the increase of $50-70 per metric ton
in some parts
• Rice supply chain in Tanzania negatively affected all stakeholders (producers, processors and service providers) resulting
in food security and nutrition concerns
• COMESA/SADC policies on essential goods, prioritizing crucial imports (e.g. maize, roller meal) move much quicker at the
ports and across borders
• Overall, crop production has continued and we remain hopeful for better climatic conditions to support farmers.
Current Market Status
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Quality/aflatoxin increasing awareness. Miller want to work with reliable originators who can guarantee quality. Govt increasing pressure on processors to increase nutritional value of staple foods by flour blending, requires huge increase in crop rotation and production. Working with right co-ops. Trust.
Women often key in agricultural households and control of finances. Aggregating into groups leverages community strength.
Climate risk mitigation. Conservation agriculture, crop rotation, basic ag skills.