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Covid-19 Impact on Supply Chains

  1. EXPORT TRADING GROUP • AGRI INPUTS Covid-19 Impact on Supply Chains EXPORT TRADING GROUP 1
  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 3 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
  4. EXPORT TRADING GROUP • AGRI INPUTS 4
  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 6 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. 7
  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 8 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 9
  10. Employee Safety First1. Personal Protective Equipment 2. Hygiene procedure a. Wash hands b. Thermal screening c. Social distancing 4a 4b 4c 3
  11. Employee Safety First 3. Disinfection passages 4. Employee COVID insurance 5 6
  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 12
  13. EXPORT TRADING GROUP • AGRI INPUTS EXPORT TRADING GROUP THANK YOU 13

Hinweis der Redaktion

  1. Farm to fork. >80% bought from SMF.
  2. Millers/aid agencies/feed companies/FMCG/exports
  3. 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.
  4. Women often key in agricultural households and control of finances. Aggregating into groups leverages community strength.
  5. Climate risk mitigation. Conservation agriculture, crop rotation, basic ag skills.
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