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Industry for Admarc functional reviews

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James Chimwaza

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) and an agriculture expert say the Agricultural Development and Marketing Corporation (Admarc) should be converted to a full-time aggregator in the supply chain to leverage on the export market for farm produce.

An aggregator is a company which sources produce and sells to markets to consolidate the proceeds.

Although Admarc performs some of functions, it lacks the financial and regulatory muscle to effectively compete with private sector players, according to the chamber.

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MCCCI President James Chimwaza said in an interview that most farmers in the country were small-scale and lack access to big markets that can help improve exports.

Chimwaza then suggested that Admarc should be turned into a trusted aggregator which should be able to bring together farm produce and export it in higher volumes to competitive markets.

“When the quantity of produce are big, they become attractive to the external market and we need a trusted aggregator because there are aggregators but we are not sure that when they export, all the proceeds come into the country,” he said.

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Admarc is mandated by the law to buy and sell farm produce on both commercial and social prices where the commercial aspects is to make profit role is meant while social is to cushion citizens from price increases.

Lately, the grain marketer has been failing to efficiently execute this mandate, citing lack of funds.

If Admarc can have enough funds and the regulatory muscle, it would have controlled the cereals markets to make sure that their trade is structured through its aggregated process.

Agricultura list Leonard Chimwaza said it is disappointing that out of all entities that sent maize flour to South Sudan, there is no Admarc.

He notes that if, indeed, Admarc can be made an aggregator, it will help, not only the economy in terms of foreign exchange but it will also help the company to have enough resources for its operations.

“Admarc has the capacity to aggregate, process and sell and in the Malawi– South Sudan deal, Admarc would have aggregated and sold to make a lot of money which should have brought its life back to normal,” he said.

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