[kictanet] Commodity Exchange Platform

[aki]

IMHO, to have a fluorishing Commodity Exchange, and using Maize as a base
standard for the developments and growth of ICT in the agri-sector, these
are the core issues that need to be looked into:

1) Seed production. With the growing EAC region, data shows that there are
now only 2 countries that produce seeds. Kenyan and South Africa. Zimbabwe
is out of the picture. Shortage of seed production is not new, it can be
traced back to 1995. What can ICT do to here?

2) Larger/Modern warehouse storage and drying facilities. It seems at least
an average of 30% of Maize production is lost in storage. What can ICT do
here?

3) Milling : With a 150tons/24hours plant machines costing about Ksh
35million and over, local mechanical, electrical and ICT engineers need to
look at ways of producing cheaper and more efficient machines. Here is a
simple formula:

With the current retail price of milled Maize flour = average of Ksh 150/-
per 2 kg bag.

- Input costs 90 kg bags = 3,500/-, therefore cost of 2kgs = 78/-
- Whether wet or dry milling, there are varied inputs
- Electricity or fuel costs
- Labour costs
- Packaging costs
- Transportation costs

If any miller is using a 1000kg/Hour plant, they need at least 11 units
of 90kgs bags per hour, while they need to have storage/distribution of
1000kgs per hour. I'm not sure many of the small scale millers can do this
easily. Even having the usual 4-5ton canter to move distibution every 4-5
hours will not be a very profitable excercise. Where would one go and
deposit 5 tons of Maize flour per day if they are 200kms away from the
nearest warehouse?

Thank you, and corrections welcome.

Rgds.
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