AFGRI is a leading agricultural services and food processing company with a core focus on grain commodities. AFGRI is passionate about ensuring food security for the African continent, of which the AFGRI business has more than a 90 year heritage in grain and agriculture. It is this passion that drives AFGRI’s vision into Africa. AFGRI’s Mission: To be the number one grain company in all the markets, we operate in AFGRI’s Vision: Driving food security across Africa.

Grain Management

AFGRI’s Grain Management business started during 2000 in Zambia with the purpose of managing grain for food security and to prevent post-harvest losses on grain commodities. AFGRI receives grain commodities from farmers and stores it for millers, processors, investors and humanitarian relief organisations. AFGRI Grain Management is divided into two departments namely Handling & Storage and Grain Marketing.

Handling & Storage

Handling & Storage operate depots in the following areas:

Kalomo – Southern Province

Chipata & Petauke – Eastern Province

Lusaka – Central Province

Kabwe – Central Province

Mkushi – Central Province

Mpongwe – Copper Belt

Mpika – Muchinga Province

 

Farmers can deliver their grain commodities to these depots in bags, and in Mkushi bulk storage options are available.

During the new financial year, Mpongwe depot will also be upgraded to receive commodities in bulk. Farmers can either sell their grain directly to AFGRI or deliver it to AFGRI for storage. AFGRI manages storage for maize, soy beans, wheat and sunflower seeds. The feasibility of also handling groundnuts for the next season is being investigated.

As soon as grain is delivered to an AFGRI depot, it is graded to ensure the quality complies with ZAMACE’s (Zambia Agricultural Commodities Exchange) grading specifications in order to be able to sell it to millers and processors. Commodities are then stacked or placed into bulk storage. Fumigation of commodities will take place when receiving the products and they are treated for safe storage and to ensure that no quality losses will occur.

Grains are inspected weekly to make sure the quality is intact and fumigation is done on a regular basis to prevent any infestation.

The well-preserved grain will be loaded out to customers or back to farmers after obtaining a release instruction from the owner or the collateral manager. All grains loaded out will be graded to ensure customers get the quality paid for. Weighbridges and scales are serviced and certified by Zambia Weights and Measures at least once a year to make sure that receiving and dispatch weights are always 100% correct.

Grain is money

AFGRI is also in the process of obtaining certification from ZAMACE to issue warehouse receipts for the farmer. With such receipts, he can obtain financing or he can sell them any other buyer in the market and thus cut out the transport costs to any of the major cities. Farmers can also deliver grain to AFGRI depots for any third party buyer that has a storage agreement with AFGRI. Some of the millers or traders have storage agreements with AFGRI to receive grain from farmers at the AFGRI depots. Various storage solutions are available for farmers. It can either be a through-put agreement or long-term storage and, as mentioned, storage on warehouse receipts supported by ZAMACE.

Once ZAMACE is fully operational, the option of trading commodities (delivered to AFGRI) through the JSE agriculture derivate on future contracts or puts and options will be available. This will open up the market for farmers to local and international buyers. Grain delivered to any AFGRI depot can be financed by most of the banks and financial institutions as AFGRI is a reputable operator and has a proven track record of storing grain successfully with good quality control and guaranteed quantities.

All grain delivered to AFGRI H & S is also verified by Collateral Management International as they are the appointed collateral managers for AFGRI. AFGRI also offers services like cleaning and re-bagging of commodities for customers at selected depots. The installation of a dryer and increasing of capacity at Mkushi also form part of the short term planning.

Grain Marketing

AFGRI Raw Material Procurement offers structured trade opportunities to the market. Grain is sourced through AFGRI Grain Marketing and carried by the Raw Material Procurement business. It offers solutions to grain milling and crushing businesses throughout Africa with competitive interest rates on commodities carried on behalf of clients. Grain Marketing procures grain through AFGRI’s depots by putting spot buying prices out on a weekly basis from April to the end of December each year. AFGRI procures grain from smallscale farmers, commercial farmers, local traders, corporations and any excess from all role players in the market.

AFGRI also has dedicated buyers in remote areas through farmer co-operatives and farmers’ groups. AFGRI buys any volumes from farmers; it can either be a single bag to contracting commercial farmers with huge volumes. AFGRI offers forward contracts to farmers on most of the crops to make sure farmers know the final price that they will receive for the crop when harvested. AFGRI also offers minimum price contracts and spot market prices.

As soon as AFGRI is in the position to issue warehouse receipts, AFGRI will be able to give advance payments on grain under collateral for future sales when the market is picking up.

AFGRI sends out market prices on a weekly basis in order to keep prices transparent and be used as a benchmark.

AFGRI buys maize, soy beans, wheat and sunflower (possibility of adding groundnuts in the next season is there) and sell it to local buyers that include mills, feedlots, poultry operations and traders.

Exports of any surplus production into the region are undertaken as and when allowed. AFGRI handles the largest volumes of grain in Zambia other than the Food Reserve Agency. AFGRI operates fully within Zambia’s policies and regulations and co-operates with all relevant role-players and authorities in the market.

For Handling and Storage, contact Jaco Naudé at +260-967-988-527 or jn@afgri.com.zm and for Grain Marketing contact Joof Pistorius at +260-965-872-082 or jp@afgri.com.zm.