Enjoy the taste of a weddingin Malawi! Beautiful park and gardens!
Friday, April 19, 2013
Wednesday, April 10, 2013
Warehouse Facilities
This set of pictures shows more of the warehouses that we visited. This one lost its roof in a storm in December and is waiting to be fixed. Jim met with various farmers, both men and women, and discussed how they used the facility last year and what they hope to accomplish this coming crop year.
Tuesday, April 9, 2013
Monday, April 8, 2013
UPDATE-Wedding reception-white maize quality scandal-recommendations
On Saturday April 6, Linda and I attended a wedding reception of one of the ladies working at the ACE office where I go. This is my host organization. We were invited to the reception on Friday. The wedding was in an Anglican church prior. We go there around 2pm and left at 5:40 or so. Just before dark. 6am-6pm are pretty much it for daylight.
We are about 14 degrees south of the equator. So, day lenghth is pretty even throughout.
Back to the reception. Lots of people having fun. The bridal procession took 5-10 minutes per couple, They did not walk soldierly but rather a sort of dance swagger. Master of Ceromonies who was alively man of at least 55 I would say. Two tents, one for each family.
But the big deal was the throwing of kwacha(Malawai currency) at the bride and groom. Everyone through some, your s truly included. I did not swagger. It really was nice, friendly but sure was different.
Big deal over the weekend was the white maize quality scandal. It was announced Friday that 60,000 tonnes of maize stored in the Government Strategic Reserve Warehouse in Lilongwe was rotting. Now it could all be rotting--but you never know about the press. It could be one silo in a 60,000 tonne warehouse. But this happens when maize, the national food, crop, and treasure, is in short supply. The price last harvest(a year ago) went from around 50-60 Kwacha per per kg(It takes 400 kwach to make one US$, up to over 150 kwacha per kg.
So, difficult to find maize to eat now. The national dish is nzima, a sort of doughy tortilla. Not much protein but makes you feel full.
So, the quality problem plus 140,000 tonnes of white maize illegally leaving the country has the business in an uproar.
Today I spent in the office working on reports and a couple of meetings. The after noon meeting was regarding my recomendations about the warehouse operation. Pre numbering of tickets etc. This group is planning to grow by 2.5 X in the next 60 days, so they need to be ready. It was a good conversation and I think so far the recommendations have been well accepted. Will meet again at 10 am on Tuesday as we only got about 25% through the list. Am enjoying this.
One of the things ACE will have to deal with is the division of responsibilites and duties. There is some uncertainty there now. Not unusual, but involves some detail. Also dealing with warehouse shrink and some other issues.
Monday evening we visited a couple we had met at church Sunday who are teachers at the AFRICAN BIBLE COLLEGE here. In their early 30s. From Streamwood IL and his father who is about my age was raised in Herrin IL---so it was sort of like home.
Will be wrapping up recomendations and report this week.
Some talented people here trying make a difference in a difficult economic situation. Really have to watch closely to see the rural people progress the way the ACE people would like to see.
TAFN
Jim Traub
We are about 14 degrees south of the equator. So, day lenghth is pretty even throughout.
Back to the reception. Lots of people having fun. The bridal procession took 5-10 minutes per couple, They did not walk soldierly but rather a sort of dance swagger. Master of Ceromonies who was alively man of at least 55 I would say. Two tents, one for each family.
But the big deal was the throwing of kwacha(Malawai currency) at the bride and groom. Everyone through some, your s truly included. I did not swagger. It really was nice, friendly but sure was different.
Big deal over the weekend was the white maize quality scandal. It was announced Friday that 60,000 tonnes of maize stored in the Government Strategic Reserve Warehouse in Lilongwe was rotting. Now it could all be rotting--but you never know about the press. It could be one silo in a 60,000 tonne warehouse. But this happens when maize, the national food, crop, and treasure, is in short supply. The price last harvest(a year ago) went from around 50-60 Kwacha per per kg(It takes 400 kwach to make one US$, up to over 150 kwacha per kg.
So, difficult to find maize to eat now. The national dish is nzima, a sort of doughy tortilla. Not much protein but makes you feel full.
So, the quality problem plus 140,000 tonnes of white maize illegally leaving the country has the business in an uproar.
Today I spent in the office working on reports and a couple of meetings. The after noon meeting was regarding my recomendations about the warehouse operation. Pre numbering of tickets etc. This group is planning to grow by 2.5 X in the next 60 days, so they need to be ready. It was a good conversation and I think so far the recommendations have been well accepted. Will meet again at 10 am on Tuesday as we only got about 25% through the list. Am enjoying this.
One of the things ACE will have to deal with is the division of responsibilites and duties. There is some uncertainty there now. Not unusual, but involves some detail. Also dealing with warehouse shrink and some other issues.
Monday evening we visited a couple we had met at church Sunday who are teachers at the AFRICAN BIBLE COLLEGE here. In their early 30s. From Streamwood IL and his father who is about my age was raised in Herrin IL---so it was sort of like home.
Will be wrapping up recomendations and report this week.
Some talented people here trying make a difference in a difficult economic situation. Really have to watch closely to see the rural people progress the way the ACE people would like to see.
TAFN
Jim Traub
Sunday, April 7, 2013
ATTENTION
This is Linda speaking or writing and I changed a setting for the blog so please try leaving some comments and encouragement for us. Should work this time!
Friday, April 5, 2013
More warehouses, Millenium Village, Poultry Business
Friday 5 April in Malawi-835 pm
Hello. It has been a while since I have been on. Busy couple of days. Tuesday am started south to visit grain warehouse in Balaka. Nice, clean, personable manager. Pioneer maize plot along side, just like home--EXCEPT these are being dried in the ear on 10x 10 cloths. Then shell and if needed dry again. Flint corn. We grow dent in US. Very pretty, transparent.
Some farmers come from 35kg away. Some next door. Some farmers get their inputs subsidized, some do not. It is a bit complicated.
Farmers typically grow maize for household consumption and if extra for cash. Also may grow soy, or ground nuts, or sesame. When I asked the question irt what rotation was used.?? Answer was every 5 years we switch from maize. Very interesting.
Next stop was a warehouse built on one of several MILLENIUM VILLAGES in Africa. Millenium Villages is a concept that you intensely pump funds and inputs into the community and "kick start" the economic engine. This place on the surface seems to be positive. Excellent warehouse manager. Well trained and experienced. They deal with 7000 households. There are pods of around 1000 and each has a rep on the board. Hard to imagine.
Also a staffed hospital. Dr nearby--this is predominantly used for expectant mothers.
Group has a system of subsidized inputs which are paid back in kind out of crop. Extra maize is stored or sold if board deems that there is excess beyond village needs. Lots of new wells in the area---for you Monticello folks, dont know if this is part of what Paul Evans has done down here or what area he was in.
In the restaurant in the evening we met some men who were there to work on irrigation systems--this is surface irrigation from the Shire River.
Most of this trip was fascinating--- One thing----the phrase "the pedestrian has the right of way" has no meaning here----I mean NO meaning. Peds and cyclists are on each side of the paved highway. When two cars pass, the automatic action is to HONK. There is no thought about slowing down. And the cyclists and peds seem to be trained to get off the road/shoulder. I do not know who is crazier--the driver or the peds and cyclists.
Got back to Lilongwe, the capital city, on Wednesday evening.
Thursday 4 April.
Short am meetings with WFP(World Food Program) of theUN. And with SGS, the third party inspection service that is world wide.
In the afternoon, had an appointment with Central Poultry Feed Mill Manager. Explained about the ACE warehouse receipt system and practices. CP is going thru a major expansion in trying to serve the poulty mkts of Mozambique(which is like the next state for you US folks) and in Malawai. They will need to import or expand local production. they will also need to be more nimble storage operators. I think the whr system could help him--And I think that CP could offer a forward pricing system.
Friday doing reports.
Saturday--big day---will go to a Malawian wedding reception. Guess we are pretty important--got the invitation today. Some of the expats suggest that this is a deal to get people to bring money.
This country is a(maiz)ingly bueatiful. Have enjoyed the travels by and large. Just hope we can get some leadership to emerge from the community to try to drive an enterprise to profitability and success. The west and Europe are and have thrown a lot of money at these situations.
Jim Traub
Hello. It has been a while since I have been on. Busy couple of days. Tuesday am started south to visit grain warehouse in Balaka. Nice, clean, personable manager. Pioneer maize plot along side, just like home--EXCEPT these are being dried in the ear on 10x 10 cloths. Then shell and if needed dry again. Flint corn. We grow dent in US. Very pretty, transparent.
Some farmers come from 35kg away. Some next door. Some farmers get their inputs subsidized, some do not. It is a bit complicated.
Farmers typically grow maize for household consumption and if extra for cash. Also may grow soy, or ground nuts, or sesame. When I asked the question irt what rotation was used.?? Answer was every 5 years we switch from maize. Very interesting.
Next stop was a warehouse built on one of several MILLENIUM VILLAGES in Africa. Millenium Villages is a concept that you intensely pump funds and inputs into the community and "kick start" the economic engine. This place on the surface seems to be positive. Excellent warehouse manager. Well trained and experienced. They deal with 7000 households. There are pods of around 1000 and each has a rep on the board. Hard to imagine.
Also a staffed hospital. Dr nearby--this is predominantly used for expectant mothers.
Group has a system of subsidized inputs which are paid back in kind out of crop. Extra maize is stored or sold if board deems that there is excess beyond village needs. Lots of new wells in the area---for you Monticello folks, dont know if this is part of what Paul Evans has done down here or what area he was in.
In the restaurant in the evening we met some men who were there to work on irrigation systems--this is surface irrigation from the Shire River.
Most of this trip was fascinating--- One thing----the phrase "the pedestrian has the right of way" has no meaning here----I mean NO meaning. Peds and cyclists are on each side of the paved highway. When two cars pass, the automatic action is to HONK. There is no thought about slowing down. And the cyclists and peds seem to be trained to get off the road/shoulder. I do not know who is crazier--the driver or the peds and cyclists.
Got back to Lilongwe, the capital city, on Wednesday evening.
Thursday 4 April.
Short am meetings with WFP(World Food Program) of theUN. And with SGS, the third party inspection service that is world wide.
In the afternoon, had an appointment with Central Poultry Feed Mill Manager. Explained about the ACE warehouse receipt system and practices. CP is going thru a major expansion in trying to serve the poulty mkts of Mozambique(which is like the next state for you US folks) and in Malawai. They will need to import or expand local production. they will also need to be more nimble storage operators. I think the whr system could help him--And I think that CP could offer a forward pricing system.
Friday doing reports.
Saturday--big day---will go to a Malawian wedding reception. Guess we are pretty important--got the invitation today. Some of the expats suggest that this is a deal to get people to bring money.
This country is a(maiz)ingly bueatiful. Have enjoyed the travels by and large. Just hope we can get some leadership to emerge from the community to try to drive an enterprise to profitability and success. The west and Europe are and have thrown a lot of money at these situations.
Jim Traub
Monday, April 1, 2013
Monday evening 9pm in Malawai and 2pm Monday in Illinois.
Just had a hard rain--only the second since we have been here. Today Monday was an official down day as they have Easter Monday as a holiday for most/many offices. So am working on reports and observations.
English is well spoken here so there is a daily English speaking newspaper. Since Lilongwe is the capital, politics rules. There are two parties best I can tell. The DPP(Democrat Progressive Party) and the PP(Peoples Party)
The PP is now in power and the President returned today from a trip to the US. The DPP was going to have a rally on the roads from Lilongwe heading north about 160 km(100 miles). But, they were asked to cancell because the Pres is coming into the airport and there would be congestion. A little lame I think but the DPP kindly rescheduled for tomoro.
Tomorow, we will head south to visit another grain warehouse that ACE, the host for which I am volunteering, operates. This has the most potential so far as it is near a couple of rail lines(or so it seems) and should offer attractive services to the farmers.
We will stay overnight one night in the town of Zomba, the former capital. On Wednesday, we will visit something called the Millenium Village---not sure if this came out of the Washington DC idea mill or if it is Malawian. This may be our best chance to see wildlife.
I hate to sound like a broken record but I think these folks need to expand their soy at the partial expense of corn.(sound familiar). But here the reasons are more compelling--price, expanding local market for feed manufacturing, export controls on corn, and the ability to turn soy into protein in the human diet at the community level, and the need to move away from a monoculture of maize.
Banking and credit also are key as well as secondary roads. My major thinking problem this week is how to evaluate the value of additional space to "investors". Right now, through the ACE system, the bulk of the returns go to the farmer, and the space costs enure to ACE. However, ACE is trying to "wean" the locals from ACE operating. That means the locals get space for no investment, but must charge themselves enough for service fees to pay the bills. Always difficult for "groups", "associations" , and coops to do.
Linda is really helpful. I am happy she agreed to come along.
Talk tomorow.
Just had a hard rain--only the second since we have been here. Today Monday was an official down day as they have Easter Monday as a holiday for most/many offices. So am working on reports and observations.
English is well spoken here so there is a daily English speaking newspaper. Since Lilongwe is the capital, politics rules. There are two parties best I can tell. The DPP(Democrat Progressive Party) and the PP(Peoples Party)
The PP is now in power and the President returned today from a trip to the US. The DPP was going to have a rally on the roads from Lilongwe heading north about 160 km(100 miles). But, they were asked to cancell because the Pres is coming into the airport and there would be congestion. A little lame I think but the DPP kindly rescheduled for tomoro.
Tomorow, we will head south to visit another grain warehouse that ACE, the host for which I am volunteering, operates. This has the most potential so far as it is near a couple of rail lines(or so it seems) and should offer attractive services to the farmers.
We will stay overnight one night in the town of Zomba, the former capital. On Wednesday, we will visit something called the Millenium Village---not sure if this came out of the Washington DC idea mill or if it is Malawian. This may be our best chance to see wildlife.
I hate to sound like a broken record but I think these folks need to expand their soy at the partial expense of corn.(sound familiar). But here the reasons are more compelling--price, expanding local market for feed manufacturing, export controls on corn, and the ability to turn soy into protein in the human diet at the community level, and the need to move away from a monoculture of maize.
Banking and credit also are key as well as secondary roads. My major thinking problem this week is how to evaluate the value of additional space to "investors". Right now, through the ACE system, the bulk of the returns go to the farmer, and the space costs enure to ACE. However, ACE is trying to "wean" the locals from ACE operating. That means the locals get space for no investment, but must charge themselves enough for service fees to pay the bills. Always difficult for "groups", "associations" , and coops to do.
Linda is really helpful. I am happy she agreed to come along.
Talk tomorow.
Sunday, March 31, 2013
Easter Sunday night in Malawai.
Attended services today at an interdenominational service. Nicely done, pleasant day. As we approached the church, we tried to get a pic of Linda with baobab tree. A man offered to take us together so we obliged.
Turned out the man was a poultry feed consultant from South Africa spending several months in Malawai with a poultry feed company in Lilongwe. He then introduced me to the plant mgr of the feed mill.
turns out they are commisioning a new hexane extraction soybean plant this coming week. Will try to get an appointment as this could aid the project a bit.
Beautiful day here.
thats all for now.
Jim Traub
Attended services today at an interdenominational service. Nicely done, pleasant day. As we approached the church, we tried to get a pic of Linda with baobab tree. A man offered to take us together so we obliged.
Turned out the man was a poultry feed consultant from South Africa spending several months in Malawai with a poultry feed company in Lilongwe. He then introduced me to the plant mgr of the feed mill.
turns out they are commisioning a new hexane extraction soybean plant this coming week. Will try to get an appointment as this could aid the project a bit.
Beautiful day here.
thats all for now.
Jim Traub
Saturday, March 30, 2013
Saturday March 30 part 2.
A couple of interesting political notes. We had to stop the car today to wait on a group of political demonstrators marching down the road supporting the party of President Joyce B. They wear orange skirts and shirts. The opposition wears blue---Sort of an Illini nation.
President B took office about a year ago after her predecessor died. Vince, our driver, said that she is manipulating maize prices through some of her actions.
Who knows.
MORE non political
We are staying at a B and B in Lilongwe. Have met several people here who are involved in Agriculture. A couple of French gents who are doing crop counting--they know Dr Harold Reetz.
Met a couple of guys yesterday studying different kinds of edible beans. One from Washington State and one from Puerto Rico.
Met a Doctoral candidate in agronomy from Penn STate who is working in Mozambique for a couple of months.
Also a retired Schweppes marketing executive who was helping brand soy milk and peanut butter.
Also a retired banker who is doing business analysis for Cell phone dlvy systems of agriculture prices.
Both of these last two have made over 20 trips of this volunteer type over the last few years. Mr Scweppes makes 2-3 a year now. Banker will have 3 done by the end of June this year.
Easter tomoro. We are going hunting for a church.
JIM
A couple of interesting political notes. We had to stop the car today to wait on a group of political demonstrators marching down the road supporting the party of President Joyce B. They wear orange skirts and shirts. The opposition wears blue---Sort of an Illini nation.
President B took office about a year ago after her predecessor died. Vince, our driver, said that she is manipulating maize prices through some of her actions.
Who knows.
MORE non political
We are staying at a B and B in Lilongwe. Have met several people here who are involved in Agriculture. A couple of French gents who are doing crop counting--they know Dr Harold Reetz.
Met a couple of guys yesterday studying different kinds of edible beans. One from Washington State and one from Puerto Rico.
Met a Doctoral candidate in agronomy from Penn STate who is working in Mozambique for a couple of months.
Also a retired Schweppes marketing executive who was helping brand soy milk and peanut butter.
Also a retired banker who is doing business analysis for Cell phone dlvy systems of agriculture prices.
Both of these last two have made over 20 trips of this volunteer type over the last few years. Mr Scweppes makes 2-3 a year now. Banker will have 3 done by the end of June this year.
Easter tomoro. We are going hunting for a church.
JIM
Jim Traub's Malawai Trip-Easter Saturday Cultural Tour
Road trip on Saturday to Lake Malawai.--3rd largest lake in Africa-dont know the first two. Saw lots of goat herds and Brahma cattle(big hump behind head)--enjoyed it. These are used for meat and for draught purposes.
Great sceneary--Just going to do some stream of observation and thought today. Prominent businesses are Battery charging services(areas not on grid) and Cuomo Microfinance. 30% plus interest loans.
Maize Harvest starting-done by hand-sold along the road. Lots of community mkt activity. We visited a Malawian version of Pottery Barn. Nice stuff. Lots of wood carving activity also.
FACTOID OF THE DAY-Learned why drums are really used in Africa-----why?? to cover up the screams of 7 year old boys undergoing circumcism(sp). Learned this at the Mua cultural center and I think it is understandable.
Maize along the roadsides just like the midwest.
Great sceneary--Just going to do some stream of observation and thought today. Prominent businesses are Battery charging services(areas not on grid) and Cuomo Microfinance. 30% plus interest loans.
Maize Harvest starting-done by hand-sold along the road. Lots of community mkt activity. We visited a Malawian version of Pottery Barn. Nice stuff. Lots of wood carving activity also.
FACTOID OF THE DAY-Learned why drums are really used in Africa-----why?? to cover up the screams of 7 year old boys undergoing circumcism(sp). Learned this at the Mua cultural center and I think it is understandable.
Maize along the roadsides just like the midwest.
Friday, March 29, 2013
Jim Traub's Malawai Trip-Up country to visit warehouses
Weds 25 Mar 13 and Thurs 26 Mar 13
Weds we(Frank Kadzakkumanja-hereinafter, Frank K of ACE), Linda and I headed "up country" to the Kafula warehouse operated by ACE(Africa Commodity Exchange in Malawai). The route took us north of Lilongwe on the M1. The maize, planted in Dec-Jan, the start of the rainy season, was good and green. Within the next 30 days it will probably turn brown quickly as rain quits, and the crop is depleted of nutrients. The route took us past John Deer dealerships, DeKalb and Pioneer signs, and African seed company signs. Also banks(signs that say "Money Comes In, Money Goes Out"), agro dealers, car beaters etc. The road is a good surfaced road, like state roads we are used to in the midwest. The country is beautiful and green. Some inselburgs(mountains, hills really), great scenery. Very interesting feature to me was the lines of people walking along both sides of the roads. Like wartime refugee pictures you see except these people probably go back the other way the next day. Walking, biking, no need for health clubs here. The country has about 15 million people, some say 20, but who's counting? There are about 1 million in Lilongwe, the capital where we are staying, about 1 million in Blantyre, the business center further south, several mid sized towns???? 2-300,000 people, but 80-90% of the people are rural and do subsitence farming.
We drove about 40 klicks on M1 and then turned off on a dirt road. About another 10 klicks and we came to the warehouse. Which points up a problem. The warehouse is effectively non accesable when it rains. And rough when it is dry. It's advantage is that it is close to production. Interestingly enough, the further we got from the M1 the dryer the maize looked. This is becauese the more remote areas put on less inputs. This warehouse and the area is "off the grid". No electric power. For reference, Kafula is in the Dowa area, where the author of THE BOY WHO HARNESSED THE WIND , came from. He is now at Dartmouth--guess he should have stayed home and harnessed some more wind.
We had about 15 farmers, including the town chief(head man)listen to a presentation on the merits of a warehouse receipt and cash commodity exchange that has been in operation about a year now. These folks must spend a lot of time on meetings, as everyday had someone signing into the guest book. Someone from the GATES FOUNDATION was there the day before, so I am sure we were a "let down". Really, it was a good meeting. This group will probably be able to utilize more warehouse space in the future.
The warehouse receipt system allows farmers to borrow money for operations and to sell at a more favorable time. That is the hook.
The facility is actually on ground and shares buildings with a World Vision site for the community. The facility is for bagged product so it is not a silo structure. the farms are 3-4 Hectares(7-10 acres) growing maize and maybe soys or ground nuts. Maize is both a food and cash crop for these folks.
There were some complaints to be addressed by Frank, and some ideas for progress, but these peopld did fill up their warehouse and were happy with the ACE concept.
Amazingly, there were lines of people walking out here also. Linda took some great pics which we will try to get on.
You have to realize that these people do have a great sense of community and there is a social pecking order.
More later
Jim
Weds we(Frank Kadzakkumanja-hereinafter, Frank K of ACE), Linda and I headed "up country" to the Kafula warehouse operated by ACE(Africa Commodity Exchange in Malawai). The route took us north of Lilongwe on the M1. The maize, planted in Dec-Jan, the start of the rainy season, was good and green. Within the next 30 days it will probably turn brown quickly as rain quits, and the crop is depleted of nutrients. The route took us past John Deer dealerships, DeKalb and Pioneer signs, and African seed company signs. Also banks(signs that say "Money Comes In, Money Goes Out"), agro dealers, car beaters etc. The road is a good surfaced road, like state roads we are used to in the midwest. The country is beautiful and green. Some inselburgs(mountains, hills really), great scenery. Very interesting feature to me was the lines of people walking along both sides of the roads. Like wartime refugee pictures you see except these people probably go back the other way the next day. Walking, biking, no need for health clubs here. The country has about 15 million people, some say 20, but who's counting? There are about 1 million in Lilongwe, the capital where we are staying, about 1 million in Blantyre, the business center further south, several mid sized towns???? 2-300,000 people, but 80-90% of the people are rural and do subsitence farming.
We drove about 40 klicks on M1 and then turned off on a dirt road. About another 10 klicks and we came to the warehouse. Which points up a problem. The warehouse is effectively non accesable when it rains. And rough when it is dry. It's advantage is that it is close to production. Interestingly enough, the further we got from the M1 the dryer the maize looked. This is becauese the more remote areas put on less inputs. This warehouse and the area is "off the grid". No electric power. For reference, Kafula is in the Dowa area, where the author of THE BOY WHO HARNESSED THE WIND , came from. He is now at Dartmouth--guess he should have stayed home and harnessed some more wind.
We had about 15 farmers, including the town chief(head man)listen to a presentation on the merits of a warehouse receipt and cash commodity exchange that has been in operation about a year now. These folks must spend a lot of time on meetings, as everyday had someone signing into the guest book. Someone from the GATES FOUNDATION was there the day before, so I am sure we were a "let down". Really, it was a good meeting. This group will probably be able to utilize more warehouse space in the future.
The warehouse receipt system allows farmers to borrow money for operations and to sell at a more favorable time. That is the hook.
The facility is actually on ground and shares buildings with a World Vision site for the community. The facility is for bagged product so it is not a silo structure. the farms are 3-4 Hectares(7-10 acres) growing maize and maybe soys or ground nuts. Maize is both a food and cash crop for these folks.
There were some complaints to be addressed by Frank, and some ideas for progress, but these peopld did fill up their warehouse and were happy with the ACE concept.
Amazingly, there were lines of people walking out here also. Linda took some great pics which we will try to get on.
You have to realize that these people do have a great sense of community and there is a social pecking order.
More later
Jim
Tuesday, March 26, 2013
Jim Traub's Malawai Trip
26 Mar 2013
348pm Illinois time 1048pm in Malawai
Current Politics and Economy in Malawai. Joyce Banda is President. She was VP unti about a year ago when the President died. However, she was of group opposing many of Presidents policies and dead Presidents followers tried to keep her from succesion.
She, however, prevailed. I believe she is in Washington DC this week. One of her early actions was to allow the Malawain currency to float with the market. When she took office, the Malawain Kwacha was around 150 per US$. When she took action, the Kwacha(MK) went to 267 immediately and today is just short of 400 per dollar. She is taking grief over this. However, it was thought to have been long overdue. Joyce Banda has the same last name but is not related to a president dicator named Banda who ruled autocratically for approx 35 years.
Has been good to be in the warm in Malawai. Have spent two days in ACE offices going over reports of activity, procedures, challenges with the Warehouse receipt system. Wednesday and Thurs will visit two warehouses. Will be glad to get out to the country.
Agriculture has no forward pricing system. White maize is a staple and excess over food needs is sold for cash. So there is an imputed value. Soy and other crops however, are grown for cash and there is a reluctance on part of producer to producer without market, to borrow money for inputs, and banks are reluctant to loan without knowing the value of what they loan. So, a forward pricing system of some fashion is needed for any appreciable growth.
348pm Illinois time 1048pm in Malawai
Current Politics and Economy in Malawai. Joyce Banda is President. She was VP unti about a year ago when the President died. However, she was of group opposing many of Presidents policies and dead Presidents followers tried to keep her from succesion.
She, however, prevailed. I believe she is in Washington DC this week. One of her early actions was to allow the Malawain currency to float with the market. When she took office, the Malawain Kwacha was around 150 per US$. When she took action, the Kwacha(MK) went to 267 immediately and today is just short of 400 per dollar. She is taking grief over this. However, it was thought to have been long overdue. Joyce Banda has the same last name but is not related to a president dicator named Banda who ruled autocratically for approx 35 years.
Has been good to be in the warm in Malawai. Have spent two days in ACE offices going over reports of activity, procedures, challenges with the Warehouse receipt system. Wednesday and Thurs will visit two warehouses. Will be glad to get out to the country.
Agriculture has no forward pricing system. White maize is a staple and excess over food needs is sold for cash. So there is an imputed value. Soy and other crops however, are grown for cash and there is a reluctance on part of producer to producer without market, to borrow money for inputs, and banks are reluctant to loan without knowing the value of what they loan. So, a forward pricing system of some fashion is needed for any appreciable growth.
Monday, March 25, 2013
Monday Mar 25,2013
09:30 pm in Malawai 2:30 pm in ILLinois
Met today with permanent staff of the 2 volunteer organizations, CNFA, and ACD VOCA, as well as the host client,ACE(African Commodity Exchange).
ACE is trying bring an organized bid offer exchange for cash grains into a more robust organization. It is spending efforts on 3 grain warehouses. Two of these are fairly close to Lilongwe, the capitol of Malawai, and one is about 3 hours south. The 3 wareshouses have gone through some training of staff, which I will learn more about tomoro. On Wednesday and Thursday I will be visiting two of the warehouses.
Goal is to help assure depositors(dealers and producers) that product that they deliver will be protected physically and to assure bankers and buyers that the product they buy will meet a standardized specs. Will get into more tomoro. Looking forward to learning farmer and association attitudes regarding the effectiveness of the exchange. Will also do projection on the feasability of more space for these warehouses. One of the Gates organizations is considering some financing of addl space.
Lilongwe is a city of just under a million people. As noted, it is the capital and as such has many government employees and NGOs at work. As a side lite, Madonna statyed at a place about 5 miles outside of town when she came here to do her adoption.
We are at a bed and breakfast type of place---relaxed and roomy--mosquito nets and all.
09:30 pm in Malawai 2:30 pm in ILLinois
Met today with permanent staff of the 2 volunteer organizations, CNFA, and ACD VOCA, as well as the host client,ACE(African Commodity Exchange).
ACE is trying bring an organized bid offer exchange for cash grains into a more robust organization. It is spending efforts on 3 grain warehouses. Two of these are fairly close to Lilongwe, the capitol of Malawai, and one is about 3 hours south. The 3 wareshouses have gone through some training of staff, which I will learn more about tomoro. On Wednesday and Thursday I will be visiting two of the warehouses.
Goal is to help assure depositors(dealers and producers) that product that they deliver will be protected physically and to assure bankers and buyers that the product they buy will meet a standardized specs. Will get into more tomoro. Looking forward to learning farmer and association attitudes regarding the effectiveness of the exchange. Will also do projection on the feasability of more space for these warehouses. One of the Gates organizations is considering some financing of addl space.
Lilongwe is a city of just under a million people. As noted, it is the capital and as such has many government employees and NGOs at work. As a side lite, Madonna statyed at a place about 5 miles outside of town when she came here to do her adoption.
We are at a bed and breakfast type of place---relaxed and roomy--mosquito nets and all.
Thursday, March 21, 2013
I am getting ready to leave on 22 March for Malawai on a CNFA(Citizens Network for Foreign Affairs) to Malawai in what I call Southeast AFrica. Landlocked and with a population of around 15 million and growing. A relatively poor country with around 70 % agriculture. Some years theyimport food and some years they export food(tea is big). The subsitance economy farming focuses on white maize, some soy, cassava, and other direct consumption produce.
I am there as a grain warehouse storage specialist. Will be visiting 3 smaller warehouses, the African Commodity Exchangewww.aceafrica.org, banks. The ACEAFRICA website is very intersting. This is a cash exchange, serving as a clearning house and price discovery vehicle. My goal is to help the warehouses in management of inventory in such a manner that the whr they issue to producers are representative of a common quality specificaiton, so the banks will feel comfortable in providing loans with the whrs as collateral.
In addition we will evaluate the feasibility of adding storage to the warehouses by looking at revenues that could be generated.
I will try to put something on regularly, hopefully better than I did in Mozambique. Linda is with me. To access go to http://jamestraub.blogspot.com
This CNFA program is called Farmer to Farmer(FTF) and is named after one of the pilots who were lost in the WTC on 911. John Ostowski(sp)was a farmer advocate for farmland preservation around the Boston area.
CNFA gets a lot of funding from private sources but the FTF program is all from the farm bill.
Thats it for now.
I am there as a grain warehouse storage specialist. Will be visiting 3 smaller warehouses, the African Commodity Exchangewww.aceafrica.org, banks. The ACEAFRICA website is very intersting. This is a cash exchange, serving as a clearning house and price discovery vehicle. My goal is to help the warehouses in management of inventory in such a manner that the whr they issue to producers are representative of a common quality specificaiton, so the banks will feel comfortable in providing loans with the whrs as collateral.
In addition we will evaluate the feasibility of adding storage to the warehouses by looking at revenues that could be generated.
I will try to put something on regularly, hopefully better than I did in Mozambique. Linda is with me. To access go to http://jamestraub.blogspot.com
This CNFA program is called Farmer to Farmer(FTF) and is named after one of the pilots who were lost in the WTC on 911. John Ostowski(sp)was a farmer advocate for farmland preservation around the Boston area.
CNFA gets a lot of funding from private sources but the FTF program is all from the farm bill.
Thats it for now.
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