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
Sunday, March 31, 2013
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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