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Structured Grain Trading System in Africa

Published on April 20, 2015

EAGC_GRAIN_COUNCIL.JPGStructured Grain Trading System in Africa. As more of Africa’s smallholder famers become active players in value chains, one needs to develop the institutions that enable farmers, traders, warehouse managers and processors to produce, trade and market products efficiently and cost-effectively.

Hence the need for this manual. It describes how structured trading systems work for grains such as maize, sorghum and millet, as well as commodities such as groundnuts and soybeans, Africa’s most important staples. Structured trading is a way of organising, regulating and financing trade in a commodity. The grain is graded according to a set of agreed standards, and it is stored safely in a trusted warehouse. These two things make it possible for the owner to use the grain as collateral for a loan before it is sold.