CURRENT PROJECTS
SOYA BEANS CONTRACT GROWING & MARKETING PROJECT
TAMA is also negotiating with CP FEEDS Ltd for a Soya Beans Contract Growing and Marketing project. Under this project, CP FEEDS Ltd is prepared to provide seed and is looking for about twenty five thousand metric tonnes. Other details about buying prices are expected to be clear after further discussions and will appear in the next edition.
FARM PRODUCE BUSINESS
TAMA is developing a business plan whereby it intends to venture into the procurement trading of a variety of farm produce so as to supplement its income. More on this later on...
DIVERSIFICATION PROGRAM
TAMA has submitted a proposal to CP Feeds. In this proposal, TAMA farmers are to grow on contract seventy five thousand metric tonnes of Soya Beans and five thousand metric tonnes of Sunflower. Over ten thousand individual farmers have registered under the scheme and CP Feeds is prepared to buy the crops at market price. However, in the event that there is an oversupply of Soya Beans and Sunflower, the buying price shall not go below the government recommended prices.
AGRICULTURE FINANCING 2010-2011 SEASON
As published in previous editions, TAMA signed two MOUs under which FDH Bank provided credit to TAMA members. The first MOU is between TAMA and FDH Bank while as the second MOU is between TAMA, FDH and Limbe Leaf Tobacco Company. Over K23M was disbursed under the first credit scheme while as under the second credit scheme, a total of MK30 million had been lent to the farmers. Currently loan recovery is in progress. At the moment, 54% had been recovered under TAMA / FDH Bank credit scheme and 81% under TAMA / FDH Bank / Limbe Leaf Tobacco Company. Challenges facing these schemes have been low market prices, high tobacco rejection rates at the Auction Floors, difficulties in transporting tobacco to the auction floors, deliberate default on the part of the farmers by selling tobacco on other registration numbers other than the ones submitted to the bank and ineffectiveness of stop orders which has seen tobacco proceeds not being withheld.
