Maize Milestone

Nov 28, 2001

A HUGE 40,000 tonne maize order to Zambia is due to start delivery today when the first 880 tonnes are shipped out by Trans Africa Railways.

A HUGE 40,000 tonne maize order to Zambia is due to start delivery today when the first 880 tonnes are shipped out by Trans Africa Railways. This is the largest ever single export order for grain and a milestone for Uganda. The value of the maize is just $9 million because the global price of maize is so low. Nevertheless this export order represents a wonderful opportunity for the Ugandan farmer. Fourteen local exporters recently formed themselves into a consortium called Uganda Grain Traders. Their intention was to create a Ugandan company capable of fulfilling large-scale export orders such as the Zambian deal. Previously no single Ugandan company was large enough to handle such orders. Government has given UGT backing by allowing them to rent the old CMB go-downs in Bugolobi to store maize and by assisting with export finance through the Bank of Uganda. But essentially this is a private sector initiative to enable Uganda to compete in the global marketplace. Maize prices are at an all-time low for the Ugandan farmer because of the glut on the local market. This year’s surplus is said to be over 100,000 tonnes. The UGT Zambian order will take up almost half of that and hopefully orders to Malawi and other countries will follow. The Ugandan farmer may not get the highest prices for his maize this year but at least it will be bought. More importantly the UGT has laid the foundation for a long-term grain export business that will benefit both the economy and the farmer. This is a great achievement. All the 14 companies involved, along with the government, deserve real praise for their part in this initiative. Ends

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