The Grain Marketing Board has launched an Innovative Marketing Model designed to strengthen grain value chains, reduce costs and improve access to quality grain for processors across Zimbabwe.
GMB said it has “unveiled a ground breaking Innovative Marketing Model designed to strengthen grain value chains, reduce costs, and ensure reliable access to quality grain for processors across Zimbabwe,” operating “under which 89 depots and 1,804 grain buying points actively participate in third-party grain purchases and storage for farmers, millers, stock feed manufacturers and other grain processors.”
Under the Third-Party Grain Purchase Model, 89 depots and 1,804 grain buying points will participate in third-party grain purchases and storage for millers, stockfeed manufacturers and other processors. GMB said it “established an innovative grain trade model to support value chains,” adding that after registration, “participating client entities deposit funds into the GMB account at the agreed price per tonne, and GMB’s stocks serve as collateral for the millers.”
Processors can then collect prepaid grain from the nearest depot, reducing logistics costs and improving supply reliability.
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“Leveraging on the GMB’s nationwide footprint, the processors can collect the prepaid grain at any nearest GMB depot to their own processing centres,” the Board said, noting that “a nominal fee of 10% is charged for the services.”
The model is positioned to support Rural Development 8.0, with women, youths, Village Business Units and Small Business Units at the centre of aggregation.
On storage, GMB said it “leverages on the current silo storage of 862,000 MT and an additional 672,000 MT under construction, bringing the total to 1,534,000 MT of silo storage upon completion.” Storage fees have been reduced “to $2.90 per mt per month to encourage grain processors participation.”
Farmers can access storage facilities to minimise post-harvest losses, while contractors may deliver grain to nearby depots to reduce side marketing and transport costs. GMB said “grain stored under third party is ring fenced and enforceable under law through contract.”
GMB has also expanded transborder storage facilities “to facilitate trading by Regional and International Grain Traders,” with storage arrangements placed “under Collateral Management Agreement,” positioning Zimbabwe as a potential grain trading hub.
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