National Cereals and Produce Board of Kenya

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Tenders

Tender No	Description	Closing date
TENDER NO.NCPB/JB/01/2009-2010 for 300,000 Pieces x 90 Kgs New B.Twill Jute Bags	Supply and Delivery of 300,000 pieces of new B.Twill gunny bags; which must already be in the country. The successful bidder(s) must supply the gunny bags within two (2) weeks from the date of signing the contract	Thursday 3^rd June 2010 at 12.00 (noon).
TENDER NO.NCPB/JB/02/2009-2010 for Upto 1,000,000 Pieces X 90 Kgs New B. Twill Jute Gunny Bags	Supply and delivery of upto 1.0 million pieces of new B.Twill jute gunny Bags. The successful bidder(s) must supply the gunny bags within forty five (45) days from the date of issuance of Letter(s) of Credit (LC). The NCPB shall establish Irrevocable Documentary Credit(s) in favour of the successful bidder(s). If confirmed Letter(s)of Credit is/are required,the Bank confirmation charges of the LC(s) shall be for the account of the successful bidder (s)	Thursday 3^rd June 2010 at 12.00 (noon).

The two tender documents containing detailed Terms and Conditions of the Tender can be obtained from the office of the Board’s Procurement Manager upon payment of non-refundable fees of Kshs. 5,000.00 (five thousand Kenya shillings only) per set, paid in cash or bankers cheque drawn in favour of National Cereals and Produce Board. Payment must be made at NCPB Headquarters, Cash Office located at Nafaka House, ground floor at the reception area; between 9.00 am and 3.00 pm. Interested firms may peruse the tender document(s) free of charge in the Procurement Manager’s Office before purchasing the set.

Events Calendar

September 2010

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Recent News

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Board launches Warehouse Receipt system

National Cereals and produce Board will be holding a Warehouse receipting system mini launch in Narok in preparation for a major launch during harvest season in North Rift.

The long anticipated historic event will be held at the Board’s Narok silos grounds on 1^st September 2010.

The event is expected to be attended by among others representatives from the Office of the President/Prime Minister, NCPB Board of Directors and other selected officers, representatives from the Ministry of Agriculture, State corporations ,treasury as well as farmers, millers, traders and other stakeholders.

Warehouse Receipting Process

1. After the producer (depositor) has harvested his crop, s/he transports it to a certified warehouse. The grain is checked to ensure that it meets the stipulated quality standards.

2. When the grain passes the quality tests and the quantity is within the minimum set level (for example 10MT), it will be received by the Warehouse Operator (NCPB), who will then issue a Warehouse Receipt to the farmer(depositor).

3. The depositor may present the Warehouse Receipt to a bank, which may offer him/her short term financing. The financing will be a proportion (say 80%) of the market value of the grain deposited in the warehouse. This financing enables the farmer to meet his basic financial obligations such as domestic needs or preparing for the next planting season, as he waits to sell his grains in the market when the price is favourable. The Warehouse Receipt remains in the custody of the bank for it forms the security for the financing.

4. When the market price improves, the farmer sells his grain and the buyer is instructed to pay direct to the bank. The bank then recovers its money from the proceeds and the Warehouse Operator also recovers any storage or handling charges. The farmer is then given the balance.

Benefits/Advantages

The advantages of WRS to farmers, millers, traders and other players include:

i. Eliminating the need to use title deeds as Security for financing grain owners.

ii. Enabling depositors get access to cash faster against the warehouse receipt.

iii. Enabling depositors to sell their grain when market conditions and prices are most favorable.

iv. Eliminating the issue of delayed payments to farmers.

v. Enabling processors (millers) to focus on their milling functions while they procure grain through WRS.

vi. Improving quality and grading.

vii. Reducing post harvest losses through professional storage.

viii. Improving food security.

ix. Enabling development and trading through a Commodity Exchange.

MAJOR PLAYERS

The major players who are expected to participate in Warehouse Receipting System shall include: producers, Government, millers, traders, collateral managers/warehouse operators (NCPB) and transporters