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Roles of NCPB
Commercial Roles
The commercial roles of the Board constitute commercial grain trading, which is its core business. In this respect, the Board deals in various products and offers related services to its clients in competition with other players in the industry. Besides trading in key grain products such as maize, wheat, beans, rice, millet and sorghums, the Board offers the following additional services: Leasing out surplus facilities, grain drying, weighing, fumigation, grain cleaning, grading, warehousing, bagging at silos, clearing and forwarding, and hiring of tarpaulins and dunnages.

Since 2002, the Board has diversified into the marketing of various agricultural inputs such as fertilizers and certified seeds as part of the strategy of enhancing efficient cereal production through the use of affordable quality inputs. This move was undertaken in response to farmers’ requirements and the need for the Board to take advantage of its extensive network to move these essential inputs closer to the farmer.
 
Strategic Grain Reserve (SGR)
The Board procures, stores and maintains a Strategic Grain Reserve (SGR) stock of up to four million bags on behalf of the Government to be used for food security. The Government has recently instructed NCPB to beef up the SGR stock to eight million bags. NCPB has the capability to turn over the SGR stock through releases to commercial outlets and/or to social functions upon instructions from the government. The management of the SGR stocks also entails periodic replacement of stocks to facilitate freshening of the grain to ensure that the SGR stock is of high quality at all times.

Famine Relief (FR)
The Board facilitates the procurement, storage, maintenance and distribution of famine relief food to deficit areas, under the National Famine Relief Program, on behalf of the Government. The Board has performed excellently on this role. 
 
Events Calendar
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Week 39 26 27 28 29 30
Recent News

All newsletters to be uploaded .....

 

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 1st 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

 

Read more...
 
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