Grain exchanges (Mali)

Link up production areas with the areas where grain is consumed in order to encourage the flow of cereals from one area to the other

The objective of grain exchanges is to link up production areas with the areas where grain is consumed in order to encourage the flow of cereals from one area to the other. In this way, the
exchanges contribute to stabilising market prices and informing cereal producers about how these markets function.
The support structure (AMASSA – Afrique Verte Mali, a body devolved from the French NGO
Afrique Verte) invites producers and buyers to participate in a two to three-day grain exchange. This process of connecting up parties allows producers to assess grain production levels for the current season and buyers to get an idea of the grain stocks available. The two parties then negotiate grain quantities and prices. A good number of contracts are agreed during the exchange, and the agreement of further contracts after the exchange is likely. The exchange also serves to foster exchange among other actors involved in the sale and production of grain.
Organising exchanges involves several stages: First, supplies are identified in areas with high levels of dry cereal production (millet, sorghum and maize in the Sikasso, Koutiala, Ségou, Senon de Koro/Bankass plains) and rice production (in the Niono rice growing region in the Office du Niger). At the same time, the needs of consumption areas (supply cooperatives in Kayes Region and grain banks in the areas of Gao, Timbuktu and Kidal) and major consumption centres with processing plants, merchants and consumer cooperatives (such as Bamako) are identified. The supply cooperatives from rice-deficit areas (the Kayes area, for example) are identified and their needs recorded (bulk purchasing requests). Producers’ associations in the Niono region in the Office du Niger area are identified and their rice surpluses ascertained. Supplies for sale are then quantified and stockholders are encouraged to put together a bulk sales offer. Finally, a meet-and-greet workshop is held to foster exchange and discussion on grain supply and demand.
Role of stakeholders: AMASSA – Afrique Verte Mali catalogues and groups offers (purchase or sale) and cereal requirements during the pre-exchanges, and promotes the exchange among relevant cereal operators (advertising). AMASSA also provides financial and technical support in organising the exchange (venue hire, refreshments). Supply cooperatives and private operators support the process of identifying cereal requirements prior to the exchange and then participate in the exchange itself. Their role is to buy stock. Producers’ associations communicate how much of their stock is available and trade this in bulk at the exchange. The legal advisor helps draw up the sales contracts and explains the content of sales contracts to operators. Others, such as technical partners in the sector (Planning and Statistical Unit of the Ministry of Agriculture, DNSI, OMA, OPAM, Customs Service, EWS, WFP, National Agency for Food Safety and Security, etc.), provide additional specific information.
The transactions carried out in the exchanges are fairly advantageous both for the sellers (producers and their organisations) and the buyers (merchants, supply cooperatives, consumer cooperatives, processing outfits). These advantages can be measured in terms of price and quality. The grain exchanges are prized by many actors and an increasingly large number of structures have built them into their support mechanisms. The farming profession is interested in this approach. For this reason, the exchanges are increasingly being jointly delivered by APCAM and often by the Association of Professional Farming Organisations (AOPP) and projects and/or NGOs. The fact that the farming profession is appropriating the exchange concept bodes well for its sustainability.