Addis Abeba — Ghana could consider Ethiopian experience of commodity exchange if it wants to solve the problem of post harvest losses of agricultural produce, a Ghanaian newspaper said over the weekend.
The Ghana Business News said Ghana's Private Enterprises Foundation (PEF) was proposing for the establishment of a plan-commodity market-hoped to solve the problem of post harvest losses of agricultural produce that has perennially engulfed the country's agricultural sector.
"The plan dubbed "the agricultural commodity exchange" is to bring producers, buyers and consumers together to trade on a common platform by providing ready market for farm gate products from the agricultural centers," it said in its website published on Saturday.
The paper added that when adopted, Ghana would be the third country in Africa after Kenya and Ethiopia to embark on an aggressive overhaul of its agricultural sector.
Highlighting the Ethiopian experience, the paper pinpointed that "Ethiopia, a country of chronic food shortages and malnutrition, has launched an agriculture commodity exchange in a daring experiment to raise food production by creating a safe and transparent agriculture market."The idea to create a commodity exchange was hatched by a former senior economist at the World Bank, Eleni GabreMadhin, now the Chief of Executive Officer of ECX.
The paper said the Ethiopian government began to consider a commodity exchange after the food crisis in 2002/2003; a bumper crop and price collapse in 2002 were followed by drought that threatened 14 million people with starvation the next year.
"Although Ethiopia is the biggest grain producer in Africa, its traditional markets are small because of narrow networks of trust among buyers and sellers," the paper wrote.
"Most farmers trade within 12 kilometers of their farms and only with people they know," Gabre-Madhin said. She said more than two-thirds of farmers have faced contract defaults, and only 4 per cent have received legal enforcement of contracts.In the traditional trading system, grain changes hands four to five times between producers and consumers. With each change, the grain is put into new sacks. This system enables buyers to know what they are getting in terms of quality and quantity, as the contents are inspected and weighed, but it is vulnerable to price shocks.The Ethiopia Commodity Exchange began operating in April, creating transparency and predictability in the national market and connecting Ethiopian commodities to international markets.The exchange provides warehousing, a reliable payment system, real-time market information, and quality control. Producers sell directly to the exchange, which assures payment within 24 hours.
The Ethiopian exchange is linked to commodity markets around the world, making it possible for a trader in India, for instance, to buy futures of the prized Ethiopian lentils, the paper added.
As for Ethiopia's major export, coffee, 461 coffee suppliers have obtained one year memberships on the new commodity exchange.
The report, however indicated that the exchange is not without its critics. "Some say it will not work as a market institution because government officials occupy six of the 11 seats of the board.
It said the CEO believes that the government's involvement with the exchange will help it learn quickly how markets function.
Another concern has been that the exchange will further increase food prices, which have doubled in the past year. If Ethiopia's food-deficient neighbours can buy Ethiopia's commodities, then there will be less food for the country's already malnourished people, critics say. Gabre-Madhin counters that the exchange is not the panacea for all of Ethiopia's food problems, but it is an important element for a functioning agriculture based economy.
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Beware of the Global Organizations that want to control your everyday lives. In the 1970s Americas farmers made the mistake of taking welfare (subsidies, loans, etc..) from their bankers. Now only a few farmers are left. Americans rarely grow their own food. Africans can learn from the mistakes of others. Develop local coops between growers, sellers and buyers. Never give up your sovereignty to anyone. Jesus Christ said Take precautions against being deceived or trick. (papaphrased from Matthew 24). WHO WE ARE ON THE WORLDS STAGE. 1) Each African country is like a separate neighborhood in the world community. And each African country is responsible for running their own neighborhood. 2) Each State within those African neighborhoods (countries) are like houses in their own African neighborhood (country). And each of these States within their unique African neighborhood is responsible for their house in their African neighborhood. 3) Each city within their unique African states House is like a family living in their area of their African state House. 4) Each individual person living in their city is a cell of the Body of Adam ; with a free will and a unique purpose that only that person can fulfill. The contest isnt won by the fast or strong, but those who never quit will win. Those who take a chance to win, when they have the opportunity to win, will win !!! The contest isnt won by the fast or strong, but those who never quit will win. Those who take a chance to win, when they have the opportunity to win, will win !!! CONCLUSION a) Each of us are responsible for our own lives. b) Yet each of us are cells in the Body of Adam . Each of us cells are going through a stage of existence where we will either develop into fruitful cells that reproduce . Or we will become diseased cells that will feed on and corrupt the healthy part of the Body. That is why its important for us to also be team players ; for the Bodys sake. * When we pray we say OUR FATHER . Not my Father GIVE US..not give me. c) Governments are like organs & systems of the body. Managing the teams of the Body. God the Creator of All is the Architect and Designer of All that is . He alone knows how to run the Government. Isaiah 9:6 The GOVERNMENT shall be on HIS (Jesus Christ) shoulders , not man . d) Man has tried and tried to play God. The most famous instance was when Nimrod and all the inhabitants of the earth tried to build a tower (The Tower of Babylon) to Heaven see Genesis 10. Africa is no stranger to being used to bring the world together as one. Remember We Are The World ? e) Governments are under Gods direction. We who are Gods children should follow his guidance. Any governments that exist today and / or movements should be under Gods guidance. f) People maintain your freedom and dont give them an inch , ever!!!! Dont forget Achebes book The More Things Change . First the Pastors Came Then The Commissioners Came Then The Governor & The Troops Came And The People Paid These Outsiders Taxes On Their Own Lands Next Many People Were Forced Off Their Lands ; While Persons Like Cecil Rhodes, (AND) Businesses like DeBeers got filthy rich from robbing us of our wealth. And all of these African Tragedies didnt even mention the Slave Trade that has weakened Africa to this day.
g) Achebes book is at work again . The pastors of agricultural commodities are disguised as things like Private Enterprises. Many individual African countries may have Private Enterprises NOW. WHAT ARE THEIR FUTURE PLANS ? In Achebes book after the pastors , came the commissioners. The agricultural commodities commissioners could be the New Laws & Regulations designed to condition the people depend on others instead of their own God-given talent . The ultimate goal of evil is to trick righteous people into being evil. This is done by either fear, lust, or pride temptations. Evil attempts to get righteous people to get rid of their conscious. Some have sold their souls. Please pray for our leaders and each other.