(Extract from pamphlet prepared by the Ministry of Agriculture, Food and Fisheries, Food Security Division, Lusaka Zambia)
General
In accordance with the Food Reserve Act No. 12, Section 8, Sub-section 2 and as published in the Government Gazette, Notice No. 28 of 12th January 1996, the Food Security Division, acting on behalf of the Food Reserve Agency, hereby notifies the public that approximately 40,000 metric tonnes of white/yellow maize will be released for sale from the national Strategic Reserve between February and April, 1996. The release of the maize will be through the Agricultural Commodity Exchange. (ACE).
As earlier advertised, the releases are mainly made for purposes of stock recycling prior to the end of the current marketing season so as to enable the FRA to replenish stocks from domestically produced maize during the 1996/97 marketing season. Releases will be undertaken during the months of February through April at a rate of about 13,000 tonnes per month.
Basic Principles
As the quantities of maize sold are relatively small as compared to the monthly commercial consumption requirements, no disincentives for or disruptions of normal commercial market operations are anticipated. The sales modalities have been design to ensure that:
- prices reflect actual market prices- prices allow for a full recovery of the costs incurred by the FRA in buying, handling and storing the reserve stocks;
- access to reserve stocks is guaranteed for all market participants, notably the small-scale trading and milling sector; and
- sales and financial transactions are handled in a transparent and accountable manner.
Procedures
The following procedures will be used for the sale of the reserve stocks: w
- maize will be offered for sale through the ACE every week on a fixed day of the week, i.e. every Wednesday, and in fixed, i.e. standing, lot sizes. Lot sizes vary by location as presented in the table below.- all maize will be offered for sale at a strict reserve price.
- bids have to be made per lot by location as indicated in the table below. Bidders may bid for more than one lot at one or more locations.
- bids will be received on a Free-on-Truck basis, i.e. ex-warehouse/depot. Bids for the weekly sale on Wednesday will be received from Monday 08.00 a.m. by fax or telephone (written confirmation also required), or in writing, and bidding will close on Tuesday at 13.00 hrs.
- individual lots will be allocated to the highest bidders at or above the reserve price. Allocations will be made public by 14.30 hrs. on Wednesday at the premises of the ACE and successful bidders will be informed immediately.
- payment, on a strictly cash or bank certified cheque basis only, will be required prior to Friday close of business. Deferred payment on credit will not be allowed. Allocated bids for which no payment has been received will be cancelled. The ACE reserves the right to re-allocate such lots to the next
- upon confirmation that payment has been received, a "Maize Release Note" (MEN) will be issued to the buyer for presentation to the storage agent(s).
- the buyer may collect maize from the warehouse on presentation on the MRN. It will be the buyer's responsibility to ensure that the quantity and quality of the maize is in accordance with the stipulated conditions. No further liabilities on account of quality and/or quantity will be recognised by the FRA, ACE, or the storage agents, once the maize has left the store.
- any amount of the quota reserved for a specific day which remains unallocated will be carried over to the next offer day and added on to the specified lot sizes offered for sale on that day.
- any amount of stocks remaining unsold after the proposed sales period will be carried-over as reserve stocks during 1996/97.
Sales Calendar
Maize will be offered for sale over a 10 week period, i.e. starting from 19th February, 1996, through 26th April 1996, at the latest. Given the envisaged 14 week sales period, an average of some 3,850 metric tonnes will be offered for sale on a weekly basis comprising 3,150 mt of white and 700 mt of yellow maize, respectively. The following quantities will be offered on each of these days:
|
Location |
Quantity (metric tonnes) |
Type |
Average Total Offer per "Sales Day" (metric tonnes) |
Lot Sizes (metric tonnes) |
Total Lots per "Sales Day" |
Minimum Reserve Price (K/mt) | |
|
Chingola |
1,000 |
White |
100 |
2 x30; 4x10 |
6 |
340,000 | |
|
Choma |
4,000 |
White |
400 |
10x30; 10x10 |
20 |
340,000 | |
|
Choma |
2,000 |
Yellow |
200 |
5x30; 5x10 |
10 |
290,000 | |
|
Kalomo |
1,000 |
White |
100 |
2x30; 4x10 |
6 |
340,000 | |
|
Kalomo |
1,000 |
Yellow |
100 |
2x30; 4x10 |
6 |
290,000 | |
|
Kitwe |
1,000 |
White |
100 |
2x30; 4x10 |
6 |
340,000 | |
|
Livingstone |
1,000 |
White |
100 |
2x30; 4x10 |
6 |
340,000 | |
|
Livingstone |
1,000 |
Yellow |
100 |
2x30; 4x10 |
6 |
290,000 | |
|
Lusaka |
5,224 |
White |
) |
|
|
|
|
|
Lusaka |
4,000 |
White |
) |
1,900 |
10x100; 20x30 |
60 |
340,000 |
|
Lusaka |
10,000 |
White |
) |
|
|
|
|
|
Mazabuka |
1,000 |
White |
100 |
2x30; 4x10 |
6 |
340,000 | |
|
Mazabuka |
1,000 |
Yellow |
100 |
2x30; 4x10 |
6 |
290,000 | |
|
Mongu |
500 |
White |
50 |
5x10 |
5 |
340,000 | |
|
Monze |
2,000 |
White |
200 |
5x30; 5x10 |
10 |
340,000 | |
|
Monze |
2,000 |
Yellow |
200 |
5x30; 5x10 |
10 |
290,000 | |
|
Ndola |
1,000 |
White |
100 |
2x30; 4x10 |
6 |
340,000 | |
|
Total |
38,724 |
|
3.850 |
|
169 |
| |
