| REPORT ON THE AGENCY’S MAJOR ACHIEVEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2016 | 16.05.2017|  |

report on agency

REPORT ON THE AGENCY’S MAJOR ACHIEVEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2016

This report provides highlights of some of the major achievements recorded by the Agency in the year ended 31st December 2016.

1.0     CROP PURCHASES FOR THE 2016 CROP MARKETING SEASON

Crop purchases at the end of the quarter were 280,884 metric tons for maize valued at ZMW477,503,395 and 19 metric tons for paddy rice valued at ZMW29,100. The total value of crops purchased amounted to ZMW477,532,495. Total funds disbursed for farmer payments were ZMW476,611,575.24 or 99.81%, leaving a balance of 920,919.76 or 0.19% of the total value of the purchased crop.

Stock Position

The stock position as at December 2016, shows that the Agency was holding a net stock physical position of 310,319 metric tonnes.

  • TIMELY DISTRIBUTION OF CROP MARKETING REQUISITES

the Agency efficiently and timeously distributed and preposition the crop marketing requisites in readiness for the buying program. The key crop marketing requisites that were distributed include empty grain bags, twine, scales, sieves, polythene sheets, fumigants, and tarpaulins.

  • STATUS ON THE AUDITED FINANCIAL STATEMENTS OF THE AGENCY

The Agency made tremendous efforts to bring the audited financial statements to date and it is hoped that the completion of the audit up to December 2015, would be achieved by end of June 2017.

  • VERIFICATION OF ROTTEN STOCKS

The Agency engaged Mount Makulu Research Station to inspect and verify the quantity of rotten stock held in our stocks. The final quantities that were verified and destroyed were 323.7 metric tons which represented 0.02% of maize destroyed.

This is a success story and a great improvement by the Agency granted that in the past years crop losses accounted an average of 1.15% resulting in a serious loss of tax payers money. The allowable industry crop loss is around 3% to 5% but the Agency currently stands at below 1% thereby beating the industry standard.

  • DEVELOPMENT OF STORAGE INVESTMENT PLAN

The following are the various construction projects that the Agency is undertaking in line with the storage investment plan of the Agency;

  • Construction of 7 grain silos – CAMCE silo project.
  • Construction of 98 sheds – ADAS shed project
  • Rehabilitation of the 5 disused grain silo:
    • Ndola grain silo – Bwana Mkubwa
    • Monze and Chisamba grain silos
    • Kabwe grain silos

  • REVIEW OF THE FOOD RESERVE ACT

The Agency has put in place a road map for the review of the Food Reserve Act, Cap 225 of the Laws of Zambia. A budget for the processes to be undertaken has also been put in place.

  • STATUS OF TITLE DEEDS FOR FOOD RESERVE AGENCY STORAGE FACILITIES 

The Food Reserve Agency together with Ministry of Lands Officials has embarked on an exercise to obtain title deeds for all properties owned by the Food Reserve Agency. The exercise is being conducted in phases per province and has so far the Agency has conducted the boundary verification and preparation of site plans for all the sheds in Eastern, southern and Central Provinces.

  • ENTERPRISE RESOURCE PLANNING (ERP) PROCUREMENT APPLICATION

In the year 2015 the Agency procured an Enterprise Resource Planning (ERP) software application and hardware to be installed at Head Office and all 12 regional offices for the purpose of automating all the operations of the Agency.

8.0 DEVELOPMENT OF BOARD CHARTER

The Board has for the first time produced a Board Charter for the purpose of guiding the Board and its Committees in the discharge of their duties and responsibilities and accountability in accordance with the principles of Good Corporate Governance and best practices.

9.0 MEALIE MEAL PRICE STABILIZATION

Government authorised the Food Reserve Agency to offload Maize for sale to local millers under the 2015-2016 ‘Special Millers Maize Sales Programme’.

The Maize Sales Programme was in line with the Government Policy and the FRA’s mandate of ensuring a stable supply of the staple commodity.

10.0 RESPONSE TO EMERGENCIES THROUGH DISASTER MANAGEMENT AND MITIGATION UNIT (DMMU).

In 2016, Food Reserve Agency continued to provide maize stocks for distribution to vulnerable communities under the Disaster Management and Mitigation Unit (DMMU) for relief purposes and provided maize stock to support the Home Grown School Feeding Programme under the Ministry of General Education.

11.0  SECURING OF PURCHASED CROP

As at 31st December 2016, the Agency had secured 99% or 278,775 metric tons of the 280,884 metric tons bought during the last marketing season

12.0  RISK MANAGEMENT AND ASSURANCE

 

The Agency took significant steps in the establishment of a formal organization wide risk management process by setting up a Risk Management Unit during 2016. The objective of this unit is to facilitate systematic identification, assessment, and monitoring of risks and in turn assist in providing exposure mitigation.

13.0  BROADCAST OF OUR FOOD RESERVE PROGRAM

 

In creating brand awareness as part of efforts to re-position the Agency TV and radio broadcasts were Public Relations flagship programs in 2016. Thirteen each TV and radio programs were successfully produced and aired on ZNBC TV One and Radio Two.

14.0 CORPORATE SOCIAL RESPONSIBILITY

On Corporate Social Responsibility (CSR), the Agency scored a first when it acted as a goodwill ambassador for Cheshire Homes and managed to get long term commitments for supporting Cheshire Homes from A1 Milling and Superior Milling.

15.0 SIGNIFICANCE OF THE GOVERNMENT OWNED FOOD RESERVE AGENCY PROGRAM IN THE ZAMBIAN ECONOMY.

  1. The K476,611,575.24 that had been paid out in 2016, to 79,286 small scale farmers by Government through FRA and this translates into “more money in the pockets”.
  2. Transfer of income and distribution of wealth to smallholders.

iii.      Market facilitation and stimulation for Peasant Farmers and empowerment of rural communities.

  1. Ability to respond to food emergencies induced by floods/drought and other calamities through Disaster Management and Mitigation Unit (DMMU).
  2. Poverty reduction especially in rural areas.
  3. Earning of Foreign Exchange through exports.

vii.     Employment Creation of over 6,000 jobs per year especially for our rural youths and women.

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