Degree of Vertical
Integration
MOUNT MERU ORIGINATION MODEL BASED ON SUPPLY CHAIN
COORDINATION
Spot
market
Risk &
reward
Origination
Models
Open
Market
Vertical
integration
Value chain coordination
Purchase
agreement
Contract
farming
Fully incorporated
land & production
Management
contracts
Mount Meru’s preferred
origination focus
-
Supply risks
Price risks
-
Production, supply
and market risks
-
Higher investment,
political & social risks
+
No investment
in production
+
Sharing economic costs and benefits (price
setting and finance arrangement)
+
Control over production
IN PARTNERSHIP
MOUNT MERU MILLERS HAS PARTNERED WITH
FOODTRADE EASTERN AND SOUTHERN AFRICA
AND UKAID IN A PROJECT TO SUPPORT THE
PROMOTION, STORAGE AND TRADE OF
SOYBEANS IN ZAMBIA.
IN
2016/2017
SEASON
MOUNT
MERU
DISTRIBUTED 500 X 25KG OF SOYABEANS
SEED AND INOCULANT TO 481 FARMERS IN
MUMBWA,
CHIBOMBO
AND
CHISAMBA
DISTRICTS WITH EXPECTED YIELD IN EXCESS
OF 375 TONS
GENDER PARTICIPATION %
LOCATION OF VILLAGES WITH GPS DATA
PHOTO GALLERY
PHOTO GALLERY CONTINUES…….
DEMO PLOTS
PHOTO GALLERY CONTINUES…….
GOING FORWARD 2017/2018 SEASON
TARGET-2000 FARMERS
► Assess the value of the existing relationship
► Identify operational roles and decision rights for each
party
► Create effective contracts
► Design effective conflict resolution mechanisms
9
UZI JOHN BANDA.
[email protected]
THANK YOU!
(HTTP://MOUNTMERUGROUP.COM/PROJECT/FOODTRADE-ESA/).