Amta rejects N$9m bailout talk
Amta says it does not want a bailout from government, but is pushing for a cabinet directive to be implemented that will boost its income.
Agro-Marketing and Trade Agency (Amta) has confirmed an operational deficit of N$9 million for the current financial year.
However, it said it will not be seeking a government bailout and simply wants the implementation of a cabinet directive that compels all government offices, ministries and agencies (OMAs) to purchase its needs from the country's fresh produce hubs.
Amta managing director Lucas Lungameni said in a presentation to agriculture minister Alpheus !Naruseb the cabinet directive also requires that government offices procure grains from the national strategic food reserves silos.
He said this procurement of commodities from government marketing infrastructure will increase Amta's income and ensure its self-sustainability.
According to Lungameni the levy allocation of N$40 million to Amta, with the additional N$9 million subsidy from the agriculture ministry, is insufficient to sustain its operations.
He said Amta has also embarked its own income generating initiatives, which include the leasing of its trucks, fees for inspecting table grapes before export, sales of trash and animal feed, as well as transloading and inspection fees. The estimated income from this is about N$20 million.
The total Amta budget is N$79 million, with a deficit of N$9 million, said Lungameni.
Amta has been in existence since 2013 and is mandated to promote national food security by managing the national strategic food reserves, as well as the country's fresh produce business hubs.
According to Lungameni the country's silos linked to the national strategic food reserves have seen their capacity increase from 18 900 to 22 900 metric tonnes.
The silos are located across the country, with Tsandi at a capacity of 3 000 tonnes, Okongo 4 500 tonnes, Omuthiya 4 000 metric tonnes, Rundu 4 000 tonnes and Katima Mulilo, with a storage capacity of 7 400 tonnes.
According to Lungameni the target is to have a national storage capacity of 67 000 tonnes, which will be enough to store grains for six months at any given time.
Meanwhile, a total of 7 983 tonnes of grain were purchased during the 2017/18 financial year from local farmers, which is valued at N$43 million.
According to Lungameni a total of 4 247 farmers benefitted from this. Available stock stood at 10 940 tonnes and is valued at N$55 million, while storage space for about 12 000 metric tonnes of grain, valued at N$60 million, is required.
Lungameni said a revolving fund of N$85.3 million is needed to purchase grain from farmers, after the harvesting, emptying and refilling of the silos (22 000 tonnes), at least three times per year to generate revenue to sustain the reserves and stabilise the price of food nationally.
With regard to the fresh produce hubs, he said the objective is to establish a sustainable domestic fresh produce cold storage and marketing, logistical and value-addition infrastructure.
The hubs have been established at Ongwediva and Rundu, with a mini distribution hub in Windhoek.
During the 2017/18 financial year 3 671 tonnes of grain was traded to the value of N$30 million. A total of 477 farmers benefitted from this and currently there are seven agents at the hubs.
“It requires a revolving fund of N$30 million to procure fresh produce from farmers and the implementation of the cabinet directives to government offices and agencies on fresh produce from hubs, to ensure the sustainable operations of the national fresh produce business hubs system,” said Lungameni.
He said further effective border controls on agronomic products were for the first time implemented by Amta. “This is key to food security and sustainable agronomic growth.”
Elaborating on border control measures he said there are 17 border and inland verification stations to ensure compliance by traders to government policy on closed seasons, market share promotion, levies and fees, among others.
During the 2016/17 financial year a total of 23 256 trucks were controlled and there was a 74% decrease in non-compliance from 2015 to 2017. This decrease was from 423 to 110 during the period, said Lungameni
According to him 237 033 tonnes of grain was imported into Namibia to the value of N$1.06 billion, while fresh produce imports accounted for 6 271 tonnes, to the value of N$43 million.
Namibia also exports 41 412 tonnes fresh produce to the value of N$680 million.
He said the total levies and fees of imports and local sales amounted to N$79 million.
ELLANIE SMIT
However, it said it will not be seeking a government bailout and simply wants the implementation of a cabinet directive that compels all government offices, ministries and agencies (OMAs) to purchase its needs from the country's fresh produce hubs.
Amta managing director Lucas Lungameni said in a presentation to agriculture minister Alpheus !Naruseb the cabinet directive also requires that government offices procure grains from the national strategic food reserves silos.
He said this procurement of commodities from government marketing infrastructure will increase Amta's income and ensure its self-sustainability.
According to Lungameni the levy allocation of N$40 million to Amta, with the additional N$9 million subsidy from the agriculture ministry, is insufficient to sustain its operations.
He said Amta has also embarked its own income generating initiatives, which include the leasing of its trucks, fees for inspecting table grapes before export, sales of trash and animal feed, as well as transloading and inspection fees. The estimated income from this is about N$20 million.
The total Amta budget is N$79 million, with a deficit of N$9 million, said Lungameni.
Amta has been in existence since 2013 and is mandated to promote national food security by managing the national strategic food reserves, as well as the country's fresh produce business hubs.
According to Lungameni the country's silos linked to the national strategic food reserves have seen their capacity increase from 18 900 to 22 900 metric tonnes.
The silos are located across the country, with Tsandi at a capacity of 3 000 tonnes, Okongo 4 500 tonnes, Omuthiya 4 000 metric tonnes, Rundu 4 000 tonnes and Katima Mulilo, with a storage capacity of 7 400 tonnes.
According to Lungameni the target is to have a national storage capacity of 67 000 tonnes, which will be enough to store grains for six months at any given time.
Meanwhile, a total of 7 983 tonnes of grain were purchased during the 2017/18 financial year from local farmers, which is valued at N$43 million.
According to Lungameni a total of 4 247 farmers benefitted from this. Available stock stood at 10 940 tonnes and is valued at N$55 million, while storage space for about 12 000 metric tonnes of grain, valued at N$60 million, is required.
Lungameni said a revolving fund of N$85.3 million is needed to purchase grain from farmers, after the harvesting, emptying and refilling of the silos (22 000 tonnes), at least three times per year to generate revenue to sustain the reserves and stabilise the price of food nationally.
With regard to the fresh produce hubs, he said the objective is to establish a sustainable domestic fresh produce cold storage and marketing, logistical and value-addition infrastructure.
The hubs have been established at Ongwediva and Rundu, with a mini distribution hub in Windhoek.
During the 2017/18 financial year 3 671 tonnes of grain was traded to the value of N$30 million. A total of 477 farmers benefitted from this and currently there are seven agents at the hubs.
“It requires a revolving fund of N$30 million to procure fresh produce from farmers and the implementation of the cabinet directives to government offices and agencies on fresh produce from hubs, to ensure the sustainable operations of the national fresh produce business hubs system,” said Lungameni.
He said further effective border controls on agronomic products were for the first time implemented by Amta. “This is key to food security and sustainable agronomic growth.”
Elaborating on border control measures he said there are 17 border and inland verification stations to ensure compliance by traders to government policy on closed seasons, market share promotion, levies and fees, among others.
During the 2016/17 financial year a total of 23 256 trucks were controlled and there was a 74% decrease in non-compliance from 2015 to 2017. This decrease was from 423 to 110 during the period, said Lungameni
According to him 237 033 tonnes of grain was imported into Namibia to the value of N$1.06 billion, while fresh produce imports accounted for 6 271 tonnes, to the value of N$43 million.
Namibia also exports 41 412 tonnes fresh produce to the value of N$680 million.
He said the total levies and fees of imports and local sales amounted to N$79 million.
ELLANIE SMIT
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