AG:GCPS/ZAM/048/NET

Terminal Report

FAO/GOVERNMENT COOPERATIVE PROGRAMME

MARKETING MANAGEMENT ASSISTANCE
FOR FOOD SECURITY

PROJECT FINDINGS AND RECOMMENDATIONS

ZAMBIA

Report prepared for

the Government of Zambia

by

the Food and Agriculture Organization of the United Nations

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

Rome, 1998

 

Table of Contents

LIST OF ABBREVIATIONS

1. INTRODUCTION

2. RESULTS AND CONCLUSIONS

3. RECOMMENDATIONS

Appendix 1

Appendix 2

Appendix 3

Appendix 4


LIST OF ABBREVIATIONS

ACE - Agricultural Commodity Exchange

ACMP - Agricultural Credit Management Programme

AMIC - Agricultural Market Information Centre, MAFF

AMIS - Agricultural Market Information System

APO - Associate Professional Officer

ASIP - Agricultural Sector Investment Programme

BOZ - Bank of Zambia

COMESA - Common Market for Eastern and Southern Africa

DMC - Department of Marketing and Cooperatives, MAFF

FRA - Food Reserve Agency

FSD - Food Security Division

GIS - Geographic Information System

HIID - Harvard Institute for International Development

MAFF - Ministry of Agriculture, Food and Fisheries

MCRF - Marketing Credit Revolving Fund

MLIS - Market Liberalization Impact Study

MOFED - Ministry of Finance and Economic Development

NAIS - National Agricultural Information Services, MAFF

NRI - National Resources Institute

PROMIS - Provincial Market Information System

SADC - Southern African Development Community

ix

ZAMPIP - Zambia Agricultural Marketing, Processing and Infrastructure Project

ZGGMA - Zambia Grain Growers and Marketing Association

ZNBC - Zambia National Broadcasting Corporation

ZNFU - Zambia National Farmers' Union

1. INTRODUCTION

1.1 PROJECT BACKGROUND

Traditionally, the marketing of agricultural produce in Zambia was controlled by the state through parastatals and relied on substantial government subsidies. However, poor economic performance, exacerbated by continuing low prices for the country's main export, copper, made it impossible for the Government to sustain the open-ended subsidy system. In 1986, the state control and subsidization of a wide range of agricultural produce were abolished while, in 1988, responsibility for the primary purchasing of maize was transferred to the cooperative sector. Faced with a steadily worsening financial situation, the Government announced, in September 1990, that the maize market would be liberalized. In October 1991, the Government established a Ministry of Agriculture, Food and Fisheries (MAFF), abolished the Ministry of Cooperatives, and transferred some of the functions of the latter to a newly-created Food Security Division (FSD) within MAFF in order to liberalize the agricultural market. However, the food emergency caused by the severe drought that drastically reduced crop expectations for the 1991/92 maize crop obliged the Government to postpone its liberalization plans.

Food security assistance in Zambia began in 1979 with the implementation of a project for "Strengthening of Food Security through Assistance to the Marketing Unit in the Ministry of Agriculture and Water Development". A Phase II project, which was instrumental in training key management personnel in marketing and policy formulation, came to an end in 1988. In July 1991, a Tripartite Review recommended that Phase III of the project, which terminated in April 1992, concentrate on activities relating to market liberalization. In particular it was intended to identify changes required in the institutional structure, initiate work on a policy framework and develop a transition programme to liberalize the maize market.

Following the submission of the Tripartite Review report, the Government requested FAO to prepare a project document for a fourth phase of assistance. This was submitted to the Government in September 1991. To ensure continuity into a fourth phase, a one-year bridging project (TCP/ZAM/2252), funded through FAO's Technical Cooperation Programme resources, was arranged.

Following the severe impact of the 1992 drought on food security, it was decided that the project document should be reviewed to take account of the changed circumstances. The report of the Tripartite Review Mission proposed significant revisions to the immediate objectives, outputs and activities of the project. These were fully incorporated into the Project Document for Phase IV.

1.2 OUTLINE OF OFFICIAL ARRANGEMENTS

Phase IV of the project "Marketing Management Assistance for Food Security (GCPS/ZAM/048/NET)" commenced in May 1993, with a planned duration of three years. The Plan of Operation was signed in September 1993 by the Government and FAO. The project was financed by the Government of the Netherlands through Trust Fund arrangements with FAO and the total amount initially budgeted for the project was $US 2 047 700. FAO was designated the executing agency and the Ministry of Agriculture, Food and Fisheries the government agency responsible for project implementation.

The Government was required to provide counterpart staff, part-time secretarial assistance for the Management Information Expert, as well as office space for project staff, Associate Professional Officers (APOs) and a project-financed secretary. It was also required to pay the salaries and other costs of government staff attending in-country training courses. One Tripartite Review Meeting was held, in October 1994. A budget revision was prepared and the total budget was increased to $US 2 147 944, as a result of cost increases.

The project was evaluated by a Tripartite Project Evaluation Mission in October-November 1995. Following the recommendations of the mission, the project was extended until the end of December 1996, and the total budget increased to $US 2 496 619. In view of the delays encountered during negotiations on the provision of future technical assistance, the project was continued until February 1997, using budgetary savings, and subsequently extended until June 1997. The total budget was increased to $US 2 587 981.

1.3 PROJECT OBJECTIVES

The long-term objective of the project was the attainment of national food security for the population of Zambia through the implementation of an efficient, cost-effective liberalized marketing system for maize and other staples.

The immediate objective of the project was to strengthen the Government's capacity to formulate appropriate policies and to implement arrangements to achieve continuing progress towards a liberalized market for maize. It would do this by providing ad hoc advice to the Food Security Division of the Ministry of Agriculture, Food and Fisheries on issues regarding the liberalization and privatization of food marketing, by helping to create an institutional structure for the development and administration of a liberalized maize market, by studying the implementation of grain marketing liberalization, with particular reference to the impact of policy changes, and by producing reports and policy proposals on grain market liberalization issues for the Food Reserve Agency or Food Security Division.

The project also hoped to strengthen, within the proposed Food Reserve Agency and the Food Security Division, the capacity to formulate and implement appropriate initiatives to promote increased food security within the country. It would do this by assisting with the establishment and operation of the proposed Food Security Reserve, by studying on-farm storage arrangements and recommending improvements, with proposals for the necessary technical assistance, and by producing policies, strategies and initiatives designed to stimulate the recovery of basic food production and crop diversification.

The final objective was to facilitate the creation of a liberalized grain marketing system by providing a wide range of relevant marketing information to farmers, traders, consumers, policy-makers and others. This would involve setting up an organizational structure for the provision of marketing information and a market price information system, developed and operated on a sustainable basis, to obtain and disseminate the prevailing prices of the major food crops on a regular basis. The project would assist the Agricultural Market Information Centre to monitor on a regular basis marketing and food security-related information and would organize a workshop on market information requirements in a liberalized marketing system.

2. RESULTS AND CONCLUSIONS

2.1 PROJECT IMPLEMENTATION

2.1.1 General background

When the project began work in May 1993, the Government's commitment to liberalize maize marketing during the 1993/94 season and the announcement of the new marketing arrangements had taken the majority of marketing participants by surprise. The 1992 drought, the potentially devastating impact of which had been successfully mitigated by the Government and the donor community, was followed by forecasts of a relatively abundant harvest for 1993 and an expected marketable surplus of some 900 000 tons of maize. The attention of policy makers focused on how the market would handle this surplus under the new arrangements.

The debate over the advantages and disadvantages of a liberalized maize market in general and the introduction of liberalized marketing arrangements at this stage led to a number of interpretations of the revised arrangements, in particular those related to the establishment of a floor and into-mill price for maize. In addition, the Government felt compelled to intervene by providing credit to the main lending institutions to allow them to procure maize through their designated buying agents and recover their outstanding seasonal production loans from the small-scale farming sector. It also re-introduced a number of pre-liberalization mechanisms regarding crop procurement financing arrangements and allocation of marketing responsibilities. This contributed to undermining the confidence of the emergent participants in the marketing process and posed a serious constraint for rapid progress in the liberalization process.

Before announcing the revised marketing arrangements, little attention had been given to developing a marketing transition strategy to establish the policy and operational instruments and mechanisms that would guide the change-over from a controlled to a liberalized marketing system. The project called for the development and implementation of such a strategy. While concentrating on the immediate operational and administrative constraints, the project began to formulate a comprehensive market liberalization transition programme and to participate in negotiations between the various ministries involved and the Cabinet in endorsing its approval. Since then, project activities have involved policy formulation, monitoring and advisory functions on the market liberalization process and the provision of operational, administrative and research support to guide the application of the transition programme.

2.1.2 Support and liaison

Overall support to the project by the Food Security Division of the Ministry of Agriculture, Food and Fisheries was in line with the Plan of Operation. This support mainly comprised the allocation of staff, the provision of office facilities, and the payment of expenditure on local communication.

Of the national counterpart staff, five officers were placed in the Agricultural Market Information Centre (AMIC) on a full-time basis and worked with the project's Marketing Information Expert. Although the Chief Technical Adviser had no official counterpart, the (Acting) Permanent Secretary, the (Acting) Deputy Permanent Secretary and the Senior Economist of the FSD, MAFF, acted as counterparts during most of the project period. At MAFF, the Marketing Economist worked without a full counterpart. After his transfer to the Food Reserve Agency (FRA) in August 1996 he worked directly with the FRA Executive Director and FRA senior management on a full-time basis.

The project counted on the assistance of three Associate Professional Officers in Kabwe (Central Province), Chipata (Eastern Province) and Choma (Southern Province). They were actively supported by FSD/MAFF staff and worked on a full-time basis with the Senior Marketing and Cooperative Officers at their respective duty stations.

A close liaison was maintained with senior management in MAFF, FSD and, when it became operational, FRA. Regular meetings were held to discuss MAFF policy issues and operational activities, identify implementation problems and formulate solutions. After consultation, draft proposals were developed and discussed with FSD/MAFF and other related ministries or government institutions. Where appropriate, adjustments were made before the submission of the proposals to the Cabinet or their direct implementation by FSD/MAFF and, if required, the project.

The project maintained a direct liaison with representatives from the private commodity trade and milling sectors, farmers' and trade organizations and donor agencies. This enabled FSD/MAFF to obtain feedback, both directly and indirectly, from external stakeholders on its proposals to address specific policy and operational issues.

Following a request from the project, additional FSD/MAFF staff were deputed to work with the project, on an ad hoc basis, on specific operational issues. They were given assignments by the project in their respective areas of work, the coordination, implementation and progress of which were supervised and monitored by the project.

2.2 POLICY ADVICE

2.2.1 Promissory Notes

In view of the imminent 1993/94 maize marketing financial crisis, the project took the lead, on behalf of MAFF, in negotiations with the Ministry of Finance and Economic Development (MOFED) and the Bank of Zambia (BOZ) regarding the design, introduction and use of Promissory Notes and Forward Sales Contracts. The introduction of these Promissory Notes, which enabled the Government's financial involvement in maize procurement to be shifted towards the 1994 budget, covered the gap in the availability of public and commercial marketing credit, guaranteed payment to farmers and minimized potential losses to the bumper maize crop before the onset of the rains. The project designed the Notes and Contracts, negotiated their printing with the government printer and monitored the overall printing process. A Procedural Manual on Promissory Notes was prepared for nationwide distribution among branch offices of lending institutions and principal buying agents, commercial banks, and government officials at national, provincial and district level. A one-day workshop on the operation and administration of the Promissory Notes for Provincial Marketing and Cooperative Officers of MAFF and Provincial Accounting and Control Officers of MOFED was jointly conducted with the Harvard Institute for International Development (HIID). In addition, assistance was provided for the presentation of an advertisement in local newspapers to explain the Promissory Note concept and related procedures.

Discussions were initiated with representatives from commercial banks on how to discount the Notes. Assistance was also provided for the computerized processing, consolidation and verification of all Promissory Notes prior to their final redemption on 15 February 1994, as well as on the operational constraints faced prior to and following the effective date of payment.

2.2.2 Market Liberalization Transition Programme

During the 1993/94 maize marketing season, the project prepared a policy paper highlighting the accomplishments and problems associated with the 1993/94 liberalization attempts by the Government and arguing for the need to implement a three-year transition programme. During this period the Government would gradually withdraw its direct involvement in the maize and agricultural input market and limit its role to providing incentives and support, while facilitating the participation of the private sector. The programme covered various issues related to pricing and stockholding, legal requirements, marketing credit, storage, the operation of the Food Reserve Agency and the establishment of a National Food Security Reserve, institutional restructuring, privatization and public information requirements.

The project organized a workshop for representatives of farmers, lending institutions, millers, private traders, commercial banks, and government agencies to discuss the programme proposals. The policy paper was officially approved by the Cabinet and implemented from the 1994/95 season onwards.

During the course of the project, assistance on a continuous and ad hoc basis was provided for reviewing, monitoring and modifying the implementation of the programme.

2.2.3 Maize and agricultural input marketing arrangements

The project drafted MAFF statements on maize and agricultural input marketing arrangements for each season between 1994 and 1998, supported by Cabinet Memoranda and policy briefing notes. The arrangements remained broadly commensurate with the Market Liberalization Transition Programme and its subsequent modifications. They clarified the Government's policy of gradually reducing its direct involvement in maize and agricultural input marketing, specified the role it would play by providing support and incentives during the transitional period and emphasized the need to encourage the active participation of the private sector. The 1994/95 arrangements also stressed the abolition of floor and into-mill maize prices and of government-appointed agents. These new measures were expected to encourage market participants to initiate a more rational price discovery process based on regional and seasonal supply and demand conditions. Other issues covered by the arrangements included registration requirements for maize and input traders, the provision of market support facilities such as the Marketing Credit Revolving Fund (MCRF), the lease programme for storage facilities and the provision of market information, the management of the National Food Security Reserve and maize import and export trade policies and regulations.

The project also proposed that MAFF launch a large-scale public information campaign about the proposed marketing arrangements. From 1994 onwards, a newspaper advertisement was prepared each season and a poster and leaflet were produced (in English and, in some seasons, in two vernaculars), posted and distributed throughout the country via cooperatives, lending institutions, provincial and district agricultural offices, etc. Revised registration forms for maize and fertilizer traders were also prepared. The project also organized a one-day national workshop for some 90 participants from Provincial and District Marketing and Cooperative Unions, other cooperatives, farmers' organizations and lending institutions on the maize and agricultural input marketing arrangements for 1994/95, the season in which the most fundamental changes in agricultural market liberalization policies were announced and implemented.

Throughout the seasons, the project continued to participate in discussions regarding the implementation of the maize and agricultural input marketing arrangements. Reactions to the transition programme proposals and marketing arrangements were monitored and potential difficulties anticipated, enabling corrective action to be taken. Ad hoc advice also continued to be provided to facilitate short-term decision-making on agricultural marketing and food security-related issues, while extensive contact was maintained throughout with private-sector associations and individuals, as well as UN and donor agencies. Several mid-term reviews on the above issues were also prepared, including briefing papers for the Cabinet and State House.

The project also provided assistance to MAFF in formulating seasonal action plans to implement and monitor the approved arrangements.

2.2.4 Ministry of Agriculture, Food and Fisheries budget

The project helped the FSD/MAFF negotiate with the Loans and Investment Department, MOFED, and visiting International Monetary Fund missions on the budgetary implications of implementing the Market Liberalization Transition Programme from the 1993/94 marketing season onwards. These included funding requirements for the National Food Security Reserve, the Marketing Credit Revolving Fund, the Food Reserve Agency, the Agricultural Credit Management Programme, the Inventory Credit Fund, and debt rescheduling programmes.

The project also participated in negotiations between MAFF, MOFED, the lending institutions and principal buying agents regarding ways to recover, offset and reconcile outstanding debts left by marketing, production, fertilizer and Promissory Note credit disbursed in 1992/93 and 1993/94. This led to the government decision to take over the maize stocks held by the Principal Agents as a partial repayment of outstanding debts and to sell them on a tender basis to maximize the financial returns to be deposited into the Marketing Credit Revolving Fund. Proposals were also submitted to intensify overall debt recovery by making any further credit disbursements conditional on full repayment of outstanding debts.

2.2.5 Drought impact

As Zambia experienced partial droughts in the 1994/95 and 1995/96 seasons, the project was called on to assist in assessing their potential impact. A discussion paper was prepared on the likely impact and consequences of the 1994/95 drought and presented by FSD-MAFF to the Technical Committee of Economic Ministers. A Cabinet Memorandum on Debt Rescheduling of Agricultural Credit was then prepared, on the basis of which lending institutions were allowed to reschedule outstanding debts of drought-affected small-scale farmers over a three-year period.

The project participated in numerous meetings on prospective crop forecasts and the likely impact of the drought during 1994/95 and 1995/96. Assistance was provided for the presentation of a comprehensive food security assessment. In conjunction with the World Food Programme, the United Nations Development Programme and the Office of the Vice President (National Disaster Relief Committee), a proposal was prepared to establish a Disaster Relief Trust Fund. The project worked with the National Early Warning Committee and prepared various briefing notes, including a brief on the national food and drought situation for State House and a brief on the 1995/96 marketing season food shortfall for the donor community. This brief was widely distributed and presented to Cabinet under cover of a Cabinet Memorandum.

Following a request from the Minister of Agriculture, assistance was provided to finance a national consultant to investigate the use of government marketing and fertilizer credit disbursed during 1992/93 and 1993/94 by lending institutions, which had been the main beneficiary of such credit. The report revealed that the bulk of the credit disbursed was diverted by the beneficiaries to cover some of the losses incurred in their marketing and credit operations, partly as a result of the 1994/95 drought and the absence of a financial post-drought support programme.

The project was involved in negotiations with the lending institutions to draw up debt relief measures for the small-scale farming sector that would restore the productive capacity of drought-affected farmers. The project also helped to prepare, reproduce and distribute lists of farmers eligible for debt relief.

2.2.6 Marketing Credit Revolving Fund

The project prepared a paper on how to set up a Marketing Credit Revolving Fund to provide the private sector with access to marketing credit. The project participated actively in discussions with MOFED, BOZ and the participating commercial banks on the modalities of the Fund, culminating in the finalization of the proposal and the associated loan agreement. The Fund started operating in August 1994, and the project was represented on the Fund Committee as an ex-officio member. The project prepared and produced a poster and an information note on the Fund, which was distributed through the branch offices of the participating commercial banks.

In April 1995, the project organized and funded a workshop to review the Fund's operation in 1994/95. The workshop was attended by representatives from commercial banks, private-sector maize merchants and companies, the press, MOFED, BOZ and MAFF. The implementation of the Marketing Credit Revolving Fund was monitored and corrective actions suggested, along with modifications for loan agreements for 1995/96.

The implementation of the Fund in 1994/95 and 1995/96 was reviewed by a national consultant funded through the project. Financial aspects were reconciled and a comprehensive list of defaulters was prepared for subsequent consultation to monitor repayment of outstanding marketing credit by the private sector. Based on the review, it was decided to restructure the Fund into an Inventory Credit Fund in February 1996. Although the project recommended the adoption of an extremely cautious approach (based on initial negative cash flow projections), further assistance was provided to establish the necessary operational, administrative and contractual arrangements, prepare tender documents for and evaluate bids from potential fund managers and warehouse managers and facilitate discussion among the latter regarding the standardizing and finalizing of arrangements. The Inventory Credit Fund, however, was not fully implemented, owing to delays in the negotiations with MOFED, concerning fee structure and fund availability, and with the Ministry of Legal Affairs, concerning the legal endorsement of contracts with the fund managers. In hindsight, this was fortunate as maize price movements in 1996/97 did not warrant any inventory credit operation, and huge financial losses would certainly have been incurred had the Fund been implemented.

2.2.7 Agricultural Credit Management Programme

The project was called on to provide assistance in the decision-making process regarding the marketing of agricultural inputs and the use of fertilizer donations. Various assessments of fertilizer stock and pricing issues were made and an action plan for transitional agricultural input delivery was proposed. In accordance with this plan, support was provided to negotiate the details of a pilot scheme according to which two Credit Managers, appointed by MAFF on a sub-contract basis, acted as intermediaries in the delivery of government-owned fertilizer (both donations and commercial imports) on credit to established stockists (Credit Coordinators) for onward lending-sales to small-scale farmers. They would also train dealers participating in the scheme and monitor loan recoveries. The Agricultural Credit Management Programme (ACMP) aimed at enhancing the capacity of existing fertilizer and seed stockists to deliver inputs on credit to small-scale farmers, while contributing towards a more accountable privatized form of credit delivery to the small-scale farming sector. The project remained involved in discussions between MAFF and the Credit Managers on how to implement the ACMP.

The project organized a workshop in April 1995 to review the ACMP's operations during the 1994/95 season. The workshop was attended by representatives from commercial banks, credit managers, private-sector maize-input merchants and companies and MAFF. Based on the findings and recommendations of the workshop, a number of modifications were made to ACMP operations in 1995/96. The project also organized a study team to review the implementation of the ACMP during 1994/95 and 1995/96. On the basis of this review, a decision was made by MAFF to extend the ACMP into 1996/97. The project was also requested to investigate the direct release of fertilizer carry-over stocks by MAFF during 1996.

As requested by MAFF, specific assistance was offered to attempt to solve the impending fertilizer marketing crisis towards the end of 1996. Policy notes, tender documents, draft contracts, for storage managers and credit managers, and pricing proposals on the continued operation of the ACMP were prepared and submitted. Unfortunately, past administrative and operational problems became more pronounced and MAFF failed to place appropriate staff at the right place to operate the programme. The protracted negotiations on the availability of resources to meet the anticipated import requirement of fertilizer led to its late arrival. In addition, as the Government had to negotiate for supplier's credit, the price of the imported fertilizer - which had to be passed on to the farming community - was uncompetitive. The combined effect of the above developments resulted in a chaotic, costly and poorly managed implementation of the ACMP during 1996/97.

As a result of the extremely high costs of the programme, the low credit recovery levels and evidence that the programme was constraining rather than enhancing the liberalization of the fertilizer market, the Government announced its decision to withdraw from the direct importation and distribution of fertilizer from the 1997/98 cropping season onwards.

2.2.8 Reserve stock management

The project provided support for monitoring managerial and operational aspects of the country's food security reserve stocks in line with the provisions suggested by the Food Reserve Act, 1995. This included decision-making on stock replenishment (negotiations on commercial imports and the utilization of donor grants), stock management, stock releases, tendering and pricing.

To meet the shortfall in maize supplies after the 1994/95 partial drought, reserve stocks were released on the market on the basis of unrestricted open tendering procedures. Sales during 1994/95 were undertaken in three stages under a two-tier system open for differentiated volume bidding by milling companies and hammer millers and traders, respectively. The project provided assistance in defining the storage contract and tender procedures, modifying operational matters and evaluating the results of the bidding. The release of reserve stocks during 1995/96 - directly managed by MAFF prior to the establishment of the Food Reserve Agency - was sub-contracted to the Agricultural Commodity Exchange Ltd. Sales were to have been undertaken in ten weekly stages, with a fixed amount of maize being made available each week in varying lot sizes by storage location. The lot sizes were kept small to introduce a bias in the differentiated volume bidding, favouring access to stocks by hammer millers and medium to small-scale traders. Initial sales were satisfactory, but releases from the reserve started to be made by MAFF directly, without following the procedures that had been established. This complicated official stock release and accounting procedures, distorted private-sector-led import initiatives and compromised the operation of the independently-established maize credit import facilities. The project prepared all supporting documentation for the sales operations, including contracts, accountable Maize Release Notes and advertisements and leaflets on sales modalities. The project also investigated and reconciled the release of reserve stocks by MAFF during 1996.

Despite the problems encountered, MAFF largely maintained its principal policy stand that the private sector should handle the importation of maize and mealie meal to meet any commercial shortfall in food grains as a result of drought.

2.2.9 Policy review

The project helped to review the adequacy and impact of MAFF's market liberalization support policies by undertaking direct policy reviews, preparing numerous monitoring, briefing, and draft policy discussion papers and conducting market research studies.

The project prepared a comprehensive draft policy paper, reviewing maize market liberalization in 1994/95 and making proposals to continue the transition programme in 1995/96, with minor modifications. The draft policy paper was presented for review by various parties inside and outside MAFF. It set the basic framework for various policy announcements regarding the overall crop and input marketing arrangements to be pursued in the 1995/96 marketing season.

A general policy review of the liberalization of the maize and agricultural input markets during the period 1993 to 1996 was undertaken and published. The policy review paper analysed and illustrated the progress and impact of maize and agricultural input market liberalization from 1993 to 1996, taking into account the findings of the various research studies. It presented a number of policy guidelines to consolidate, modify and enhance the implementation of the transition programme during subsequent marketing seasons and to accomplish a full liberalization of maize and agricultural input markets.

2.2.10 Storage leasing programme

The project prepared a policy paper on the use of government-owned storage facilities for future reference of the Food Reserve Agency. Direct support was provided regarding the establishment of a database and the introduction of revised tender procedures, tender documents, and lease contracts and tender allocation procedures. The response by the private sector to the new tendering procedures, which were introduced and applied during two bidding rounds for the two categories of storage facilities, was encouraging. This support continued under the auspices of the FRA.

2.2.11 Marketing extension and on-farm storage

Before liberalization, on-farm storage of hybrid maize had not been required because the Government bought all hybrid maize from farmers immediately after harvest. The project helped to launch an information campaign in 1994 to educate farmers and traders on the new importance of on-farm storage. A sticker and leaflet on this theme were designed, produced and distributed.

Further studies on how to cope effectively with meeting on-farm storage demands were initiated to design a programme in support of the small-scale farming sector. An international consultant was fielded during late 1994 to investigate on-farm storage constraints faced by the small-scale farming sector and assess the potential for establishing a support programme. As a result, a project proposal "Extension Support to Small-scale Farmer Maize Marketing and Storage" was prepared and accepted for funding under the FAO-Technical Cooperation Programme. It became effectively operational towards the end of February 1996, with the arrival of the Market Extension Specialist. In order to provide more appropriate market-related advice to the small-scale farming sector during the 1996/97 marketing season, the project developed extension and information modules and training manuals to support the extension service of liberalized marketing policies and on-farm storage technologies. The majority of extension officers in Northern, Eastern and Southern provinces were trained on market extension issues. The project provided overall support and guidance during its implementation.

The project initiated an experimental market extension programme by sub-contracting a popular theatre group (Thikondane Moving Theatre Group) to stage a number of performances on crop and input marketing in the rural areas of Eastern Province. A total of 42 performances was held in July-August 1995. The approach received wide support and was considered innovative. With grant assistance from the European Union-Government of Zambia Kabwe Smallholder Development Project, a similar programme was organized in Central Province in 1996. The project assisted the provincial coordinators of the Agricultural Market Information System (AMIS) to obtain the grant and provided overall guidance, supervision and backstopping for the implementation, coordination and operation of the programme. In total, some 80 performances in the vernacular language were staged in Central Province. Two special performances in the English language were staged and recorded for subsequent radio and television broadcasting.

2.2.12 Import-export monitoring

In December 1993, the project participated in a major maize and fertilizer stock verification exercise undertaken by the Food Security Division throughout the country. The results were published in a newspaper advertisement "Statement on Maize Stock Position" to reassure the public of the adequacy of maize stocks to meet projected domestic consumption requirements.

In view of the supply shortfall experienced in the domestic maize market during the 1994/95 and 1995/96 seasons, the project provided assistance in making arrangements to monitor the maize supply and import situation. The domestic stock position and commercial maize imports were monitored and the need for commercial maize imports and exceptional balance of payment support to facilitate private-sector imports was quantified. Assistance was provided in defending the rationale of waiving import duties and sales tax for maize and maize products during early 1995 and 1996. Extensive working relations were established and maintained with private sector commodity traders to monitor the domestic maize stock and prospective import situation.

Various statements to the donor community, briefing and policy notes and Cabinet Memoranda on the above issue were prepared for consideration by the Government. Assistance was given to determine maize import modalities, including the preparation of draft international tender documents for use by the Government and private sector. Information notes for the private sector on the maize supply situation in the Southern African Development Community (SADC) region and potential import cost scenarios using various supply sources were prepared and distributed. Assistance was also provided to prepare a general information note for the private sector on international cereal trade aspects. In addition, the Weekly Market Bulletin provided the market with import-related information.

Assistance was given in assessing alternatives open to the Government and the donor community to provide credit facilities to encourage and facilitate maize imports in order to replenish reserve stocks. In conjunction with the Office of the External Finance Coordinator, MOFED, the project took the lead in calling for the establishment of an Inter-Ministerial Committee on Maize Imports comprising representatives from NCDP, MOFED, BOZ and MAFF. The project was actively involved in the design and implementation of the maize credit import facilities. Various statements, briefing and policy notes and advertisements on the above issue were also prepared.

In view of the uncertainties surrounding the abolition of the maize export ban in 1996, the project prepared a policy note on the situation, proposing the lifting of the ban accompanied by the initial introduction of some minimal quota restrictions. These proposals were subsequently implemented by MAFF.

Following the application of market liberalization policies and the temporary lifting of import duties on maize and mealie meal during the periods January-May 1995 and 1996, the private sector imported more than 200 000 metric tonnes of maize and mealie meal each year to meet the commercial shortfall in food grains. These unprecedented import levels indicated the positive response by trade to the Government's policy that the private sector should handle the importation of maize and mealie meal to meet commercial shortfalls in food grains.

2.2.13 Food balance sheet

With the full liberalization of the market, it became apparent that the availability of accurate stock and off-take data was scarce, making it difficult to produce reliable food balance sheet projections, as well as average per caput and overall monthly food consumption figures.

The project helped to evaluate the outcome of a crop forecasting exercise and provided assistance in drawing up tentative food balance sheets for the period 1994 to 1997. Analytical support was provided regarding the consequences of the balance sheet projections for cereal import and export opportunities, taking into account the overall supply-demand situation within the SADC subregion. In conjunction with the MAFF Early Warning Unit, work was undertaken to review and improve the national food balance sheet. Efforts were made to transform the traditional maize balance into an overall cereal balance, incorporating traditional cereals and a maize equivalent for cassava and sweet potatoes. Revised estimates were made for per caput staple food consumption figures based on energy requirements and taking into account the relative importance of maize, tubers, drought-resistant cereals and wheat in the staple diet. The revised methodology was accepted by MAFF and incorporated into the preliminary 1997/98 food balance sheet. A paper detailing the findings and recommendations associated with the application of the revised food balance methodology was also prepared.

Annual crop forecasting exercises, however, are increasingly unreliable. There is a grave risk that shortages are over-estimated, creating unnecessary anxiety, or surpluses under-estimated, resulting in the imposition of trade restrictions. Research has shown that slight variations in the assumptions underlying balance sheet calculations cause significant switches in the anticipated cereal shortfall-surplus situation.

During the drought years 1994/95 and 1995/96 and the surplus year 1996/97, it was evident that there was a wide range of views on the food supply position. Discrepancies in shortfall-surplus estimates during those years clearly revealed the need for further research to enhance the accuracy of the food balance sheets.

2.3 LEGAL FRAMEWORK

2.3.1 Food Reserve Act

The project helped to revise an existing draft of the Food Security Act of 1993. After consultation, it was decided to change the name of the Act to Food Reserve Act, since it does not deal with broader household food security and accessibility issues. Assistance was provided in presenting the Act to Cabinet, negotiating its finalization with the Ministry of Legal Affairs and defending its rationale before the Cabinet Legislative Committee. The Food Reserve Act, No. 12 of 1995, was finally approved by Parliament in March 1995 and subsequently enacted.

The Act repealed the existing National Agricultural Marketing Act, No. 19 of 1989, in order to facilitate the marketing liberalization process, established the National Food Reserve and provided for the setting-up of a Food Reserve Agency. The FRA was intended to perform a series of tasks. It would purchase maize for the National Food Reserve, importing supplies if the maize available on the domestic market failed to meet the country's food security requirements, as well as receiving and handling donations from prospective donors. It would manage government-owned storage facilities by leasing them to private-sector operators or cooperatives. It would collect market information on grain trading, processing, stocks and prices and disseminate such information to the Government, consumers, producers, traders, processors, and other persons engaged in the production, marketing and processing of such commodities. It would introduce weighing and grading standards and enforce them when necessary in the marketing operations of the private sector as well as in its own operations. It would establish and conduct a programme of annual registration for traders and processors of designated commodities and would maintain proper accounts of all transactions and submit them to the Government.

Proposals were prepared and submitted by the project on follow-up actions regarding the establishment of the Food Reserve Agency as specified under the Act. In addition, the project assisted with the preparation of a number of Statutory Instruments specified under the Act.

2.3.2 Agricultural Credit Act

Discussions were initiated by the project on the revision of the draft Agricultural Credit Act, work on which had been stalled for more than a year following its initial rejection by Cabinet. The project led discussions inside and outside MAFF on the draft Act. An international consultant was employed to review the remaining critical issues with all parties concerned, at government and private-sector levels. A revised draft Act was then prepared by the project and circulated by MAFF to Cabinet for its comments and to the Ministry of Legal Affairs for its finalization. The draft Act was approved by Cabinet at the end of February 1995. Further assistance was provided in finalizing the draft Act and in presenting it to Parliament. The Agricultural Credit Act, No. 23 of 1995, was passed by Parliament in July 1995, but only officially enacted in May 1996.

The revised Act simplified the future provision of credit in order to develop the agricultural sector. It made provisions to expand the definition of farmers to include smallholders farming under traditional land tenure and related businesses (such as limited companies, outgrowers), allowing these groups to register charges; to clarify the effects of floating charges and stipulate the minimum obligations of lenders and borrowers; to set out requirements for contracts between lenders and borrowers, including the prohibition of direct or indirect charging of compound interest; to provide protection for farmers by legislating against "scavenger purchasers"; to replace criminal penalties for offences other than frauds by civil penalties; to provide for the registration of charges at the district level to ensure wider use and access to information by lenders; and to provide for the settlement of disputes through arbitration and appeal procedures in the case of bank versus borrower, and outgrower scheme versus borrower.

The project prepared follow-up proposals for all revised components of the Act to be put into place through the publication by MAFF of various Statutory Instruments. The project also prepared and distributed a poster and a leaflet to explain its contents and implications.

2.3.3 Cooperative Societies Act

The project was involved in discussions on the revision of the Cooperative Societies Act since this touched directly on both the general policy on cooperative development to be pursued by the Government and its implications for the mandate and structure of the FSD and the Department of Marketing and Cooperatives (DMC), MAFF. During the preceding ten years, several internal reviews had been undertaken by MAFF without any direct result. The project therefore engaged the services of an international consultant to undertake an impartial review of the existing Act and to prepare a draft revision for consideration by Government. The revised Act was discussed by all internal and external stakeholders and a revised draft version was submitted to MAFF in February 1995.

The objective of the proposed Act was to bring cooperative legislation in line with government efforts to establish a market economy, reinforced by, and reinforcing, grassroots democracy. The Act also stressed the need to provide a flexible organizational framework for those who wished to work freely together according to internationally recognized cooperative principles. It made provisions to correct the creation of government structures and the definition of government powers to administer and control cooperatives and to bring back the essential cooperative focus on self-help by providing a clear legal framework for self-regulation. It made provisions to shorten the law in order to facilitate its understanding and implementation by cooperators. It aimed to reduce government involvement in the cooperative movement to that exerted by the Registrar of Cooperatives, to reduce the number and extent of the powers of the Registrar of Cooperatives and to leave all issues not requiring regulation in the Act itself to the autonomy of the cooperative societies. It provided for the introduction of mechanisms to improve auditing and emphasized the accountability of the management, the auditor and the liquidator, as well as that of unions and federations. Finally, it suggested new financing instruments, new forms of member liability, additional plural voting rights and bankruptcy rules and imposed sanctions against misbehaviour.

MAFF endorsed the draft Cooperative Societies Act, the existing draft of which was slightly modified in consultation with the project. It was then presented to Cabinet and approved in July 1996. At the time of writing this report, the Act still had to be finalized in conjunction with the Ministry of Legal Affairs prior to its submission to Parliament.

2.4 INSTITUTIONAL RESTRUCTURING

2.4.1 MAFF restructuring

Following the establishment by MAFF of a number of public/private-sector sub-committees to implement the Agricultural Sector Investment Programme (ASIP), the project became involved in the activities of the ASIP sub-committee on marketing and trade. A proposal to restructure the FSD and DMC into an amalgamated Marketing and Trade Division was prepared by two local consultants. The sub-committee, however, rejected the proposal and requested the project to prepare an alternative, which was presented at the ASIP Appraisal Meeting (June 1994). The proposal envisaged a radical shift in the orientation of market support services delivered by MAFF and called for a 50% reduction in the number of established posts within FSD and DMC. After suggestions made during the ASIP Appraisal, a separate component for private-sector development was written and presented for incorporation into the proposals made by the ASIP marketing and trade sub-committee. As part of the work of the sub-committee, the project also prepared a revised proposal for the organizational structure of the Food Reserve Agency.

The organizational structure for MAFF marketing support services was finalized in conjunction with the Establishment Division, Cabinet Office, and presented to and endorsed by Cabinet. Adjustments were made to reflect the implementation requirements of ASIP. As a result of these consultations, the previously proposed Marketing and Trade Division was renamed Market Development Division and merged with the existing Policy and Planning Division to form the Economics and Market Development Department. The project continued to discuss the need to implement the proposed organizational structure to replace the FSD and DMC, with particular emphasis on the restructuring of operations at headquarters and district levels. To this effect, the project participated in various brainstorming sessions with former FSD and DMC staff on the structural changes required in the delivery of market support services by MAFF.

The project was also involved on an ad hoc advisory basis in the MAFF Restructuring Committee which reviewed all organization and staffing proposals submitted by the various ASIP sub-committees and advised on their consolidation into a reorganization proposal for the MAFF as a whole, at both headquarters and field level. Comments were provided on the restructuring proposal submitted by the Management Development Division, Cabinet Office, which reviewed all organization and staffing proposals submitted by the various line ministries in accordance with the ongoing Public Sector Reform Programme.

Although the basic organizational structure for MAFF was endorsed by Cabinet, progress has been slow. All positions under the revised structure were declared vacant and existing MAFF staff were given the opportunity to apply for the new positions in February and July 1996. However, in the absence of the appointment of new directors, no other appointments have yet been made, influencing the pace at which the reorganization of the Economics and Market Development Department can be implemented.

Finally, the project helped the Market Development Division prepare a general work plan for 1997, based on the revised mandate of the Division. This reflected the overall orientation of market development support and research activities at headquarters and field levels.

2.4.2 Food Reserve Agency

As part of the work undertaken by the project for the ASIP sub-committee on marketing and trade, the draft organization document for the Food Security Agency was finalized. The document defined the mandate, organization and staffing structure, job responsibilities, and financial plan for the Food Security Agency. It was presented to the ASIP Appraisal Meeting (June 1994) and was generally well received. Following extensive consultations, it was decided to change the name of the Agency to Food Reserve Agency, to express more clearly the basic mandate of the Agency to maintain and operate the National Food Security Reserve.

The Agency operates independently and is expected to support the agricultural liberalization and privatization process. Although it is a grant-receiving organization, MAFF has no power to decide its policies or activities. This is the prerogative of the Board of the Agency, which has gradually established its own systems and procedures.

An international consultant was fielded by the project to review the optimum size, location and operation of the Food Security Reserve. The main recommendation was to establish a flexible reserve, since the physical reserve size would vary from year to year depending on the production forecast and food balance projections. In addition, an appropriate mix of physical and financial reserve resources was recommended and suggestions were made regarding buying and storage locations and sales/release modalities. These findings and conclusions were accepted in principle by the Government and a revised final version of the FRA organization document, based on its recommendations, was prepared and presented.

Following the presentation by the project of an action plan for the establishment of the FRA, the Board, comprising three government and seven private-sector representatives, was officially installed in February 1996. The project facilitated the initial work of the Board by defining the preliminary arrangements required to initiate FRA operation and administration, including the selection of an Executive Director; the identification and setting-up of offices and the specification of provisional administrative and operational procedures. The project provided an extensive briefing to the Board and presented it with various documents that had been previously produced, such as the FRA organization document, the consultancy report on the Food Reserve, and the review study on the Storage Leasing Programme. The project also provided assistance in the introduction of a monogram/logo for the FRA.

On the request of the Board, the project attended all meetings as a permanent observer and was represented on various Board committees. The Board also welcomed the project proposal to base the project's Marketing Economist at the FRA to assist with its start-up and to provide guidance for its day-to-day operations and management.

The project provided constant support to the FRA's Property Management Unit regarding database management procedures, management of tender procedures, etc., and to the Food Reserve Unit on the design of purchase modalities, tender documents and purchase contracts for the procurement of reserve stocks and tender documents for the storage, sale and release of stocks. Support was also provided to MAFF in preparing drafts of the necessary Statutory Instruments for the FRA, as stipulated under the Food Reserve Act. These Statutory Instruments specified the designated commodities for the Agency, set the registration fees for traders and processors of designated commodities and stipulated the information to be provided by the latter on a monthly basis regarding the handled or held stocks of designated commodities.

Finally, a procedural document on the operation and management of the reserve and on the various tender procedures and operations required to procure, store, handle and sell food grains belonging to the reserve was prepared.

2.4.3 Agricultural Market Information Centre

During previous phases, the project had given support to the Marketing and Logistics Information Centre for the collection and analysis of data on stocks and the distribution of inputs and maize. After the introduction of maize market liberalization in 1993/94, it was renamed the Agricultural Market Information Centre. Its role became to collect and disseminate price information.

The project proposed revising the way in which market information services within MAFF were provided, as part of the overall organization document to restructure the Economics and Market Development Department. However, little progress was made at headquarters, provincial or district level since restructuring depended on decisions regarding the establishment of the FRA and on the reorganization of MAFF. At the time of this report, a decision had been taken by the FRA and MAFF to transfer the Agricultural Market Information Centre from MAFF to the FRA. This move is expected to enhance the sustainability of providing market information services on a semi-privatized basis and may offer opportunities to develop AMIC into an agri-business information centre. The project provided assistance in drafting a Memorandum of Understanding between MAFF and the FRA indicating the responsibilities for market information activities of the respective organizations.

Finally, the project assisted AMIC to build working linkages with the Agricultural Commodity Exchange, newspapers, the National Agricultural Information Services (NAIS), the Zambia National Broadcasting Corporation (ZNBC), the Zambia National Farmers' Union (ZNFU), the Zambia Grain Growers and Marketing Association (ZGGMA) and various donor-funded projects. Assistance was also provided for the preparation of a work plan and budget to sustain and develop the activities of the Agricultural Market Information System.

2.5 MARKET RESEARCH

2.5.1 Market liberalization impact studies

Following the posting of three Regional Marketing Officers (APOs) in Central, Eastern and Southern Provinces at the end of April 1994, the project initiated various rounds of market research studies on the effects and impact of the market liberalization process. These research studies were simultaneously conducted in all three provinces, in conjunction with counterpart staff of the Provincial Marketing and Cooperative Office. Their findings, conclusions and recommendations were used to identify adjustments, propose appropriate policy changes and identify follow-up research requirements. At a time of rapid adjustment to liberalization by the private and cooperative sector, these studies provided policy-makers and donors with invaluable information on the emerging structure of agricultural marketing, processing and storage. They also provided early warning of possible issues and problems. The research undertaken was published and distributed in a series of 18 market liberalization impact studies (see Appendix 4) under the auspices of MAFF. Apart from these formal market research studies, a series of shorter ad hoc pieces of research and analysis were undertaken with the aim of improving understanding of particular issues and problems which had arisen or were about to arise from the liberalization process.

During the 1994/95 marketing season, two rounds of research studies were conducted. The first covered the current role and function of hammermills, the characteristics of the emerging private-sector maize trade and on-farm storage issues and constraints. The second covered maize marketing costs and margins, marketing and input constraints of small-scale farmers and the changing role of primary societies and cooperative unions. A desk-study research paper on the development of maize grain wholesale prices during the 1994/95 marketing season was also prepared to illustrate the likely development of maize prices during 1995/96.

A third round of research studies made an assessment and analysis of the impact of food relief distribution on marketing operations as well as an inventory study on the provision of market infrastructure at public markets. The former study concluded that relief operations only marginally affected the normal operations of the maize market during 1995/96, but highlighted the need for the improved targeting and timing of operations in line with localized crop production and food availability patterns.

A desk-study was undertaken to compare and analyse international and sub-regional maize price developments with the development of domestic market prices and costs of production on the basis of maize import/export parity price calculations. The study provided an insight into maize market developments, including potential cross-border trade flows, as well as an assessment of the potential role for Zambia on the international maize market. Finally, a study on the maize market in Shaba Province, Zaire, was completed, attracting favourable comments from the private sector for the way in which the constraints and opportunities for maize trade were highlighted.

The project also facilitated the production of a number of detailed review studies on the leasing programme of government-owned storage facilities during 1993/94 and 1994/95 and on the operation and performance of the Agricultural Market Information System. Furthermore, a national consultant was engaged to review the implementation of the operational and organizational facets of the Marketing Credit Revolving Fund in 1994/95 and 1995/96. Based on the results of this study, the operation of the Marketing Credit Revolving Fund was discontinued. A milling sector review study was undertaken by an international consultant. The review not only examined the privatization of the parastatal milling sector, but incorporated a full sector review of the development of the large and medium-scale milling sector from 1991 onwards. On the basis of this, a number of findings and conclusions were presented regarding the future role and position of the industrial milling sector in the Zambian maize market.

A review study was conducted on the implementation of the Agricultural Credit Management Programme in 1994/95 and 1995/96. The project funded a Study Coordinator on a local consultancy basis as well as the costs associated with the active involvement in the study team of three MAFF economists. The in-depth review highlighted a number of problem areas to be addressed in 1996/97 and made specific recommendations for actions to enhance a further liberalization of the agricultural input, notably fertilizer, marketing system.

2.5.2 Private-sector market development

The project collaborated with a number of private-sector market development and research initiatives. In collaboration with the National Resources Institute (NRI), UK, the project APOs provided assistance in undertaking a rapid rural appraisal on the storage constraints currently faced by small-scale farmers.

In collaboration with the Netherlands Development Organization, SNV, a preliminary appraisal study was undertaken in Sesheke District, Western Province, on the feasibility of introducing pilot cereal banks. On the basis of the final report, a small project was launched for the establishment of a number of pilot cereal banks in 1996/97 with technical support from local Non-governmental Organizations and Dutch bilateral assistance. The results of the study were also presented at a National Workshop on On-farm Storage, Seed Banks and Cereal Banks, held in Solwezi in August 1995.

The project also provided assistance in facilitating research studies by the NRI on the introduction of inventory credit mechanisms and the economics of warehousing. Finally, as a follow-up to the latter study, the project collaborated with the EU Fertilizer Development Fund and the Agricultural Commodity Exchange (ACE) on assessing the feasibility of introducing an ACE-linked warehousing system to facilitate input distribution to, and commodity marketing by, the small-scale farming sector.

2.5.3 Training and dissemination

The project provided assistance for the organization of a Workshop on International Grain Trade and Trade Finance to promote a comprehensive understanding of the general administrative, financial and operational aspects of international grain trade, including the operation of multinational grain companies and the functioning of the world grain market. The workshop also aimed at encouraging a potentially growing participation by the Zambian private trade sector in international and regional grain trade and at offering the participants an opportunity to promote their activities and to identify and meet prospective trade partners. The workshop was held in Lusaka on 9-10 May 1996, and was attended by many private-sector representatives, including representatives from large companies trading in sub-regional and world cereal markets. A comprehensive report covering the workshop was prepared and distributed to all participants.

The project participated in numerous workshops and seminars on market liberalization issues, in both Zambia and the sub-region. Various papers for these workshops were prepared and presented.

Finally, an effective liaison was maintained by the project with private-sector associations and individuals and with representatives of donor agencies and multilateral organizations on policy and operational issues directly and indirectly related to project activities.

2.6 MARKET INFORMATION

2.6.1 Development and standardization

The development of standardized price data collection, recording, processing and reporting procedures for AMIC was addressed by designing standard pre-printed forms on which to record retail and wholesale prices at district and provincial level. The forms enabled rapid data entry, processing and retrieval to be carried out, while the use of serial numbers and colour codes facilitated distribution and data-processing prior to its submission to headquarters. Batches of these forms were printed and distributed for use by the respective field officers and the availability and supply of standardized reporting formats at field level was monitored. Based on the experience gained with the reporting system, improved sets of standardized reporting formats were designed, produced and distributed to the districts and provinces.

The system used by AMIC for the collection of retail prices was expanded to cover the whole country. However, extensive data collection was concentrated in 16 major districts only, while a more limited range of data was collected in the remaining districts. In addition, the collection of wholesale prices was introduced in 12 markets where wholesale trading occurs, i.e., the main markets in Lusaka and the Copperbelt and in the provincial centres. The number of commodities which the system covered was expanded to include major food grains (including mealie meal), legumes, root crops, oil seeds and agricultural inputs (seed and fertilizer).

Additional spring-scales and small solar-powered calculators were ordered and distributed to all provincial and district marketing officers. Facsimile machines were also provided by the project and installed at the remaining provincial offices, thus alleviating communication and data transmission constraints.

Continuous monitoring and supervision was provided by the project and regular field visits were made to ensure that data collection, processing and transmission procedures at provincial and district levels were being respected.

A proposed feasibility study to assess whether procedures for data collection on marketed volumes of a restricted number of commodities at a limited number of urban wholesale markets could be introduced, and which operational and other requirements would have to be put into place, was cancelled because of time constraints.

2.6.2 Training

The project undertook considerable training efforts at field level to ensure the operation of the market information system (see Appendix 2). An initial series of four workshops (February-March 1994) was conducted for all district and provincial marketing staff on marketing information issues, including the introduction of new and revised procedures for the collection, consolidation and transmission of data. The workshops also addressed practical price/weight collection exercises at existing markets using spring-scales.

A series of three workshops (September-October 1994) was organized and conducted for all provincial and district marketing staff in Central, Eastern and Southern Provinces on the operational and administrative aspects of introducing a Provincial Market Information System (PROMIS). This would decentralize information gathering and dissemination and make it more responsive to specific information requirements at provincial level. Monthly provincial bulletins have since been issued in these provinces, albeit irregularly and with a limited distribution.

A series of four refresher training workshops on agricultural market information (November-December 1994) was organized and conducted for all district and provincial marketing staff in the country on marketing information issues, including the consolidation of the procedures established for the collection, consolidation and transmission of data. Following these workshops, the system for the collection of prices was expanded to incorporate supply assessment indicators.

Four refresher training workshops (November-December 1995, January-February 1996) were held for provincial and district staff involved in market information activities in the country, with the exception of Lusaka Province. These workshops were attended by provincial and district agricultural and extension staff. This was expected to enhance collaboration among the various services, lay the foundation for the formulation and dissemination of marketing extension messages and increase the capability of these services to inform the farming and trading community on market-oriented production and trading decisions. These workshops not only concentrated on market information issues, but also provided a broader appreciation of aspects of liberalizing agricultural production and the market environment and the changing role and function of MAFF field staff. In addition, attention was paid to the production and dissemination of Provincial Market Bulletins in provinces where these did not yet exist.

The APOs based in Chipata and Choma provided training at provincial level to encourage decentralized data processing and analysis. The preparation and dissemination of Monthly Bulletins at provincial level was institutionalized in Central (with support provided by the European Union-funded Kabwe Smallholder Development Project), Southern and Eastern Provinces, while a Bulletin was produced and distributed for the first time in Northern Province. Bi-monthly market monitoring reports were also introduced and produced in Eastern and Southern Provinces.

Some major constraints to the smooth execution of data collection, processing and transmission procedures in the field were gradually removed. Funding problems were partially relieved as the staff responsible for the operation of AMIS in the districts started to receive direct allotments under ASIP. Logistic constraints at district and provincial levels were eased by the distribution of bicycles obtained through the World Bank-funded Zambia Agricultural Marketing, Processing and Infrastructure Project (ZAMPIP).

A National Workshop on the Market Information System was organized in June 1995, following the completion of a readers' survey on the Weekly Market Bulletin. Participants included private and public-sector users of the data, media representatives and other relevant individuals and groups. The recommendations of the workshop were incorporated into a review report to guide the further development and orientation of market information services.

Three AMIC staff members went on a one-week study tour to Tanzania to familiarize themselves with the operation of the market information system at the Marketing Development Bureau in Dar-es-Salaam. The study tour was organized in conjunction with ZAMPIP.

2.6.3 Manuals

Two procedural manuals on the revised market information system were prepared by the project for use during the training workshops and subsequent reference by MAFF field staff. The existing procedural manual on data collection, consolidation and transmission was updated and re-issued.

A separate manual on computerized data-processing was prepared regarding the customized application of the software used to process the commodity data covered by the information system.

A training manual on Market Information for Early Warning was prepared in conjunction with a marketing support project based at the Marketing Development Bureau, Tanzania. The manual was presented to staff of national early warning systems in SADC at a Regional Training Workshop in Maputo in July 1994.

2.6.4 Computerization

The computerization of data at the Agricultural Marketing Information Centre was reviewed by the project. FAO AGRIMARKET software was installed and introduced on two new workstations and customized to meet the commodity coverage envisaged by the information system. Two staff members attended a basic course in DBASE and an introductory course on the use of Geographic Information System (GIS) software applications. An in-service training programme on the use of AGRIMARKET was also conducted. This software, along with a more extensive use of GIS-based applications, was expected to allow for the gradual introduction of analytical reports on market developments on a monthly and quarterly basis. Additional computers and printers were ordered and installed at the Agricultural Market Information Centre, replacing older equipment.

The dissemination of domestic and international market and price data as well as price series for selected agricultural commodities through the Internet was initiated, but encountered problems. To resolve these, the project was actively involved in developing a specific homepage for agricultural market information in conjunction with ZAMNET, the Internet and e-mail provider in Zambia. It is hoped that such a page will eventually be incorporated into a MAFF homepage.

The project supported the institutionalization and strengthening of computerized data processing procedures at AMIC by providing in-service training. Computer training was also provided to provincial level staff (Kabwe, Choma and Chipata) to facilitate the decentralized processing and analysis of data. Attention was also paid to the streamlining of computerized office management procedures at AMIC.

The preparation of a report presenting and analysing overall price developments and trends at district level for the period 1994/95 to 1996/97, including basic District Marketing Profiles, was begun. However, serious operational problems were encountered in data-processing and presentation using FAO AGRIMARKET software. This led to a time-consuming change in data base management procedures.

2.6.5 Data dissemination

Based on the regular collection and transmission system for price data, the publication of a Weekly Market Bulletin was started and supported by the project from May 1994 onwards. The Bulletin provides a summary of the major marketing developments during the week, contains retail and wholesale-level price data on major commodities and inputs for all provinces in tabular and graphic form and summarizes the weekly prices at the Zambia Agricultural Commodity Exchange Ltd. Commodity supply indicators as well as information on international commodity prices and ocean freight rates were incorporated as a regular feature as the Weekly Market Bulletin developed.

The Bulletin was produced without interruption from May 1994 to June 1997. During 1994/95, it was mailed to over 350 maize and fertilizer traders, the DMC provincial and district offices, and distributed to cooperatives, the media, Cabinet Office, Parliament, etc. By the end of February 1995, the number of copies printed and distributed all over the country had grown to 1 000. One national newspaper published part of the information contained in the Bulletin on a weekly basis, while other newspapers quoted it as a regular source of information on agricultural marketing issues. Information was also disseminated by the radio broadcasts of the National Agricultural Information Services (NAIS/MAFF) and the weekly radio programme of the Zambia National Farmers' Union. At a later stage, ZNBC also started televising the market and price information.

A readers' survey on the Weekly Market Bulletin was undertaken along with a critical review of the operation of the market information system and an assessment of the usefulness of the data being generated for various interest groups. The review paper was published in July 1995 and made recommendations for future improvement of the market information system. A poster on the system was also produced and widely distributed.

The printing and dissemination of the Weekly Market Bulletin continued until May 1995. Subsequently, as part of efforts to ensure that the recurrent costs of data collection, processing, transmission, dissemination and publication were met by MAFF, the project discontinued its direct funding for printing and mailing. A subscriber system was introduced with disappointing results (45 and 65 subscribers in 1995 and 1996, respectively). The project started to assess the potential interest of sponsors to fund the Weekly Bulletin's printing and mailing. As a result, the preparation and dissemination of the Bulletin was continued from September 1995 to June 1997 on the basis of sponsorship arrangements which paid for the printing and mailing costs.

Given the frequency of dissemination and the wide range of sources through which agricultural market information became available to the public, it became clear that the continued printing and wide distribution of the Bulletin was no longer required. It was decided to distribute it only to subscribers from the 1996/97 marketing season onwards, and to gradually phase out the contribution of the sponsor over the same season by printing and distributing the Bulletin to registered grain and fertilizer dealers on a four-weekly basis only. The project also assisted AMIC to quantify the recurrent costs of data collection, processing, transmission, dissemination and publication so that these could be reflected adequately in the MAFF annual budget.

The availability of three years of reliable price series at AMIC now offers opportunities for an increased in-depth analysis of price developments over time. The project therefore provided methodological and operational assistance for preparing an initial analysis of real term wholesale price developments and seasonal price patterns for maize at provincial centres in Zambia. Basic District Marketing Profiles and a report presenting and analysing overall price developments and trends at district level were also prepared during 1994/95-1996/97.

3. RECOMMENDATIONS

The following recommendations concern the sustainability of a number of policy and operational components of the Market Liberalization Transition Programme which were initiated and implemented with the assistance of the project. They also concern the implementation of additional proposals made by the project for the future delivery of market support services by MAFF as well as the activities of the FRA. Recommendations are also made for work that should be undertaken to improve the efficiency and effectiveness of MAFFs market development activities as well as measures required to enhance private-sector-driven market development initiatives.

3.1 RECOMMENDATIONS TO THE GOVERNMENT

3.1.1 Improvement of the macro-economic environment

As part of the overall adjustment process in Zambia, it is essential that the macro-economic environment be further improved by stabilizing the relationship between inflation, interest rates and exchange rates, by convincing the business and farming community that these rates reflect market forces and by assisting both communities to understand how such forces work and what impact they have.

Although volatile relationships among macro-economic variables largely disappeared during the most recent marketing seasons, real interest rates remained relatively high. It is recommended that every effort be made to achieve monetary stability to ensure an effective lowering of nominal and real interest rates, which strongly influence maize price fluctuations in a normal marketing year. An effective lowering of these rates could also reduce the pressure on the Government to provide financial support to the market. This would make it possible to reduce significantly the amount of indirect government subsidies in maize and agricultural input marketing.

Relative stability also has to be established for the exchange rate. Uncertainties regarding exchange rate movements have constrained private-sector operators from investing in imports of maize and agricultural inputs. The high risks associated with foreign exchange-based import trade have probably increased overall maize and agricultural input transaction costs since traders hedged against such risks by increasing financial overheads. Since these risks are generally not sufficiently appreciated by the Government and consumers, superficial cost comparisons have been made about market price developments without a full appreciation of the high costs associated with financial risks. It is recommended, therefore, in the interest of developing and facilitating such commodity trade that such comparisons be made following proper analysis and consultation.

Farmers and consumers do not fully appreciate the effect of inflation on price formation in a liberalized economy. There is a tendency within the rural and urban sector to equate nominal with real price increases both within and between various marketing seasons. This unfamiliarity with underlying monetary factors helps to explain protests from the small-scale farming sector that maize is being sold below production costs and that fertilizer prices are too high compared to the revenues generated from maize sales. It is recommended, therefore, that the farming sector receive more education on the underlying market processes determining such prices.

If the business community is to act on these financial signals, it must be sure that market forces will guide national financial markets. It is strongly recommended that the Government continue its policy of refraining from popular short-term and ad hoc policy interventions.

3.1.2 Delineation of responsibility between MAFF and FRA

MAFF was closely involved in the decision-making process regarding the day-to-day management of publicly-held food reserve stocks until the enactment of the Food Reserve Act in 1995. The Food Reserve Agency was then given the task of managing the country's food security stocks in a liberalized market environment. However, there remains a tendency for the Ministry to make announcements on behalf of the FRA and to become involved in its operational decision-making. The FRA also tends to revert decisions on such issues back to the Ministry rather than setting its own policies and procedures. It is recommended, therefore, that the FRA operate independently in accordance with the provisions of the Food Reserve Act. Although the Board is appointed by the Minister and the Agency is required to submit an annual report to the Minister accompanied by audited accounts for submission to Parliament, the Ministry itself has no further powers over the Agency except when a national emergency has been declared. As an independent agency, therefore, the FRA should be allowed to operate outside the civil service and establish its own systems and procedures.

3.1.3 Improvement of the legal processing of contract litigation

It is recommended that every effort be made to speed-up the legal handling of court cases involving litigation on commercial contracts. The recommended approach would be to establish a separate "fast track" to deal with commercial contract issues in order to ensure that cases are heard and verdicts issued within 2 to 3 months. This would restore the value of commercial contracts as binding and legally enforceable documents detailing trade agreements and would contribute to creating a more effective legal environment for genuine private-sector operations. Furthermore, it is strongly recommended that the penalty interest rates currently applied after judgement of court cases be significantly increased from the present level of 6% per annum.

3.1.4 Implementation of follow-up assistance

The Ministry requested that proposals be submitted to the Market Development Division to develop and consolidate the market liberalization programme. Simultaneously, the FRA requested FAO to submit a proposal for continued support to strengthen and consolidate Agency operations. Both MAFF and the FRA were concerned that the current momentum be maintained, following the effective endorsement of MAFF restructuring and the gradual establishment of the FRA, and sought a mechanism for continuing assistance. Separate proposals for the provision of such technical assistance were submitted. It is recommended that these proposals be implemented urgently to limit the period between the closure of this project and the effective start of the requested follow-up assistance components.

3.2 RECOMMENDATIONS TO MAFF

3.2.1 Restructuring

The project assisted with the specification of revised market development activities and the related organizational structure required for MAFF. However, little could be done to implement the revised staffing structure as its formal implementation only started at the end of the project. The official abolition of the FSD and the DMC, MAFF, is an important step towards implementing institutional changes in accordance with the new role of the Government in a liberalized marketing environment. The proposed Economics and Market Development Department, however, merging the Policy and Planning Division, the FSD and the DMC, has still not been established. This Department will have two Divisions, a scaled-down Policy and Planning Division and a Market Development Division. The latter will facilitate and support agricultural marketing and trade through the collection and dissemination of marketing information and the provision of market extension services and training facilities for entrepreneurial development. It will also conduct market research, develop and promote the provision of market infrastructure facilities in both rural and urban areas and provide assistance for administering international agricultural trade laws and agreements. The efficiency and effectiveness of the proposed Department will depend on the progress made in restructuring the Ministry. It is therefore recommended that the restructuring exercise be implemented immediately.

The extent of the work involved in executing this restructuring should not be underestimated. It not only involves changing the basic structure of the organization by creating clearly defined sections with specific responsibilities, but will also demand the adoption by management of a radically different style and attitude in order to administer the affairs of MAFF. This management style involves accepting a greater decision-making responsibility by field managers, who will become accountable for the decisions and actions they take. Thus, it is strongly recommended that, alongside the introduction of revised reporting, monitoring and finance and accounts systems throughout, concerted efforts be undertaken to provide managerial and operational training. This will be particularly crucial for the Market Development Division, the role of which is to change from supporting market control to supporting market development.

The most suitable framework for managerial restructuring is through the establishment of an implementation team reporting directly to the Permanent Secretary. The team would comprise a number of external management consultants, who would develop and execute a comprehensive training programme. The scale of the operation, involving 6 000 staff distributed throughout the country in nearly 65 locations, means that the new structure should be introduced progressively, i.e., starting at headquarters and gradually moving towards the provincial and district offices.

3.2.2 Agricultural Credit Act

The revised Agricultural Credit Act of 1995 seeks to encourage the delivery of credit to small-scale farmers for the production of agricultural commodities. Once fully implemented, this would help to secure the loans made under various credit and outgrower schemes to the small-scale farming sector. It is recommended that MAFF make every effort to educate the farming and trading sector on the implications of the Act and introduce the full system of registration of charges at district level immediately in order to enhance credit registration and, ultimately, credit discipline within the rural finance market.

3.2.3 Cooperative Societies Act

The aims of the revised Cooperative Societies Act are to bring cooperative legislation in line with government efforts to establish a market economy and to underwrite the need to provide a flexible organizational framework for those who wish to form cooperatives. It is strongly recommended that MAFF finalize the Act in conjunction with the Ministry of Legal Affairs and place it before Parliament.

3.2.4 Government involvement in fertilizer marketing

It is recommended that MAFF maintain its basic policy stand to refrain from involvement in fertilizer imports, marketing and distribution, and that the provision of fertilizer on credit be phased-out as quickly as possible. This is expected to be beneficial in providing longer-term incentives for a further liberalization of the fertilizer market and an enhanced participation of the private sector in fertilizer marketing and distribution. It is further recommended that existing government-owned fertilizer carry-over stocks and stocks received as commodity support from donors be sold on the open market by tender or through the Agricultural Commodity Exchange. Sales of fertilizer donations in such a manner would eliminate government involvement in the handling, transporting and price-setting of fertilizer and reduce the risk of undercutting private-sector operations. It would also provide access to these stocks for both large traders, smaller stockists and farmers' groups and associations.

In addition, it is recommended that steps be taken to encourage the establishment of closer linkages between currently operating credit coordinators and established fertilizer importers in order to facilitate further commercialization of input marketing. This type of action may become a priority area for the Entrepreneur Development Section of the restructured Economics and Market Development Department of MAFF. It is also recommended that a detailed survey be undertaken to assess changes in fertilizer demand and application and reassess current annual demand projections for various types of fertilizer.

3.2.5 Maize market and trade policies

It is recommended that MAFF maintain its policy for maize prices to be dictated by market conditions. Pressures to hold prices down to favour consumers or up to facilitate the recovery of credit costs incurred should be resisted as these distort the ongoing adjustments in the allocation of resources in the agricultural sector. The continuation of free trade in maize and maize products will facilitate this process. By allowing free trade, the export market will set a floor on domestic prices while the potential for imports will set a ceiling. Prices negotiated between traders and millers that fall within this range should be accepted, even if this means taking losses on reserve stocks or receiving numerous consumer complaints.

It is recommended that MAFF maintain the current policy of free trade in maize and maize products in order to encourage the domestic market to respond to markets in nearby countries. Deficits in border areas can readily be met by imports, while surpluses can be partly disposed of by exports to nearby countries. Only in the case of a large national deficit should the Government consider the provision of financial backing, on strictly commercial terms, to the emerging private trade sector to guarantee commercial imports and support imports undertaken through the Food Reserve Agency to replenish and increase the food security reserve.

3.2.6 Small-scale farmer credit

Despite its efforts to introduce innovative ways of working through the private sector, the Agricultural Credit Management Programme perpetuated a credit bias for maize production and gave insufficient recognition to the emergence of regional differentiation in the economics of agricultural production. While a continued provision of some support for small-scale farmers may be appropriate, the current credit mechanism should be modified and regionalized if commodity and input price distortions are to be eliminated or, at least, reduced. It is recommended that the ACMP be discontinued and that a strategy be designed to promote regionalized credit delivery on a modest scale. It is further recommended that the Government consider taking the following actions to contribute to more sustainable patterns of lending to smallholders and emergent farmers: providing support to private channels of credit delivery; developing and disseminating "best practice" guidelines for inputs-commodity bartering arrangements in order to reduce transaction costs and provide an indicative reference framework to the market; developing and strengthening farmer/community-based savings and credit associations on a small-scale regional basis in association with NGOs and existing rural groups and associations; providing partial credit guarantees, on a regional basis, for commercial loans to emergent farmers and outgrower schemes involving smallholder farmers in order to diversify crop production by introducing non-traditional crops; and supporting the development and expansion of venture capital and similar funds in agribusiness investment.

3.2.7 Market and road infrastructure

Many small-scale farmers have limited access to markets. Physical remoteness and high transport costs place these farmers beyond the reach of emerging input and commodity markets. Improvements in transportation and communication infrastructure in rural areas are therefore urgently required. The investment required in feeder road development is enormous and, given the limited availability of fiscal resources, cannot be made throughout the country. It is therefore recommended that a number of important district towns with substantial scope for agricultural and agro-processing growth be designated as "growth poles" for infrastructural investment. This strategy would involve stepping-up on-farm applied research activities, roads, market infrastructure and communications development and small-scale irrigation investments. It would also mean speeding up the issuing of leaseholds for both rural and urban land, and other selected initiatives, within a 50-75 km radius of such selected rural centres. These initiatives would facilitate the strengthening of commercial networks and farm-non-farm linkages and accelerate technological change and agricultural diversification. Under ASIP, it is recommended that consideration be given to the provision of additional resources and technical expertise to the District Agricultural Committees in these "growth pole" districts in order to spearhead the development and implementation of such a concentrated investment strategy.

It is also recommended that other important infrastructural improvements receive attention, including the rehabilitation and expansion of Mpulungu port on Lake Tanganyika and the rationalization of Zambia Railways and the Tanzania Zambia Railway Authority (TAZARA). Apart from efforts to restructure and rationalize present operations, it is recommended that consideration be given to study the potential benefits to be derived from a partial or full privatization of the railway systems.

In view of the increased role of the public grain markets in most rural district towns, it is recommended that attention be given to improving market infrastructure in order to facilitate cereals trade. It is recommended that the Ministry of Local Government and Housing review management practices of the municipal councils with respect to public markets. New guidelines should be prepared and enforced and the role and responsibility of the Market Advisory Committees be made clear and unambiguous. Collaboration and coordination should also be established between donors (e.g., the European Union and the Japanese Government, who have offered technical assistance for the improvement of market infrastructure), the Ministry of Local Government and Housing and the Ministry of Agriculture, Food and Fisheries in order to avoid potential overlap of activities and to ensure that appropriate market infrastructure project proposals are prepared and implemented. Consideration should be given to the provision of general improvements of physical infrastructure that are needed at most markets in provincial and district towns, including the construction of an open concrete slab with roof to cover the open market areas and the rehabilitation and provision of sanitary facilities. Seven markets, Chipata, Choma, Livingstone, Mazabuka, Monze, Kabwe and Kasama, have been identified as having a direct need and potential for specific improvements. It is recommended that, in conjunction with the donor community and the responsible ministry, feasibility studies be carried out for these markets and that initiatives be explored by the District Agricultural Committees, in conjunction with the District Councils, to institute periodic, supervised market days in smaller towns and rural centres at district level.

3.2.8 Government/private-sector consultations

Much of the success of the cereals and input markets depends on private-sector confidence that the Government will maintain its policy of non-interference and government confidence that private-sector traders will meet the needs of the market without creating shortages or exploiting the consumer. It is recommended that mechanisms be instituted to encourage this confidence, enabling the Government and the private sector to consult in the establishment of effective cereal and input markets. Although a number of informal consultations have already been held, it is recommended that the Government facilitate the establishment of a semi-official forum where public and private-sector representatives are able to meet regularly to discuss developments in the cereal and inputs markets, exchange views on the actions that need or need not be taken, exchange information on market development initiatives and monitor market developments.

3.2.9 Crop forecasting and food balance projections

A direct effect of liberalization is that food grains are no longer bought and stored centrally but are stored on-farm or held by a large number of private traders. This makes it more difficult to obtain reliable data on national stocks and availability. In addition, as a result of the elimination of mealie meal and fertilizer subsidies and the stagnation in consumer incomes, there has been a consumer shift to less costly maize meal products and other potential substitutes, as well as a change in the use of fertilizer. These changes have seriously invalidated the use of most historical data on per caput annual cereal consumption, average monthly market demand for cereals and annual demand for chemical fertilizer. In view of the uncertainties surrounding the usefulness of the data underlying food balance sheet calculations the following actions are recommended. A detailed review should be carried out into the current methodology and procedures used by MAFF and the Central Statistical Office in the crop forecasting exercise, providing suggestions and modifications to improve the reliability of crop forecast projections. A review should also be conducted on the role and importance of alternative food crops, such as cassava, sweet potatoes, pumpkins and vegetables, in the rural food balance in order to assess their impact on overall food balance projections. A consumer survey should be undertaken to determine the underlying trends in cereal consumption, to assess whether changes are structural or temporary and to determine their potential impact on food balance sheet calculations, with particular reference to per caput annual cereal consumption. Finally, a monitoring system should be established to verify cereal import/export movements and monitor the stocks and import/export plans of private traders.

3.2.10 Sub-regional consultation and coordination

There is growing interest in fostering sub-regional trade in agricultural commodities and establishing sub-regional information systems in support of agribusiness and trade development. It is recommended therefore that MAFF actively support and initiate such consultations, on its own or through existing sub-regional fora such as SADC and the Common Market for Eastern and Southern Africa (COMESA), to propagate the elimination of existing distortions to sub-regional trade and to encourage a further liberalization of agricultural commodity and inputs markets throughout the South African sub-region. Issues to be addressed at sub-regional level include the need to harmonize agricultural marketing and pricing policies, to reduce and eliminate existing tariffs for agricultural produce, to harmonize phytosanitary, quality and weight standards for agricultural commodities and to reduce or eliminate current transport and logistical constraints. Clear policy stands should be taken on these issues and initiated, as far as agricultural trade issues are concerned, by the Market Development Division, MAFF, in close consultation with the Ministry of Commerce, Trade and Industry and private-sector representative bodies such as ZNFU and ZGGMA.

3.2.11 Food aid policy

Care should be taken to formulate a concise policy on food aid operations. It is recommended that the handling and allocation of food aid donations be made as transparent as possible, so as not to discourage the private sector from engaging in normal marketing operations. It is also recommended that existing operational procedures be reviewed to ensure that eventual food aid donations are targeted to vulnerable areas in the appropriate lean period without jeopardizing trade and market incentives for the developing private sector and the overall gains made in the ongoing liberalization of the maize market. It is further recommended that the formulation of such a food aid policy framework consider the following issues. Strict coordination should be established among food aid donors regarding commodities provided, pledged quantities and delivery time of donations, and this information should be made public in order to inform the private sector. The planning, implementation, monitoring and evaluation of relief operations should be carefully coordinated. A concise programme should be made public before relief operations begin. Relief utilization criteria should be established, and made public, regarding the food aid recipients, in terms of both area and population, the quantities allocated for each area or district by specific period, the mechanisms by which relief will be provided, any eventual price-setting in case of relief sales and any possible identification mark to be used for relief supplies to enhance its self-targeting character. In the case of market deliveries, criteria should be established, and made public, regarding the mechanisms by which such food aid is made available to the market.

3.2.12 Crop diversification

One anticipated problem during recent seasons centred on the depressed maize market conditions in some locations during the first half of the season. In order to cope with these, the Food Reserve Agency bought part of its reserve requirements in these areas to provide a marketing outlet for small-scale farmers until a more diversified cropping pattern was established. It is obvious, however, that the procurement of maize stocks by the Food Reserve Agency in outlying areas can only provide temporary support and will not in itself lead to the substitution of uneconomic maize with higher-value alternative crops. The effectiveness of phasing-out uneconomic maize production in these areas will largely depend on concerted efforts by the research and extension services to address the need for crop diversification. It is therefore recommended that a concise action programme be designed, as part of the recently started implementation of the Agricultural Sector Investment Programme, to address the immediate production and marketing requirements in these areas. It is further recommended that consideration be given to the potential provision of credit support for the creation of market outlets as well as to production promotion of alternative cash crops, potentially as part of the recently started Rural Investment Fund.

3.2.13 Discontinuation of commodity marketing credit

It is strongly recommended that the Government maintain its basic policy decision to discontinue involvement in the direct provision of crop marketing credit. In serious drought years, however, it is recommended that consideration be given to underwriting part of the import credit required by the private sector to meet the shortfall in domestic production through commercial imports. Such actions, e.g., the creation of credit import facilities, should be taken on a temporary and ad hoc rather than a structural basis.

3.2.14 Market extension and storage promotion

There is an essential need for knowledge on simple but effective storage and stock maintenance techniques, particularly at the farm level. Research conducted during 1994 indicated that farmers faced problems regarding the construction of appropriate storage facilities and lacked knowledge on storage techniques. As there still appears to be a general lack of knowledge among small-scale farmers regarding the implications of a liberalized agricultural market, access to and interpretation of marketing information and group marketing initiatives, additional training modules on market extension messages are urgently required. This information is available, but has not been used by the extension service in the past. A start was made in early 1996 to develop training manuals for extension staff on marketing and on-farm storage issues. Subsequently, extension staff in Eastern, Southern and Northern Provinces received training on these issues. Given the impact of this programme, and taking into account the positive effects on fostering the collaboration of MAFF field staff, it is recommended that MAFF make every effort to continue the programme and extend the training for extension officers who could then advise farmers. It is also recommended that consideration be given to formalize the incorporation of marketing extension and information duties in the job description of extension field staff. At present, the majority of extension field staff are employed by the Department of Agriculture, MAFF, and engaged in crop and animal production matters, largely disregarding the marketing economics of farm production. It is recommended therefore that closer links between marketing and extension staff, both at MAFF headquarters and at provincial and district levels, be established to enhance the provision of marketing extension and market information services to the farming community. Finally, it is recommended that particular attention be given to consolidating and expanding the provision of market information at provincial and district levels. Efforts to this effect were initiated through PROMIS, but require further development in order to reach the small-scale farming community more effectively.

3.2.15 Provision of grain trade training

There is an urgent need to provide private-sector operators with a full appreciation of the organizational, administrative and financial implications of domestic and international/sub-regional grain trade, with particular attention to the use of contracts, access to sub-regional markets to identify potential import/export sources, availability and conditions of external credit and risk and price management. It is strongly recommended that MAFF seek assistance to organize and conduct such workshops, notably for medium and small-scale traders and processors at provincial level.

3.2.16 Public relations programme

It is recommended that MAFF explore improved ways of disseminating and explaining the mid-term agricultural marketing liberalization policies. Although considerable efforts have already been made during the last three years, initiatives should be strengthened and integrated into the regular information and support activities to be provided by MAFF at national, provincial and district levels. The information programme should include a more extensive use of posters, leaflets, radio and television broadcasts to ensure its widespread distribution among market participants, facilitate a better understanding of the concepts associated with a liberalizing market and its short and mid-term impacts, positively influence the marketing behaviour of farmers and traders and avoid unnecessary misinterpretations of the underlying rationale and related operational arrangements.

3.3 RECOMMENDATIONS TO THE FRA

3.3.1 Maintenance of independence

It is strongly recommended that the Board of the Food Reserve Agency withstand pressure, maintain its independence and uphold a maximum degree of transparency in terms when defining its policies and carrying out its operations. It is extremely important that the FRA maintain its integrity and independence, lest it be considered another instrument of intervention rather than a complementary development support tool.

3.3.2 Reserve stock management

It is recommended that the FRA continue to apply its current flexible and conservative reserve stock policy and to justify its procurement operations on the basis of economic rather than political factors. In addition, it is recommended that the FRA withstand pressure to release stocks early on the market in an attempt to stabilize prices. It is strongly recommended that the Agency consider the release of stocks only when domestic maize prices have reached import parity price levels.

3.3.3 Storage leasing programme

Efforts are required by the FRA to stimulate the effective utilization of government-owned storage facilities. Now that commercial reserve prices are decided by a full open tendering system, traders are allowed to sub-let storage space and restrictions on the commodities to be stored have been relaxed, the administration of the programme will have to be strengthened in order to maximize the collection of lease fees. The FRA has now assumed full responsibility for this activity. It should now make a detailed assessment of which facilities should be sold and which retained in the leasing programme.

3.3.4 Stock monitoring

The lack of information on stocks held by the private sector makes it difficult to monitor the domestic food stocks available for the market and their depletion during the marketing season. To improve collaboration with the private sector in order to obtain this information, it was recommended that AMIC staff and representatives of the private sector develop a reporting format acceptable to both and establish rules of conduct which would not breach normal trading confidentiality. This task was taken over by the FRA and a standard monthly reporting format was introduced requesting information on purchases, sales and stocks, but not prices. The reporting requirements, including the reporting format, were also gazetted. It is recommended that this format be introduced as planned by the FRA and that compliance by the private sector to the reporting requirements be strictly enforced and monitored. It is also recommended that the FRA handle such information in strict confidence.

3.3.5 Market information services

The Agricultural Market Information Centre, which provides information on prices of agricultural commodities and market developments, was considerably strengthened during the last years in terms of its data collection, processing, analysis and disseminating capabilities. Since May 1994 it has been preparing and distributing a Weekly Market Bulletin, but the dissemination of market information and the opportunities to reach the small-scale farming sector remained severely constrained. Now that the decision has been taken to transfer AMIC to the FRA, it is recommended that the FRA source and provide adequate funding for AMIC to consolidate and expand the dissemination of its price and market information. In addition, it is recommended that the FRA encourage AMIC to expand its commodity coverage to include horticultural and livestock produce and to establish a more extensive network for collecting data on commodity market and price development within SADC and on the world market.

Appendix 1

PROJECT STAFF

Dates of Service

Name Function Starting Date Concluding Date

International

F. van de Ven Chief Technical Adviser/

Senior Marketing and Food

Security Adviser Aug. 1993 June 1997

G. Clemor Marketing Information Expert May 1993 Sept. 1994

J. Helder Marketing Economist Oct. 1994 Feb. 1997

Marketing Information Expert Oct. 1994 Feb. 1997

J.-J. Nijhoff Marketing Economist Nov. 1994 June 1997

H. Denen Regional Marketing Officer,

Kabwe (APO) April 1994 Dec. 1994

M. Schoorl Regional Marketing Officer,

Chipata (APO) April 1994 April 1996

P. van Wijk Regional Marketing Officer,

Choma (APO) April 1994 April 1996

P. Ojermark Agricultural Credit Consultant July 1994 July 1994

H. Henry Cooperative Societies Act

Consultant Sept. 1994 Sept. 1994

P. Tyler On-farm and Village Level

Storage Consultant Oct. 1994 Nov. 1994

J. Lynton-Evans Food Reserve Consultant Jan. 1995 Feb. 1995

P. Fleming Consultant Milling Sector

Review Nov. 1995 Dec. 1995

P. Muvwende Driver May 1993 Sept. 1993

E. Bwalya Driver Nov. 1995 Dec. 1995

National

V. Brown Financial Consultant Oct. 1994 Nov. 1994

E. Sakufiwa On-farm Storage Consultant Oct. 1994 Nov. 1994

P. Kotecha Consultant on Grain Tender

Procedures July 1995 July 1995

F. Mwape Team Leader - ACMP

Review Team Feb. 1996 March 1996

Dates of Service

Name Function Starting Date Concluding Date

Thikondane Moving Popular Theatre Performances

Theatre Group in Eastern Province July 1995 Aug. 1995

S. Phiri Senior Marketing Officer/

Head AMIC May 1993 June 1997

N. Samukonga Senior Economist, FSD May 1993 Aug. 1996

M. Tembo Marketing Officer, AMIC May 1993 Oct. 1995

A. Zunduna Marketing and Cooperative

Officer, AMIC Nov. 1993 Dec. 1996

M. Goma Marketing Officer/

Computer Operator, AMIC May 1993 June 1997

K. Mbuzi Marketing Officer, AMIC May 1993 June 1997

M. Ndhlovu Marketing Officer/

Computer Operator, AMIC Sept. 1994 June 1997

D. Mundia Senior Marketing and Cooperative

Officer, DMC, Kabwe May 1994 Dec. 1994

E. Pelyashi Senior Marketing and Cooperative

Officer, DMC, Chipata May 1994 April 1996

M. Kalunga Senior Marketing and Cooperative

Officer, DMC, Choma May 1994 April 1996

Appendix 2

FELLOWSHIPS AND STUDY TOURS

A2.1 FELLOWSHIPS

Participants Study Place Date

S. Phiri Familiarization/ Marketing Development 20-24 June 1994

B. Zulu Study Visit Bureau, Dar-es-Salaam,

N. Samukonga Tanzania

A2.2 WORKSHOPS

Workshop on Promissory Notes - Lusaka, 22 October 1993 (30 participants - Departmental and Provincial Marketing and Finance Officers, Ministries of Agriculture, Food and Fisheries and Finance - jointly organized with HIID).

Seminar on Marketing Transition Programme - Lusaka, 18 November 1993 (15 representatives from farmers' organizations, lending institutions, millers, private traders, commercial banks and government agencies).

Market Information System Workshop - Kabwe, 2-5 March, 1994 (19 participants - Provincial and District Marketing Officers from Copperbelt and North-Western Provinces).

Market Information System Workshop - Kabwe, 6-9 March, 1994 (16 participants - Provincial and District Marketing Officers from Luapula and Northern Provinces).

Market Information System Workshop - Lusaka, 20-23 March 1994 (15 participants - Provincial and District Marketing Officers from Lusaka, Southern and Western Province).

Workshop on Maize Marketing Arrangements 1994/95, Lusaka, June 1994 (90 representatives from Provincial and District Marketing Cooperative Unions, other cooperatives and farmers' organizations and lending institutions).

Workshop on Provincial Market Information System, Kabwe, 29-30 September 1994 (16 participants - Provincial and District Marketing Officers from Central Province).

Workshop on Provincial Market Information System, Chipata, 6-7 October 1994 (12 participants - Provincial and District Marketing Officers from Eastern Province).

Workshop on Provincial Market Information System, Monze, 7 October 1994 (12 participants - Provincial and District Marketing Officers from Southern Province).

Refresher Training Workshop on the Agricultural Market Information System - Eastern Province (pilot workshop), Chipata, 10-11 November 1994 (14 participants - Provincial and District Marketing Officers from Eastern Province).

Workshop on "The Impact of Maize Market Liberalization on Storage by Small-scale Farmers", Lusaka, 16 November 1994 (9 participants - representatives from Non-governmental Organizations, private sector and MAFF).

Refresher Training Workshop on the Agricultural Market Information System - Northern, Lusaka and Central Provinces, Kabwe, 21-22 November 1994 (24 participants - Provincial and District Marketing Officers from Northern, Lusaka and Central Provinces).

Refresher Training Workshop on the Agricultural Market Information System - North-Western, Copperbelt and Luapula Provinces, Kabwe, 28-29 November 1994 (24 participants - Provincial and District Marketing Officers from North-Western, Copperbelt and Luapula Provinces).

Refresher Training Workshop on the Agricultural Market Information System - Southern and Western Provinces, Livingstone, 1-2 December 1994 (18 participants - Provincial and District Marketing Officers from Southern and Western Provinces).

Workshop on the Marketing Credit Revolving Fund, Lusaka, 13 April 1995 (43 participants - representatives from commercial banks, private-sector maize merchants and companies, press, Ministry of Finance, Bank of Zambia, and Ministry of Agriculture, Food and Fisheries).

Workshop on the Input Distribution Programme, Lusaka, 27 April 1995 (36 participants - representatives from commercial banks, credit managers, private-sector maize/input merchants and companies and Ministry of Agriculture, Food and Fisheries).

Workshop on the Agricultural Market Information System, Lusaka, 7 June 1995 (38 participants - representatives from the press, lending institutions, credit managers, private-sector maize/input merchants and companies, millers, and Ministry of Agriculture, Food and Fisheries).

Southern Province - Workshop on the Agricultural Market Information System, Livingstone, 14-18 November 1995 (14 participants from FSD/DMC and 11 participants from Department of Agriculture).

Central and Copperbelt Provinces - Workshop on the Agricultural Market Information System, Kabwe, 29 November-2 December 1995 (20 participants from FSD/DMC - Provincial and District Marketing Officers - and 18 participants from Department of Agriculture - Provincial and District Agricultural and Extension Officers).

Eastern and Western Provinces - Workshop on the Agricultural Market Information System, Kabwe, 6-9 Dec. 1995 (16 participants from FSD/DMC - Provincial and District Marketing Officers - and 16 participants from Department of Agriculture - Provincial and District Agricultural and Extension Officers).

Luapula and North-Western Provinces - Workshop on the Agricultural Market Information System, Kitwe, 24-27 January 1996 (19 participants from FSD/DMC - Provincial and District Marketing Officers - and 16 participants from Department of Agriculture - Provincial and District Agricultural and Extension Officers).

Northern Province - Workshop on the Agricultural Market Information System, Kasama, 31 January-3 February 1996 (16 participants from FSD/DMC - Provincial and District Marketing Officers - and 3 participants from Department of Agriculture - Provincial and District Agricultural and Extension Officers).

Workshop on International Grain Trade and Trade Finance, Lusaka, 9-10 May 1996 (65 representatives from domestic trade, finance and transport companies; 3 representatives from South African trade companies; 7 representatives from GRZ and the donor community, including SADC and COMESA).

Workshop on the implementation of a programme of popular theatre group performances in Central Province; Kabwe, 10 May 1996 (20 participants from the Departments of Agriculture and Marketing and Cooperatives).

A2.3 TRAINING COURSES

Introductory Course DBase - Lusaka, 27 September-8 October 1993 (part-time) - 2 counterpart officers of the Agricultural Marketing Information Centre, Food Security Division.

Geographic Information System Appreciation Course - Lusaka, 15-20 November 1993 - 3 counterpart officers of the Agricultural Marketing Information Centre, Food Security Division.

Internet and e-mail appreciation course - Lusaka, April 1997 - 5 officers of the Agricultural Market Information Centre.

Appendix 3

MAJOR ITEMS OF EQUIPMENT PROVIDED

Cost

Quantity Item ($ US)

1 Copier, Canon NP 3050 4 986

8 Facsimile machine, CANON Fax-150 6 938

4 Personal computer, IBM PS/ValuePoint 486/33 8 860

2 Printer, HP Laserjet 4M 4 230

2 Vehicle, Toyota Hi-lux 4x4 28 889

1 Vehicle, Toyota Corolla 11 356

5 Personal computer, Gateway 2000 486/66 8 590

2 Printer, Epson LQ 1170 dot-matrix 1 360

1 Printer, HP Laserjet 4M Plus 2 125

2 Air conditioner, Frigidaire 12,000 BTU 1 474

2 Monitor, IBM PC 350 6 612

1 Printer, HP Laserjet 4 Plus 1 575

2 Computer, Compaq Contura 430C DX4/100 6 062

4 Radio, Motorola Radius P110 2 224

1 Printer, HP 650C 656

In addition to the above equipment, the project took over the equipment previously purchased by the project GCPS/ZAM/045/NET.

Appendix 4

DOCUMENTS PREPARED DURING THE PROJECT

A4.1 MARKET LIBERALIZATION IMPACT STUDIES (MLIS)

On-farm storage of maize in a liberalized market environment. An overview of opportunities and problems facing farmers in Eastern, Southern and Central Province, Zambia. MLIS No. 1, October 1994.

Maize milling in a liberalized grain market. The position and development of hammermills in Central, Copperbelt, Eastern and Southern Province, Zambia. MLIS No. 2, October 1994.

Some characteristics of the emerging private maize trade. A preliminary review of private sector maize trade during the 1994/95 marketing season in Central, Eastern and Southern Province, Zambia. MLIS No. 3, Lusaka, November 1994.

Maize marketing costs and margins. A preliminary analysis of the efficiency and profitability of private maize trade during the 1994/95 maize marketing season. MLIS No. 4, Lusaka, February 1995.

The development of maize grain wholesale prices during the 1994/95 marketing season: an abnormal or recurrent phenomenon? MLIS No. 5, April 1995.

The adjustment by the cooperative sector to the liberalized marketing environment. A preliminary analysis of cooperative sector performance in crop and input marketing during the 1994/95 marketing season in Central, Eastern and Southern Provinces, Zambia. MLIS No. 6, May 1995.

Changes in agricultural input marketing for the small-scale farming sector. An overview of problems and opportunities experienced by small-scale farmers during the 1994/95 planting season in Central, Eastern and Southern Provinces, Zambia. MLIS No. 7, May 1995.

Leasing of government-owned storage facilities. A review of the 1993/94 and 1994/95 leasing programme and issues regarding management of storage facilities for consideration by the Food Reserve Agency. MLIS No. 8, June 1995.

The Agricultural Market Information System in Zambia. An evaluation of its present operation and performance, and suggestions for its future development. MLIS No. 9, July 1995.

Theatre on crop marketing. Results of the implementation of a series of theatre performances on crop marketing issues as an alternative approach to marketing extension in the rural areas of Eastern Province, Zambia. MLIS No. 10, October 1995.

Recent developments and future potential of Zambia's international maize trade. A brief analysis of the potential role for Zambia on the international grain market. MLIS No. 11, December 1995.

Some characteristics of the maize market in Shaba Province, Zaire. A brief analysis of the maize market in Shaba Province, Zaire, and its implications for maize trade with Zambia. MLIS No. 12, December 1995.

Review of the operations of the Marketing Credit Revolving Fund during 1994/95 and 1995/96 - constraints and future development options. MLIS No. 13, January 1996.

Large and medium scale maize mills sector review. MLIS No. 14, February 1996.

Public market infrastructure in Zambia. An assessment of physical infrastructure and management of public markets, with particular reference to maize trade, and suggestions for future improvement. MLIS No. 15, February 1996.

Review of the Agricultural Credit Management Programme, 1994/95-1995/96. MLIS No. 16, June 1996.

Are food relief operations displacing maize marketing activities? A preliminary analysis of the impact of food relief operations on maize marketing developments in Eastern, Southern and Western Provinces during 1995/96. MLIS No. 17, June 1996.

Zambia: From transition to consolidation - a critical policy review of the liberalization of maize and agricultural input markets, 1993-1996. MLIS No. 18, December 1996.

A4.2 CONSULTANCY REPORTS

Report on a consultancy to review and finalize the Agricultural Credit Act. P. Ojermark, Lusaka, July 1994.

Report on consultancy to review cooperatives legislation. H. Henry, Rome, October 1994.

Report on financial consultancy to investigate the utilization of GRZ marketing and fertilizer credit 1992/93 and 1993/94 by the lending institutions and SPCMU. V. Brown, Lusaka, February 1995.

Maize market liberalization in Zambia: the case for support to on-farm storage. P. Tyler and E. Sakufiwa, Rome/Lusaka, March 1995.

A National Food Security Reserve - Zambia. J. Lynton-Evans, Rome/Lusaka, March 1995.

A4.3 POLICY STUDIES AND POLICY DISCUSSION NOTES

A review of crop marketing liberalization in 1993: the need for a transition programme. December 1993.

A review of maize marketing liberalization during 1994: the transition programme 1995/96 (Policy Paper). March 1995.

The establishment of a marketing credit revolving fund - outline of some organizational and operational modalities (including a preliminary draft Subsidiary Loan Agreement), mimeo. July 1994.

Brief assessment of the likely impact and consequences of the 1994 drought. Paper for the Technical Committee of Economic Ministers. April 1994.

State House brief on national food and drought situation, mimeo. January 1995.

Extension support to small-scale farmer maize marketing and storage. FAO/Technical Cooperation Programme Project Proposal, March 1995.

The establishment of a disaster relief trust fund - outline of organizational and operational modalities; paper prepared for the National Disaster Relief Committee, Office of the Vice President in conjunction with WFP and UNDP, mimeo. July 1994.

The 1995/96 marketing season food shortfall, policy note presented to the donor community, mimeo. May 1995.

Marketing Credit Revolving Fund 1995/96 - draft loan agreement and organizational and operational modalities for 1995/96, policy note, mimeo. May 1995.

Statement to the donor community by the Government of the Republic of Zambia on the maize import situation during the 1995/96 marketing season, in conjunction with the Ministry of Finance, mimeo. August 1995.

Proposed operational modalities for the maize credit import facility, in conjunction with the Bank of Zambia, mimeo. September 1995.

Loan agreement for the maize credit import facility, in conjunction with the Bank of Zambia, mimeo. October 1995.

Status of response to the drought/food shortfall situation - brief for the Technical Committee of Economic Ministers. November 1995.

Critical note on the food supply situation. Internal policy note. December 1995.

Proposed modalities for the sale of designated commodities by the Food Reserve Agency, policy note, mimeo. January 1996.

The restructuring of the marketing credit revolving fund into an inventory credit fund - organisational and operational modalities, draft policy paper, mimeo. March 1996.

Real term price developments and seasonal price patterns for maize at provincial centres in Zambia - an explanatory note, mimeo. May 1996

Some reflections on the 1996/97 maize trade dilemma - should the export ban on maize and mealie meal be lifted? Draft policy discussion note, mimeo. May 1996.

Modalities of reserve stock purchases during the 1996/97 marketing season, Food Reserve Agency policy note, mimeo. July 1996.

Status of maize marketing and agricultural input supply arrangements 1996/97. Briefing note for the Office of the Vice-President, mimeo. September 1996.

Reconciliation of food security reserve operations during 1996 - A preliminary critical analysis, mimeo. September 1996.

The small-scale farming sector in the outlying areas - alternative development options to provide transitory support. Internal policy discussion note, mimeo. January 1997.

The establishment of an agricultural trust for the small-scale farming sector: some preliminary observations. Internal policy discussion note, mimeo. January 1997.

A4.4 CABINET MEMORANDA

Implementation of a maize marketing transition programme. January 1994.

Repeal of the National Agricultural Marketing Act, 1989, and enactment of the Food Security Act. February 1994.

Debt rescheduling of agricultural credit to initiate post-drought recovery of agricultural production. May 1994.

Repeal and replacement of the Agricultural Credit Act (CAP 349) of 1962. August 1994.

The 1995/96 marketing season food shortfall. May 1995.

Debt write-off for small-scale farmers who have been unable to meet their loan repayments due to recent droughts. October 1995.

Agriculture: maize marketing arrangements for the 1996/97 marketing season. March 1996.

Legislation: repeal and replacement of the Cooperative Societies Act (CAP 689) of 1970. March 1996.

Agricultural input marketing and credit arrangements for the 1996/97 marketing season. March 1996.

Agriculture (information): 1996/97 input and crop marketing situation. December 1996.

A4.5 ORGANIZATION DOCUMENTS

Organization document for the Food Reserve Agency, ASIP Sub-committee on Marketing and Trade. May 1994.

Restructuring of the Food Security Division and the Department of Marketing and Cooperatives: proposed organization document for the Marketing and Trade Division; ASIP Sub-committee on Marketing and Trade. June 1994.

Food Reserve Agency - Organization document (revised version). July 1995.

A4.6 LEGAL DOCUMENTS

Contract for maintaining and operating the National Food Security Reserve, mimeo. August 1994.

The Food Reserve Act, 1995 (final draft). March 1995.

Agricultural Credit Act, 1995 (final draft), Lusaka. July 1995.

Sales of strategic maize reserve stocks. Contract of appointment between the Food Reserve Agency (FSD/MAFF/GRZ) and the Agricultural Commodities Exchange. February 1996.

Agricultural Credit Act, 1995 - Statutory Instrument and Agricultural Credit Act (Registration) Rules, mimeo. March 1996.

Cooperative Societies Act, 1996 (final draft). March 1996.

Food Reserve Act, 1995 - Statutory Instruments (four draft Statutory Instruments prepared for MAFF and FRA). April 1996.

Tender document for the submission of a proposal for the management of food reserve stocks, Food Reserve Agency, mimeo. July 1996.

Tender document for the supply of white maize 1996/96, Food Reserve Agency, mimeo. September 1996.

Maize Delivery Contract, Food Reserve Agency, mimeo. September 1996.

Reserve Stocks Storage Contract, Food Reserve Agency. September 1996.

A4.7 MANUALS AND PROCEDURAL DOCUMENTS

Procedures regarding the use of the rediscountable promissory notes and the forward sales contracts. October 1993.

Procedural manual: computerized data processing, AMIC/FSD. May 1994.

Procedural manual on data collection, consolidation and transmission (revised and updated edition), Agricultural Market Information Centre. November 1994.

A4.8 OTHER REPORTS AND PAPERS

Market Information for Early Warning. Report prepared for the 1994 Regional Training Workshop of the SADC Early Warning System for Food Security (prepared in conjunction with project UTF/URT/101/URT, Marketing Development Bureau, Tanzania), Maputo. July 1994.

Marketing Information System Study Tour to Tanzania. Report of the study tour participants, mimeo. August 1994.

Maize storage in a liberalized economy. Paper presented at the Marketing Coordination Meeting, Kabwe Smallholder Development Project, Kabwe. September 1994.

Brief on marketing liberalization issues - Zambia. Paper presented at the NRI/SADC Workshop "The practical implications of grain market liberalization", Harare, 18-20 October 1994.

Agricultural market information in Zambia. Paper presented at the NRI/SADC Workshop "The practical implications of grain market liberalization", Harare, 18-20 October 1994.

Reader's Survey - Weekly Market Bulletin, Agricultural Market Information Centre. February 1995.

Food security and cereal banks in Sesheke District - an appraisal of the feasibility of establishing cereal banks in Shesheke District, Western Province, Report of a joint mission of the Netherlands Development Organization (Masese Agricultural and Sesheke North Development Projects) and the FAO/Marketing Management Assistance Project. March 1995.

Brainstorming workshops with the private sector on the marketing credit revolving fund, the input distribution programme (credit managers) and the agricultural market information system - summary of conclusions and recommendations. June 1995.

Import parity prices for maize grain. Paper presented to a private-sector trade meeting organized by the Kabwe Smallholder Development Project, mimeo. July 1995.

Introduction of cereal banks in Zambia: a viable option? Paper presented at the Solwezi Workshop on on-farm storage, seed banks and cereal banks, 16-17 August 1995.

Maize market liberalization in Zambia. Paper presented to the Meeting of the Association of Food Marketing Agencies in East and Southern Africa (AFMESA), Lusaka, Zambia, 25-28 September 1995.

Agricultural market information in liberalizing economies - the case of Zambia. Paper presented to the Meeting of the Association of Food Marketing Agencies in East and Southern Africa (AFMESA), Lusaka, Zambia, 25-28 September 1995.

Principles of agricultural marketing in an open market environment. Paper presented at the Agricultural Market Information System Workshops November 1995-January 1996, mimeo. November 1995.

Rapid assessment of the food market situation in relation to food relief operations in Western Province. February 1996.

Report of a Workshop on International Grain Trade and Trade Finance, Lusaka, Zambia, 9-10 May 1996.

The Food Reserve Agency: Zambia's Food Security Reserve in a liberalized market environment. Paper (mimeo, prepared in conjunction with the FRA and MAFF) presented at the AFMESA Meeting, Lilongwe, 8-12 October 1996.

A4.9 PUBLIC RELATIONS MATERIAL

Protect your grains and fertilizers: undertake on-farm storage. Leaflet prepared and produced for the Food Security Division in collaboration with UNDP/FAO project ZAM/89/001. November 1993.

The agricultural market information system. Poster designed and developed for the FSD/AMIC. October 1994.

Marketing arrangements for 1994/95. Poster and leaflet prepared and produced for the Food Security Division. May 1994.

"Maize on-farm storage pays!!" Sticker and leaflet prepared and produced for the Food Security Division. June 1994.

The Marketing Credit Revolving Fund - What it is and how to apply for it. Poster and information note prepared and produced for the Food Security Division. July 1994.

Marketing arrangements for 1995/96. Poster and leaflet prepared and produced for the Food Security Division. April 1995.

Information note on Tanzania's food situation for the 1995/96 marketing season and availability of white maize for export. Information note, mimeo. June 1995.

Marketing arrangements for 1995/96. Leaflet (local vernacular versions - Bemba and Nyanja) prepared and produced for the Food Security Division. June 1995.

The marketing credit revolving fund - organizational and operational modalities for 1995/96. Information note. June 1995.

Maize import marketing and pricing arrangements. Advertisement prepared and produced for the Food Security Division. September 1995.

Information on maize imports for private sector. Compiled manual. September 1995.

The maize credit import facility - what it is and how to apply for it. Advertisement and information note prepared and produced for the Food Security Division in conjunction with the Bank of Zambia. November 1995.

Modalities for the sale of designated commodities by the Food Reserve Agency. Advertisement prepared and produced for the Food Security Division. February 1996.

The Agricultural Credit Act, 1995 - what it says and what it means for farmers, lenders, traders and others. Advertisement, poster and leaflet prepared and produced for FSD/MAFF. March 1996.

Maize and agricultural input marketing arrangements for 1996/97. Advertisement, poster and leaflet prepared and produced for FSD/MAFF. March 1996.

Video popular theatre performance on crop and input marketing, National Agricultural Information Services, MAFF, Lusaka. May 1996.

Weekly Market Bulletin, Agricultural Market Information Centre, May 1994-June 1997. (weekly; total 150 issues), May 1994-June 1997.