So what happens at EME? People buy and sell maize or what?

But you shall remember the LORD your God,for it is He who is giving you power to make wealth,that He may confirm His covenant which He swore to your fathers,as it is this day. Deu 8:18

Has worked very successfully for donkey years at Mercantile and Commodities Exchanges all over the world. It is amazing that Africa that claims to be agricultural has none.

http://en.wikipedia.org/wiki/Commodities_exchange

Mbaru has been a pioneer in developing financial markets in Kenya. Go! Jimnah

This is a good idea that should have come long ago. I think those who are dismissing it are motivated by ignorance or hatred of the person who has mooted it. Ethiopia is already far ahead in establishing a grains exchange,yet their agricultural industry is less sophisticated than Kenya’s.

There are three huge benefits as I see it (there could be more):

1. A maize futures exchange will enable farmers to be 'paid' when they need the money,not when NCPB or Wakulima market is ready to buy. This removes one of the biggest barriers that farmers face - uncertainty.

2. By enabling many more people to invest in farming - without having to farm - such an exchange will increase the capital available to agriculture in a big way which will increase our food self sufficiency

3. Such a market could encourage land consolidation,which will reduce the inefficiencies of our current small-holder model.

Of course there are risks too. The market could become subject to speculation and all sorts of underhand doings as in the NSE. But we have experience from elsewhere to learn from.

Good People,

I think it is a good idea to mobilize huge cash for the farmers as well as give future indications of prices. However,I think it is already in play. I went up country the other day and was being shown that the farmers are already striking deals while the produce is in the shamba. And the deals were struck by the Shamba and not by sacks. I think this is a good start and we will see more of it. I am told that even KBL and Tobaaco farmers have had this kind of arrangement for a while. I applaud Jimnah for making this thing formal and availing it to much more investors like us who prefer to blog instead of dirtying our hands in the shamba under the sun. We can now take the risk and make/ lose money on this while the farmer,the initiator is assured of proceeds.