Who qualifies for contract farming and what are the benefits of this facility?

Local producers that are able to produce 200 x 50kg bags of any of the crops listed under contract.

  • Insulates farmers against adverse movements of market prices by offering them:

- 100% guarantee on the agreed minimum price
- Opportunity to capitalize on rising prices

  • Helps farmers to prepare seasonal budgets and application for loan.


E.g. the contract price of sorghum was P1700/mt while the current BAMB buying price is P1350/mt against prevailing market price of P1150/mt. This scenario shows that a farmer that has signed contracts to sell to BAMB for the 2009/2010 season will benefit as the market prices have collapsed.

In instances where the market price exceeds the contract price, the farmer is offered the market price. E.g. contract price for Tswana cowpeas was P6400/mt and the current buying price is P7000/mt. We would not want to disadvantage a farmer who has signed contract; therefore we buy their produce at P7000. NB: 1metric tone is 20 x 50kg bags.
 

Price Files

Click here to view current BAMB Producer and Contract prices. 
 

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