Africa in 30 years will be home to 25 percent of the world population. However, the farmers expected to supply the volume of food required have limited access to fair markets for their produce and are forced to accept unfavourable terms from local buyers or intermediaries, impacting on their profits and undermining the development of a robust supply chain. At the same time, buyers usually face aggregation and related cash flow issues at the time of harvest.
FtMA equips smallholder farmers with forward delivery contracts with commercial buyers. Farmers use the stability from this relationships to access finance used for inputs and equipment. Buyers, comprising small to medium-sized agribusinesses, can improve their businesses through more reliable product supply and improved communications through better-equipped aggregation centres. Farmers learn the financial benefits of consolidating high-quality produce through aggregation buying centres. Having reliable relationships with buyers empowers them to adopt correct agronomic practices and qualify for financing if necessary.