CHITHUMBA SERVICES -Market Maker
Providing farmers and traders with better access to markets has been one of Chithumba’s core foci since its inception. To take this a step forward, we have recently implemented a new trade modality — Chithumba Market Maker. Every day over several weeks, Chithumba buys commodities from farmers and traders at certified rural warehouses, owned by farmer organisations. The Buy Price is calculated as follows:
Chithumba published price (based on 5 MT delivered at factory gate in Lilongwe) - Transport costs - Withholding tax (WHT) - Storage fees. When lots of 15 MT have been aggregated, they will be offered for sale to willing buyers.
The Sell Price is based on the following:
Chithumba published price + Chithumba margin + Chithumba commission + Handling charges + Storage fees + Finance cost. During the pilot phase, we traded maize, soybean, and unshelled groundnuts.
Moving forward, Chithumba wants to add buying sites in the North and the South. This might involve 4x4 containers, and working with more farmer organisations that own warehouses.