Company ProfileExport Trading Company Ltd

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Export Trading Company Ltd (ETC Zambia) is an agricultural trading company in Zambia operating under the Export Trading Group (ETG) Brand. ETG is a conglomerate with nine Zambian subsidiaries and over 150 global subsidiaries.

ETC Zambia’s core activities include procuring, storing, and trading agricultural commodities, mainly maize, soybeans, and groundnuts. In 2020, ETC Zambia traded over 150,000 MT of maize, 100,000 MT of soybeans, and nearly 2,000 MT of groundnuts. About 70% of commodity volumes are sourced directly from smallholder farmers, with the remaining sourced from traders and brokers. They operate in all provinces of Zambia.  ETC Zambia’s key customers are Zambian milling and processing companies, with some crops exported to regional countries.

Project Description

The proposed project with support from EZCF is to launch a groundnut seed multiplication and grain out-grower scheme in the Western province of Zambia. The project includes the following components;

• Groundnut seed multiplication scheme – Through ETG depots and the existing extension network, 1,000 smallholder farmers will be contracted to multiply groundnut seed. The Seed Control and Certification Institute of Zambia (SCCI) will provide training and seed inspection and certification services. Groundnut seed produced through this scheme will be purchased and supplied to groundnut producers involved in the out-grower scheme.

• Groundnut out-grower scheme – Through ETG’s extension network, 5,000 smallholder farmers will be contracted to produce groundnut grain with guaranteed offtake from ETC. Farmers will be organized in groups of 20 and will be provided with training on GAP, CSA, business management, post-harvest management, aflatoxin management, governance, and record keeping. Through a blended inputs financing scheme, smallholder farmers will access inputs. All groundnuts produced through the out-grower scheme will be purchased by ETC Zambia and sold to its sister company, which will process the groundnuts into peanut butter and peanut snacks.

Marketing, impact on people and the environment;

The proposed project aims to work closely with smallholder groundnut seed multipliers and grain producers. ETC will support farmers to access input financing, training, extension and soil testing services and guaranteed markets.

Groundnut prices are relatively stable, compared to maize and soya. ETG has a trading desk in South Africa that monitors commodity market prices and provides ETC Zambia with frequent pricing information. This allows them to regularly adapt their marketing strategy in response to market dynamics.

Contracted out-growers will be trained and required to adopt and implement CSA practices which include soil mulching, minimum tillage, crop rotation and inter-cropping.  2,000 out of the 5,000 smallholder farmers to be contracted as groundnut grain out-growers are already working with ETC on a cashew nut production project. These farmers will be trained and supported to inter-crop groundnuts with cashew nut trees in the first three years of tree establishment. Inter-cropping is beneficial to both the trees and the groundnuts. Groundnuts take out nitrogen from the atmosphere which is beneficial to the environment and also helps to improve soil fertility.