AGENCY BUSINESS IN NCPB
The Board is a commercial state corporation mandated to carry out commercial trading as a means of generating revenue to sustain itself. In order to increase the product portfolio, the Board is partnering with various suppliers along the agricultural value chain to distribute their products using the Board’s vast network of depots that are easily accessible by farmers. The partnership is aimed at optimizing the Board’s huge capacity and network of depots that are close to the farmers as well as provide an opportunity to various suppliers to reach more customers. In addition, the Board is able to provide a one-stop shop for farmers for most their input needs.
The arrangement involves the NCPB entering into an agreement with an interested firms or organizations to provide various products in line with the Board’s area of business that is cereals, fertilizers and agro- chemicals. The Board will act as an agent, in which it will basically sell the products while the firm is the principal, supplying the products based on market demand. The Board earns commission based on the quantities sold, while the firms benefits from the increased market reach. Currently, the NCPB is engaged in agency business with various firms in the sale of seeds, fertiliser, agro-chemicals and grain storage bags.