According to a statement sent to VerAngola, the agreement aims to directly support the cultivation of wheat and ensure "its flow through associated mills".
Under the agreement, the association – formed last year by Grandes Moagens de Angola, Lda.; Kikolo – Sociedade Industrial de Moagem, SA; and by Carrinho Empreendimentos, Lda. – undertakes to make information available to the farm about wheat grain needs as well as the "quality specifications of the wheat grain that AFPTA members consume and the expected schedule for the delivery of the wheat grain grown annually".
In turn, the farm must provide information to the association about the "quantity of wheat grain available for delivery, the cultivation and harvest plan for subsequent years and any expansion plans".
The farm also undertakes, according to the statement, to cultivate wheat grain for flour milling with the specifications communicated by the association as well as to "sell its production exclusively to its associates", according to the terms of the contracts established with each one.
In the memorandum, APFTA assumes the role of "facilitating agent in establishing the commercial relationship between its members and the farm" and also as an "aggregator of information" about the market and domestic production.
César Rasgado, president of the association, quoted in the statement, considered that the initials of this agreement "represents a step forward in the promotion of relations between the agents of the value chain of wheat flour production in Angola and is part of the common efforts to diversify the national economy and reduced dependence on imports".
In turn, Alfeo Vinevala, representative of the farm, highlighted the importance of memoranda of this kind for producers, as they help to guarantee the commercialization of the harvest.
"Basically, what we need to boost the investment made is to ensure that the result of our harvests is bought from us in full, at an adequate price, and that we know exactly what we are producing and for what purpose. I believe, will make us even more agile and more productive, which will prove to be positive for the Angolan economy", he added.
The farm, located in the province of Bié, has a production area of 3000 hectares, and last year it produced more than 1000 tons of wheat grain.
The conflict between Ukraine and Russia, which are one of the biggest wheat exporters, has led to an increase in the price of this raw material by around 30 to 40 percent, which could lead to a rise in the prices of wheat derivatives, such as for example bread.
