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Regulatory changes pose challenges

11 Sep 2024 - by -
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Thanks to the projected increase in agricultural volumes, it is clear that farming is a critical industry that will continue to thrive. Africa’s need to ensure food security underscores the importance of improving farming practices, enhancing yields and upgrading crop quality. To achieve these goals, a more efficient supply chain and increased access to inputs are essential.According to Kevin Hutton, COO at J&J Africa Warehousing, logistics service providers are well advised to prioritise investments in infrastructure and technology to keep pace with the evolving needs of the sector. By doing so, they can enhance the efficiency of supply chains, reduce delays and better support the agricultural industry's growth and sustainability. He said at Beira Logistics Terminals (BLT) the business was strategically designed to handle future growth and adapt to rising volumes. “We are consistently looking for innovative ways to add value for our customers, ensuring their cargo is managed according to best practices. Health, safety, environment and sustainability remain the cornerstones of our operations, and a priority for both our business and our customers.”According to Hutton, the company has, over the past few years, invested in updated handling equipment and facilities. “In Beira, where drainage challenges during heavy rains can impact business operations, we have implemented a robust drainage system. Our system, measuring just over 1.3 km in length and averaging one metre in depth, is meticulously maintained to prevent water accumulation and protect cargo.”He noted that with volumes expected to continue increasing, both the market and logistics must evolve to meet the demands, despite the numerous challenges faced in servicing the agriculture sector.“This year, we’ve observed early volumes arriving through Beira, indicating that the market may be preparing for a promising season. However, the droughts in Zimbabwe and Zambia suggest that these volumes may be speculative. There remains a significant amount of cargo in warehouses, and the market will likely clear these before additional tonnages are introduced. By September, we should have a clearer picture of whether the drought will impact annual volumes.”When discussing concerns, he highlighted that frequent regulatory changes posed significant difficulties for the logistics sector, especially in handling agricultural products.“Constant shifts in regulations compel businesses to adapt and re-strategise their supply chains. While this may be manageable in the short term, such changes are unsustainable in the long run. The SADC region has varying regulations for handling agricultural products, and standardisation is needed to reduce costs and ensure that farmers can secure inputs at the best possible prices.”

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