In a move to boost local agriculture, Ruaha Milling Company (RMC) and Magulilwa AMCOS have signed a Memorandum of Understanding (MoU) to facilitate trade in maize grain. This follows a business linkage meeting organised by TAPBDS in the Iringa region in 2024 under the project of AID-I of AGRA funded by USAID.
Through this agreement, Magulilwa AMCOS and other 9 AMCOS aggregates contribute to make a total of 2000 metric tons (MT) of maize, which RMC has committed to purchasing. This collaboration pledges to enhance the livelihoods of smallholder farmers (SHFs) and ensure a steady supply of maize at a competitive price of TZS 480 per kilogram.
Final negotiation under this partnership is on the payment terms whereby two options are being considered: either RMC provides the funds upfront for Magulilwa to purchase the maize, or Magulilwa uses its resources to buy the maize and then sells it to RMC. This flexibility aims to streamline the process and ensure that farmers receive timely payments for their produce. Discussions led by RMC representative Mr. Zacharia Luvanga, alongside Magulilwa leaders and board members, with Village Extension Officer Mr. Msuya as an observer, have been instrumental in shaping this partnership.
As TAPBDS continues to strengthen business relationships and create competitive market systems, this collaboration also marks a significant step forward in supporting local agriculture and empowering smallholder farmers. By working together, Ruaha Milling Company and Magulilwa AMCOS have set a precedent for successful agricultural trade, fostering economic growth, and ensuring food security in the region. This is one among many other hundreds of business partnerships that the AID-I project is strengthening in the southern regions of Tanzania where TAPBDS is implementing.