Hey, folks, welcome to Money Spaces with me, Kylo Aja. Welcome wherever you are listening from. My name is Kylo Aja, and I'm glad to have you all here this evening. Today we are going to talk agriculture, technology and finance around the talk those topics right, and we have guests today in the house. We have the guys from AFFECTS, that's Nigeria's commodity exchange. They are here with us and we are glad to have them.
I'm going to just talk with them about that intersection I've talken about a great tech and finance and they have a Hackerton. So if you're on, if you're a tech guy, you know, tech babe out there you want to hang and and basically us listen to what you want to say. I think you will find it very interesting. So my pleasure to welcome as Tamila, she's here already. I'm expecting Michael Martins as well as I want to own Mutan see Hi to the folks somewhere. Yes, of course, Hi everyone.
Hi, how are you doing? I'm doing fun? Thank you, Happy Sunday. It's great to be here, great, great, great, good to have you here as well. That Michael, before we go, it's affects oh afex a fact. Thanks, gotta get my vowels right afex I here yeah, r no words, affects going forwards, no worries. Yeah, all right, So welcome to the show we talk here. It's gonna be personal, financial, economy, and money, and we always want to make it personal. So everything we still want to make break it down
so that the folks can say, how does this affect my wallet? That's especially what we're doing. So I'm adding my cloud writing in here, so you can also introduce himself. But let me just start with you, m Can you just about It's like he does about effects? What do you guys do? Not to the casual observer, what do you guys do? What do you guys want to achieve? In the penal? Just give us an
intro? Okay, So UM for the for the benefit of this UM Today's conversation and topic, UM, I will just say that we operate as a
commodities exchange. Amongst many other things. UM. We use UM we power and use different and several types of initiatives UM and UH with technology and mind as well to create platforms that benefit the entire commodities value chain, right, so from agriculture and everything in between that has to facilitate like the growth of Africa's food systems and every and and the likes right, So essentially to the casual observer. As you said, m that was so essentially, you guys
are like in the middle. I'm a farmer and there's a buyer. You guys been sitting down middle and create that a cost system. They make it work. If I want to do holistic productive make it I like that, Yes, exacteen, certainly I like that. All right, So I've got We've got you. We've got you a co hosting here. Hi. You want to say Hi, mister Michael, Hi, call you Hi. After giving me everywhere, bat Michael love me to be here? Great? Great,
great, Michael. I'm was gonna jump right, and I just ask you my questions, like how does commodity exchanges, how do they help the economy? And how do they help me as an investor? Right if right now with Nigeria inflations about three in two percent, how can effects help me? And also how do they help the economy? Hi? Call you? You know tex text and of that of Qussure and it's it's I mean,
it's a very neat qussure. It might take a list bottling. So just just there with me as much, right, um, you know, so like so, like Estra said at the beginning, right, we primarily started as an exchange. This is made back then twenty twelve, And fundamentally the work of the exchange is to help facilitate trade, right uh. And this is between you know, the suppliers and commodities and and the bias and commodity
and in between. That is where we then also leverage um, you know, technology and then also different financial market products to allow both retail and institutional investors also partake in the market. So they act essentially a supplier. Um, they act essentially a supplier of capital into the market in terms of how they exchange helps the economy. I'm gonna use AFX as a you know, um, you know, I'm gonna use AFX as a as a sample,
as a sample exchange. So take for example, we started it. Yeah, we started in the year twenty twelve as a as a comodities to change. Fundamentally, we started that. The question we were trying to address up the time was, you know, how do we ease a conversion of the capital or two commodities and comodities back into capital right when we startedding. But there was also a need to build up the supply side of the market. My side of the market today is largely small to find as the account for
more than nineteen percent of today's total agricultural production. And that's a post both grains and export commodities and basically every other type of production that we have. So on one side, we helped to build up that past market in terms of our ability to provide access to imput, access to fertilizers, access to
training. That's just one side of the market, correct. The other side of the market is also where because of our ability to build that that supply side via you know, part of the market, and open up that market to buy us. Right. So the process I was like you know, granterials like old, I'm just a name drop a few essentially not have a story of different sellers that we can buy at any good to time. But but in addition to all of that is that this already normally happens in any
giving in any given commodities market. The advantage to exchange is that that entire you know, that entire process is essentially standardized and formalized, right, and because it's formalized, that's where we can then start introducing them. Say, you know, retail are smaller being you know, smaller and I'm sorry retail and institutionally test us and it basically difference between most of them is just upance
capital to be able to buy. Right. These people can then partake in the market in terms of being able to buy commodity products like sport, contracts like it easy products like basic income product that then also features products which essentially is just an abilue to make money based off of the price in freential of commodities. And that's about how essentially they have you know, that's how it
essentially the argute and direct and sort of also partake in the market. Yes, we help improve the whole property last gave for small de farmers being the jure majority of supplies the market. On the other side, we also have buyers who essentially buy smallest is a process them to final products. Yeah, I mean basically nineteen eighties and ninety and even all of us can stu to data to conflict and final products. And that makes you know, those products
is essentially cheaper. You know, there's better quality, better quality, standardization and special nation. And then in the middle of that is where you know you don't have the video players like meta that we say that institution that's like yourself and myself. So for me, so for me, like how does it help me? Like if I have money banks inflicient between two percent food in presutive four percent, can I invest? How does it helped me?
Yeah? So so so think about the test. Maybe it currently can be used inflation and a world I mean, obviously it's the same way across you know, most contact of the world. Is that we take into account certain commodities or certain final products in that food basket, and then we track their prices and how they've changed over time. That's what we call inflation. Right.
What we need for what we need for moost. People don't understand is that a lot of the raw materials that is used in the final products I essentially commodities that are treated anything in most the formal exchange commodity markets and also informal commodity markets, right, So meaning that if I buy that raw material itself, whether I'm buying that directly from the markets who I'm buying that through spot contracts, I'm able to protect myself because essentially what the what the infection
is measuring is the change that I've already happened in the commodities market. I don't know if that makes sense, right, So if I'm buying the commodity itself, I'm most I'm more or less buying that commodity as an edge against inflation, meaning that whatsoever will translate in inflation in the next month or two months or three months. What idea I've already happened the the commodities market like before, So if I buy a commodity today, the odds that I in
that commodity goes or by ten to said price. The price the finestic for example, based if I buy that commodity today and posto by ten to said price, the price of complaints is the eventual or you know, find a finished product can essentially go up by five percent, but that will happen in the next two or three months. I hope that. I hope that makes so. So I'm from running the inflation if if I'm buying I'm buying it pre inflation, more or less so before before it gets to food before the
food goes up. I bought at a low price, and I can say one inflation hits the markets, is I want to hear exactly? So it's commodities are bought as a hedge against inflation. That's how they is. You know, essentially the average person can sort of take a badge the price. Men obviously inflicition taking to account way more you know factors than you know. Compliments are just than just food prices are commodity prices. But there is a
ramical portion of the complication itself. I hear excellent, okay, so I also hear and with what contooser? I mean, that's a real quick firm get into the crypto matter. What are the challenges right? I know farmers in my village and are happy. We have a lot of cas server in the ground. We can get the cas server to markets. And the guys in legals and a bar want to garry and they don't have any garry. So that's that that from village to city. What are the distinct challenges that
you see? I mean, I see logistics clearly. There are no roads like good rules in my village. There's no trueing to take it to legal what do you see in terms of the challenges around getting food from where it's going, the party from KB to legals, the castle from my Literally what do you see? Oh do you want to think that? Yes? Yes, because yes, because this is very much I would say a cultural issue, right. The things that people know is what it's going to determine the
actions that they take. Um, Like you said, the farmers in your village, there's a chance, a high chance that they do not have the knowledge of, you know, things like the necessary data they need to make the right decisions regarding how they take actions on your farm cositions buy more of their SI, less of this like logistics, as you said, taking things from your village due to things and situations like badge roles and everything else in
between. And then when they actually get to the market, being able to negotiate the best prices for their commodities to continue to grow or develop their businesses or their family practices. So that's where we come in between as well, because while we're even trying to bridge the gap between the farmers and the final
consumers. Okay, this is processes included, manufacturers included. We also have to in factor in creating platform that facilities that help these farmers understand and everybody have consistent communication among among the values. So everybody who's a player as a value team has a consistent communication between each other rights. So yeah, so we create facilities, we promote or we try to or into incubate systems or solutions like that. And that's where you know we could cash for comes in
that I had to do. One comes it in peace financing and this person and programs, that's where they come in. So UM, yes, So the so this is it, let's talk to me about that. Talk to me about the hat. I don't have a passion knowledge of it. What's it about? What is it trying to do? Just talk to me about that. Okay, So UM, I can talk about the agg hackathon without
talking about called cash group. Coldsh Crop is the platform that we've created to personally take conversations between every player or every key stakeholder in the agriculture and managing right. So this is from farmers to UM the technologist to everyone who is in UM whatever business then somehow, some way please within the vanuaging right.
So by facilitating these conversations, we're talking about it. After talking once the next step, we have to create solutions problem because we can talk and talk and talk and keep talking. Where we are those solutions? Um you know?
So yes, the agg hackaton then comes into play at that point when we into incubation solutions from the general public of course, people who have great or some innovative ideas setting there there, suggestions, their ideas, their proposals, and in the air part of something that actually drives change, positive change, you know in our fron systems. No, that's the top, but
you get get the work done. Or we moved from this diversification. Every year since I was born, the government wants to diversify into agriculture every year, and somehow every year ends with food being more expensive on the past year. So I'm really hoping that we can maybe here do that tech a Greek finance. There's a synergy there and I want us to crack it. Right. Let me go back to Michael. Michael, so just what me, what are the drivers are in terms of pricing of communitive markets And let me
ask my question like this. The new president has says going to be a minimum pricing for agriculture for our products, he said in an operation. That means that for instance, farmers that maybe find paddy rice, the government will put a flaw underneath them. It's not a new novel idea, but government will basically guarantee you a price, so if you grow your crops you can
sell at this minimum price. How does that play into a free market, like a market driven pricing framework that I know that the effects and the comic change is basically trying to create. Does it this s thought? Does it help if I'd invest in paddy rice? Does that create a flaw for me on a free market for the demand and supply? Can you just walk me around that um title of call you um so to be honest, right, Um, it's kind of like, you know, we're trying to bundle.
We're going to try and bundle the pressure into is a really different parts you know one of the key you know one are the key drivers of commodity prices? Yeah, anyvenoit markets. Secondly, is also that the new unity to of the new government and the administration more than the implications of that of the market, and how does that translate into some of the investments in some of the products that we do have an exchange today in terms of returning investment for
the average individual. Right. Um. The first is so typically for any commodity, right, the first thing that you know, sort of determining the quodity price itself is its own you know, attendance, supply and demand, right And obviously by the law of economics that that is pretty much straightforward.
But exacinly have more supply the demand, which is typically we have UM for most of the grades that we trained on the exchange today in the fourth quarter of them, which is where they are harvest There crises tend to you know, prices tend too, I mean, prices tend to be low essentially and essentially over the colt to the quarta that volume diminishes, I think the out
way more demand that supply, our prices tend to rise. Tecndly is also your have currency movements, right, So these largely plays export commodities that have international prices from sure, right, So if your currency it gets the valued, uh, you know, if your currency gets the valued, the price of par commodity goes up. And if your commodity, if your currency gets over valued in the manner of speaking, your your currency of your commodity also
in the value UM. There will also be like you mentioned before, you know the cost of transporting those commodities of areas where they produce the areas where they're antiquated. In two So if you use the Adrea as an example of today, most of the grains that we consume at the country to they are produced of north, either the northwest or north eastern region, and most of
that processing capacity is in the south and part of the country. Reading that, there is a logistics element of moving those commodities from the north where they're produced to the south where they're mosting process and consumed. Right, So the transportation costs of moving those comodities is incredibly important in determining the final price. And another purity will also impact moodity prices to state in terms of driving the prices. Also, storage comes right, So in areas where you have huge
storage called in the areas where you have a very high storage capacity. Uh you know, then you know, high storage capacity means that there is lu our storage costs and lo our storage plastic beings. That's higher storage costs, right, and the average ware house when I would charge you all the more when that part of that many competing you know warehouses are available to you know available to the story your commodities. Last, which I think is obviously not
east is mother nature itself. Right, So whether climate climactic conditions can also varily affect the amount of volume that is produced in any given commodities in which
then SUBJCVA medium florence is the price correct um. So this is in case or if you have you know a lot of flooding in the verticular value chain, which is very common in the rice value chain, that would impact the volume that is produced and then also the subsequent um and then also the subsequent price of dark commodity at harvest or over the cost of the entire commodities unit. Right, So those are something like the biggest factors that drive commodity price
in any given markets. Correct in terms of the new initiative that the government is trying to institute it um, they easier said than that. And the reason why I say that is because if you look at the entire commodities bands keep in Africa today, commodity boards are typically a typically it's the future across
export commodities, mainly export commodities. And there's a reason why that is is because you know, export commodities obviously they have you know, um, they have a huge I mean they contribute a huge value to the economy in terms of their pansy to attract for an exchange learneys soredibly before times you know, to you each country that exports them. Secondly, is also that for export commodities, in comparison to grades or state boards, the market is more organized
and there's a tendency towards commercialization. So it means that you have varies for a very small array of players, conducing a significant portion of the house, and really that it's very easier to control them as opposed to having you know, nine ten you know, you know, twelve million different smold Obama and you trying to control the price or each you know, of each That's an
interesting take. Correct. Now, with that being said, the implications of a commodity board essentially would be a minimum price, and the reason why the government is trying to do that, obviously is to try and transfer enough of the value of that commodity back to this world of the farmer who is the director responsible producing them. On D one correct is to say that today because of the lacket market, because of the lack of lack of market infrastructure.
The government is then trying to institute a minimum price. So let's say, for example, base is produced at a thousand tons at the media of the season, the government can institute a minimum price and let's say one fifty thousand plan ton to make sure that the farmer and this is just a sample of exactly, this is just a sample, right, to make sure that the
farmer makes a proximity fifteen percent. Now, the implication of this is that it will be incredibly more difficult for exchanges to design financial products that will that will guarantee any source of gain. In a manner of speaking, how can imagine that by the time that price is fixed, the process or is on the other end of that market, it's not also incentified. Its incentivized rather
to buy that commodity have that price. So it's insectivized incredibly to look for alternatives either directly in the local marketing terms of struggling, either regionally in terms of struggling in from other countries, or either you know, importing directly from the lug. You know, and of course I take it to account whatever you know, the prevailing government with what put about the prevailing government policy is on inputs right, um, that incredibly being saying, you know, way
more difficult. What is ideal correct in any given market? What it's the saving way I should also I should also say, is an open market that produced it, you know, if it's sort of fair and transferent pricing, and a market that is developed enough to make sure that you know enough of the value of enough of the value of the commodity that is produced by smallti farmers, especially transferred back to death today on the exchange with facilitate this through
the storage infrastructure that we have. Let me explain. If a farmer produces a you know, one term to day most of the time because of the nature of it, you know, so because because of the nature of your souciate eComics, he is forced to sell up that volume on day one, whereas that same commodity can essentially move from one hundred thousand to one pigeon thousand, but he doesn't capture any part of that outside exchange currently facilitates that is
value capture. For that's what all the farmer today is to provide a you know, reputable storage infrastructure to say dook, yes, I know you have a round, yes I then you produced the term, but can you sell out rouple or five times a day and keeps group five time to make sure that you can sell them off at their higher price in the future. Who who owes the owstuff storage? The farmer or apex who owes this top in storage user storage? Infer structure, so typically w charge there is is a
tide and an automatical basis for the volume that is kept. Correct, that's fundamentally how they exchange currently helps and transfer value back to this mode of FARMA and as opposed to what the government is trying to do today and maybe at the end of the day we maybe we may be able to find it involved
in middle brand. The more advanced, the more slightly complicated elements involved in the transfer of that values what we call futures prices to day derivatives right, which is basically to saying, yes, FARMA can produce that one time, but then you can sell that zero point five times which he is to keep
it. You can sell it touch a forward future price that that doesn't currently doesn't currently exist in huge in huge volumes to day of the market, and we hope to be able to institute that you know, over the over the course of the next governing months. Those market mechanisms in comparisons to a government bought are far more efficient in comparison to let's say, you know what what the government is trying to do with day today with regards to trying to fix
the minimum prices for commodities. Actually, I hope I didn't lose you because that that definition at all. And just what I what I get from there? Like is this right? If I have cassaver in my village, I have a thousand tons of casaman village because I have to sell it immediately, I sell it for ten thousand n Era. When cassaver price goes up when the demand of harvest is over, the guide advice from me gets the differential
in price and it makes all the money. But if I also take my cassaver to your warehouse and I keep it there and I pay you rents in quote, right, I can keep selling my cassaver throughout the year and I get more money. Right because I now take that badge of okay, And the government is saying the governments on side is saying, irrespected, what I sell my cassaver immediately, I'm gonna get a minimum price. But you folks
are doing the market side and saying not one I'm gonna give me. Don't guarantee that you can sell throughout the year, so you take an advantage of Okay, I get it, I get it, make sense, I get it. Let me come to esther. We have this challenge, and again I like you to just like Michael has talked about the challenge about the infrastructural storage. Yes, I'm not sure, let's start with the data challenge.
You know, I read it what you guys put up, walk me through with, give me the problem, tell what you guys want to solve, and what you want let's do it that with I'm even want to do all three at once, or if you want to take it one or to the other, it's your call. Okay, So we can start with the data
challenge. Of course. Um, if we take a look today at our agricultural market and the infrastructures and places from private or public um, you know, public or private individuals, companies, you know, whoever it says the government wants to do or private individuals want to do, there is still a gap in data like that would allow for informed decision making for by these farmers
at the end of the day is what they know. As I said earlier, and as Michael also pointed at that they would be able to act on or act upon. So with the data challenge for the Ackerton to be precise, we would be looking forward to seeing innovative ideas and solutions that would try to bridge this gap and make sure that farmers have they have access to information that would allow for precision agricultural activities. Like imagine a situation where your farmer
in your village, for example, can monitor market shrens. He knows how much Maids is going for that season, how much he could potentially go forward, and he could make the inform decision of taking his commodities or his crops to the nearest effect a warehouse as an example. So yeah, So solutions like this do not just benefit the value chain or the processors or effects.
It's at the end of the day, it's about the impact it's making in the productivity of the small or the farmer, which is your farmer in the village. So yeah, it makes sense. So essentially, what I see here is that right now the guy in life, they does not have any pricing mechanc He doesn't know what Cassaby sold outside or half year. He doesn't know what you guys until sorry, sorry to cut you up them. But what we do see now, because you did mention to a challenge that they
could be facing. What you see now is middlemen who go on, let me use a little slightly different vibes right their powered back by, okay, They decide whatever price they wanted to go for. They facilitate the sale between the farmer and maybe an international buyer or a buyer from the city, and then they create whatever price they want and you know, they keep the difference. And I mean, it's it's a system and working for them. But
is it beneficial to the school or the farmer. It's the actual producer of dark commodity. That's if it's not beneficial to them, then reloxivity is going to be stalled. And that's that's essentially the cruise of the problem, at the foundation of it. If we're trying to feed everybody in Africa, if we're making the attempt to feed everybody in Africa, then the people who are doing people are producing the food to be attended too. Not only not only
small or small or minute type of situation. It has to be sustainable, it has to be efficient catcha. So so in this case now with the with the data challenge, you want to create a prize data mining database with me that my farmer can basically go there typing Cassaba and it will give him the prize of Cassaba as a today because it's gonna be live when mobile and the web and that becomes now the prize of beause, like I will go in and prize maybe crypto or stalks, but this time now for commodities.
So if I know that that Cassaver is also amount, it can help me make my present decisions or my sons just or you want to plants next season. So excellent. This system already exists because it does power some of the processes that have a day today or the system that happened day today, or the message before if it's is day to day activities. We would just like
to see innovative ideas for the agg hacathol to be more precise film. The people who do need this, they need this, um you know, they need the systems to be in place because if I can't eat, you can eat, the outer affect everybody everybody. So so data telling is about creating a pricing network where I can create something that to do with pricing. I
got that. What about the this is the what about? This is the called the extension and I'm reading it is talking about farmers need active ingredients and all that walk metro that what does that mean? You're talking about low yields and you want to develop a u SSS the application walking through the extension part of the what do you guys want to do with that? Okay, So
an extension based solution would exist. I wouldn't say exclusively from the Internet, but we need to consider that so many parts of Nigeria, not just Nigeria, Africa as a whole, because our services and of course extended beyond the borders of Nigeria, are expecting solutions to be submitted from Kenya and we do
have a fair trade services running in Uganda as well. So if we create us USS debate solution, it would be easier performers who do not have the best access to internet service to get knowledge on solutions or anything that they need. If they need knowledge on maybe what Okay, let's say as an example, they go to the market and they're trying to buy fertilizer, or they're trying to buy something and they don't have knowledge or information about it, it
would affect the quality of what they go out and get. Or if they do have that knowledge, then they would be able to buy what they need and understand what they are buying and what they are purchasing. So with m with knowledge, there's also support so having access to these um and considering them dispiracy or the lack of internet access, which is the best way I can explain, because there are so many factors that actually going to play in USS
be based or an extension age solution would would make provision for that. Right and for this I cannot to be precise as I mentioned it's a cross border were very much you give for what to cross border solutions like things that can go beyond the borders of Nigeria. Right, Um, if it's going to work in Nigeria has to also consider possiblity of working in Kenya and in Uganda and every other country that we need to because this is an Africa. Things
one Nigeria, this is Africa. We're trying to feed Africa. So um yes said that being said, um, that is exactly what the extension challenge is talking about in my only man, in my only man, out of standings, He's going to be like, if it's like my own Google for family, if I want the farm, say in Kby, I can I can find out the kind of fertilizers using Kebby's soil to go this particular kind of um of rice. Is that what was what extension is going to give
me as an output? Yes, that's a that's that's a very interesting, very interesting angle. You mentioned the car, like, there's so many ways he could go. Um, there's so many things you could provide for even support by the support as well. Yes, but um there that's a very interesting angle. And yes that could work as well, all right. And then the last one is that is the one. I think it's the it's called a logistics and special it is a logistics that one I find. Yeah,
that one I find interesting because I was speaking to a farm. I don't know if it's here. The farmer points Julian on the spaces and he was telling me he had a lot of um products and he saw there were a lot of silos that were not working or when or we're bad, and he was trying to raise funds right to go through take the silence to use. And here you're talking about essentially a proposal that will create a warehousing solution
to enable farmers request for storage and logistics. So I like it. Let's let's talk more about this. Yes, as you know, if you look into the solutions that effects provide UM. As Michael has also mentioned earlier, there's the storage UM there's a storage permission that has to come into play for the entire manuche to work productively, seamlessly and with the with the logistics challenge.
It's a situation like I would though it's not exactly the same thing, but just for general understanding and for clarity, I would use the Uber example. Right, So imagine being able to um to uh go on your mobile phone or whatever each other away the solution design or the innovative wants to go
with the solution or how they want to tackle that challenge. You could they could go on your boards or your mobile devices and require for a storage space um social cubic meters they need to or they need to store this amount of grains or the many stacks of brains, and then they request for the space.
They then it's a schedule time they request for US or logistics and they don't have that, it comes over and takes them ome, take of the commodities and takes it back to the where Also imagine a very similar um situation like that. So we are looking forward to seeing innovative solutions that could power and support the inefficiencies that currently exist within that part of THEATIA system, which is the logistics, you know, the logistics and the movement something from one
place to do the other. I mean this, but this particular situational challenge exists anywhere any other form of business anybody wants to do moving oil from the port to another same or any any other situation. Right, but think of how much it affects the agricultural value chain, considering that this is food that goes on the table and people have to eat and for sures us have to
create products everything else in between. Okay, I got a comment on Twitter and the gentleman all is basically saying the Michaels might be for you that NAE r LS has a system that is responsible to inform farmers on price, range, seed quality and other services. But he says it's not feasible enough and if you know what the na r LSS, maybe gent gentleman could put from
a more context. And that's why he said that there's a feedback that we have this, but it's not really quote unquote working for us, right, So maybe the privacy there coming in true effects would then put some ginger into that and we can get it going. Oh, Michael, um, if I would come to you, right, it's just done a great job in just talking to us about the street challenges, and I see where you guys
are going. It's pretty smart, right, because if I have land, I don't know what to farm, I can go to the data quote unquote page and get the pricing of commodities that are exporting or are selling more if you use that technology, and I could then start a farm or invest in that commodity. Then the extension at least I want to know what sort of I should igram by urea fertilizer from dangote or should I will get notori fatalizers.
Extension comes in there. And also when I now get my production, like, I can go to the logistics side of it and I can say, okay, I have all this produced, where can I store it? So I can take advantage. You've spoken about the whole value chain, so data extension, logistics on the diseasy cash crop for point. Oh and the hackaton great great, great points. Can we link this now right into exports? And it's sort of a curveball there, but Nigeria right now has got
to get forex in. I don't know if he looks at a at a bar and shot where technically in terms of foreign exchange we might be scar broke. Right, how can this power say exports for the guys listening that want to just mix some dollars, right because fuel price is now five hundred and narr And now I'm going back to that wallet team, how can we link this right? Um, there's there's an opportunity here for the IT folks. Well, how can the guy that just wants to invest in an era to
make money? Is there's something in here for us that can push exports? Or second you multiples teams of income? What do you see? My? Um? Thank thanks Darling for that question, right, um? And and to be honest, it's not a it's not a straight guy to be honest, right, So I'm wonder hand you know we've talked it extensively about how we're able to you know, the effectiveness with which we're able to provide data
to eachmall the farmers, so they under water farm. Yeah, and then the can and you know involved logistics to them being able to see, you know, see seamlessly use that commodity from where they you know, where they're producing, where they eventually, um, you know, where they eventually can
zoom. But where. But with exports things become slightly more difficult um and and the reason why that is is because so so first of all, they shrug infrastructural issues within our ports today, meaning that you know, if I take let's say a hunt letting, lets it wants a truck of coocle today, Let's it like thirty downs or cook and I want to export that today? Right? If I take that to the port, even if if it can takes let's say about thirty days for in any given in any given time
to Nario, right for that commanding gole to grow from an egeria. So let's say, so, let's it's somewhere in Europe, right, so let's elect twitter land that takes a lot of coffee and whatnot. On all of that, if you take it to a nine ron point, you can be rested sure that you'll probably you will probably not get it until maybe ninety or or twenty days. Right. Essentially, what that means is that there's about you know, one month, two months, sometimes even three months lad between
what is ideal and what eventually plays out export back. Right. Secondly, is also because of that most of the contract and there in the export markets, they're essentially free of what the meaning that is essentially paid against shipping documents, meaning that themnity supply, that dimnity supply, that commodity is to the pots I essentially want to get my money back or I'm essentially paid for that
communtitude. But the problem is that even though you're getting instant settlement, in sort of limits the volume of contracts that you're able to do, since most bias wants to see the eventual products anyways before they essentially pay for it's so ideally, what that means is that if you if you buy idea, you could buy a thousand times because most of the contracts that we constructure, even you know, what is essentially advantages to be SADI is also a free of
what type of contract, meaning immediate sentslement, it will only do a hundred tons, So that sort of because of those infrastructure issues that immediately limits the amount of volume. Do you understand you can essentially push out of the country at any given at any given period of time. Um, you know. But to circle back to quote unquote the you know, the original conversation about
pricing and you know, productivity for the average more of the farmer. Now, honoradly speaking, what would expect that the entire and honoradly speaking, if you look at let's say, you know, certain countries that have uh, you know, commodity boards for some of the ex so to some of the commodities that they produce. So let's say, for example, you take gunna and go correct and then they have comment they have multi bodes for an expert
commodity like Coco. That sort of works for them, but it's not even as effective as they wanted to be. So essentially, today, if you want to buy um, you know, if you want to buy co going Gunna or go dif there is a price premium that is attached to whatever based price that all about the breast price of that commodity is correct and essentially What that does is, like I said, is to attempt to transfer as mount of that value to the to the to the producer as much as portible,
which is most of the time small of the farmer. Correct, But that essentially doesn't work because yeah, we have to usually take a step back. Right, The farmer's fundamental problem is no price. The f fundamental problem is productivity. There's the same in South America, right, which is you know, which is which is another huge agricultural region. Right, um market is
the best fertilizer. And let me explain what that means. Don't necessarily just give me, you know, a higher price of my commodity, because in any didderent case because of the sub black commodities, and also because most of the commodities that you can use in this part of the world in Africa has seasonal the undulated back and forth anyways, So meaning that you would and you
have some point unity pricing school of the technically would reverse. I've been doing harvest good, but if I have a market for my commodity, that essentially motivates me to improve my productivity as an harvist. Fun that's that essentially incentive is the difference between the farmer going from one hundred thousand. So take for example, it's the only thing you're able to provide is just higher pricing.
Correct, It's the difference between your farmer going from an hundred thousand that term to big money that it was to big to wile m for thousand because prices are not being fixed that set or because the price of commodities went up as opposed to that's not all the farm are being able to double this productivity because
it knows that there's a market for it. Does that make sense? Because like even if you even if that's into today, you know we were to double the volume of agriculture and the volume of export commodities in the country, the other side of the market because of the infrastructure issue is not available.
There's no there there's no market access from that product for that production, right, So meaning that even if you were to double our contiunity today, there's no where to sell that volume too because of the huge infrastructure issues that are put When those issues are fixed, that provides a wide array of market access that motivates and incentivizes producers, whether smalls of farmers or trainers or everybody in
between to increase their productivity so that they can essentially go from long tous one hundred thousand to one a thousdred thousand, which increase reflective of price, but from like one hundred thousand to two hundred thousands, which will be reflective of their having culture of productivity, which then circles back to my original comment that the farmer's fundamental problem today is not necessarily priced, the huge structure of fundamental
issues that needs to be resolved and hand and of course that essentially also ties back to the market antwers. That's that's a mind blowing comment there. So what's you're saying is that if the price of cassaver doubles more casts about the growth exactly exactly pretty much. But the pricing is not the biggest problem. So let's say it makes so less. For example, let's say it makes nineteen percent today, is what's the guarantee that it's going to make that the
ninety percent? Yet it is literally no guarantee or the orders all the subsequent Yet there's literally no guarant But if I can double my production as a cassaver farmer, for example, it doesn't matter what the price is, My my my income essentially goes off regardless. Right, even if the price were to four by five, ten percent, by something like double that ninety thousand nards one an eating round, I'm still eighteen percent above where I was lasting.
So it doesn't really matter. I mean, obviously, at the end of the day, if you're you know, we're not disconnected or disaffective for the price pactism. But what's fundamentally more important for us as a country, whether that's for exports or staples, it is our ability to provide to you significantly improve our productivity and then also subsequently fix the structure issues that provide market access for that increased one. That that's the huge point of the needs to be
resolved gotchas issue. Okay, that's that's that's a good point, a good good point. Then let me ask you two quick questions. I only get esther back, and let me ask you two quick questions the ones that Pastor is asking. Can investors partner with effects in locations you don't have, like a warehouse, but if he has a warehouse, can they partner with you? If they can, please send it to the DM or whatever, not
shire to him or just posted. If you're not the location, but an investor has got the warehouse in that location, would you partner with that? That's from a question that a question is asking how does effects and short quote control He doesn't want farmers with invested green to affect his own product that doesn't have any you know, insects in them. So do you guys have like a modern warehouse and that kind of stuff that's from take it and from past?
If you do real quick, I'll go back to esther And then of course I've got most a factor on the line to ask the question. We get some guys to jump in here and with questions and also with the DMS. So Mike, you've got to flow, Mike, we here those two questions. Oh forgive me I questions noss coming back to talk about, but just that, just two quick questions for you. Um if if if, if you have a location, if I have a warehouse and you're not there,
can I partner with you? Sorry? Can you take that again? If I have a warehouse, if an investor has got a warehouse in a location where Effects is not operating, do you guys, can you guys partner
with hint with them? Others asking absolutely okay. To do that under his system that's called you know, collateral management, people would have to come there, um, you know, put our own you know, people are employees there to sort of certisfy the quality that you know, the capacity and then also the quality of that warehouse and then we essentially just put that uh we essentially just put that warehouse either order an accredited and effect ware house or okay.
Yeah, and that also goes that also goes with the with the quality control to say, hey, because you have different fownments, so some farmers might have goods that have insects, I don't have insects. Okay, all right, so let let's just come back to Esther. Esther was gonna just physically say weally round up, like if I am interested in the challenge, right, what do I do next? I'm I'm interested. I want to do say logistics, what should I do next? Okay, thank you so
much. On Chicago, I would say that if you're intrusted in being a part of the cold cash from PROPM to your age car Canton, it's quite easy and simple. All you have to do is this is the website www. Dot Africa Exchange dot com. Forward slash CCC four and then you click on the ig Hackathon UM page and all everything you need to know is them right, so more explanation of the extensions, expectations as well as what the judges will be looking out for. And you know, you you follow the
process, it's quite clear everything you need is there. Gotcha. And it's also guys also, don't share the tweet that has those links Esta speaking about if you don't go to the TL the links are only that a Esta spoken about how you can register, how they want your proposal to look like what
they are looking for. If let me just mentioned that you can of course follow any of our social media pages because we um tweeting on it and tipsum often effects Sangaria and of course Kenya effects and effects brand as well, and you could join our community. That's also another very very touch point to get all the information that you need. And of course the form to join the community is on the website, is also on those pages. It's even a
pet tweet on my accounts. So yeah, true follow esther, follow esther, follow my cal follow effects Nigeria. I get all that information. What's if I win this challenge? Why do I get esther. If I win, I'm gonna go study with it. D What do I get if I win? Okay? So, m called cash Crop is a great platform for people who are looking to expand their there air deliveries or the solutions that they create into something that's very meaningful and impactful. Um, there are several things
that you could win and a lot of things you could get off. Of course, I'm sure the first question what's the money past? Okay, so I wanted to win us? There will be a ten thousand dollars to be shared, right, yes, and a lot of other benefits like the fact that there will be in the mentorship slash information system that will help them take first of all, to even be able to deliver their presentations at the grand
finale. Because right now we're in boot camp season, right so we are fast approaching boot camp of the two day book camps that will be having at the different regions where the Boo book cams will be holding a das Kaduna and Badon and Nerobe Kennya of course, so yes, so everyone who is going to be a part of it will be injected into that system and there's a lot of benefit to that because you'll be you'll be getting um guidance from people
who are industry experts, efferent in house professionals in different aspect, different different t stakeholders in this bagage that we're trying to m six or so forth. So it's a great platform all in all, aside from the financial benefits being able to gather that kind of just learn right to learn yea, all the stuff. Yeah, yes, exactly, yeah, because I mean from there you might not be a winner, but you would eventually maybe meet someone.
Because it's also a networking platform, very important to everybody to communicate and talk to each other. You don't know who is going to be necessary to the growth and development of your good point whatever it is that you want to do or play whatever or you want to play in the agriculture of variety or everything between a can tech. So having the platform to meet other people and you know, communicate your interests and also just presenting nor pitching. You never know,
but that's all I can say. You're right, all right, I mean in Israel, I think from a pick PM of Israel, said agriculturist, ninety nine percent innovation, one percent perspiration. But if you look at what we do. Like you, there's a lot of hard work with this fan meeting, a lot of hard but black farming with the whole This is
agriculture. You know, if you're an IT guy and you're doing this to create pricing for farmers in the villages, you're in agriculture, right, So everyone is not going to carry cold so you told yeah, the fact is every other continue. The fact is every other industry. The progress that's being made in every other industry on the surface of this planet is powered by innovation
in technology. If we're being very honest, like if you look around you, the more progress um a certain of industry making, whether it be fashioned, whether it be cosmetics or anything it has to it's oftentimes powered by innovation of course, and then technology, because how do we maintain productivity in the world where AI is you know, coming fast, coming right. Yeah, yes, So agriculture is the same thing. You know. We have to
m we have to have this conversation. We have to create dissolutions so that that feels that industry doesn't get because everybody, every single person, it's going to um, it's going to touch that we say it's going to touch every everybody got yeah, so we all have to exactly. Yes, well, when I am a field, you pay agriculture, finance or technology. We're inviting everyone to please you know, everybody come inside. Everybody comes inside.
The next thing, gotch We're going to Rundle Place soon. I've got most of her. Thank you for being so patient. Most of most of us own that from my boys. Also on. Let me get both to helping and make your comments most of heart. You've got the floor of Go ahead, okay, um, co hosts. It's been an interesting one, you know, agriculture. It's so it's an interesting thing for me because from the North, I've been to so many agricultural relagies around here, especially in them.
And I had one of the book comps going to happen because ever know where it's going to happen? Casually tell me that quickis? And what was the question? Where? Where? Where is it going to happen? Here? In conversation say one of the book comes in commun Yes, yes, so you'll be having a book thing that you know, Um a cool up.
Cool up is in low tech innovation city, yes, yes, yeah, yeah, okay, I would advise you to, you know, sign up for the newsletters, so you can get more up today information, right, but that I don't selected on your own on the page. Yes, so um, you would definitely be tweeting out the link right now for my effects Angeria and effects Kenya effects stages, and you can also go on my
profile. So it's a pain to tweet on my profile. Okay, okay, but but but but even with that, I don't think there's there's one thing I've come to understand. You know, people like us who have gone to school, small and then people who are real holdier farmers, you know, have a disconnect. Sometimes you you you find us that we are dreaming. We are looking at things from Western ways of doing things. You know,
this is how it studied in Europe. So but but here and you man, you see that most of our farmers are real people who don't even have most of them have gone to school, most of them traditional finding us out to today, find out many of these villages when you want to be maybe con because a lot of miss is being grown here and could learned because
no part of this Northwest. You see the variety bus you see the defining culture difference and everything which affected right I I what miss I think too must go. It was one of those breeder. Was this the college hybrid? Then they have another one. They are all grown here and then you see acusing. So how are you doing or is it part of what could come up so that we who create something that will connect us between the wheels, say colder farmers from are in the in the village during the you know,
the main agriculture of practices. Yes, I understand you. I understand your question in staff, and thank you so much for asking. And essentially from what I understand, you're saying that there is a discounet between small, older farmers and people who provide these solutions right because of the westernization of so many of the processes. To be very honest, for two years, we do see that exists. But here is where we are effects right play a very
key role. We try to make sure that when information is being communicated or the information traveling from one end of the value, say that is from our farmers right in Kaduna, who probably do not speak English, who have a little bit of education, they are translators. That the good part about effects
that we it's not just us sitting in the offices. We also have failed extension officers who are out there, who who about their judge their activities among these farmers, and you know they live there, the people in their communities, they're not they're not so far out to reach that they live around where the warehouses are. We don't shake people from one city to another city necessarily when we need to do the work of communicating with the farmers. So for
sure, we're definitely thinking about that. And to be honest, the extension based the extension based challenge also makes sure there's also something we're trying to use
to make up for that. We're looking forward to solutions for that because we do expect there to be translation options on these platforms to allow the farmers who understand exactly what it is being said, which said the English to outside the future Transtad to fuller in wh translated to three to translated to any language is spoken in any of the countries that this solution would be would be working interest. I don't hope I answered your question. Yeah, yeah, thank you.
By the way, I can do English also translations for you. Most of parts drop the plus we're always welcoming experts. Thank you. What's the part puction that let's get this from my point with quick. But the part from my boy speaks someone's asking, does it. Let's also do livestock, livestock like cows, goats, livestocks. You gets also do that? It just crops and right, all right, all right, no worries. Okay, the farmer boy go ahead and go ahead. We're talking about some issue.
I hope you will you what you've been here. We're speaking about some issues I think would have interested you. We've got the flows. I go ahead, The parmer boy going once I can hear you, go ahead, Hello, you're a lot and Claire go for it. Hello, he isn't has some issues with this mic? Yeah, hello, we can hear you can hear us? Okay, yeah, no I can't hear you. Thank you very m writing spots and from what I can just you from what discourse
and from um did we lose you again? Because you see there's no points producing, and there's no points and producing. Why you don't have people to buy from you? They are doing correctly pot honestly, I would just want to home. Yeah, it's part of that. Who starts doing more for your farmers because then you guys lacking when it comes to yield, power and getting and the only way I have continue to say it is the only way out. It is true, people is not to require seed. The weather
the favorable even when people shall the oh, it is the climate. And and then we see the required real quantity to have the management build of and maize in engineer our our maid up program has been we advoculture is not proper in driven with technology. And when we talk about technology, the only the debating technology we are with instractors. Tractors as a chanto spraying. You can
hardly see anywhere in the world loot the country for commercial purpose. You can't descern where you will see a down a locator that that is an agricultural mass that can spread maze at six weeks where if you look at it, damages Army one is causing to us. We need to compel like our verge more.
They're starting gave war. That's not two starts and in whatever capacity they can come you know, so that I will start having an agriculture develople with technology and able farmers can sell an imagine the farmer getting up to five tons systoms per hector and then the price you wi then you stay have a lot of money to they but in the case we are having one point five that is when you see about my hole keeping amassing, when your bride get to
like two hundred thousand patterns and arrest. So I don't temple to happen because you see anywhere you see them have buying here, buying there, because they're opening up that righting your house can enable produce, buying remport who does a whole? There's no point through ying. And the fact that we enjoy it about the Grand Center is it's not a moment joy and uh like ninety percent of the Great Center is control byking Um buy our right who not well educated
farmers. So you cannot enable let's say the numbers of thoms and the numbers who who noted the numbers of bage we need to produce? By ye boy, these days we do have everybody don't do now, guess what about gambiolens what we talk that about, most people do these days. So I gave it to affect that has been great and I want them to look more into
agricultural mechanization and technology. Thank you well, that's a good shout out for APEX for both for you guys, um, he's a farmer's yeah, thanks, So I just take the last one because I think he's been here and I had as he's here, So we'll just take oboomer and after obooma will do a round up or give a bad time. So whom you got the floor? Go ahead, sir? Okay, okay, Obama? Can you
hear me? Oh boom oumah alright, going once, going twice? All right, guys, Thank you, Esther, thank you Michael, Thank you for the guests that have tuned in to just listen to this composition about agriculture. We have tried to do that intersect between finance, tech and agriculture. Were all of the problems with agriculture. Michael has been us a good line. The yield productivity is a problem. Everyone is just a farmer. But
food is expensive. We've got to bring tech, We've got to bring finance in to boost yields, to get younger folks into this quote and quote line of business so that we can then start to see innovative solutions that can boost yields. Why so that prices can calm down. In the end, if prices of food does not colm down, inflation doesn't calm down. That means we all sot of because we can't a word in playing so great topic on the tank effects for coming Esther and Mikey, you've got the floor. Do
you want to see your times? In the last parting words, I just want to say thank you so much for everyone, but as a part of this space, it's really big and honor to be here. UM. I would like to direct everyone to our Twitter and other social media pages and effects
Ageria and of course ken your effects and sofasit our website www. Doo Advocations dot com, forward slash CCC form for information on called cash from Thank you so much as the writer, and I'm going to just also retweet that out so that we can get all our information like Esthers that is pinned on our profile. So get the information and go go register or just participate or share with someone you think knows how to do this. It's going to be a
good networking and learning opportunity. Mike Call, you've got the flunny party talks for us. Um, you know, thanks a lot, Carling with thanks a lot said, and thank thanks everyone controlling us a pretty insightful conversation. Thanks you for your questions to yes, yes, yes, um, but yeah, looking forward to more conversations said if you need to, If you're on this space and you want to learn more about the commodities market, you can always reach out to us reach out that he's a esther too, UM
and you can also check our website. UM. Any information that you may need the model willing to provide. Thanks everyone again, excellent and I think we're gonna try to be on this space. We want to really try this Hackerton want to see that who has won, how are they going towards that to win? What solutions about there? Will try to steal on topics so that we can just in our own way contribute to the information space around this
topic. It's a good, good, good good thing to do, especially with the new focus now that you know the economy is you know what's the word now getting stronger. So when i'man stronger, it's tightening the belts of the average Nigerians. So any way we can see to improve yields that can bring down the cost of food, that's going to be a savings to Nigerians. And we all did it, so I'm gonna stay on this topic. Thank you so much folkus for tuning in is the weekly spaces where we talk
money, finance, and the economy with Niclo. Has just been a pleasure to host you all here next week. I suspect it's going to be our Sunday eventing that we rotated Saturdays and Sundays, so I'm gonna be here on Sunday next week. We'll also have on the topic to talk to you guys about. Until then, guys, go and enjoy the rest of your Saturday. I love and appreciate you, or take it to care of yourselves and buy