The logistics unit is responsible for identifying fertilizer beneficiaries, monitoring fertilizer deliveries, recommending payments, organizing transport, and recording returns. Weaknesses include failure to use databases to identify beneficiaries, late fertilizer deliveries due to lack of warehouse space and poor supplier selection, and late payments. Fertilizer distribution is delayed due to late contracts, inappropriate awards, and lack of storage. An ideal program would award contracts and select beneficiaries earlier to allow timely delivery, transport, and sales. Switching to a seed model without upfront payment or transport costs could reduce strain on government resources compared to the fertilizer program.

1. SUBSIDY PROGRAMME REVIEW
Logistics Unit Presentation

2. Role of Logistics Unit
• Assist in identifying beneficiaries by producing
recording documentation.
• Monitor arrival of fertiliser into SFFRFM
depots.
• Recommend payment for delivered fertiliser.
• Organise transport of fertiliser to sales points.
• Recommend payments for transporters.
• Record seed and fertiliser voucher returns.
• Recommend payments for seed companies.

3. Identified Weaknesses
• Identifying Beneficiaries Failure to make use of farm family database.
Failure to use beneficiary register in follow up.
• Monitoring of fertiliser deliveries. Lack of space in SFFRFM warehouses.
Changes to suppliers indicating initial poor
selection.
Late delivery of fertiliser.
• Fertiliser payment recommendations. Contentious payment clauses in contract.
Failure to meet payment within specified time.
• Transport to sales points Appointment of inappropriate transporters.
Late award of transport contracts.
Initial inadequate market space.
• Transport payment recommendations. Failure to meet payment within specified time.
Misleading wording of payment conditions.
• Payment of seed suppliers Unacceptable delays in payment.

4. Fertiliser Distribution Delays
CAUSES
• Late award of fertiliser contracts
• Inappropriate awards
• Lack of storage space
RESULTS
• Late delivery of fertiliser to farmers

5. Ideal Programme
operation April May June July August September October November
Fertiliser tender period
Evaluation and award
delivery
Transport notice and tender period
Evaluation and award
Uplift to markets
Sales
Village list update
Beneficiary selection registers
beneficiary selection
beneficiary register production
Voucher distribution

6. If the above programme was to be successfully
implemented, it would require the following:
a) The fertilizer contracts to be awarded by mid July and not end August
as has been the situation in the past.
b) SFFRFM to ensure 60% of their total floor space was available for
Government fertilizer from mid July.
c) Transport contracts to be awarded by end of July and not late
September as has been the past record.
d) ADMARC permanent markets to be empty of stock, and staff in
position ready to accept fertiliser at the beginning of August.
e) Beneficiary selection to be complete by the end of July and voucher
distribution commenced by mid August instead of October as in the
past.

7. Demands of Present Fertiliser
Programme
• Government pays up front for fertiliser
• Government pays for transport to sales points
• SFFRFM ties up warehouse space
• ADMARC has to ensure rural markets are kept
empty.
• Police personnel have to be committed to
project to ensure fertiliser security.

8. Seed Programme
•No upfront payment by Government
•No need for Government to find
warehouse accommodation
•No transport costs met directly by
Government.
•No need for police to provide security

9. Fertiliser distribution vs Seed
Distribution
Same farmers are serviced with both
commodities. Clearly the seed
distribution is accomplished with
much less strain on Government
resources than required for fertiliser.
Perhaps time has come to rethink
the fertiliser strategy