PASSADA Commercial provides services to the PASSADA system in terms of commodity trading, product development and commercialisation, marketing programmes, wholesale and retail sales, crop financing and input supply. PASSADA Commercial maintains separate operational and financial systems which are tailored to business operations.
PASSADA Commercial works directly with association and IPC Managers to support development and implementation of a coordinated marketing programme at local and national levels. PASSADA Commercial currently trades groundnuts, rice, soya, chillies and maize, with strong value chain development in the first two crops. It also trades other crops on an ad hoc basis where profitable trading opportunities arise. The national programme will match consolidated production volumes and the national marketing initiatives of company. However, not all commodities are grown in sufficient volume to make national consolidation viable. In such cases, PASSADA Commercial will provide guidance to IPCs on how such commodities can be marketed under local IPC marketing programmes, linking to local traders or, over time, investing in local processing where appropriate. The hallmark for IPC marketing programmes will be flexibility and responsiveness to local member needs.
PASSADA Commercial is managed by the Commercial Director, who reports to the CEO. It includes a lean core staff with three managers - one handling tobacco operations, a second handling other crops and a third heading the seed unit (established in 2010) which is specially focussing on improving certified seed supply and distribution.
PASSADA Commercial will continue to be involved in input supply (primarily fertiliser) under direct procurement and brokerage arrangements, especially in regard to credit programmes run in conjunction with MUSCCO and other rural financing organisations.