The world of agricultural commodities trading has seen prices soar following the outbreak of the Covid-19 pandemic and the Russian Federation’s war in Ukraine. Accompanied by ever increasing global food consumption, which is projected to increase by 1.4% p.a. over the next decade, the role of agricultural commodities traders has never been so important. 

Whilst the world’s top grain traders have seen their profits soar, Quanton Commodities, founded in 2020 by Valerio Antonini, stands out from the international majors, as it aims to move grain from places with excesses in production to countries in the highest demand. Aiming to provide food security, Quanton is currently involved in a number of large scale foreign development projects in Uganda and Somaliland. 

THE COMPANY

Established in 2020 by Valerio Antonini, the former Head of Commodities Trading at Casillo Group, Quanton is a fast-growing global agricultural commodities trader which has full membership of the Grain and Feed Trade Association (GAFTA), the Federation of Oils, Seeds and Fats Association (FOSFA), the Federation of Cocoa Commerce (FCC), the Green Coffee Association (GCA), the British Coffee Association (BCA), and the Rainforest Alliance. It is also an officially approved supplier of the United Nations Global Marketplace (UNGM). 

Before embarking on his journey with Quanton Commodities, Antonini established a strong international presence in the global commodities economy, personally trading over 4.5 million tons of grains and over 6.7 million tons of agricultural commodities between 2018 and 2019. Antonini has over 20 years’ experience in the industry which has seen him grow Quanton Commodities into a diversified international presence across over 20 countries, trading 800,000 tons in only its first year of trading. 

Over the coming decade, global agricultural production is estimated to increase by around 1.1% p.a with growth largely expected to come from developing and emerging economies. To achieve the growth target, Quanton must attain wider access to food producers, as well as improved productivity through technology and infrastructure. To meet the increasing demand, Quanton commodities has embarked in two large-scale foreign development projects in Uganda and Somaliland – two countries which have been struck by severe food-insecurity issues in past decades. 

IMPROVING MAIZE PRODUCTION IN UGANDA

Maize is both socially and economically the most valuable agricultural product in Uganda. With the country having transitioned from subsistence to commercial production, the crop now provides over 40% of a Ugandan’s daily calorie consumption and 2 million Ugandans rely on maize as their principal source of income. Although the increase in maize production offers economic benefits to Uganda, the upscaling of the industry has provided many challenges, both physical and economic. During growth seasons, the country’s inadequate rainfall has caused production deficit in recent years, while outside the growth seasons, poor storage conditions lead to uncontrolled food quality, e.g. aflatoxin, vomitoxin, etc. 

These factors contribute to the high volatility in local food prices. Producers hence become increasingly sensitive to all costs associated with food production. The rising costs of logistics and storage are making local producers consider the need for a centralised storage solution. To face these challenges, Quanton is in the process of constructing multiple silos across strategic locations in Uganda, which aim to see an increase of 53,000 tons in the country’s grain storage capacity. In an effort to control the maize quality, the silos will be located adjacent to drying facilities, used to reduce aflatoxin in the product. By grouping the grain storage and milling facilities together, Quanton hopes to optimise the local food production in Uganda, and consequently improve food quality and ensure supply in the local market. 

The project is expected to mill 120,000 tons of maize into flour in its first year with with the package in 3 sizes to meet the local demand: 50kg, 25kg and 10kg. In addition, bran, a by-product of milling maize, will be produced in these facilities to produce high-quality animal feed. Utilisation of bran is key to reducing waste and optimising productivity, because bran can account for 20-30% of the total weight of milled maize. The project aims to be operational by the beginning of 2025. 

IMPROVING FOOD-SECURITY IN THE HORN OF AFRICA

The Horn of Africa is currently suffering from a record-breaking drought after a fifth consecutive failed rainy season. The region is a major importer of grain from Ukraine and Russia and has seen import precarity drive food insecurity since the crisis in Ukraine began. Currently, the 20 million local population are in high demand of food aid, an indicative of the urgent need of investment in the region. Quanton plans to target the region’s capacity to procure, store and distribute grain through an ambitious long-sighted integrated logistics project in Somaliland. At the core of this project is the food security and social mobility of people in the horn of Africa: Ethiopia, Eritrea, Somaliland, Somalia, and Djibouti. This project will be centred at the Port of Berbera in Somaliland. The port is the pillar of the region’s economy and, by 2035, trade passing through this port is expected to comprise 27% of the region’s GDP and 75% of its total trade. 

By investing in the port area, Quanton aims to tackle food security and internal displacement of people in the region. The land for this project has already been allocated to Quanton, who is in discussion with engineers and consultants to begin construction. The project aims to be completed and operational by the end of 2023. 

LOOKING TOWARDS THE FUTURE

Quanton has an ambitious long-term outlook in the decades to come. As the developed economies are facing a declining and aging population, the developing world continues to experience a rapid population growth which brings with it many hungry mouths. The amount of arable land is finite and increasingly threatened by climate change and the inconsistent and hostile weather patterns this brings with it. In our pursuit to meet rising food demands, we cannot afford to encroach upon the last remaining patches of biodiversity across the globe. Quanton intends on perfecting the balancing act of providing food security whilst maintaining the delicate biodiversity of Africa. To achieve this goal, Quanton will strive to engage community stakeholders at every level, ensure food security at every opportunity, and always keep within the scope of sustainability. 

Quanton Commodities Pictures courtesy of Quanton Commodities