Timor-Leste's National Logistics Center (CLN) has just expanded into three more districts, bringing its purchasing and marketing power to another 2,000 of the nation's rice farmers. CLN buys unmilled rice from farmers in six districts, mills it, and then finds distributors and buyers for it.

The role of CLN is to establish and maintain a national stock of staple foods, particularly rice, to provide a buffer against bad harvests or sudden price rises. Under the auspices of the Ministry of Agriculture, Forestry, and Fisheries, CLN works to buy domestic crops, stabilize prices, and establish links between distributors and consumers.

Since it was established in mid-2003, CLN has bought rice from farmers in Maliana, Manatutu, Baucau, Viqueque, Same, and Suai districts. The purchase price ranges from 11 to 13 cents a kilo. After adding milling, transport, and operational costs, CLN sells the rice for 20 to 23 cents a kilo. The price is competitive with imported rice and has still allowed CLN to repay a start-up loan from a German donor agency and establish its own financial buffer--after nine months of operation, CLN boasts a bank balance of $5,554.

USAID has supported CLN's work with a grant of $17,660 for office equipment and transport. Establishing a national stock of staple foods helps maintain stable prices and encourages domestic crop production. Farmers can find viable markets for their harvests and consumers can buy basic foods at affordable prices.

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