Agro-BIG News

Study tour to gain experiences on Warehouse Receipt Systems


Together with ACSI representatives and other key implementing partners, in late November three persons from AgroBIG personnel travelled to Tanzania aiming to learn about well-functioning Warehouse Receipt Systems (WRS).

Tanzania is way ahead in managing WRS; it has operational guidelines has even passed a law for regulatory framework and to secure licensing procedures. As a result, warehouse services and commodity markets have improved and efficient banking services are at farmers’ disposal.

Similarly, through AgroBIG support, a Cooperative Rice Warehousing and Marketing System is planned to be piloted in Fogera woreda. The idea with WRS is that after harvesting farmers can safely store their produce instead of selling it immediately when the price is low. They also receive an advance payment to satisfy immediate need for cash. When the price increases, farmers can make the final decision to sell to the cooperative which then takes the responsibility of value addition by milling, grading and packing, all of which results in quality rice for consumers and increased incomes for farmers.

As learned from the Tanzanian experience, there have been challenges of course: poor marketing infrastructure, low awareness among farmers and high interest rates, just to name a few. However, our study group is convinced that by supporting the whole value chain AgroBIG is pursuing, farmers in Fogera will benefit.