11.06.2013

for processing or export).

Benefits of WRS

The guarantee that the quality and quantity of commodities stored in warehouses under a WRS will be preserved offers the following benefits:

Improved crop marketing to the benefit of producers and other players: The WRS facilitates aggregation of grains and other commodities by smallholder farmers. In most African countries, grain production is dominated by small-sized farms of usually less than two hectares, which are also widely dispersed. Buyers there incur costs bulking produce from farmers which are often passed to the producer, whose margins are therefore reduced. Under WRS, it is possible for groups of smallholder farmers to deposit their grains at central warehouses, easing the cost of procurement. This cost is further lowered by buyers not having to physically sample the grains they intend to buy: the quality and quantity of the grain in the warehouse is specified in the warehouse receipt, and the operator guarantees delivery.