Warehouse receipt system to become a reality in Sipili

By Bob Aston

The warehouse receipt system which is also referred to as Inventory credits are increasingly becoming important as they serve to reduce uncertainty and enhance efficiency in cereal marketing. Eastern Africa Grain Council official was in Sipili division, Laikipia County on January 30, 2014 to discuss how they can certificate Sipili Cereal Bank. 

Samwel Rutto, Regional Manager, Eastern Africa Grain Council said that soon farmers in Sipili will start enjoying the benefit of Warehouse receipt system incase Sipili Cereal Bank gets certification.

Maize being sun dried

“It is a matter of farmers organizing themselves. Once you are organized you will be able to enjoy the benefits of Warehouse Receipt System,” said Samwel.

Laikipia Produce and Marketing Co-operative Society together with Sipili Cereal Bank have been pursuing the certification of the Cereal bank in order for Warehouse Receipt System to be introduced.

The warehouse receipt system is expected to help the farmers in mobilizing agricultural credit by creating secure collateral for them. Other benefits that the farmers will realize will be better market prices as their farm produce particularly maize can be sold throughout the year rather than just after harvests. The farmers will also realize reduced risk in the agricultural markets, improved food security and credit access and lower post harvest losses due to better storage conditions.

Laikipia Produce and Marketing Co-operative Society Chairman, Kanja Waweru said that the Warehouse Receipt System will be a big achievement for the co-operative as it will enable the co-operative to secure a loan from Chase Bank.

Samwel also promised Laikipia Produce and Marketing Co-operative Society officials that MEA Ltd will send their sales manager the following week to look into the issue of fertilizer.

“I have talked with the sales Manager of MEA Ltd and he will come here next week to take fertilizer order of Ng’arua,” said Samwel.

Samwel informed the Co-operative and Ng’arua Maarifa Centre officials that Eastern Africa Grain Council normally uses Electronic Grain Trade Africa (egtafrica) to link farmers to markets. They also have trade contracts so that farmers are covered as well as ensuring that farmers sign contract with buyers.