Tanzania’s warehouse receipts system (WRS), a platform designed to improve market access and pricing for farmers, is entering a mature stage of two decades after its introduction. The system, managed by the Warehouse Receipts Regulatory Board (WRRB), has expanded to most regions in mainland Tanzania and now covers a wide range of crops and commodities.
In an interview on the television programme Alasiri aired by UTV Tanzania, Asangye Bangu, executive director of the WRRB, explained the system’s evolution, its benefits for farmers and buyers, and its impact on the broader agricultural market.
Below are edited excerpts from the interview.
Q: After the warehouse receipts system was introduced, was it necessary to establish the regulatory board, or did the board come first?
Answer: Research on the warehouse receipts system began in the early 2000s. At that time, the government was exploring ways to help farmers avoid the frequent problem of selling crops immediately after harvest at very low prices.
Once it became clear that the system could benefit farmers and producers, not only in agriculture but also in other sectors, the government moved to formalize it.
The law governing the system was passed in 2005, and the Warehouse Receipts Regulatory Board was established in 2006, alongside the necessary regulations. Since then, the system has grown gradually, much like a child developing through different stages.
We are grateful to Tanzanians for embracing the system. We also appreciate the support of President Samia Suluhu Hassan, who has highlighted the system’s importance in providing opportunities locally and internationally. The WRS allows producers to access markets with stronger bargaining power and better pricing.
Q: You mentioned the system has gone through several stages of growth. What stage is it at now, and what does it involve?
Answer: Today, we can say the system has matured. If you compare it to a person, it is now like a 20-year-old adult capable of making decisions independently.
The WRS is currently being implemented in 23 out of the 26 regions of mainland Tanzania. It now covers 18 crops and commodities, including staples, legumes, oilseeds, and cash crops.
The benefits are increasingly visible, especially for farmers and local governments. Local authorities can now collect levies more efficiently. These revenues are used for community development projects, such as roads, water supply, and health facilities.
Overall, the system has helped formalize the way agricultural products are marketed in Tanzania, creating a more structured, transparent market for both producers and buyers.
Q: Farmers often sell immediately after harvest because they urgently need money and rely on middlemen. How does the system help farmers without middlemen?
Answer: The WRS focuses on three main areas.
First, it supports the organized collection of produce through cooperative societies. Cooperatives gather farmers’ crops at primary warehouses and later transfer them to central warehouses. Licensed buyers are involved, but unlike in the past, they do not act as exploitative middlemen. Farmers now know the real market price, which allows them to negotiate better deals.
For example, the price of cowpeas recently reached around TZS 1,580 per kilogram. Farmers were able to sell at approximately TZS 1,500. Before the WRS, some farmers had to accept as little as TZS 800 per kilogram because they lacked information about actual market prices.
Second, the system emphasizes quality. Produce is stored in registered warehouses that meet national standards. Farmers are encouraged to dry crops properly and remove impurities before storage. This practice ensures higher prices and increases market confidence in Tanzanian produce.
Third, the system ensures accurate weighing. In the past, middlemen often misrepresented weights, sometimes paying for only part of what farmers delivered. Under the WRS, weights are verified according to official standards. Farmers are paid for the exact quantity delivered, which increases fairness and transparency in the market.
Q: How has the reception been for both farmers and buyers regarding the WRS?
Answer: The response has been very positive. Farmers are beginning to understand the advantages of selling through a structured system rather than negotiating individually, which often led to prices reflecting their urgency rather than the true value of the produce.
Buyers also appreciate the system because it consolidates produce in one place, reduces costs, and ensures consistent quality. This is particularly important for exporting crops to international markets, where buyers demand standardized products.
Q: Can you provide examples of crops sold through the system so far?
Answer: Recently, over 4,000 tons of cashews have been sold through the system. Nearly 100,000 tons of pigeon peas, sesame, and mung beans have also been traded. These figures demonstrate that even crops previously considered minor contributors to the economy are now being formalized and sold efficiently.
Q: How does the system benefit farmers financially?
Answer: The WRS provides farmers with certainty in sales. They now have recognized, formal transactions that make it easier to access financial services.
Banks and other institutions consider them as formally employed or registered in the system. This recognition allows farmers to obtain loans, repay debts, and plan for the future.
The formal system also encourages investment in higher-quality production methods. Farmers are motivated to maintain quality, dry and clean their crops properly, and handle them carefully, knowing that these practices directly influence market prices.
Q: What steps should a farmer take to join the Warehouse Receipt System?
Answer: First, a farmer must produce crops included in the system. The WRS is continuously exploring additional crops to include, based on farmer feedback, such as beans and peanuts.
Second, farmers must learn to maintain high quality, including proper drying and handling, so their produce meets market standards. Cooperatives play a critical role by aggregating crops and transporting them to central warehouses, helping farmers access the formal market.
The WRS operates in 23 of 26 regions of mainland Tanzania. We collaborate with cooperative unions and local traders to reach farmers directly.
Our teams educate farmers about the system, provide guidance on quality assurance, and establish collection points in new areas.
Local authorities are involved to ensure smooth implementation, and regular visits are made to farms to monitor compliance with storage and handling standards. This structure ensures that both urban and rural farmers can participate effectively.
Q: Does the system create employment opportunities?
Answer: Yes. Each warehouse employs multiple workers, aside from the warehouse owner. This creates jobs for local communities and supports the rural economy.
We have also observed an increase in young university graduates entering the sector, indicating confidence in the system and its growth potential. Employment is not limited to warehouse operations; it extends to transport, quality control, cooperative management, and related services.
Q: How does the system maintain quality control?
Answer: Once crops reach our warehouses, they are inspected, cleaned, and weighed to ensure compliance with national standards.
Buyers value this because it reduces additional storage and handling costs while guaranteeing consistent quality for both local and international markets.
Licensed warehouse operators are responsible for overseeing the quality of all produce. Operators who fail to comply with standards are removed from the system, while those who perform well receive incentives and support.
Farmer education is also critical, as proper handling before storage ensures the produce maintains its value.
Q: Are farmers required to use the Warehouse Receipt System, or is it voluntary?
Answer: Participation is voluntary. However, certain regulated crops, including coffee, tea, and cashews, require passage through registered warehouses for export permits.
Farmers can still sell locally under coordination with their respective commodity boards or institutions.
The system balances flexibility for farmers with regulatory oversight, ensuring transparency and proper market operations.
Q: Are the markets for crops sold through the WRS local or international?
Answer: Most of the trade currently focuses on exports. Buyers from around the world can participate in digital auctions for crops like cashews, competing in real time and purchasing Tanzanian produce from anywhere.
The WRS’s global reach has increased revenue opportunities for farmers, while maintaining quality assurance and prompt payment for sold commodities. The system strengthens Tanzania’s position in international commodity markets.
We are expanding registration for local warehouses, particularly those owned by Tanzanian investors, to encourage domestic trading. Local warehouse owners gain formal recognition, timely payments, and opportunities to invest in the market.
The system also educates farmers about the benefits of a formal market, including price transparency, fair treatment, and access to financial services. As a result, domestic trade is becoming more structured, supporting both local economies and national food security.
Q: How does the system manage issues like fraud or poor-quality produce?
Answer: Fraud is a challenge but is carefully managed. Licensed warehouse operators inspect and store all crops according to required standards. Those who violate procedures are removed from the system. Operators who maintain quality are motivated and supported.
Farmer education is key. Producers are taught the importance of clean, well-handled crops before bringing them to warehouses. The system ensures that buyers receive reliable quantities and consistent quality, which is essential for export markets.
Q: What message do you have for Tanzanians about the WRS?
Answer: We encourage farmers to continue using the system, as it strengthens bargaining power and ensures fair prices. Warehouse owners are urged to register their facilities to benefit from the growing agricultural market.
Next month, Tanzania will celebrate 20 years of formalized commodity trading. Exhibitions at Jakaya Kikwete Hall from March 28 to 30 will showcase farmers, warehouse operators, and buyers, highlighting progress and innovations. We invite everyone to cooperate and participate to further strengthen Tanzania’s agricultural economy.
Q: How does the system contribute to broader agricultural development?
Answer: By formalizing commodity trading, the WRS reduces post-harvest losses, improves price transparency, and strengthens cooperative organizations. Farmers are able to plan production better, access markets efficiently, and participate in both domestic and international trade.
The system has helped integrate smallholder farmers into the formal economy, provided access to financial services, and created opportunities for employment and youth participation. It also allows local governments to collect revenue for community development, linking agricultural growth with infrastructure and social services.
The Warehouse Receipt System continues to provide Tanzanian farmers with opportunities to access formal markets, receive fair payment, and participate in both local and global trade. Its expansion across 23 regions, coverage of multiple crops, and integration with digital trading platforms position the WRS as a cornerstone for Tanzania’s agricultural economy. With 20 years of development approaching, the system’s growth illustrates the country’s commitment to modernizing agriculture, empowering farmers, and strengthening rural livelihoods.
