As Tanzania marks two decades of its warehouse receipts system, officials say the real transformation has not been in warehouses themselves, but in how farmers negotiate prices, access finance and time the market.
David Sukali, head of procurement at the Warehouse Receipts Regulatory Board (WRRB), said the system has evolved into what he called “a rescue mechanism” for smallholder farmers by guaranteeing markets, quality standards and more stable prices.
Speaking in Dar es Salaam, Sukali said the warehouse receipts framework was introduced as a legal system in 2005 and formally implemented in 2006 after years of failed crop marketing arrangements that had repeatedly changed since independence.
“By 2000, the government realised farmers needed a structured system that would protect them and allow them to sell their crops under clear rules,” Sukali said.
From distress selling to market timing
Before the system, farmers often sold produce directly from their farms immediately after harvest, when prices were lowest and storage options were limited.
According to Sukali, the warehouse receipts model has shifted the balance of power by allowing farmers to store produce in licensed warehouses and sell later when prices improve.
Under the system, farmers deposit crops in approved warehouses and receive official receipts that record ownership, quality and quantity. Those receipts can then be used either to sell through competitive auctions or to access bank loans using stored crops as collateral.
“This gives farmers both security and bargaining power. Buyers also benefit because they get standardised quality,” Sukali said.
He added that only warehouses that meet strict legal and technical standards are allowed to operate under the system. Facilities must be inspected, insured against fire and theft, and staffed with trained personnel including warehouse managers, certified weighers and records officers.
Finance without selling crops
The system’s biggest shift, officials say, is not storage but financing. Dominic Dionis, another official involved in the programme, said farmers can now borrow money even before selling their crops.
“In the past, farmers sold entire farms at a loss because they had no place to store produce,” Dionis said. “Now they know they can store safely and sell when the market price is favourable.”
He said registered collateral managers help connect farmers with financial institutions, allowing them to borrow against the value of crops stored in warehouses.
If prices rise later, farmers can still sell at the higher price after repaying the loan and related costs.
Officials say the system has also reduced disputes between farmers and buyers by standardising measurement and quality testing.
“Before WRRB, some farmers were measuring crops using buckets. Today the process is more transparent and credible,” Dionis said.
Jobs and rural economic activity
Beyond farmers, the warehouse receipts system has also created employment in rural areas. Each licensed warehouse requires at least five trained staff members, while more than 50 casual workers are often hired during peak storage and auction periods.
Dionis said each warehouse can directly or indirectly support more than 100 jobs, especially for young people working as loaders, quality inspectors and service providers.
Expansion beyond traditional crops
Officials now want to expand the system beyond staple crops to include products such as honey and even live livestock. Under the proposed model, animals could be kept in registered ranches and traded through the same auction-based framework used for crops.
“This would strengthen the entire agricultural value chain and open new markets,” Dionis said.
20-year milestone in Dodoma
The government plans to mark 20 years of the warehouse receipts system with national celebrations in Dodoma from April 28 to April 30 this year. Officials say the event will focus on how storage, financing and quality control have reshaped agricultural trade in Tanzania.
For policymakers, the anniversary is less about the warehouses themselves and more about a structural shift in how farmers engage with markets — moving from price takers forced to sell at harvest to sellers who can wait, negotiate and access credit without losing ownership of their crops.
“The system has changed how farmers think about their produce,” Sukali said. “It is no longer just something to sell immediately. It is now an asset.”
