FARMERS in Matabeleland South have been urged to adopt the warehouse receipt system as part of efforts to reduce post-harvest losses.
Through this system, farmers can take their harvests for storage at various licensed warehouses across the province at a minimal fee.
The system is meant to improve access to finance for farmers, traders and processors, increase market power of farmers by enabling them to choose the time to sell their crops and contribute to lowering post-harvest losses through better storage warehouses.
The system is also expected to smoothen market prices of agricultural and other commodities by facilitating sales throughout the year, improve functioning of commodities markets through better risk management, transparency and strengthened ancillary services in transport, storage, logistics, inventory management, standards, training and certification.
The warehouse receipt system will also support the agricultural sector by providing banks with liquidity or risk coverage backed by warehouse receipts.