Blue Rhino was asked to compile a Knowledge Product (K-product) for KMP on the following issue: Warehouse receipt system: Providing collateral and maximizing value (2013). The warehouse receipt system (WRS) allows farmers to access credit against alternative collateral-their agricultural produce, cuts out the middleman who profits at their expense, and provides them with a warehouse to safely store their goods. This product studies the warehouse receipt systems, their strengths and weaknesses and analyses the critical factors for success and failure. According to this guide, warehouse receipts systems do not only benefit the producers by allowing them access to storage facilities and credit, but also assists financial institutions in mitigating their risks and opens up a new client segment that otherwise would be more difficult for them to reach.
The Rural Finance Knowledge Management Partnership (KPM) is a joint initiative of the International Fund for Agricultural Development (IFAD), the Alliance for Green revolution in Africa (AGRA), the Regional Universities Forum for Capacity Building in Agriculture (RUFORUM), and the African Rural and Agricultural Credit Association (AFRACA). It undertakes joint rural finance activities and provides implementation support to IFAD-funded projects in East and Southern Africa (ESA).