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When We Require Warehousing... ?

Warehousing may be grouped into two areas:

  • Pre-harvest warehousing; and
  • Post-harvest warehousing

  • Pre-harvest warehousing is required to store all major inputs such as seed maize, fertilizer, insecticides and machinery, etc. Such a warehouse could be owned by the input financier. This warehousing need not be large and should be sited near the farmers' farms.

    Post-harvest warehousing is required to store the dried maize. This could be owned by the input financier, or by a warehousing company, or jointly. It is important to site it in a major marketing town within the maize production area where there are good road networks to facilitate bulk transport, often by articulated trucks, to consumption centres.

    With these conditions prevailing, together with government allowing some tax relief to companies involved in the input inventory financing for the first few years, and with a liberalized market, many companies, including Agrotrade would be encouraged to participate in such a venture.

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