Factors affecting sustainability of warehouse receipt system in Tanzania: the case of Kilimanjaro Region

The study’s main objective was to identify the factors affecting sustainability of Warehouse Receipt System in Tanzania, focusing in Kilimanjaro region. Purposive technique was used to select respondents from bankers, middlemen, farmers, TWLB, and warehouse operators. Administered questionnaires and interviews were conducted on the respondents. A sample size of 94 respondents participated and data were analyzed and presented using frequency distribution tables, clustered bar and pie charts. Study findings indicated that there were a number of factors that are likely to affect the sustainability of the WRS. These included the loan conditions, especially the high interest rates, the middlemen moving around with ready cash whereby farmers are lured into selling their crops to them instead of taking them to the warehouses. Middlemen were also said to be ready to buy crops that has not been cleaned as required by the warehouses. It was also found that the government intervention especially during food shortage, by releasing some of the crops from the food security reserves and selling them at a much cheaper price had a tendency to reduce prices at which crops in the warehouse can be sold. The study recommended that the TWLB to improve its training and inspection services, the financial institutions to provide trainings to farmers prior the beginning of crop marketing season and loan applications processes, middlemen to buy the commodities through formal market centres, warehouses and provide a linkage between farmers and processors so as to enhance the sustainability of Warehouse Receipt System