IDEAS home Printed from https://ideas.repec.org/p/ags/eprcrs/260019.html
   My bibliography  Save this paper

Uganda Warehousing Receipt System: Improving Market Competitiveness and Service Delivery

Author

Listed:
  • Katunze, Miriam
  • Kuteesa, Annette
  • Mijumbi, Theresa
  • Mahebe, Denis

Abstract

Warehouse Receipt Systems (WRS) allow farmers and traders to access markets and financial Systems. While this system is not new in Uganda, as seen through both public and private efforts since 2004 during its pilot, little is known as to why it failed to ensure market access and credit. With the Uganda Warehouse Receipt System Authority in place, the government of Uganda seeks to reinstate the public warehouse receipt system with a concentration on the electronic-WRS. This study, therefore, critically reviews the evolution of the WRS, reviews the current policy support for the WRS and documents the perceived benefits and challenges of private sector stakeholders of the WRS in Uganda. This paper relies on both quantitative and qualitative analyses to respond to the objectives. The Agricultural Technology and Agribusiness Advisory Services (ATAAS) database by the Uganda Bureau of Statistics (UBOS) is used for quantitative analysis, while the Structure Conduct Performance (SCP) framework is used for qualitative analysis. The results reveal that while the market structure and conduct of the pilot WRS was implemented as theorized, it faced various barriers that led to poor market performance. Overall, the actors perceive that the benefits of the WRS are numerous, including stable and high prices, thereby reducing price exploitation, especially on smallholder farmers. They also perceive that the system will enable access to secure and stable markets using a secure and transferable warehouse receipt. However, the actors perceive that more people will be attracted to the WRS if there is mass sensitization and a revision of the costs of storage, cleaning, and other marketing costs. This paper highlights an important policy implication for the implementation of the WRS, including the need for the government to spearhead the promotion of standards, strengthen the capacity of collective action, and stress the importance of increasing the sensitization of all aspects of the WRS.

Suggested Citation

  • Katunze, Miriam & Kuteesa, Annette & Mijumbi, Theresa & Mahebe, Denis, 2017. "Uganda Warehousing Receipt System: Improving Market Competitiveness and Service Delivery," Research Series 260019, Economic Policy Research Centre (EPRC).
    • Handle: RePEc:ags:eprcrs:260019
    DOI: 10.22004/ag.econ.260019
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/260019/files/137%20Uganda%20warehousing%20receipt%20system%20-%20Improving%20market%20competitiveness%20and%20service%20delivery.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.260019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Varangis, Panos & Larson, Don, 1996. "Dealing with commodity price uncertainty," Policy Research Working Paper Series 1667, The World Bank.
    2. Vyver, A. van der & Nordier, A., 2013. "The Role of a Warehouse Receipt System in an Agricultural Commodity Exchange. A Case Study of the Malawian Agricultural Commodity Exchange," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160132, African Association of Agricultural Economists (AAAE).
    3. Guillermo Benavides Perales, 2010. "The Theory of Storage and Price Dynamics of Agricultural Commodity Futures: the Case of Corn and Wheat," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 1-22, May.
    4. Chiou Wei, Song Zan & Zhu, Zhen, 2006. "Commodity convenience yield and risk premium determination: The case of the U.S. natural gas market," Energy Economics, Elsevier, vol. 28(4), pages 523-534, July.
    5. Gali, Jyothi & Tate, Carole & O’Sullivan, Mark, 2000. "Structural Analysis Of Agriculture: A Methodological Perspective," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123650, Australian Agricultural and Resource Economics Society.
    6. Alderman, Harold & Shively, Gerald, 1996. "Economic reform and food prices: Evidence from markets in Ghana," World Development, Elsevier, vol. 24(3), pages 521-534, March.
    7. Richard Ilorah, 2006. "Measuring Producer Benefits of Price Stabilization in the Nigerian Primary Sector: History Revisted," African Development Review, African Development Bank, vol. 18(1), pages 30-41.
    8. Dong W. Cho & Gerald S. McDougall, 1990. "The supply of storage in energy futures markets," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 10(6), pages 611-621, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pierre Marion & Etienne Lwamba & Andrea Floridi & Suvarna Pande & Megha Bhattacharyya & Sarah Young & Paul Fenton Villar & Shannon Shisler, 2024. "The effects of agricultural output market access interventions on agricultural, socio‐economic, food security, and nutrition outcomes in low‐ and middle‐income countries: A systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 20(2), June.
    2. Paul Fenton Villar & Tomasz Kozakiewicz & Vinitha Bachina & Sarah Young & Shannon Shisler, 2023. "PROTOCOL: The effects of agricultural output market access interventions on agricultural, socio‐economic and food and nutrition security outcomes in low‐ and middle‐income countries: A systematic revi," Campbell Systematic Reviews, John Wiley & Sons, vol. 19(3), September.
    3. John Ssozi & Simplice Asongu & Voxi Heinrich Amavilah, 2019. "The effectiveness of development aid for agriculture in Sub-Saharan Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(2), pages 284-305, March.
    4. Ssozi, John & Asongu, Simplice & Amavilah, Voxi, 2017. "Is Aid for Agriculture Effective in Sub-Saharan Africa?," MPRA Paper 83073, University Library of Munich, Germany.
    5. Endro Gunawan & John K. M. Kuwornu & Avishek Datta & Loc T. Nguyen, 2019. "Farmers’ Perceptions of the Warehouse Receipt System in Indonesia," Sustainability, MDPI, vol. 11(6), pages 1-21, March.
    6. Anthony Aboagye, 2023. "Structuring African Warehouse Receipt Systems to Succeed," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 9(4), pages 475-492, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stronzik, Marcus & Rammerstorfer, Margarethe & Neumann, Anne, 2009. "Does the European natural gas market pass the competitive benchmark of the theory of storage? Indirect tests for three major trading points," Energy Policy, Elsevier, vol. 37(12), pages 5432-5439, December.
    2. Brajesh Kumar, 2016. "Asymmetric Volatility of Net Convenience Yield: Evidence from Indian Commodity Futures Markets," Proceedings of Economics and Finance Conferences 3205752, International Institute of Social and Economic Sciences.
    3. Marcus Stronzik & Margarethe Rammerstorfer & Anne Neumann, 2008. "Theory of Storage: An Empirical Assessment of the European Natural Gas Market," Discussion Papers of DIW Berlin 821, DIW Berlin, German Institute for Economic Research.
    4. repec:bla:afrdev:v:29:y:2017:i:s2:p:135-146 is not listed on IDEAS
    5. Stronzik, Marcus & Rammerstorfer, Margarethe & Neumann, Anne, 2008. "Wettbewerb im Markt für Erdgasspeicher," WIK Discussion Papers 305, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    6. Shively, Gerald E., 2001. "Price thresholds, price volatility, and the private costs of investment in a developing country grain market," Economic Modelling, Elsevier, vol. 18(3), pages 399-414, August.
    7. CARPANTIER, Jean - François, 2010. "Commodities inventory effect," LIDAM Discussion Papers CORE 2010040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Baffes, John & Meerman, Jacob, 1998. "From Prices to Incomes: Agricultural Subsidization without Protection?," The World Bank Research Observer, World Bank, vol. 13(2), pages 191-211, August.
    9. Pravakar Sahoo & Rajiv Kumar, 2011. "The Impact Of Commodity Transaction Tax On Futures Trading In India: An Ex-Ante Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 56(03), pages 423-440.
    10. Mirantes, Andrés García & Población, Javier & Serna, Gregorio, 2013. "The stochastic seasonal behavior of energy commodity convenience yields," Energy Economics, Elsevier, vol. 40(C), pages 155-166.
    11. Thomas Kremser & Margarethe Rammerstorfer, 2017. "Predictive Performance and Bias: Evidence from Natural Gas Markets," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 7(2), pages 1-26, June.
    12. Martínez, Beatriz & Torró, Hipòlit, 2015. "European natural gas seasonal effects on futures hedging," Energy Economics, Elsevier, vol. 50(C), pages 154-168.
    13. Michail Filippidis & George Filis & Georgios Magkonis & Panagiotis Tzouvanas, 2023. "Evaluating robust determinants of the WTI/Brent oil price differential: A dynamic model averaging analysis," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 43(6), pages 807-825, June.
    14. Fernandez-Perez, Adrian & Fuertes, Ana-Maria & Miffre, Joelle, 2021. "The risk premia of energy futures," Energy Economics, Elsevier, vol. 102(C).
    15. Stuart Landon & Constance Smith, 2010. "Government Revenue Volatility: The Case of Alberta, an Energy Dependent Economy," EERI Research Paper Series EERI_RP_2010_23, Economics and Econometrics Research Institute (EERI), Brussels.
    16. C. W. Morgan, 2001. "Commodity futures markets in LDCs: a review and prospects," Progress in Development Studies, , vol. 1(2), pages 139-150, April.
    17. Almansour, Abdullah, 2016. "Convenience yield in commodity price modeling: A regime switching approach," Energy Economics, Elsevier, vol. 53(C), pages 238-247.
    18. Julien Chevallier, 2010. "Modelling the convenience yield in carbon prices using daily and realized measures," Working Papers halshs-00463921, HAL.
    19. repec:hum:wpaper:sfb649dp2006-076 is not listed on IDEAS
    20. Richard Heaney, 1998. "A Test of the cost‐of‐carry relationship using the London Metal Exchange lead contract," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 18(2), pages 177-200, April.
    21. Lajos Horváth & Zhenya Liu & Curtis Miller & Weiqing Tang, 2024. "Breaks in term structures: Evidence from the oil futures markets," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 2317-2341, April.
    22. Kuruppuarachchi, Duminda & Lin, Hai & Premachandra, I.M., 2019. "Testing commodity futures market efficiency under time-varying risk premiums and heteroscedastic prices," Economic Modelling, Elsevier, vol. 77(C), pages 92-112.

    More about this item

    Keywords

    Agribusiness; Farm Management; Financial Economics; Production Economics; Productivity Analysis;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eprcrs:260019. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eprccug.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.