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{
    "id": 831051,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/831051/?format=api",
    "text_counter": 148,
    "type": "speech",
    "speaker_name": "Tigania West, JP",
    "speaker_title": "Hon. John Mutunga",
    "speaker": {
        "id": 13495,
        "legal_name": "John Kanyuithia Mutunga",
        "slug": "john-kanyuithia-mutunga"
    },
    "content": " Thank you, Hon. Speaker, for giving me an opportunity to contribute to this Bill. Warehouse receipt system consolidates products into a warehouse. A warehouse is a large unit or a building. It can also be considered as a store. In agricultural terms, a warehouse is supposed to house agricultural products. Warehouses should not be confined to agricultural products only but any products of any nature. So, warehouse receipting is a system of capturing products in a warehouse. First of all, the kind of product to be taken into a warehouse is determined then there is cleaning, grading and ensuring the value of the products is done. The products are stored for or on behalf of the person who has deposited them. The person who runs the warehouse maintains a record of the amount of products that have been taken into a warehouse. The warehousing and receipting system gives people an opportunity to trade their commodities when they are in the warehouse. The warehouse receipt is recognised by banks. It is a product that is also recognised by other institutions which lend money or give any form of support in a production process. Warehouse receipting enables smallholder farmers in a country like Kenya to consolidate their commodities. It therefore gives regions possibilities to determine what they can produce in large amounts. You can know the potential of different regions. For instance, if producers are producing sorghum, we can have a warehouse to collect the varieties or types of sorghum that is produced in a given area by farmers taking the product to the warehouse. There are several advantages of warehousing. One of the advantages is having commodities in their geographical locations. There is a geographical indication in agricultural production. Different commodities are produced in certain areas based on the agricultural potential of those areas. Therefore, through warehouse receipting, it is possible for us to know the potential of an area. Therefore, it is possible for us to focus a lot more in developing these areas. It also enables determination of prices. Commodity prices fluctuate because farmers meet at the market place after producing their products at the same time. So, there is a temporary glut that is created and therefore prices go down. Warehousing takes control of this. Through it, products are not released to the market at the same time. They are contained in the warehouse and sold progressively. It also enables price determination. Various areas produce different products and the products are contained in the warehouses and progressively released to the market depending on the need. Products released upon demand will therefore maintain prices at a stable level. Different areas declare their potential and products because of warehousing facility. We can ensure availability of different products at different times. This has a connotation of supporting focused investments. As a country, we can know through warehouse receipting the way we want to organise our industrialisation or manufacturing. Investment in agriculture will mainly be driven by availability of raw materials. Being the key to investment, it is possible for us to determine the quantities of a given product in a given area. Knowledge of the quantities of products in a given area enables investors to make very wise decisions in terms of the kind of investments to make. Through warehousing, we are able to know the kind of product that is produced in a given area and the amounts of the said product over time. The investor then makes an informed decision on how much of the product will be available across the year. Warehousing will enable the farmer get better stable prices. Better prices will enable farmers to buy inputs, increase the acreage and farm the land well. Therefore, we shall increase productivity. When we The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}