Inventory credit - An approach to developing agricultural markets


by Jonathan Coulter
Natural Resources Institute and
Andrew W. Shepherd

FAO
FAO AGRICULTURAL SERVICES BULLETIN - 120
NATURAL RESOURCES INSTITUTE

Food and Agriculture Organization of the United Nations - Rome, 1995

Table of contents

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

M-63

ISBN 92-5-103703-5

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the copyright owner. Applications for such permission, with a statement of the purpose and extent of the reproduction, should be addressed to the Director, Publications Division, Food and Agriculture Organization of the United Nations, Viale delie Terme di Caracalla, 00100 Rome, Italy.

(c) FAO 1995

 


Contents


Preface
Acknowledgements
Acronyms
Summary
Introduction
Section 1 - Why it is important to improve trade financing
Section 2 - How can inventory credit be implemented?
Section 3 - Key requirements for successful implementation
Section 4 - The need for an appropriate political and economic environment
Section 5 - Who can benefit from inventory credit?
Section 6 - Risks with inventory credit and how to manage them
Section 7 - Making use of existing public storage capacity
Section 8 - Quality control
Section 9 - Future developments which could be based on inventory credit
Case Study 1 - Quedan programme for paddy marketing credit in the Philippines
Case Study 2 - Agricultural marketing credit in India
Case Study 3 - Financing trade and storage in Mali
Case Study 4 - "Action-research" on trade financing in Ghana
Case Study 5 - Technoserve's experience with inventory credit for farmers in Ghana
Annex 1 - Inter-seasonal variability in grain prices: African evidence
Annex 2 - Legal issues
Annex 3 - Specimen collateral management agreement
Annex 4 - Specimen warehouse receipt
References