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When We Require Warehousing... ?
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Warehousing may be grouped into two areas:
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Pre-harvest warehousing; and
Post-harvest warehousing
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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.
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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.
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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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