Poultry farmers have been encouraged to take advantage of the warehouse receipt system offered under the Zambia Agricultural Commodities Exchange (ZAMACE) to buy maize, soybeans and other non-perishable inputs used in the poultry production.

Warehouse receipt is a receipt used in futures markets to guarantee the quantity and quality of a particular commodity being stored within an approved facility. It may be negotiable or non-negotiable.

In a statement, the Poultry Association of Zambia (PAZ) advised its members that participation in the warehouse receipt system has enormous benefits.

“The farmer evolves from price taker to price settler and post-harvest costs are reduced and further the guarantee and certified quality of the commodity will breed confidence in trading with the lower end of the market. It also provides transparency and increases efficiency.

“The ZAMACE system is running, therefore, stakeholders should take interest in this facility. And as far as the poultry sector is concerned, this is a positive development in the area of procuring maize, soya beans and other non-perishable agricultural inputs used in poultry production,” it stated.

It also advised members that warehouse receipts have been recognised as an important tool to provide the agriculture sector with increased flexibility in marketing decisions and also as a mechanism to obtain financing for farm operations.