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Expanding Post-Harvest Finance Through Warehouse Receipts and Related Instruments

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Publication date
02/03/2006
Number of Pages
4
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Global
Focus Topic:
Market / Trade
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk coping
Commodity:
Crops
Author
Commodity Risk Management Group
Organization
The World Bank

Warehouse receipt financing and similar types of collateralized lending provide an alternative to traditional lending requirements of banks and other financiers and could provide opportunities to expand this lending in emerging economies for agricultural trade. The main contents include: a description of warehouse receipt financing; details of the value of warehouse receipt financing; other collateral lending mechanisms; tradable receipt financing that uses the example of cedula de produto rural in Brazil; and the use of reverse factoring — the example of nafin in Mexico. The paper concludes that innovative approaches in different emerging markets through both warehouse receipts and innovative collateralized lending mechanisms could provide opportunities to expand the levels of post-harvest financing being provided to producers, traders, processors, and other agribusinesses.