Bankable receipts or broken signals? cooperative credibility, service reliability and access to warehouse receipt system-backed credit among cashew smallholders in Tanzania
Loading...
Date
2026-04-29
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Agribusiness in Developing and Emerging Economies
Abstract
Purpose – Access to agricultural credit remains a critical constraint for smallholder commercialization in
developing economies. Thisstudy examines how cooperative credibility and service reliability influence access
to Warehouse Receipt System (WRS)-backed credit among cashew smallholders in Tanzania.
Design/methodology/approach – A mixed-methods design was employed using cross-sectional survey data
from 200 cashew-producing households in Tandahimba District, Tanzania. Binary logistic regression was used
to estimate the factors associated with access to WRS-backed credit. Qualitative evidence from key informant
interviews and focus group discussions was used to interpret institutional and behavioural mechanisms
underlying the observed quantitative patterns.
Findings – The results show that access to WRS-backed credit is positively associated with confidence in
cooperative auditing, accurate documentation, and timely payment of produce. Perceived service risks reduce
the likelihood of credit access. The findings suggest that, beyond the availability of financial products, the
credibility of cooperative governance and the reliability ofservice delivery play a decisive role in shaping farmer
participation on WRS-backed credit.
Research limitations/implications – The study is based on cross-sectional data from one cashew-producing
district, which limits causal inference and generalization to other commodity systems. Future research could
extend the analysis using panel data and comparative studies across different warehouse receipt commodities.
Social implications – Improved access to WRS-backed credit can enhance smallholder livelihoods by easing
seasonal liquidity constraints, stabilising incomes, and reducing reliance on informal lenders. Strengthening
cooperative credibility and service reliability promotes trust, transparency, and collective action within rural
communities. Clearer documentation and timely payments can also improve inclusiveness by lowering barriers
for less-resourced farmers, including women and youth. By supporting more equitable participation in
agricultural markets, effective WRS implementation contributes to poverty reduction, resilience to price
volatility, and broader rural development outcomes in smallholder-based economies.
Originality/value – The study contributes to the agribusiness and agricultural finance literature by
demonstrating how institutional credibility and operational service reliability jointly shape access to
warehouse receipt–based credit in cooperative-mediated commodity systems in developing economies.
Description
Research article
Keywords
Warehouse receipt system, Agricultural credit, Cooperative governance, Service reliability, Cashew smallholders, Tanzania
Citation
10.1108/JADEE-12-2025-0607