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Session i Susan Minae

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  • 1. International Agribusiness Forum EMRC: Kampala Uganda, October 3th -6th, 2010
  • 2. Who are SME  Up to 60% of the food commodities are produced, marketed and processed through the informal sector  Categories  Farmers/farmer groups  Traders/wholesalers/…..  Agro=processors (millers, bakeries, ….)  Exporters –mainly niche markets  (input suppliers –stockists, seed producers, mechanics………)  Profile of SMEs  family business; with friends; farmer groups  Started small, sometimes not even planned  Large seasonal variation in business and employment
  • 3. Development potential of SMEs  Can be critical in driving agricultural sector modernization and transformation  Create market demand pull needed to get farmers to produce more  Contribute to food security through better distribution/ reduction of transaction cost  affordability  Reduce post-harvest losses plus value addition  Better matching with specific needs of specific buyers  Processing, packaging, preservation of raw materials and fresh products  Income and employment creation
  • 4. competitiveness challenges 1. Small volumes/inconsistent supply 2. Limited product differentiation, branding 3. Challenges in quality management and compliance in standards 4. Supply chain inefficiency and logistics –lack economies of scale 5. Limited capital development and access to finance 6. Limited professional associations and alliances
  • 5. Issues of concern  Management practices, access to technologies and capital, logistics often not competitive with larger firms and international corporations  High transaction costs and risks threaten profitability and survivability  Challenged in responsible business practices  Unreliable to farmers and employees
  • 6. Issues of concern (2)  Weak policy and institutional support, including technological support  Fall between mandates of agriculture and commerce ministries, …………  Interests often not well represented by private sector federations and organizations  Poor infrastructure especially in Rural areas e.g. Power – major problem;  Many regulations and registration procedures
  • 7. Opportunities  Infrastructure development support  Innovative agribusiness policy strategies and advocacy to support entrepreneurship  Regional collaboration – Enhanced competitiveness in regional markets  Improved access to support to services eg support to rural growth centres, economic growth corridors, clustering/zoning