8. SECTOR TRENDS & IMPACTS
Negative effects:
• Standards and contracts difficult for small-
holders.
• Small-scale agro-processors unable to compete
with large scale manufacturers.
• Traders in local markets squeezed out by
specialized procurement practices & certified
products.
9. SECTOR TRENDS & IMPACTS
Agribusiness Development is context-specific
& dependent on:
• The product sector & market requirements;
• Development stage of the country;
• Ag’ sector policies, institutions & services;
• Government action to promote A&A
(If agribusiness is to play a key role in reducing poverty, Government needs to
create enabling conditions, while monitoring & taking steps to protect &
enhance farmers & others most likely to be affected by agri-business)
11. POLICY REFORM &
INSTITUTIONAL STRENGTHENING
The business environment is an important
driver for domestic & export agro-
enterprises, but it is not very conducive to
A&A. Many countries have:
• Complex laws & regulations governing business,
• Ineffective intellectual property rights;
• Inadequate commercial services;
• Lack of infrastructure;
• Ineffective local governments; &
• Weak information & communication systems
12. POLICY REFORM &
INSTITUTIONAL STRENGTHENING
Policy environment requires:
• Legal & regulatory frameworks that define rules &
determine rights with respect to resources and business
operations;
• Strengthen public sector cooperation with the private
sector;
• Commodity, regional industrial & professional based
associations inc’ producer ass’ & cooperatives;
• Trade-offs between pace & nature of agro-industrial
development & poverty; and
• Institutional mandates for influencing, regulating &
supporting PS investment in AA.
13. POLICY REFORM &
INSTITUTIONAL STRENGTHENING
Legal & Regulatory Frameworks:
• Covers rules, rights & obligations for resources,
assets & business operations.
• Level of protection of intellectual property rights.
• Legal or procedural preferences favoring
government owned/assisted enterprises.
• Employment/contractual conditions & distribution
of benefits from agri-business development.
14. POLICY REFORM &
INSTITUTIONAL STRENGTHENING
“P-P-P” Cooperation:
• Requires communication/cooperation between
public and private sector;
• Public investment support of private sector
innovation/product development mobilizes
assets, knowledge & capacities of A&A;
• Policy attracts foreign investments & access to
technologies; &
• Enhances effectiveness of regulatory framework
& PS compliance.
15. POLICY REFORM &
INSTITUTIONAL STRENGTHENING
Institutional Support:
Commodity, regional, industrial & professionally-
based associations, including producer
organizations & cooperatives play a key role in:
• Connecting producers and clients;
• Vocalizing view points;
• Taking collective actions;
• Networking & facilitating linkages;
• Providing training, technology & legal support.
16. POLICY REFORM &
INSTITUTIONAL STRENGTHENING
Trade-Offs include:
• Rapid agro-industrial development can displace
small farmers, processors, stores and traders.
• AA policies unlikely to address food insecurity
and poverty by themselves.
17. POLICY REFORM &
INSTITUTIONAL STRENGTHENING
Institutional Mandates:
• Very few government department mandates
cover all issues that enable/inhibit AA.
• Mechanisms are required to strengthen linkages
among public agencies responsible for policies,
institutions and services impacting on AA
19. AGRO-INDUSTRY & VALUE CHAINS
PROGRAMS
An increasing need for value chain programs that:
• Improve delivery of services;
• Create value addition for small farmers; &
• Help farmers respond to changing markets and
consumer requirements.
These programs should complement AA policy
reforms and institutional strengthening.
20. AGRO-INDUSTRY & VALUE CHAIN
PROGRAMS
The programs should be designed to
complement AA policy reforms and
institutional strengthening through:
• Business linkages;
• Reducing transaction costs;
• Aligning capacities of farms & firms;
• Ensuring fair governance within chains;
• Improving market practices, strengthening
producer organizations; &
• Upgrading technologies.
21. AGRO-INDUSTRY & VALUE CHAIN
PROGRAMS
Key lessons – Strategies & Interventions:
• PPP must ensure that specialized PS management skills
& technical expertise is directed at benefiting small
farmers & processors.
• Entrepreneurial capacities of small farmers must be
strengthened to understand/meet timing, quality & safety
requirements of the supply chain. Capacity building must
address start-up, financing & development of
small/medium agro-processing enterprises.
• Value chain programs should facilitate and support FBO
& producer organizations – they provide economies of
scale & platform for small farmers to do business. But
they must be profitable & business management &
governance very important.
22. AGRO-INDUSTRY & VALUE CHAIN
PROGRAMS
Key lessons – Strategies & Interventions:
• Financial & business services to small farmers &
processors important – reduces costs and expands
operations, especially where transaction costs-to-output
high. Contractual arrangements critical.
• Reduce vulnerabilities by building capacities of chain
participants to innovate, diversify or exit as markets
change.
• Comparative advantage & investment appraisals before
implementation & monitoring of impacts & benefits
essential to reduce vulnerabilities.
• Public-Private sector engagement ensure AA are rules-
based & non-discriminatory & committed to good
governance, development & poverty reduction.
24. INDUSTRY STANDARDS & QUALITY
REQUIREMENTS
Industry standards:
• Manage risks relating to product safety & quality;
• Enable comparisons of prices between suppliers,
• Reduce transaction costs; &
• Strengthen consumer confidence & loyalty.
Branding & labels can differentiate products.
Certification informs consumers about supply chain
practices.
Standards ensures consumer protection & provides both
incentives and sanctions for improvement of product
quality & safety.
25. INDUSTRY STANDARDS & QUALITY
REQUIREMENTS
Unlikely poorer countries can keep up & benefit from
advances in product specification & certification
requirements, without access to sophisticated
technologies, efficient & low-cost communication &
information systems, adequate infrastructure &
supportive institutions & services. Need to initiate dialog
on standards between P&P on:
• Strengthen compliance & certification & reduce costs;
• Reform of institutions & legal frameworks;
• Investments in physical facilities, labs, equipment, infra’;
• Support institutions responsible for food safety, control of
fraud, animal & plant health;
• Technical assistance to establish PPP
27. RESPONDING TO CHALLENGES
Information & Analysis:
• Analysis of trends, changes & factors affecting
transformation of agri-food systems;
• Characterization & appraisal of structure of agro-
industries and value chains;
• Analysis & benchmarking to identify strategies for
agro-industry &value chain development; and
• Development of information & knowledge management
systems for A&A as well as small-scale producers and
processors.
28. RESPONDING TO CHALLENGES
Enabling Policies, Institutions & Services:
• Strategies for improving AA policies, legal and regulatory
frameworks, institutions & services;
• Incorporation of AA strategies and actions into country-level
program frameworks & strategic plans for agricultural
development;
• Reinforce communication & cooperation with PS firms,
foundations and NGOs active in AA development;
• Reinforce compliance & certification systems for food safety
standards and industry quality requirements;
• Reinforce market information services & financial institutions &
services for market-oriented farmers and agro-enterprises; and
• Provide basic infrastructure to improve market access and reduce
business costs.
29. RESPONDING TO CHALLENGES
Support to Agro-Industries & Value Chains:
• Appraise market & agribusiness opportunities & develop sound
methods for prioritizing agro-industries & value chains;
• Facilitate innovative arrangements linking smallholder farmers
with commercial farmers, exporters or agro-processing firms in
long-term relationships
• Identify innovative micro-financing products that facilitate the
participation of small farmers in agribusiness ventures;
• Design & implement initiatives that improve entrepreneurial
capacities of smallholder farmers and small agro-enterprises to
participate in value chains for high-value products, including
branded and certified products; and
• Identify & use innovative mechanisms to link public funding with
private sector resources.
30. Question
1) Explain the challenge face in
ensuring the standard and regulation
been imitate?
2) The issues of falsify label in food
product, describe the solution?
