Agriculture Business Detail
Agribusiness is labour-intensive, creating jobs in valueadding, agro-processing activities, particularly for those who will inevitably leave the land as economic development proceeds. In order to reap the benefits of job creation, it is important that policy-makers and development partners target interventions along the entire agribusiness value chain, and not just agriculture on a stand-alone basis. Agricultural strategies cannot be framed – as in the past – in terms of a productionled strategy. It is demand, in part linked to value chain development, which must perform the pivotal role, and provide the driving force for investments.
An agribusiness-led development strategy, with stronger productivity growth throughout the entire agribusiness value chain system, offers the best opportunity for rapid and broad-based economic growth and poverty reduction in SSA. Indeed, the expansion of employment through downstream agroindustrial processing value chains may be one of the few local paths out of poverty for small farmers. For this to have broad-based impact, there must be a structural transformation involving a shift in the economy from subsistence-oriented household production and household-based agro-industry towards a modern integrated economy, based on specialisation and exchange, often relying on economies of scale. The off-farm elements of the agribusiness and food retailing system expand relative to farm-level production, both in terms of value added and employment. Such a shift is critical for poverty reduction, as between one and two-thirds of smallholder farmers appear to lack the resources to ‘farm their way out of poverty’, and will therefore eventually need to move to more remunerative employment in emerging sectors outside farming, such as agribusiness, industry and services.
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Agribusiness is labour-intensive, creating jobs in valueadding, agro-processing activities, particularly for those who will inevitably leave the land as economic development proceeds. In order to reap the benefits of job creation, it is important that policy-makers and development partners target interventions along the entire agribusiness value chain, and not just agriculture on a stand-alone basis. Agricultural strategies cannot be framed – as in the past – in terms of a productionled strategy. It is demand, in part linked to value chain development, which must perform the pivotal role, and provide the driving force for investments.
An agribusiness-led development strategy, with stronger productivity growth throughout the entire agribusiness value chain system, offers the best opportunity for rapid and broad-based economic growth and poverty reduction in SSA. Indeed, the expansion of employment through downstream agroindustrial processing value chains may be one of the few local paths out of poverty for small farmers. For this to have broad-based impact, there must be a structural transformation involving a shift in the economy from subsistence-oriented household production and household-based agro-industry towards a modern integrated economy, based on specialisation and exchange, often relying on economies of scale. The off-farm elements of the agribusiness and food retailing system expand relative to farm-level production, both in terms of value added and employment. Such a shift is critical for poverty reduction, as between one and two-thirds of smallholder farmers appear to lack the resources to ‘farm their way out of poverty’, and will therefore eventually need to move to more remunerative employment in emerging sectors outside farming, such as agribusiness, industry and services.
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
Agriculture Business
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