Agricultural production and growth in particular relies increasingly on markets and private sector development. This includes actors engaged in production, processing, marketing and other value added activities. Promoting agribusiness is vital in transforming subsistence agricultural production towards a more commercial approach. This may stimulate activities for agricultural production, provide opportunities for diversification of rural economies, and thereby contribute to increasing rural household incomes and livelihoods. Sound investment in value chain development is therefore a key precondition to a sustained agricultural production program.
This sub-component includes:
- Support to agricultural value chains by employing a “value chain” methodology. This is designed to identify and address the constraints and market opportunities of the key value chains and stakeholders. Additionally, it will stimulate market-led agro-enterprise and cooperative linkages with domestic, regional and international markets. Support is targeted at the value chain overall, as well as at key public and private stakeholders.
- Agri-business development centered on supporting business activities related to improving the productivity, value added and competitiveness of the value chain enterprises (production, storage, processing, transporting, and exporting). This also includes improving participation, awareness and capacity of the public and private value chain actors. These include producers, cooperatives, processors, wholesalers, retailers, exporters and relevant public agencies. Additionally, activities under agri-business development include provision of innovation and demonstration funds, private sector technical assistance, public sector capacity development, sector analysis of constraints, and linkage to credit.
- Strengthening Supply Systems of Key Inputs by increasing seed (including forage) availability and support to livestock breed improvement.
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