AAAF Knowledge Paper on Agric Value Chains in Asia & Africa

February 2014 | Africa
Agric value chains of the Asian countries have many common features; at the production end rising number of small and fragmented farms is a major concern. Fragmentation of land leads to inefficient use of agric inputs ultimately leading to reduced output levels; high transaction cost and reduced bargaining power for the farmers. Involvement of large number of intermediaries in the value chain is another important feature. This results in the soaring of margins as the produce ascends the value chain and huge difference between the price paid to farmers and consumer price.

Wastage of the agricultural produce is another feature of the value chain. Minimal processing, traditional methods of processing, unskilled work force and underdeveloped infrastructure are the underlying reasons for the wastage. Moreover, increased labour cost and labour shortage have become a major concern as labour is required at different stages of the value chain right from production to marketing. The paper focuses on growth drivers for integrated agricultural value chains in Asia & Africa

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