Agri-Business Development Branch

The problems facing developing countries and countries with economies in transition are many and daunting: widespread poverty, low levels of productivity and infrastructure development as well as poorly integrated markets, especially in rural areas. These problems are further exacerbated by underdeveloped rural industrial organization characterized by small and medium-size enterprises inadequately linked to world markets and, in some cases, by a still incomplete process of economic liberalization in the transition from a centrally controlled economy to a market system.

Development Strategies in the Struggle Against Poverty

A large proportion of resources are used to meet the demand for agricultural products through technology improvements, mainly in seeds, fertilizers and irrigation. Little attention has been given to the value chain through which agricultural products reach final consumers within the country and abroad. The magnitude of the damage caused by this neglect becomes obvious if one considers the enormous added value and employment opportunities that can be generated along the value chain from producers to consumers. While high-income countries add over US$200 of value by processing one tonne of agricultural products, developing countries add less than US$50.

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