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Business of Agricultural Business Services - Working with Smallholders in Africa (Paperback)
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Business of Agricultural Business Services - Working with Smallholders in Africa (Paperback)
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An increasing number of African smallholders are moving from
subsistence farming to selling at least part of their output. To
shift successfully to a more commercial footing they need a lot
more than the production advice traditionally provided by extension
services. They need to understand how markets work. They also need
advice on post harvest handling, help with business planning and
marketing, assistance with organisation, information on prices,
links to buyers and credit, help with contracts and standards, and
many other types of assistance. These agricultural business
development services are provided by a mix of private companies,
NGOs, co-operatives and government agencies in what is called a
pluralistic extension system. Farmers and other clients such as
input stores, small-scale processors and traders get some services
for free, paid for by donors or the government. Others are
subsidised: the farmers pay part of the cost. For still others, the
farmers must pay the full cost. That leads to questions of
sustainability (what happens when the donors money runs out?),
accountability (whom do the service providers listen to: the
farmers, or the source of the funds?) , and inclusiveness (how to
ensure that women, the poor and disadvantaged get the services they
need but cannot afford?). This book describes the two dominant
approaches to providing services: supply-driven (where the funder
decides what services should be offered), and market-driven (where
more emphasis is put on market forces). It looks at how 12 business
service providers from across Africa run their businesses. It
describes the seven different business models that they pursue, and
examines the features of each one. Based on their experiences, it
proposes a new, needs-driven approach, which aims to overcome the
shortcomings of both the supply-driven and the market-driven
approaches by taking the needs of clients as a starting point for
policy and action.
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