session i susan minae
DESCRIPTION
TRANSCRIPT
International Agribusiness Forum
EMRC:
Kampala Uganda,
October 3th -6th, 2010
Who are SME
Up to 60% of the food commodities are produced, marketed and processed through the informal sector
CategoriesFarmers/farmer groups
Traders/wholesalers/…..
Agro=processors (millers, bakeries, ….)
Exporters –mainly niche markets
(input suppliers –stockists, seed producers, mechanics………)
Profile of SMEs family business; with friends; farmer groups
Started small, sometimes not even planned
Large seasonal variation in business and employment
Development potential of SMEs
Can be critical in driving agricultural sector modernization and transformation
Create market demand pull needed to get farmers to produce more
Contribute to food security through better distribution/ reduction of transaction cost affordability
Reduce post-harvest losses plus value addition
Better matching with specific needs of specific buyers
Processing, packaging, preservation of raw materials and fresh products
Income and employment creation
competitiveness challenges
1. Small volumes/inconsistent supply
2. Limited product differentiation, branding
3. Challenges in quality management and compliance in standards
4. Supply chain inefficiency and logistics –lack economies of scale
5. Limited capital development and access to finance
6. Limited professional associations and alliances
Issues of concern
Management practices, access to technologies and capital, logistics often not competitive with larger firms and international corporations
High transaction costs and risks threaten profitability and survivability
Challenged in responsible business practices
Unreliable to farmers and employees
Issues of concern (2) Weak policy and institutional support, including
technological support
Fall between mandates of agriculture and commerce ministries, …………
Interests often not well represented by private sector federations and organizations
Poor infrastructure especially in Rural areas e.g. Power – major problem;
Many regulations and registration procedures
Opportunities Infrastructure development support
Innovative agribusiness policy strategies and advocacy to support entrepreneurship
Regional collaboration – Enhanced competitiveness in regional markets
Improved access to support to services eg support to rural growth centres, economic growth corridors, clustering/zoning