AGRICULTURAL VALUE CHAIN FINANCE (1)

Many have been requesting the firm to explain the term ‘Agricultural Value Chain (AVC)’ and Agricultural Value Chain Finance (AVCF). The concept has been used since the beginning of the millennium, by people mostly financiers and development agencies involved in the growth and development of the agricultural and Industrial sectors in developing countries.

There is no universally accepted definition of AVC but it usually refers to the whole range of goods and services an agricultural product goes through from the farm till it gets to the final consumer/customer.

For example, the Cocoa beans is processed into a range of products

– Cocoa Powder

– Chocolate

– Chocolate bars and so many products.

The term Value Chain was first popularized in 1985 by Michael Porter. In his book, he illustrated in detail how companies can achieve competitive advantage by adding value within their organization.

Subsequently, the term was adopted for agricultural development purposes. Farmers in developing countries are encouraged add value to their products. On a macro level, developing countries are encouraged to process raw goods into semi-finished and finished goods before exporting. By so doing, they will earn more foreign exchange.

Consequently, many development partners adopt Value chain finance to guide their development interventions and foreign aid.

 

Author Bio

belvyna

Mrs. Yemisi Akibu ( nee Awokoya) is the Chief Executive Officer of Belvyna Global, an agricultural consultancy service firm based in Lagos, Nigeria She is a former Team Member of the Agricultural Department of Union Bank of Nigeria Plc, one of Nigeria's first generation banks. She holds a B.Sc degree in Agricultural Economics from the University of Ibadan, Nigeria and a Masters degree in National Development and Project Planning from the University of Bradford, West Yorkshire, United Kingdom. She is passionate about the role agriculture plays in the social, economic, political development of a nation. She holds the view that one of the pillars of stability of a nation food security and this can only be achieved through the holistic development of the agricultural sector. She can be contacted via: yemisiakibu@gmail.com or info@belvynaglobal.com Remember, The Farmer Is King Enjoy my blog

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