Strengthening farm-agribusiness linkages is vital for agribusiness development. Successful linkages lead to adding value in agricultural sectors, they can help to create employment and increase income levels. Small farmers cannot remain only producers of foodstuffs but have to take on the additional role of entrepreneurs in order to improve their livelihoods and move beyond subsistence farming. Further, agribusiness companies are in need of reliable domestic raw material supplies to improve their international competitiveness.

The linkage initiative concentrates on how to develop and reinforce equitable and efficient linkages between all players along the food value chain. The main work of FAO is to create an awareness of the importance of farm-agribusiness linkages and to develop guidelines for policymakers and planners on how to formulate strategic programmes and overall strategies that would assist in building and maintaining successful farm-agribusiness linkage programmes.

Agribusiness Linkages studies

Strengthening the relationships between producers and processors as well as between producers and traders can be promoted by international support organization such as FAO. In order to bring benefits to both actors, stronger and more trusting relationships are essential. These can benefit both in terms of risk reduction and cost savings through better production planning and business management.

Specific country case study material on farm-agribusiness linkages have been developed for Latin America (download Spanish version and English version) and Africa (download here).

A workshop on "Alternatives to improve negotiation and market access of small scale entrepreneurs in Latin America" was held in Lima, Peru on November 2002. In the workshop, alternatives to improve capabilities to comply with market opportunities were evaluated and training needs of small-scale entrepreneurs were appraised. (Workshop Proceedings are available in Spanish version and English Version). The results of an expert consultation in Africa, held in Kenya in March 2003 can be downloaded here.

Business Partnerships

The book ''Business Partnerships in Agrifood chains: FAO Experiences in Latin America'' aims to help consolidate productive partnerships in agrifood chains in the region, with the systemization of the experience of FAO project TCP/RLA/2905 about "Support for the promotion and development of business partnerships", executed in Brazil, Chile, Mexico and Peru. Agrifood chains selected include milk, castor bean, beef, avocado, lemon, mango, artichoke and lentil (download Spanish version and English version ).

Click here, to access more information on activities in this area.