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.