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SUSTAINABLE PROVISION OF COMMERCIAL SERVICES

Development of farm production in a market economy depends to a large extent on the availability of efficient and sustainable input and equipment supply, financial intermediation and commodity marketing services. While with increasing liberalisation in developing and transition economies the public sector is divesting itself from direct market functions, the private sector often does not yet actively provide small farmers with production support services at competitive prices. In particular, in Sub-Sahara Africa poor policies, an inadequate agricultural production structure, lack of basic rural infrastructure and an unfavourable business environment have not created the necessary competitive rural environment for efficient private business operations. In such an environment it is often necessary first to develop decentralised support services in which private or mutual based village business organisartions play a central role and which then easier can be linked up with mainstream private business.

The outputs of the project entity are targeted at three audience levels: policy makers, service providers, and public and private sector organisations that work with farmers such as agricultural extension and business development services and NGOs/networks. The major products that will be developed consist of policy information leaflets and strategy guidelines related with each of the different support services, promotional booklets and bulletins for the development of linkages between farmers and farmers organisations and agribusiness, guidelines for the development of supply chains and dealer networks, capacity building and knowledge management information systems, different types of training materials, business planning handbooks and operational manuals, investment appraisal guidelines and procedures, market and price information systems, MIS and different automation/software packages.

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