Agricultural Markets and Trade
The majority of people living in developing countries rely on agriculture
for their livelihoods. Rural farmers have opportunities to increase their
share of domestic, regional, or international markets through the new
opportunities provided by globalization. By becoming participants in
the global economy, farmers in developing countries will be able to raise
their incomes and, in the long run, achieve food security for their families
and rural populations in general.
But to become competitive in today’s global marketplace, farmers
need to be integrated into the chain of production—from the farm
to the grocer’s shelf. Unfortunately, poor product quality, inefficient
transport, lack of access to information on pricing and other factors
are hindering rural farmers’ efforts to become competitive in the
global marketplace. To bring about this integration, USAID is working
in the following areas:
Product standards and quality control: Farmers need to do more than
just expand into new markets. The rise in internationally-owned supermarkets
brings unique sets of stringent regulations for food safety, purity and
quality. Farmers wishing to sell their products in these markets must
also meet and understand the same quality standards as larger, commercial
farms, in addition to other specific standards associated with protecting
human, animal, and plant health. To respond to these new requirements,
USAID is supporting the establishment of new procedures to process, test,
inspect, and certify agricultural and forest products for the world market.
Infrastructure development: In many parts of the world, roads, transport,
and storage facilities are not yet adequate to support efficient marketing
of their products. Farmers producing perishable crops suffer major losses
and are unable to compete when they cannot get their crops to market
in time. USAID assists with infrastructure development projects such
as farm-to-market roads and encourages other donors to finance infrastructure
activities.
Access to market information: USAID is involved in activities to update
farmer and agribusiness skills, enabling them to respond to production
and market opportunities by using new agricultural information and communication
technologies to obtain up-to-date and accurate market information.
A good example of how USAID is combining these areas to overcome obstacles
in international trade can be found in USAID’s support of small
coffee farmers. By supporting activities to increase coffee quality and
productivity, improve business practices, and promote value added, USAID
is helping these farmers compete in the high-quality segments of the
coffee market. For those farmers who cannot compete, one strategy is
to help them diversify into niche markets, such as gourmet fruits and
vegetables or environmental services. The Agency’s work has helped
many of these farmer increase their incomes.
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