A developmental systems approach to agro-processing policy

Agro-processing is an increasingly important market access point for agricultural producers. The development of the agro-processing sector thus has significant potential to create opportunities for smaller agricultural producers, thereby supporting the creation of new employment and livelihood opportunities in rural areas. However, market access points are not homogenous from the point of view of smaller producers. Policy needs to incorporate the possibility of the adverse inclusion of smaller producers into established markets. The likelihood of beneficial inclusion outcomes will be enhanced by a stronger focus on net farm income projections for individual producers; farmer cooperatives at the processing level; innovation in the location and structure of agro-processing infrastructure; and better policy co-ordination among the various government actors.