Agroenterprise

Supporting rural areas through
agro-enterprise development
The vast majority of the world’s poor live in rural areas and most of them rely on agriculture
for their livelihoods. Not only do they suffer from lack of resources and assets, they also are
affected by major changes in the agricultural sector brought about by globalization and market
integration. Within this context, agro-enterprise development emerges as a way forward for
rural people to improve their lives.
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Since most of the entrepreneurial activities in rural areas Field programmes offer policy and strategic guidance as well as
are based on agricultural and natural resource products, capacity-building training programmes that use materials and
farm families can broaden their income opportunities guidelines prepared by FAO.
by diversifying into higher value on-farm and off-farm
enterprises. Building capacity
However, capturing the benefit of globalization FAO capacity-building activities, designed to enable farmers
and establishing agro-enterprise calls for a competitive, and rural entrepreneurs to compete in times of market
market-oriented production and service sector. This liberalization and globalization, focus on developing skills
requires diversifying production to include value-adding and competencies in aspects of business management. This
products and capital investment to modernize processing includes:
activities and train skilled managers. • helping small- and medium-scale agro-enterprises,
producer organizations and service providers develop
FAO supports rural entrepreneurship managerial, marketing, financial management and
Providing guidance entrepreneurial skills; and
Recognizing that commercialization of small-holder • reinforcing the capacity of service providers to help
agriculture has great potential to improve rural agro-enterprises link to markets, adopt technologies
livelihoods, FAO provides policy advice and technical and apply quality and safety assurance practices to meet
assistance related to market-oriented farming and market requirements.
small- and medium-scale agro-enterprise development.
The focus is on increasing the availability of low cost
food and agricultural products, addressing market access
A snapshot of technical assistance
constraints, and improving the profitability, efficiency
FAO has responded to a wide variety of requests for
and competitiveness of farms and agro-enterprises. In
technical assistance from governments interested
providing guidance at the national level, FAO works with
in building their agri-business sectors. Among the
governments to:
projects established:
• recognize and adjust to trends in farm
• assistance for establishment of an autonomous
commercialization;
agribusiness investment agency (Sudan);
• develop reliable farm-to-market and farm-agribusiness
linkages; • support to rehabilitation of the sugar industry
• establish roles of the public sector as service providers (Afghanistan)
in marketing and business management; • support to countries to improve capacity to
• provide the private sector essential marketing, finance, develop, adapt and lead effective commodity
business and input supply services; strategies and implementation plans (Africa,
• support producer organizations; and Caribbean and Pacific [ACP] countries);
• overcome constraints to participation in export and • assistance in strengthening Ministry of
high value product market channels. Agriculture’s capacity to respond to demands

of regional and national agrifood chains
(Costa Rica).
Offering technical support systems. Region-specific training materials on farm
FAO promotes agro-enterprise development by placing business management have been prepared for extension
technical expertise at the disposal of member countries workers and field programmes.
through field projects and policy advice on:
• appraisal and promotion of income-generation and Agribusiness partnership
diversification opportunities; FAO supports development of effective national and
• training materials for agricultural management, sub-regional advisory services designed to ensure that
marketing and finance; best practice methods and appropriate technologies
• support to agro-enterprise development initiatives; are used in agribusiness and agro-industry programme
• publications on farmer-market links, business design, implementation and monitoring. Through its
development services, supply chain management, Rural Infrastructure and Agro-industries Division (AGS),
organic certification, and quality and safety in the FAO provides information and technical assistance on
horticultural chain. design, selection, operation and management of post-
production facilities and services for handling, processing,
preserving, transporting and marketing of food and other
agricultural products. Through its field programmes, FAO
FAO provides information supports agro-industries and key supply chain actors, from
producers through retailers, in developing reliable raw
and technical assistance on material supply chains. FAO has reinforced its partnerships
design, selection, operation and with UNIDO and IFAD for dealing with agribusiness and
agro-industries development and post-crisis activities.
management of post-production
facilities and services for
handling, processing, preserving, Countries request support
transporting, and marketing Member countries have requested FAO’s assistance in
developing policies to optimize the impact of globalization
of food and other agricultural and commercialization on small farmers
products. and agro-enterprises. Requests have come for support
relating to rural enterprise development from the
governments of Malawi, Zambia, Liberia, Sierra Leone,
Uganda, Rwanda, Burundi, Ethiopia and Afghanistan.
Field programmes
A portfolio of national and regional field projects has
been designed to enhance food security and increase small
farmer income and competitiveness in Asia, Africa, Latin
America, the Caribbean and the Pacific. The projects focus
on livelihood diversification, marketing and post-harvest
© FAO photo
For more information:

Rural Infrastructure and Agro-industries
Division
http://www.fao.org/AG/Ags/index_
en.html

Agroenterprise

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Supporting rural areas through

• establish roles of the public sector as service providers (Afghanistan)

in marketing and business management; • support to countries to improve capacity to

• support producer organizations; and Caribbean and Pacific [ACP] countries);

• overcome constraints to participation in export and • assistance in strengthening Ministry of

high value product market channels. Agriculture’s capacity to respond to demands

For more information:

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