Strengthen the markets: Role of marketing corporations

 10. Strengthen the markets: Role of marketing corporations

Support the development of private sector driven marketing organizations to grow the agricultural sector

Support development of private sector driven, public sector enabled marketing corporations

 

Leading global examples of marketing corporations

 

 

Fig 41: Leading global examples of marketing corporations

 

Key drivers of success

  • The scrapping of marketing boards during structural adjustment,without any institutions to replace them or play their functions, has left millions of farmers in  a precarious situation: market access is a challenge, price uncertainties and volatility which leave them at the mercy of middle men.
  • No developed country has such institutional abandonment of farmers. We will revamp the functions performed by the marketing boards, but be careful to ensure that we do not build non-viable or over-bureaucratic institutions that tax farmers like the old marketing boards.
  • They must be owned by agricultural value chains, run as private sector led (but government enabled) institutions and empower farmers and the value chain actors and generate value.
  • These new institutions will be called marketing corporations and will coordinate the production and/or export of target commodities. In addition, they will encourage investment into the sector from R&D to infrastructure and processing. Finally, they will stimulate the development of tailored financial services to grow the sector.

 

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