Building the political case for agro-industries and agribusiness in developing countries.

Abstract

This chapter characterizes the processes of agro-industrialization in developing countries and builds a political case for agro-industries as a driver of growth and development. The case is developed around two main arguments. One cornerstone of their argument is that rapid changes in agrifood systems are shifting the basis for competitiveness. Increasingly, competitiveness is being determined by factors such as economies of scale, efficiencies in logistics, compliance with stringent grades and standards, and capacity to reach global markets with differentiated products. Countries that have achieved higher integration with global markets with high-value products, or countries with large high-value domestic markets, seem to have advanced the most in terms of the contribution of agriculture to economic development. The second argument relates to the pervasiveness of the impacts of agro-industries. They point to the key distributional consequences and discuss potential environmental consequences. The main message of the chapter is that countries must think and act strategically in order to cope with the challenges, starting with the important strategic choice on how countries and firms position themselves with respect to market competition. Policy makers need to define their roles vis-á-vis the private sector and need to establish effective public-private working relations.

Implication of TNCS In Agri-Food Sector – Challenges, Constraints and Limits - Profit or CSR?

“…The increase in the demand for agri-food products has also favored the development of agro-industrial enterprises, a phenomenon observed mainly in developing countries. Process of agro-industrialization (Henson and Cranfield, 2009;Maertens and Fabry, 2019) is generated by consumer requirements, technical progress, liberalization of trade in agricultural products (Radulescu and Dumbravescu, 2008;Bojan et al, 2017;Voica and Panait, 2017;Borsellino et al, 2019) or liberalization capital movements (Matei, 2004). The divers framework of economic agents involved in feeding foreign capital flows from the agricultural sector has diversified considerably, in addition to transnational companies making their presence felt and the investment funds and financial institutions that support the food security policy of governments that finance or consider investment in agriculture an opportunity not to be missed given the need to diversify the portfolio to reduce risk (Matei, 2004;UNCTAD, 2009;Panait et al, 2016).Foreign investors have nuanced their way of implantation in the agricultural sector over time, in the sense that in recent decades there has been a trend of land acquisition in developing countries (FDI in land) and less involvement in their activities.…”

Primary Industry Chains and Networks: Analysis for Public and Private Interests

“…In this setting, primary industry serves to add value to raw, unrefined or un-extracted material rather than purvey it to firms in other industries (Carter and Easton, 2011). Primary industry associated with production, processing, distribution and marketing of agricultural productsagroindustry-provides an example in the economies of both developed and developing nations: it has emphasized value addition and challenges ideas of boundaries between primary, secondary and tertiary industries (Reardon and Barrett, 2000;Henson and Cranfield, 2009).…”

Serbian agro-industry: Potentials and perspectives

“…The growth of agro industries of developing countries is intensified due to dynamic structural changes, obeying international standards of product and procedures safety and quality, as well as due to technological innovation and a vertical and horizontal integration level increase. Significant factors were also market liberalization and changes within the demand structure in developed countries, resulting in an increase of export as well as increasing competitiveness (Henson, Cranfield, 2009). …”

“…Agro industry is consisted from sectors which process raw materials of agriculture, fisheries and forestry. It is a part of the agro business complex, which includes suppliers for agriculture, fisheries and forestry as well as distributors of food and non food products of the agro industry (Henson, Cranfield, 2009). …”