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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