AGRICULTURE VALUE CHAIN FINANCING

AGRICULTURE VALUE CHAIN FINANCING

Increasing investments and competitiveness in the agriculture sector and the returns that the actors therein obtain is a virtue that resonates well across the value chain. Improving finance at specific points in the value chain, coupled with capacity improvements can, and does contribute to, increasing competitiveness and lowering value chain risks. Value chain finance ensures that actors have liquidity so that they can meet market demands. It helps maintain or expand operations, invest in market, process, and inter-sectoral upgrading opportunities. Suppliers of value chain finance have to consider the financing needs of the value chain actor and their ability to access finance from various sources. What factors do value chain finance providers consider before releasing funds to value chain actors? Who are the various sources of agriculture value chain finance? Which source is most appropriate for the respective actors?