Aggregation, Processing and Marketing

Feed Salone > Project Pillars > Aggregation, Processing and Marketing

areas of Intervention

Overview

There is a huge infrastructure deficit in the form of inadequate aggregation centres and ill-equipped storage and processing facilities that continue to hinder value addition to locally produced goods. These, together with poor road networks, unreliable electricity, and high transport costs are frequently cited as some of the perennial causes of post-harvest losses which can be between 30% – 40% of annual agricultural production (FAO, 2021). 

Moreover, despite the significant potential demonstrated by the agro-processing sector over the past decade, particularly in the processing of commodities like oil palm and cashew, which together account for approximately 16% of agricultural value added (World Bank in 2016), the sector faces persistent limitations. These constraints include the inadequate capacity of processors and the absence of regulatory frameworks that establishes equitable pricing and quality standards, thereby impeding private sector engagement in this sub-sector. Additionally, challenges such as limited access to financial resources and the underutilization of technology for the distribution and processing of agricultural outputs further exacerbate the difficulties faced by the sector.