AGRICULTURAL VALUE CHAIN FINANCING (AGR/2024/BOAZ /02)

Agricultural Business with its physical, virtual and combined Value Chain is crucial to the emerging Economies. The sector contributes immensely to the Gross Domestic Product (GDP) of the Countries. In actual fact, it is the bedrock of the developing economies.

The main constraints of this vital sector are the dearth of finance and gaps in the knowledge and skills of those in charge of credit to the entire Value Chain of Agriculture.

By Agricultural value chain, we mean all the activities leading to agricultural output/produce and subsequent activities that add value in the process of production and channeling the produce to the ultimate consumer. The value chain needs financing, thereby making Agricultural Value Chain Financing an imperative if a nation is to be self-sufficient in food production. This will possibly save the country a lot of foreign exchange on food importation annually, and also earn foreign exchange on the exportation of the surplus of the entire Agricultural Value Chain.

The financing of the chain comes with its own concomitant risks that the credit officers should be aware of if they are to book good loans which will ultimately give assurance of the sustainability of the entire process i.e. agricultural production and its financing.

It is against this backdrop that this 3-day programme on Agricultural Value Chain Financing for the Agricultural sector of the developing economies is designed.

SESSIONAL OBJECTIVES:

At the end of the Training, participants will be able to:

• Demonstrate understanding of the Value Chain Concept and the interrelationship among participants of the chain.
• Identify, assess and manage the risks associated with financing of the chain.
• Demonstrate broad understanding of the key issues in Agricultural Value Chain financing
• Analyse the mechanisms, tools, and instruments of Agricultural Value Chain
• Discuss strategies and approaches for partnership development and risk management factors in Agricultural value Chain financing
• Show understanding of the business models of the chain actors so as to identify their financing and social needs.
• Analyze individual and group loan applications with a view to booking good loans
• Select bankable customers (Client Selection Techniques).
• Operate their units in a way that will promote self-sufficiency i.e. generate enough revenue to cover all their unit costs and still have a margin for growth.