Abstract
The main function of agro-industries is value addition. They process agricultural produce into other forms suitable for storage and consumption. Aside the employment opportunities that it creates along commodity value chains, agro-industries act as direct link to farmers, thereby reducing rural poverty and paving way for farmers and middlemen to develop proper linkages along commodity chains. Linkages are important in agribusiness development, but these are not extensive in the agro-industrial set-ups in Africa. In this chapter, we discuss the importance and emerging potentials of agro-industries in commodity value chains in Africa. We also discuss among other things, the role of backward and forward linkages, and vertical and horizontal integrations in the development of agribusiness. We caution that, investing in the agribusiness sector requires investments that would enhance agro-industrial activities. Policies aimed at mitigating poverty in Africa through agriculture must take steps to adequately link farmers to buyers who in most instances are processors.
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Atosina Akuriba, M., Abunga Akudugu, M., Alhassan, AR. (2021). Agro-industries as Anchors of Agribusiness. In: Agribusiness for Economic Growth in Africa. Palgrave Advances in Bioeconomy: Economics and Policies. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-88759-9_5
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DOI: https://doi.org/10.1007/978-3-030-88759-9_5
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