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Value adding and marketing food and horticultural crops in sub-Saharan Africa: Importance, challenges and opportunities Omo Ohiokpehai 1 , Umezuruike Linus Opara 2 , Henry Kinyua 3 , Kiringai Kamau 4 and Lusike A. Wasilwa 5 Abstract The agricultural sector (including horticulture) plays a crucial role in the economy of sub-Saharan Africa. The development of agro-industries helps to reduce post-harvest food losses, adds value to products, creates employment opportunities and has many beneficial feedback effects on agriculture. This paper highlights the challenges and opportunities for agro-processing and marketing horticultural crops in the region. Case studies of value adding in sub-Saharan Africa agro-industry are presented using examples of agroprocessing activities in South Africa and Kenya. The agroprocessing and marketing value chain in the region presents a number of challenges and opportunities that can promote wealth creation and employment generation in rural areas. These case studies underscore the need to strengthen institutional support and infrastructure for marketing and value adding in Africa. The enabling policy issues which underpin successful agro-industrialization, including marketing and market infrastructure development, finance and access to micro-credit, enhancing the role of women, and sustainable capacity building are highlighted. Introduction The agricultural sector dominates most sub-Saharan African economies in terms of contribution to GDP, employment and income. The growth and development of this sub-sector is therefore essential for the overall process of socio-economic development in the region. The major challenge facing sub- Saharan African agriculture is to feed a population that is rapidly increasing. Von Braun (2008) reported that to bail out Africa from the factors impeding its development, three complementary policy actions must be taken: i) promote pro-poor agricultural growth, ii) reduce market volatility and iii) expand social protection and child nutrition. It is obvious that agriculture and agro-processing have a role to play in the second and third of these policy actions. The bailout of Africa can only be successful if transformation of food and horticultural 1 CEO, Center for Health and Nutrition Development (CEHEND), P. O. Box 9477, Garki, Abuja, Nigeria (e-mail: oohiokpehai@yahoo.com). 2 Professor and South African Research Chair in Postharvest Technology, Faculty of Agri-Sciences, University of Stellenbosch, South Africa. 3 Senior Business Manager, Horticulture, TechnoServe, Kenya 4 Value Chain Analyst, VACID – Africa, Kenya 5 Assistant Director, Horticulture and Industrial Crops, Kenya Agricultural Research Institute. 250 crops takes place because as agriculture moves away from semi-subsistence farming to a more commercial mode, market chains become longer and the demand for value-added products increases due to urbanization, income growth and need for convenience. Seasonality of production and the perishability of most agricultural products further signify the need for agroprocessing in a market-oriented production system. With half of the population living on less than US$1 a day, achieving the Millennium Development Goals (MDGs) will be difficult unless the poor in sub-Saharan Africa are targeted to benefit from the expanding market due to sustained economic growth of at least 6-8% in the next decade. The number of people receiving World Food Programme (WFP) food aid in the region more than doubled from 21.2 million in 1995 to over 43.04 million in 2005. Agro-processing could be defined as a set of techno-economic activities carried out for conservation and handling of agricultural produce to make it usable as food, feed, fiber, fuel or industrial raw material. Hence, the scope of the agroprocessing industry encompasses all operations from harvest till the material reaches the end user in the desired form, packaging, quantity, quality and price (Figure 1). A useful classification of agroprocessing industries is based on upstream and downstream industries. Upstream industries are engaged in the initial processing of agricultural commodities. Examples are rice and flour milling, leather tanning, cotton ginning, oil pressing, saw milling and fish canning. Downstream industries undertake further manufacturing operations on intermediate products made from agricultural materials. Examples are bread, biscuit and noodle making, textile spinning and weaving, paper production, clothing and footwear manufacturing, and rubber manufacturing. Agroprocessing plays a number of vital roles beyond income generation. It can reduce the food insecurity of the 1.3 billion people who do not have enough to eat by reducing food losses, increasing the range of food products and making food safe to eat. The development of agro-industries also has many beneficial feedback effects on agriculture itself. The most direct one is the stimulus it provides for increased agricultural production through market expansion. Indeed, the establishment of
Page 1 and 2: 218 Section 4 High-Value Commoditie
Page 3 and 4: Table 1. Average annual growth rate
Page 5 and 6: Farmers that cannot meet these crit
Page 7 and 8: Table 4. Overall food market share
Page 9 and 10: staples and dairy, under the expect
Page 11 and 12: Current status of horticultural sys
Page 13 and 14: Third, the cost of communications i
Page 15 and 16: Wholesale market logistics Wholesal
Page 17 and 18: to seed propagation and disseminati
Page 19 and 20: Graffham, A. and J. MacGregor. 2009
Page 21 and 22: Growth in high-value export markets
Page 23 and 24: have become the main export sector,
Page 25 and 26: Source: calculations based on FAOst
Page 27 and 28: smallholder contract-farming in hig
Page 29 and 30: Source: Maertens and Swinnen (2009)
Page 31: References Aksoy, M.A. and J.C. Beg
Page 35 and 36: The remaining land (55%) is unsuita
Page 37 and 38: system has not developed credit fac
Page 39 and 40: of container sizes allows the marke
Page 41 and 42: without changing taste. The groups
Page 43 and 44: Through various innovative agroproc
Page 45 and 46: Programme and community institution
Page 47 and 48: The production, processing and pack
Page 49 and 50: An assessment of the potential effi
Page 51 and 52: Figure 1. Six experimental sites fo
Page 53 and 54: and socio-economic research goes ba
Page 55 and 56: Raw material market assessment For
Page 57 and 58: Table 4. Local market trade: prices
Page 59 and 60: the fixed capital for Zogowale rema
Page 61 and 62: The role of farmers’ knowledge, w
Page 63 and 64: References Abass, A.B. 2006. “How
Page 65 and 66: ecently, the 2008 World Bank Develo
Page 67 and 68: e achieved through a focus on techn
Page 69 and 70: 286 Box 2: The “Milk War” In De
Page 71 and 72: Change Impact Mechanism Behavioral
Page 73 and 74: efficient functioning of these link

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