Development of Agribusiness Enterprises - Asian Productivity ...

sustained support. In that regard, they cited the need for competent managers to manage the
cooperatives if they were to succeed at all. The participants further identified as an
opportunity the venture towards the production of higher value agricultural products through
further processing. Currently, only basic and simple processing was being undertaken (e.g.,
solar drying and chip production).
A conscious thrust had also been made towards expanding and tapping new export
markets. That move was in line with bringing their industries up to world-class level and, at
the same time, earning much-needed foreign exchange to sustain their import requirements
(i.e., raw materials, equipment and technology). Currently, all the participating countries had
a net trade deficit except for Indonesia, which had its oil revenues. Hence, the need to
promote export-oriented crops and higher-value products in order to offset the trade
imbalance.
Lastly, the need for government to give more attention to, and place greater focus on,
SMEs than large enterprises was highlighted. For example, the lack of sufficient support and
incentives to spur growth in the sector was cited. To address that issue, governments should
draw up suitable policies.
WORKSHOP OUTPUT
A workshop was conducted to provide an opportunity for further discussion and
sharing of views and experiences among the participants. Two small groups were formed to
discuss the following points: (a) the critical issues currently affecting the promotion of
agribusiness SMEs in the Asia-Pacific region, and (b) strategies/measures that could be
adopted to resolve those issues so that more agribusiness SME opportunities could be
generated in rural areas. The outputs of the two groups, which were presented in a plenary
session, are summarized below.
Group I (Bangladesh, Islamic Republic of Iran, Mongolia, Nepal, Pakistan and Sri Lanka)
Chairperson: Mr. Maher Sher Mohammad
Rapporteur: Ms. A. M. Youuverly Jasmin De Silva
Area Issues Strategies/Measures
Policy No specific policy for the promotion
and development of agribusiness in
some countries
Rigid/ad hoc/short-term policy on
agribusiness in other countries
Management Lack of skilled management resulting
in inefficiency
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Formulation of policy on agribusiness
Liberalization of policy on agribusiness
Formulation of off-term policies
with involvement of the private
sector
Conduct management training and
improve management technology
Technology Lack of modern technology Acquisition and transfer of modern
technology
Financing/Credit Inability to obtain credit due to long
and complex procedures
Simplification of credit procedures