Agroindustrial project analysi

ForewordAGROINDUSTRY-that is, industry based on the processing of agriculturalraw materials-is of growing importance in the economiesof developing countries. In some instances, the processing is requiredto prepare a primary product for domestic or foreign trade.In others, agroindustry offers a means of increasing the domesticvalue added of a raw material through manufacture. With risingincomes and growing urbanization in developing countries, thedemand for processed foods in particular tends to increase rapidly.Consideration of these issues led the Economic Development Institutein 1974 to initiate courses in agroindustrial projects forplanners from the developing world. The present volume grows outof training materials prepared for those courses.This book is intended to be an applied guide to the design andanalysis of agroindustrial investments in developing countries. Itshould be of use both as a tool for national planners concernedwith agroindustry and as a training aid for courses in investmentanalysis. Those responsible for investments in the agroindustrialsector commonly have backgrounds in either agriculture or industrybut not both; this book provides an introduction to the subject thatencompasses both areas of expertise. It does assume, however, thatthe user has a working knowledge of the structure of his country'seconomy.This book is one of a number published or in preparation thatarise from the training courses of the Economic DevelopmentInstitute. We hope that making these publications available forwider circulation will assist those new to the field in masteringrelevant analytical techniques that can lead to more efficient investmentplanning.AJIT MOZOOMDARDirector, Economic Development InstituteThe World Bankviii