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October 3rd, 2016

Public-private partnerships for agribusiness development – A review of international experiences

Published by FAO,

This publication (PDF) by FAO aims to improve understanding of both the potential benefits and the challenges of agri-Public-Private Partnerships (PPPs). FAO has gathered 70 case studies from 15 developing countries along with evidence from field-based support to PPP initiatives for agribusiness development in Central America and Southeast Asia.  The primary objective is to draw lessons that can be used to provide guidance to FAO member countries on how to establish effective partnerships with the private sector to mobilize support for agribusiness development. Four common project types are identified: i) partnerships that aim to develop agricultural value chains; ii) partnerships for joint agricultural research, innovation and technology transfer; iii) partnerships for building and upgrading market infrastructure; and iv) partnerships for the delivery of business development services to farmers and small and medium enterprises. Agri-PPPs are expected to contribute to the pursuit of sustainable agricultural development that is inclusive of smallholder farmers. For smallholder farmers, many of the partnerships studied showed evidence of positive impacts on net income through improved market access, increased productivity, improved product quality or reduced costs through the adoption of new technologies, increased capacity of farmer organizations, and generation of on- and off-farm employment. The main lessons are synthesized, including the public skills and institutions required to enable more effective partnerships with the private sector, and the circumstances under which PPPs are likely to be the best modality for achieving sustainable development outcomes. The conclusion reached is that while there is evidence of positive contributions to sustainable agricultural development objectives, there remain several outstanding issues associated with the impact of PPPs on poverty reduction and inclusion, which still need to be addressed. When deciding whether or not to engage in an agri-PPP, policy-makers should aim to ensure that the partnership will represent value for money and generate public benefits that exceed those that could be achieved through alternative modes of public procurement or through private investment alone.

Curated from fao.org