Skip to main content

A baker's dozen lessons of value chain financing in agriculture

The full text article is not available for purchase.

The publisher only permits individual articles to be downloaded by subscribers.

Abstract:

Value chain finance in agriculture is an approach to financing that uses an understanding of the production, value added and marketing processes in a chain to best determine financial needs and how to best provide financing to those involved. Many diverse and innovation financial instruments may be applied or adapted to fit the specific financial needs of chain actors. Commodity flows and cash flow projections can be used to secure financing and reduce risk. This article looks at this approach and at the application of financial instruments and innovations, drawing lessons for widespread application. The 13 lessons are drawn from 90 cases presented in four regional conferences on value chain finance organized by the Food and Agricultural Organization of the United Nations (FAO) and on a study on structured finance for agriculture. These lessons show the high potential of this approach for successfully increasing finance to agriculture and agribusiness, with less risk and lower transaction costs.

Keywords: EMBEDDED FINANCE; RISK; VALUE CHAIN FINANCE; WAREHOUSE RECEIPTS

Document Type: Research Article

DOI: https://doi.org/10.3362/1755-1986.2008.025

Publication date: 2008-10-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more