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Abstract

In many developing countries, the greatest potential for sustainable growth lies in the agricultural sector. Yet ironically, poverty is most widespread and often evident in its worst forms in this sector. Many small-scale farmers, and the rural communities in which they live, are trapped in a “cycle” of low margins, resulting in low risk-taking ability and low investment, which in turn leads to low productivity, low market orientation and low value addition which, in turn, nets low margins (ITC, 2006a). The nature and extent of the changing structure of agrifood demand offer unprecedented opportunities for diversification and value addition in agriculture, particularly in developing countries. (FAO, 2007).

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