Promoting Agricultural Value Chains
In the OIC Member Countries
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organic certification has recently been put in place, and export markets for organic products
look promising.
Work towards more transparency and traceability
Modern markets require that the origin of the produce is known and that there is a clear chain
of custody. The most common way to ensure that information about origins, quality and
handling is correct is through standards. The use of standards is widespread in many global
value chains. In order to get access to these value chains, transparency about origins and
production processes is needed. Such transparency is not possible in informal value chains, but
only in modern chains where systems of traceability can be put in place.
Collaborate with relevant standardisation efforts
Voluntary standards have become tremendously successful in international markets. Examples
of such standards are GlobalGAP, Fairtrade, organic, and some standards developed by multi-
stakeholder initiatives, such as the Better Cotton Initiative and the Roundtable on Sustainable
Palm Oil. In relevant sectors, governments of OIC Member Countries can help integrate these
standards into public extension curricula or in national legislation. Governments can also play
a significant role in harmonising voluntary quality and sustainability standards.
6.2.3 Infrastructure and logistics
Close the infrastructure gap
Lacking or poor quality infrastructure is a well-known constraint to development in many OIC
countries, particularly to agriculture-driven growth. The absence of adequate storage facilities
and means of transport, resulting in high costs and high post-harvest losses, is frequently one
of the main barriers preventing smallholder farmers becoming commercial farmers and
accessing lucrative market opportunities. Closing the infrastructure gap is therefore of critical
importance to increasing agricultural productivity and promoting value chain development.
Dimensions of infrastructural development include irrigation, certification, quality control,
product storage, roads, ports, railway systems, transport services, processing facilities,
electricity and water supply, telecommunications for market information, and physical market
places and trading facilities.
Promote public-private partnerships for infrastructure development
Governments of OIC Member Countries can promote public-private partnerships (PPPs) to
develop the agricultural industry and infrastructure in particular. Many agricultural value
chains in OIC countries currently suffer from insufficient investment and other challenges
associated with inadequate and outdated infrastructure. Against this backdrop, PPPs offer a
mechanism for gaining access to additional financial and human resources, share risks and
benefits, and address different constraints to sustainable and inclusive agricultural value
chains.
Organise chain supporters
In an ideal situation, chain supporters, such as extension, inputs and finance providers, operate
in a competitive market of service providers. These chain supporters would treat farmers as
clients who pay for what they need. Many countries, however, lack such a well-developed
professional service sector. In these countries buyers or the public sector have to play a role in
building a professional service sector through complementary, possibly non-competitive,