|
JUSTIFICATION
FOR THE CREATION OF A COMMODITY MARKET
From the commercial point of view, agriculture (be it subsistence
farming, or revenue generation farming) is not profitable or competitive
because the costs of transactions between the farm and the consumer
are so high that they eat into and sometimes eliminate the profit
margin of the producer.
Owing to difficulties with preservation, the villagers are forced
to sell their goods at very low prices. The foundations of agricultural
growth are therefore undercut because villagers receive only negligible
revenue at the end of each season, which does not allow them to
meet their investment needs and increase their productivity.
Poverty in the rural area becomes a vicious cycle, and the supply
of basic products is greatly reduced leading to price inflation.
The environment is no longer favorable for food security; in addition,
activities in the agro-industrial sector slow down and unemployment
rises.
IMPACT
- A guarantee of revenue for the producer.
- Availability of raw materials for agro-industry.
- Creation of jobs.
- Improvement of purchasing power and increase in consumption.
- Creation of new markets within the rural areas
|