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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

©2003 Songhaï Center. Contact Us Edited 08/20/2003
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