While commodity markets in Africa vary significantly, some trends are quite evident. For smallholder farmers attempting to get better prices for their products, they are challenged by poor or non-existent roads, limited transport and storage facilities, difficulty in attaining commodity specifications, uncertainty about real commodity prices, low economies of scale to attract larger buyers, etc. The collapse of marketing boards, cooperatives in many countries over the last several decades has further contributed to a worsening situation for farmers.

Corporations seeking to invest in agriculture in Africa also face challenges of their own during project start up. Foremost, the fluctuation of global commodity prices has a key bearing on such decisions as well as the cost structure for production and logistics to major European and North American markets. Other key factors for consideration are political risk, tax implications, farm management, pests and weather.

A commodity market assessment can determine the particular challenges facing your beneficiaries or outgrower farmers for a commercial farming scheme. Foremost, it is essential to have a wider perspective of the economy and related facets affecting the agricultural sector, such as government policy, logistics, market players, donor and NGO activities, financial and banking facilities, tax implications, and production, import and consumption data. AgroAfrique consulting is equipped to work with you and your team to find the best solutions to these challenges and produce a comprehensive report which analyzes the cost-benefit of humanitarian and commercial projects.

	Assessments take into account critical factors of the agricultural economy, including primary and secondary markets, agricultural production, government regulation, imports, food aid, logistics, government and NGO extension activities. (read more)
	In many African countries, farmers have insufficient access to real-time agricultural price information. They are often subject to low farm-gate prices offered by traders. . (read more)
	Farmers who sell their agricultural commodities collectively tend to receive higher prices than individual farm-gate sales. Following the collapse of agricultural cooperatives in many African countries in the last several decades, collective marketing has declined drastically. (read more)