Southeast Asia Regional Conference on Agricultural Value Chain Financing

Improving effectiveness of financial services for agrifood systems
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This paper reports on the Southeast Asia Regional Conference in agricultural value chain financing that was held in December 2007 in Malaysia. The conference was organized by the Food and Agriculture Organization (FAO), and the Asian Productivity Organization (APO). Conference discussions indicated that:

  • Agricultural value chains have become increasingly complex;
  • Value chains have become more coordinated, integrated and punctual in delivering produce so as to achieve efficiency and satisfy demand in response to changing market requirements;
  • Requirements of higher levels of quality and safety have forced value chain actors to adapt accordingly.

The conference concluded that best practice on value chain financing in Southeast Asia should be documented. Lessons learned should be used to develop action research programs that will eventually develop replicable models. It recommended that:

  • An integrated and strategic approach is necessary in value chain financing particularly for small-scale enterprises;
  • Integrated solutions should be aided by an enabling environment conducive to the development of agricultural value chains;
  • Policies, institutions and services need to be in place to promote value chain development.