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Financing the Food Value Chain

Access to finance is always a top concern for enterprises because just as a car cannot run without oil, a business cannot develop and grow without financing. Sufficient funds allow companies to upgrade their machineries, adopt new technologies and hire top talents, which in turn increase productivity and profitability. In agriculture in particular, the need for financing is even more dire because of the inherent seasonality of its cash flows, and compounded if farmers have small landholdings and financial systems are primitive.  Availability of finance and a robust financial system are important for the food value chain and, in general, for all businesses.

 

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