Strategic Recommendations for Agribusiness Firms and Cooperatives in Developing Countries: Unlocking Value through Crop Transformation and Export Success
Agricultural exports are a cornerstone of economic development in low- and middle-income countries, offering pathways to poverty reduction, job creation, and foreign exchange earnings. However, unlocking this potential requires navigating complex challenges, including stringent international standards, market fragmentation, and underdeveloped infrastructure. For instance, developing countries account for 80% of the global population but only 40% of export values, with the least developed nations contributing just 1% of global agricultural exports. Meanwhile, value-added products like organic goods or specialty crops present untapped opportunities: the global organic market is valued at $17.5 billion, comparable to the coffee industry, yet certification costs and fragmented standards often hinder smallholders.
This article synthesizes actionable strategies for agribusinesses and cooperatives, drawing on successful case studies from Chile, Ethiopia, Pakistan, and others. By integrating lessons on technology adoption, value chain collaboration, and market readiness, firms can overcome barriers and capitalize on global demand.
Key Recommendations with Real-World Export Experiences
1. Invest in Adaptive Technologies and Farmer Education
Example (Chile): Small horticultural producers in Chile increased competitiveness by adopting drip irrigation and crop-improvement practices. Education levels and access to technical programs like PRODESAL, which combined training with socioeconomic support, were critical drivers of adoption. Farmers with higher education were 30% more likely to implement advanced technologies, boosting yields and market access.
Lesson: Pair scalable technologies (e.g., mobile-based disease detection tools) with farmer education programs to ensure sustained adoption.
2. Leverage Public-Private Partnerships (PPPs) for Market Access
Example (Pakistan): The USAID Pakistan Regional Economic Integration Activity (PREIA) streamlined trade processes by launching the Pakistan Single Window, reducing customs clearance time by 50% and digitizing 91% of payments. This initiative aligned local regulations with international standards, enabling exporters to meet sanitary requirements for perishable goods.
Lesson: Advocate for PPPs to address macro-level barriers (e.g., certification bottlenecks, infrastructure gaps) and align products with global standards.
3. Target Niche Markets with Certified and Branded Products
Example (Ethiopia): Ethiopian coffee farmers faced stagnant growth in washed coffee exports despite international premiums. Constraints included lower labor productivity for wet mill processing and farmers’ reliance on dried cherries as a savings instrument due to negative real deposit rates. Smaller, "impatient" farmers adopted washing methods, but systemic barriers limited scalability.
Example (Kenya): The Kenyan Plant Health Inspectorate improved compliance with EU organic standards, enabling access to premium markets. Similarly, fair trade certifications (e.g., Max Havelaar Switzerland) have opened channels for ethically sourced products.
Lesson: Prioritize certifications (e.g., Fair Trade, organic) and branding to differentiate products. Address adoption barriers through financial incentives and savings alternatives.
4. Build Regional Export Networks Before Scaling Globally
Example (Georgia): The USAID INVEST program focused on regional exports to Europe, preparing 40 Georgian companies for international trade. By partnering with Enterprise Georgia, the initiative created a $5 million deal pipeline, emphasizing indirect exports (e.g., SMEs supplying anchor firms).
Example (Vietnam): As an "Asian Tiger," Vietnam prioritized regional markets before expanding globally, reducing logistical risks and building competitive resilience.
Lesson: Start with geographically closer or culturally familiar markets to build capacity and mitigate risks.
5. Embed Circular Economy Practices to Enhance Sustainability
Example (India): Fish waste recycling initiatives transformed by-products into leather and biofertilizers, reducing waste and diversifying revenue streams.
Example (Sub-Saharan Africa): Mobile-based payment systems and blockchain tools improved supply chain transparency, reducing post-harvest losses by 15%.
Lesson: Integrate circular models (e.g., agro-waste upcycling) to meet sustainability demands and access premium markets.
Conclusion
Agribusinesses in developing countries can thrive in global markets by adopting context-specific strategies that balance innovation with inclusiveness. Success stories from Chile’s PRODESAL program to Pakistan’s Single Window system demonstrate that overcoming export barriers requires a blend of technology, collaboration, and market intelligence.
Key priorities include:
1. Farmer-centric education to bridge technology gaps.
2. Strategic PPPs to align policies with global standards.
3. Niche market targeting through certifications and branding.
4. Regional market prioritization to build scalable export pipelines.
5. Sustainability integration to future-proof value chains.
By learning from these experiences, firms can transform challenges into opportunities—ensuring that value addition benefits both producers and global consumers. As Ethiopia’s coffee sector illustrates, even high-potential industries require systemic reforms (e.g., financial inclusion) to fully capitalize on global demand. The path to export success lies not in isolated interventions but in holistic, adaptive strategies that empower farmers, streamline trade, and elevate quality.
Footnote
The United States Agency for International Development (USAID) has been a cornerstone of agricultural transformation in developing nations, driving innovations such as the Green Revolution, which tripled staple crop yields, and supporting land tenure reforms that empowered smallholder farmers to invest in sustainable practices. Through programs like Feed the Future, USAID fostered climate-resilient farming, strengthened value chains, and expanded access to global markets—evidenced by Egypt’s horticultural export growth from $150 million to $1 billion annually under its technical and policy guidance. Collaborative initiatives, including the $1.4 billion investment in CGIAR research partnerships, lifted food production in developing countries by 7–8%.
Regrettably, the Trump administration’s 2025 shutdown of USAID has jeopardized these gains. Critical programs—such as Nigeria’s $2.3 million malaria tablet procurement and South Africa’s PEPFAR-funded HIV/AIDS response, which covered 20% of the nation’s treatment costs—face abrupt termination. The dissolution of agricultural projects, including Kenya’s dairy and horticulture value chains, underscores the void left by USAID’s absence. This decision not only halts decades of progress but also undermines global food security and the livelihoods of millions reliant on USAID’s technical, financial, and institutional support.
The agency’s legacy remains a testament to the power of sustained, collaborative development, a model now at risk without its guiding hand.
I hope you enjoyed reading this post and learned something new and useful from it. If you did, please share it with your friends and colleagues who might be interested in Agriculture and Agribusiness.
Mr. Kosona Chriv
Group Chief Sales and Marketing Officer
Solina / Sahel Agri-Sol Group (Ivory Coast, Senegal, Mali, Nigeria, Tanzania)
https://sahelagrisol.com
Chief Operating Officer (COO)
Deko Group (Nigeria, Cambodia)
Senior Advisor
Adalidda (India, Cambodia)
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Discover actionable strategies for agribusinesses in developing countries to unlock value through crop transformation and export success.