FDB managing director Saud Minam said the bank was developing a similar solution for ginger, dairy and other agricultural products. He added that these would be digitally accessible through the FDB web portal. In a statement, the bank said it began financing the value chain last December with the launch of the Rice Mobility Package in collaboration with Fiji Rice Ltd.
“The advantage of this concept is that it connects farmers to a guaranteed market which then allows them easier access to financing and technical assistance.
“We are working closely with our stakeholders to develop solutions guided by the value chain finance model for these products,” Minam said.
“The value chain model will also allow processors to ensure consistent supply.”
Mr. Minam went on to add that for small and medium-sized farmers, this method would provide a mechanism to obtain financing that might otherwise not be available due to lack of collateral or transaction costs of obtaining a loan. ready.
He added that this could be a way to secure a market for the products.
The AVCF mechanism would encourage a large proportion of semi-subsistence farmers to shift to commercial production through sustainable access to competitive markets.
“By diversifying, farmers will be able to increase the number of sources of income for their farms.
“This method will further help farmers to diversify their agricultural production.
“At the national level, AVCF supports the government’s plan to promote self-sufficiency in the production and export of non-sweet agricultural products.”
He said the model supports food security and business growth, which has helped achieve the Sustainable Development Goals such as poverty reduction, food security, gender equality, decent work and economic growth.
“The Rice Mobility Package is a multi-faceted financial solution designed to mobilize rice farmers from subsistence to commercial agriculture, allowing them to be part of a resilient value chain that guarantees them more than just access. at a market.
“With such assistance programs, we can stimulate production and demand for locally produced goods, which will help our farmers as well as the economy as a whole.
“Increasing local production of rice can help our economy in terms of import substitution and the same goes for dairy products.”
As for ginger, Mr Minam added that it is an important export product for Fiji and that helping ginger growers through this method of financing would further boost this sector.
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