Low production due to poor services

POOR extension services in the agriculture sector has contributed to the low production of commodities, an official says.
Acting secretary of the Department of Agriculture and Livestock (DAL) Dr Nelson Simbiken said the sector must realise its full potential.
“Agriculture has a huge potential (which is) not being fully utilised,” he said.
Simbiken said it also led to a lack of competitiveness in factors that limit the development of coffee and cocoa production, and agribusiness for smallholder farmers.
He said the challenges included the high transaction costs due to dis-economics of scale, lack of access to information and technology due to poor extension services, poor rural infrastructure, insecurity of land ownership and tenure, and a lack of access to rural finance.
“Private sector entities involved in agriculture consist of a few multinationals engaged mostly in coffee and cocoa, a few larger national agribusinesses and various small and medium enterprises,” he said.
“Micro-enterprises are also important, mostly as aggregators and transporters that link isolated smallholders to other agribusinesses.
“The private sector is better organised for value chains with a well-identified market for export-oriented commodities such as coffee, cocoa, oil palm, and, to a lesser extent, vanilla and coconut.”