Recommendations toward Successful Agribusiness Venture Arrangement

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This study assesses the implementation of selected agribusiness venture arrangements (AVAs) and identifies the prerequisites needed to ensure that the adoption of AVAs will improve farm income and productivity, thereby enhancing sustainability of the agrarian sector. As such, a framework for AVAs was devised considering the supply chain, the policy environment, and the global market influence. Using a case study approach, the study focused on two export crops—banana and pineapple—that were selected based on their significant contribution to the Philippines’ export earnings and gross value added of agriculture. In particular, the AVAs considered in the study were lease/leaseback and growership arrangements for banana and pineapple. The study notes several issues on production and capital investments, marketing and pricing, institutional support, and contract terms that affect the implementation of AVAs. It recommends that AVAs should be encouraged but government has to provide a policy environment for Philippine export crops to be competitive. Agrarian reform beneficiaries and their associations should also be supported through capacity-building activities and access to legal advice.