Interview: Rachid Benaissa
What mechanisms are in place to secure product offers and ensure incomes to producers?
RACHID BENAISSA: Financial, regulatory, managerial and organisational mechanisms have been implemented and are constantly assessed, reinforced and consolidated. There is a system in place to ensure smooth operation and regulate the industry of major agricultural staples. The Regulation System for Agricultural Products of Wide Consumption protects farmers’ incomes, safeguards their investments and balances the price of agricultural products to protect consumers’ purchasing power.
There are also regulatory incentives for the collection, storage, handling and transport of agricultural products. To further support agricultural professional and trade organisations, tariff measures are in place. Many public-private partnerships (PPPs) have been developed to maximise the number of professionals in the industry and integrate them into the different incentive frameworks in place.
Alongside financial incentives, we have developed insurance services aimed at operators and rural populations. The National Mutual Agriculture Fund is responsible for agricultural insurance and works closely with local partners, including those in the private sector.
How can PPPs help in achieving agricultural goals?
BENAISSA: There are many examples of successful PPPs for agricultural production, including performance contracts for agriculture and rural development between the central administration and the wilaya (province) directorates, with commitments by operators to achieving sustainable results.
The tripartite partnership between the state, banks and sector operators was created mainly to allow access to additional credit-support-guarantee mechanisms. These assist agricultural professionals to implement investment schemes that increase the level and the quality of production and further modernise the sector. The proximity projects for integrated rural development, established through local partnerships between populations, the administration and economic operators, has allowed for multi-sectoral collaboration and projects within the territories. The first examples of this type of partnership have risen in various fields, including agriculture, animal breeding and cold storage.
In what ways can collaboration between agricultural and industrial operators be improved?
BENAISSA: Farmers need a better and wider range of industrial equipment and chemical inputs suited to the different types of land available to them and the various crop species they cultivate. We need to have this machinery available on the domestic market to facilitate the integration of modern production techniques.
Growth will remain dependent on downstream industries and industrial processing. The rapid increase in agricultural production requires, in effect, extension of the capacity of the agri-food industry to transform raw agricultural products and absorb any excess supply of vegetables and fruits.
Real and proven industrial opportunity is an incentive for farmers to increase their agricultural supply and boost their efforts in modernising production and introducing new technologies and competencies to their methodologies. Such opportunities provide a way to reduce price volatility of raw agricultural products and ensure stable income for farmers and ranchers.
The gradual improvements of purchasing power, urbanisation and a rising female workforce have led to significant changes in consumption habits, including higher demand for processed agricultural products. The local industry has to build up its capacities to respond to local demand, lest many agri-business segments open to foreign suppliers. The agri-food industry is facing the dual challenges of diversification and modernisation. Indeed, the sector must be able to take advantage of the progress of domestic agriculture supply and at the same time compete with the growing entry of foreign products driven by further international trade liberalisation, which is increasing competition.
Read More from OBG
