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AKST: Generation, Access, Adaptation, Adoption and Effectiveness | 75
Subsidies and dumping of agricultural commodities produced with or without subsidies close off many options for national and regional sales of SSA agricultural commodities; often even displacing those commodities from domestic markets by introducing unfair competition from cheap, subsidized goods. Dumping of imported agricultural commodities, poor road and transportation networks and weak market links suppress incentives for SSA producers to expand, adopt new technologies and transform processing operations to comply with export-market standards. In the absence of a market infrastructure through which they can sell their products, African agricultural producers frequently view the risks of adopting new technologies, investing in the production of |
new goods or increasing production of traditional goods, as too high. These risks are increased as markets liberalize and price volatility ensues. Suppression inhibits production for export and for domestic consumption (since increased production without export opportunities and good markets results in price drops), which in turn impedes efforts to achieve food security for Africa. This competition from subsidized and dumped goods also hobbles African agricultural producers vis-à-vis unsubsidized competition for Africa’s traditional export markets from Latin American and Asian producers, in the sense that it renders them less able to compete effectively even in these market relationships (IAC, 2004). |
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