ABSTRACT

Small-scale producers dominate agriculture in Zambia, and have a measure of protection from imports because of high transport costs in this landlocked country. There is a large farm sector that has developed to supply local processors and retailers with food. Therefore these farms, often in organizations, are preferred suppliers for commodities such as milk, sugar and grain. Small-scale producers have to compete against these and have most potential in Fresh Fruit and Vegetable (FFV). Policies to encourage foreign investors have been in place since 1991 when the Zambia Investment Centre was created as part of the government's strategy for economic reform. As an autonomous organization, it promotes local and foreign investment in Zambia. The agri-food system in Zambia is changing in response to a number of factors both internal and external to Zambia. Domestic policies such as market liberalization, regional integration and Foreign Direct Investment have gradually brought private companies and corporations into the supply chain of most agricultural products.