AGRIC DIVERSIFICATIO

closed

The project would support the government's and FEDERACAFE's policy of diversifying agricultural production in the coffee areas through increased production, marketing and processing of non-coffee commodities. This strategy would lead to substantial increases in food production and a reduction in the economy's vulnerability to price changes and market constraints on coffee, thereby assisting the country in reducing overproduction and costly stock build-up of coffee. The project would accelerate significantly the borrower's ongoing diversification efforts and help make diversification a more self-sustaining process through provision of: (i) credit for agricultural production, processing and marketing; and (ii) related support services, including technical assistance, applied agricultural research and a price and marketing information system.