
2025 | Author(s): F. Hartwich, A. Ruhe & D. Tezera
#Policy Brief
Developing countries face an urgent need to provide more and better food for their growing populations. These countries currently only process very little of their own agricultural output, resulting in widespread malnutrition among their citizens. A large share of processed food consumed domestically is still being imported, while little value is added to locally produced food, which is often exported in its raw form. Although developing countries are the largest producers of primary food products, it is developed countries that dominate global food exports due to their processing capacity. Agroindustry presents a significant opportunity for developing countries to substitute imports and add value to their agricultural products, thereby improving their food security and generating jobs and income. The barriers to value addition in food production across developing countries are explored and policy recommendations to overcome these challenges are presented.