Agroindustrialization programs for rural development: risks and uncertainties of implementation projects

Abstract

In order to ensure the economic sustainability of a small-scale agroindustrial project, it is essential that proper investment opportunity studies be conducted, observing, among other factors, the business model and its associated risks. An adequate ability to perform this analysis is also considered essential to guarantee the effectiveness of development programs. The objective of this work is to discuss the current methodology of feasibility studies, emphasizing the specific needs of small-scale agroindustrial project analysis. An attempt to identify the limitations of the classical approach of uncertainty and risk analyses, in this regard, is made. It is argued that the success rate of agroindustrial development projects and programs can be improved by the preparation and evaluation of well esigned business plans. In this perspective, variables that may threaten the sustainability goal should be properly identified and evaluated under a systems approach.