The objectives of the component are to:

• create an enabling environment for direct and sustainable business relationships between producers and buyers of targeted value chains, and financial institutions and
• improve the financial capacities of POs to increase the productivity and production of selected animal products in targeted value chains.

The component supports the development of production and value chains of pigs, poultry, cattle, sheep, goats, milk and honey in the targeted areas.  It will establish “productive partnerships” (PP) between livestock producer organisations and buyers (agricultural enterprises, agro-industries, small and medium-sized enterprises, etc.).

These PPs are supported through the Matching Grant mechanism.  It is subject to a contractual agreement between producers and buyers and facilitates access to rural finance for investment in the various PO sub-projects.