Presentation on theme: "REGIONAL USAID AGRIBUSINESS PROJECTS COORDINATION WORKSHOP AgBiz Program Presentation January 25, 2008."— Presentation transcript:
REGIONAL USAID AGRIBUSINESS PROJECTS COORDINATION WORKSHOP AgBiz Program Presentation January 25, 2008
Original Name –Macedonia Agribusiness Activity (MAA) Modified to: –USAIDs AgBiz Program (AgBiz) Four Year Program –Not a project –Projects are business development activities identified, developed, supported and monitored by the AgBiz Program $5.5 million LoP budget Nine long-term staff Launched May 2007 (nine months operations)
Qualitative Objectives Objective Sustainably and significantly increased growth of Macedonian agribusinesses participating in value chains that have good potential in export markets, especially for value added products, and where there is an opportunity for a broad-based positive impact; accomplished in an efficient manner and in conformity with relevant regulations.
Basic Approach –Increase the Number & Average Value of Sustainable Transactions Achieved by Supported Customers –Primary Customers are Participants in a Limited Number of Value Chains –Major Concern with the Sustainability (financial, managerial, environmental & social) of Projects –Significant Cost Sharing with Customers (minimum 50%) –Regional & Domestic Coordination/Cooperation
Quantitative Objectives –Increased value of exports, especially value added products; –Increased value of raw material purchases; –Number of agriculture-related firms benefited; –Number of rural households benefited; –Number of POs & trade or business associations receiving assistance; –Value of financing identified and utilized; and –Number of competitiveness enhancing policy & institutional reforms achieved - via associations, etc.
Components –Identification, development and support of business expansion projects +/- 65% of resources –Selected value chain competitiveness enhancement activities +/- 25% of resources –Enhanced access to financing +/- 7% of resources Predominately for project and value chain customers –Policy and institutional reform +/- 3% of resources Constraints identified by implementation only
Target Value Chains –Basis for Prioritization Potential for significant, sustainable export sales growth & broad-based impact Selected seven value chains organized into three tiers –First Tier – proactive proposal solicitation & project implementation; Activity development and implementation Processed Vegetables – glass pack, frozen and canned (peppers) Fresh Vegetables – peppers, tomatoes, cucumbers, etc. Gathered, Wild Food Products – primarily mushrooms and berries –Second Tier – reactive to unsolicited proposals; Activity development & implementation Bottled Wine Table Grapes –Third Tier – totally reactive Broilers and Dairy
Types of Customer Support –Technical Assistance –Training –Marketing Support –Reimbursement or Payment of One-time Costs –Trade Fairs –Access to Financing –Study Tours –Workshops and Conferences –Policy and/or Institutional Reforms
Organization Structure CoP Jim Maxwell Administration & Finance Department Administration & Finance Mgr. Natasha Lazovska Admin. Assistant/ Receptionist Sonja Petrovska Post-farm Gate Development & Finance Dept. Martin West, Mgr. Marketing & SME Development Mgr. Goran Damovski Marketing & Finance Specialist Lovre Ristevski Production Agriculture Development & Policy Dept. DCoP, Production Agriculture & Policy Mgr. Jeton Starova Production Agriculture Development Specialist Vlado Kokarev Cross-Cutting Services Specialist Nate Stankovic
Qualifying Criteria for Projects (Y/N) –Involves one of the selected value chains; –Is consistent with GoM objectives and EU integration; –Is consistent with AgBiz/USAID investment parameters; –Does not overlap with other USAID/other donor projects; –Is based on the existing legal and regulatory environment; –Is very unlikely to have a negative environmental impact; –Can be implemented within the term of AgBiz Program; and –The associated grant is not a substitute for third party financing or equity available to the potential customer.
Project Screening Criteria Strategic Fit (40 points) –Increased exports or substituted imports, i.e., increase the Macedonian-origin market share (local or export) of agriculture-based products; (8 points) –Anticipated return on AgBiz/USAID investment (i.e., AgBiz cost vs. value of new sales & employment); (7 points) –Increased employment, especially in rural areas, and improved utilization of the Macedonian labor force; (7 points) –Opportunity to replicate the type of project; (7 points) –Potential number of participating producers and SMEs, i.e., broad-based impact; (6 points) –Increased number of units of production; (5 points)
Project Screening Criteria Technical Approach (32 points) –Characteristics for sustainability (managerial, economic, environmental, & social); (8 points) –Achievable comparative and/or competitive advantage in an identified market; (6 points) –Shift from lower to higher value added products; (6 points) –Proponents understanding of and the availability of a viable and growing market; (5 points) –Width of market window, i.e., a length of selling season; (4 points) –Utilization of existing technology; i.e., new and unproven technology not required; (3 points)
Project Screening Criteria Organizational Capabilities (24 points) –Proponents are providing a significant proportion of the total cost of the activity; (8 points) –Proponents have the potential managerial capacity to develop and implement the activity; (6 points) –Proponents have a good track record in this business and/or market; (5 points) –Proponents understanding of and viable plans to address potential challenges and constraints with the products and in the sub-sector and enabling environment. (5 points)
Project Screening Criteria Gender Considerations –Has a positive Gender Impact (4 pts) Cost Effectiveness (not scored) –Are costs reasonable, allowable, and allocable? –Is the proposal cost effective?
Project Development & Implementation Progress –Trial Shipment of Fresh Produce to the UK (successfully completed) –Optimize Vegetable Processors Participation in ANUGA (completed - $800,000 in sales to date) –Bulk to Retail Pack Dried Wild Mushrooms (signed & being implemented) –Internet-based Selling System for Premium Winery (signed & Phase I completed; Phase II 28 January) –TA to Start-up a New Muesli Drying Line (signed but delayed) –ProWein Trade Fair Exhibitors (under development) –Link Spring Planting Flowers Producers with Retailers to Offset Imports (put On Hold due to weak retailer cooperation) –Proposals – 6 in Screening, 19 in Assessment, 3 Rejected
Signed Value Chain Competitiveness Enhancement Activities Progress –Annotated Agribusiness Bibliography (completed) –Regional Fruits & Vegetables Post-harvest Workshop (successfully completed) –Producer Organizations Assessment (completed) –Alternative Sources of Agribusiness Finance Manual (draft completed; being translated) –Finance Manual Workshop (late February) –Role of the Processed Vegetables Value Chain in EG (underway) –Economy of Macedonia Customer Profiles (underway) –Capacity Enhancement Needs Assessment (underway)
Activity Development –Fresh Produce Study Tour to Berlin and FruitLogistica (7 Feb.) –Table Grapes Study Tour to South Africa (17 Feb.) –Implications of Recent Regional Trade Agreements (Feb.) –Stimulating Association Development (Feb.) –Improved Linkages between Vegetable Producers & Processors (Feb.) –Resolving Duty Drawback on Re-exported Inputs (early) –Understanding EU and RoM Pesticide Regulations (early) –Amsterdam Private Label Trade Fair (early) –Novi Sad Trade Fair (early) –Barrel Aging of Wine (very early) –EU Required Agricultural Market Information System (v. early)
Possible Opportunities for Regional Cooperation –Understanding and Communicating the Implications of Recent Regional Trade Agreements on Agribusinesses –Understanding the EU Required Agricultural Market Information System (AMIS) and how it relates to the USDA supported MIS in Serbia –Understanding Emerging EU Pesticide Regulations and How Regional Governments are Accommodating Same –Comparative Success of International Trade Fairs e.g., US Fancy Foods Shows –Identification (sharing?) of Good Regional Consultants – e.g., trade association development, barrel aging of wine –Understanding Emerging EU Environmental Requirements –Sharing Lessons Learned and Best Practices