Presentation on theme: "Trade Corridor – Government to Government Professor Mike Dillon Acknowledge: John Ogier, States of Guernsey. John Ryder, Eastfish (UN/FAO)"— Presentation transcript:
Trade Corridor – Government to Government Professor Mike Dillon Acknowledge: John Ogier, States of Guernsey. John Ryder, Eastfish (UN/FAO)
Overview of Trade Corridor vision Background & Traceability Project history Indonesian issues- new project under discussion Example business impact – Guernsey fresh produce Next steps for Trade corridor - Indonesia (Pakistan, Egypt, Ghana?)
Background – Fresh produce. Fruit and Veg research – 84-03 Numerous consultancy and student projects Understanding - post harvest technology, plant systems, and cold chains. Research- time, temperature and specific gases on plant physiology and biochemistry. Knowledge is power= added value
Trade Corridor – Project Discussions Build on NELC /Business Infrastructure:- –Port –Logistics - Quayside, Samskip etc –Cold Chain- local industry- Four Seas –New Technology- Cool Blue –Purchasers/ processors –Institute Indonesia – Example project:- –G to G – Policy -Strategic planning- NELC –B to B - NPD- Logistics. –G to B- Branding- M.Sc. ISO 22000 –B to B - Green logistics (Cool-Blue) –Project support- Institute
Jakarta Bitung Indonesia $1.6 Billion export seafood. 18,108 islands, 3,000,000 km2 sea
PRICE HighMediumLow Excellent1. Premium 2. Penetration 3. Super-bargain StrategyStrategyStrategy PRODUCTGood1. Overpricing 2. Average 3. Bargain QUALITYStrategyQuality Strategy Strategy Poor1. Hit & Run 2. Shoddy 3. Cheap Goods StrategyGoods StrategyStrategy Added Value Vision – Choose your weapons! Guernsey cannot be the cheapest Guernsey cannot be the largest volume supplier Guernsey can be the highest quality
Value Stream analysis Flowers on the Island Growers storage Flowers transported to UK depot Flowers are transported to market Flowers are sorted against invoice (and conveyed to Wholesaler) Collate Orders Product Displayed Stock take of Product Additional Product Storage Retailer / Customer 20 Days Shelf Life 17 Days Shelf Life 15 Days Shelf Life 13 Days Shelf Life Factors Time Temperature Handling Pest & Disease Water Quality Stem Quality Score Modelling ATP Work
Can we increase Value - 20% ? Product typeValue Cut flowers£9.92m Postal flowers£6.60m Plant and seed exports£24.69m Edibles£4.32m Total value£45.53
Business Impact Example of Supply and Demand Information Normal 20% increase or faster/only sale on slow market
Island example = Policy led programme -combined government, industry, solution providers and market. Better logistics meant improved market share QA systems – resulted in brand loyalty- forward sales, faster sales, Chill chain verification was essential New technology – (bucket) - research essential Price increases of 10% - 50% where achieved
Conclusions NELC-/ partners - opportunity to develop Trade Corridor strategy Industry can capitalise on opportunity in these supply chains Logistics, cold chain, new technology = added value Institute can assist as required e.g links with UN, EU, W.Bank, or individual Governments. –All can be used to drive local economic growth
Next Steps – Indonesian proposal NELC/ambassadorial meetingJanuary Ministerial meetings on tradeJanuary NELC discussionsFeb/March Visit to Minister TradeMarch Policy discussions London April Delegation to BrusselsApril Ambassadorial visit to GrimsbyMay/June Indonesia – Trade DelegationJuly Output – Trade Corridor proposal scoped.
Next steps Trade Corridor working group Establish a serious of trade corridors. Use the Indonesia Trade Corridor as a pilot. Work with Key Government Partners - policy links. Agree programme placing NELC in Lead position. Establish working group to develop programme.