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AgBiz Export Competitiveness Enhancement RCI Agribusiness Workshop November 10, 2009 Skopje.

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Presentation on theme: "AgBiz Export Competitiveness Enhancement RCI Agribusiness Workshop November 10, 2009 Skopje."— Presentation transcript:

1 AgBiz Export Competitiveness Enhancement RCI Agribusiness Workshop November 10, 2009 Skopje

2 Program Basics Name - USAID’s AgBiz Program (AgBiz) Four Year Program Launched March ‘07 (30 months operations) $5.85 million LoP Budget Nine Long-term Staff Cooperative & Supportive USAID Mission Nascent Agribusiness Sector - not long out of central planning & public enterprises

3 AgBiz Components Title LoE Allocation LoP/FY ‘10 Description Value Chain Activities 50/62% Multi-company value chain competiveness enhancement events such as trade fairs, study tours, technology transfer & training Business Expansion Projects 40/20% Firm level, export-focused expansion project development & implementation via financial support & technology transfer, e.g., market entry and share expansion & facilities upgrading or expansion Enhanced Access to Finance 7/10% Introducing customers to & assisting them to secure advantageous sources of financing Policy Reform3/8% Identification, prioritization & stimulating reform advocacy for competitiveness constraining policies

4 Enhancing the Competitiveness of Macedonian Wines

5 Fresh Fruits & Vegetables Competitiveness Enhancement

6 Processed Vegetables Competitiveness Enhancement

7 Results Projects – LoP projections –$28.7 million in increased exports –$14.6 million in increased raw material purchases –2,700 households benefited with increased income –$9.3 million in increased investment –5% AgBiz and 95% grantee investment 80 Activities – LoP actual –13 trade fairs with 92 participants who received $5.8 million in orders –14 study tours, 10 trainings, 4 workshops, 5 roundtables, 4 market research studies, 4 value chain profiles, 2 significant association development activities –170 agribusinesses, 88 new technologies & 906 trainees –46% AgBiz and 54% customer cost sharing Access to Finance – LoP actual –Supported 29 firms to access finance worth $6.5 million Policy reform – LoP actual –6 major reform needs identified and addressed –Cooperated with USAID’s BEA to analyze & propose resolutions –Issue with who to advocate due to only 1.5 trade associations

8 What Has Worked Projects - Leveraged support for fixed asset upgrading/expansion & market entry costs, e.g., slotting fees or in store promotions –Good preparation for IPARD & regulatory/procurement conformity Well planned & managed international trade fairs –Staff LoE intensive, extensive support to customers required –Cost sharing essential – customers >50%, other donors (GTZ, SIPPO, CBI) & government financial support very important –Effective follow-up required – 3 & 6 months results measurement Highly targeted study tours & B2B meetings –Which markets; achievable market & goals –Local consultant support needed –Cost sharing limited to customers & occasionally the local embassy –Must be highly relevant to customer needs & objectives –South Africa and California Table Grape Study Tours –Need “lessons learned” & application follow-up/workshops; field trials Primary customer interest is in short term sales results

9 What Hasn’t Worked Well Formal training –No perceived immediate benefit –Customer not likely to pay a significant % of actual cost Market surveys & value chain profiles –Who can I sell to, minimal interest in understanding the market –Biggest benefit is informing staff Association development (yet) –Member commitment, dues??, political factions, lack of assn management experience, mandatory CoC membership negative carryover Backward linkages – contract production (yet) –Miss trust, poor sales projections, mutual desire for full flexibility, how to determine price?, complex system to manage, requires up front costs for inputs, TA, etc. –Producer organization development – insufficient time & cost + poor donor support track record, so no AgBiz plans to support

10 Questions/Discussion Points Other’s success at leveraged training? Lessons learned in sustainable trade association development? Extent & type of public: private partnerships for export promotion/export competitiveness enhancement? Extent of government support for trade fairs & B2B meetings? How structured/from what kind of government entity? Support for producer organizations, especially as defined by the EU? IPA support available?


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