1. VALUE CHAIN AGROBUSINESS
Practical examples and positive experiences in Macedonia
Workshop Oteshevo May 2018

2. USAID - SMALL BUSINESS EXPANSION PROJECT
CORN PRODUCTION IN PELAGONIJA
“Grow More Corn” Initiative
2013 – 2016
Partners: municipalities, RDC, NEA, FFRM, dairy companies, agriculture service companies
Output: -drip irrigation systems -grain corn or silage - technical assistance

3. analyzing-problems-opportunities
USAID project designed to strengthen private sector capacity to drive regional economic development and job creation
6 months analysis for identifying opportunities to create new jobs, strengthen value and supply chain linkages
Opportunity chosen – corn production as essential for livestock and chicken feed directly effecting egg production and milk and diary products
Problems: -climate change -low production yields -import corn -high production costs -low farmers incomes -not using new technology for irrigation -inappropriate seed material

4. Background
Egg producers -import corn -low corn production in region -in need for more suppliers Dairy companies -low milk production in region -import milk and powder -in need for more quantities Farmers -low production yields -buy corn for feed -big production costs

5. Project goals

6. Drip irrigation systems on corn
I year -30 pilot farmers on 1 ha corn in Pelagonija region II year -35 pilot farmers on 1 ha corn -applications for drip irrigation systems in Program for financial support in rural development 45 ha III year -45 pilot farmers on 1 ha corn in Pelagonija region -20 pilot farmers on 1 ha sunflower in Pelagonija region -applications for drip irrigation systems in Program for financial support in rural development 80 ha

7. Results
FARMERS
Increased yields in corn production -grain corn from average 4 t/ha to average 8 t/ha (record 17 t / ha) -silage corn from average 30 t/ha to average 60 t/ha (record 117 t / ha)
Increased profit in first year -grain corn average 35% -silage corn 25 %
-sunflower 30%
Introduced new technology and technical support to farmers and gain knowledge in production and irrigation of corn

8. Results
Diary companies / egg producers -increased corn production and increased milk and egg quality and quantity -substitute corn and powder milk import -increased profit National level - strategic Developed White paper for production of corn ha of corn with drip irrigation system to substitute corn import with local production -introduced new measure in National program for rural development for procurement of drip irrigation system for corn -improved value and supply chain

9. VALUE AND SUPPLY CHAIN

10. VALUE AND SUPPLY CHAIN corn Consumers Retail / distribution
Diary / egg production
Corn
corn
consumers
farmers
Diary / egg
Retail / distribution

11. USAID - SMALL BUSINESS EXPANSION PROJECT
Developing value chain for import substitution
Tomato puree production
2014
Partners: RDC, NEA, Farmers, tomato puree producers, ketchup producing companies, agriculture service companies
Outputs -drip irrigation system -irrigation and fertilizing protocol

12. Background Analyzing production of ketchup Import of tomato puree
Low production of tomato puree
Low production of industrial tomatoes
Old seed material / no new technology in production

13. Problems BEFORE used inappropriate seed material
lack of protocols and technology
100 cooperants cultivate 200 ha industrial tomato
average yield t/ha
tomato puree company working with 25 % capacity

14. Results
20+20 pilot farmers -drip irrigation system -new seed material -new irrigation protocol
Yields -average t/ha to 80 – 100 t/ha
Profit -double increasment of profit of farmers
Tomato puree import substitution -local production increased -value and supply chain improved

15. VALUE AND SUPPLY CHAIN Industrial tomato Retail / Consumers consumers
Ketchup production
Tomato puree production
Industrial tomato
Industrial tomato
consumers
farmers
Tomato puree producers
Ketchup producers

16. Alternative business models for utilization of apples in Prespa
Market research
Various final products
Added value products
Improve value chain

17. Background PRESPA REGION app. 4000 ha of apples
app – tones
1/3 production high quality apples
30-50% lower category apples
low market price

18. METHODOLOGY The analysis of the global production trends
The analysis of the global processing trends
The estimate of the market size and trends
The selection of business models
Conclusions and recommendations for the most feasible business models

19. Business models

26. Conclusions
Many processing alternatives in order to utilize and add value to the apple farming and improve value chain
Some of the alternatives are complementary and allow execution of combined, i.e. horizontally integrated operations and business models.
The presented alternatives have different risks and benefits in terms of marketing context, implementation, production process and required know-how, quantity utilization and adding value to apple farmers.

27. Thank you for your attention !!!