Enhancing Competitiveness through Agribusiness and Agro- Industries - - PowerPoint PPT Presentation

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Enhancing Competitiveness through Agribusiness and Agro- Industries Development

Agribusiness Development Branch November 2011

fact sheet (sub-Saharan Africa, 2007)

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• 63.5% of population live in rural areas
• 53.6% live off agriculture incomes
• 14.6% is their contribution to the economy
• gross private investment: 13.5% of GDP
• gross public investment: 5.5% of GDP

• pportunities

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raising agricultural productivity:

• creates jobs and raises rural incomes
• triggers growth in other sectors
• expands domestic markets
• improves food security
• reduces rural-urban migrations

agribusiness vs agriculture

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HDI vs agribusiness/agriculture ratio

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

Human Development Index - HDI agribusiness/agriculture ratio

Higher correlation for low HDI countries Agriculture-based countries United States Urbanized countries

Source of data: Jaffee et al (2003) and Human Development Statistics (UN)

food processing in agribusiness

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imports vs post-harvest losses

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challenges

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• technology: inputs, production, processing
• skill development: from farming to processing
• industrial organization
• infrastructure: energy, transports
• business development services
• access to finance
• policy environment

holistic approach from farm …

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…to market

with increased value addition

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The Accelerated Agribusiness and Agro-industries Development Initiative (3ADI)

the “three frameworks”

3ADI or the Abuja Declaration (March 2010) focuses on:

• agri-business value chains
• food security
• policies
• financing
• trade

It is consistent with the Accelerated Industrial Development for Africa (AIDA, 2008) and the LDC Plan of Action (December 2009) which add on:

• infrastructure
• energy and environment
• innovation

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the background of 3ADI

• Global Agro-industries Forum (GAIF), New Delhi, India, April 2008

– Hosted by the Government of India – Event jointly organized by FAO, UNIDO and IFAD – Participation from 110 countries; 500 senior level delegates

• Representatives of the participating countries recommended the
• rganization of a regional fora
• need to consider specific issues and priorities for agro-industries and

agribusiness development in the regions

• => High-Level Conference on the Development of Agribusiness and

Agro-industries in Africa – HLCD-3A

• => RAIF( regional Agro-industries forum for Asia and Pacific in Delhi)
• => RAIF LAC( regional Agro-industries forum for Latin America
• => RAIF ARB( regional Agro-industries forum for Arab countries)

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the goals

an agriculture sector which, by 2020, is made up of highly productive and profitable agricultural value chains that:

• effectively link small and medium size agricultural producers to

markets;

• contribute effectively to increasing farmers’ incomes through value-

addition processes;

• supply higher-valued and differentiated food, fibre, feed and fuel

products to consumers at local, regional and global markets;

• lead to retention of a higher proportion of the consumer price in the

communities or countries where the primary production takes place;

• utilize natural resources in an overall sustainable manner; and
• act as an effective basis for industrialization and generation of

increased and high quality employment

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the means

3ADI will:

• leverage the current attention to agriculture for development in selected

countries to accelerate the development of agribusiness and agro- industries sectors that ensure value-addition to agricultural products

• support a well coordinated effort to share knowledge and harmonize

programmes in ways that capture synergies, avoid fragmented efforts, and enhance developmental impacts

• support an investment programme that will significantly increase the

proportion of agricultural produce in the selected countries that is transformed into differentiated high-value products.

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the expected results

Four critical areas of support:

• enabling policies and public goods
• value chain skills and technologies
• post-production institutions and services
• reinforced financing and risk mitigation mechanisms

key input/output features …

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UNIDO team FAO team IFAD/Dev. Bank team (joint, if possible) field missions to target countries Public Investment IFAD, Dev. Banks GAFSP Private Investment GAFSP\IFC AFD TA EC, multi-bi grant portion of IFAD, Dev Banks inputs: FAO-IFAD- UNIDO teams value chain analysis

• utputs: country

strategy papers

… linked in value chain maps

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pre-production: the resource agricultural production post-production processing post-processing the market water public support: policies, institutions, infrastructure business development services along supply chains energy fertilizers, pesticides machinery

• rganization:

clusters, consortia quality control and food safety finance skills resource efficient clean technology pollution containment marketing supplementation traceability packaging, eco-design international markets domestic markets

a country-owned initiative

3ADI will:

• work closely with Regional Organizations and Regional Economic

Communities throughout all stages of its design, inception and implementation

• benefit from, and support, ongoing initiatives
• ensure stakeholder involvement through engagement with existing

entities that represent agribusiness and agro-industries in the target countries

thank you

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