Enhancing Competitiveness through Agribusiness and Agro- Industries Development Agribusiness Development Branch November 2011 1
fact sheet (sub-Saharan Africa, 2007) • 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 2
opportunities raising agricultural productivity: • creates jobs and raises rural incomes • triggers growth in other sectors • expands domestic markets • improves food security • reduces rural-urban migrations 3
agribusiness vs agriculture 4
HDI vs agribusiness/agriculture ratio 1 Human Development Index - HDI 0.9 United States 0.8 0.7 Urbanized countries 0.6 0.5 Higher correlation for low HDI countries 0.4 0.3 Agriculture-based 0.2 countries 0.1 agribusiness/agriculture ratio 0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Source of data: Jaffee et al (2003) and Human Development Statistics (UN)
food processing in agribusiness 6
imports vs post-harvest losses 7
challenges • technology: inputs, production, processing • skill development: from farming to processing • industrial organization • infrastructure: energy, transports • business development services • access to finance • policy environment 8
holistic approach from farm … 9
…to market 10
with increased value addition 11
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The Accelerated Agribusiness and Agro-industries Development Initiative (3ADI) 13
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 14
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 organization 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) 15
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 16
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. 17
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 … Public Investment UNIDO team IFAD, Dev. Banks GAFSP (joint, if possible) Private Investment FAO team field missions to GAFSP\IFC target countries AFD TA IFAD/Dev. Bank EC, multi-bi team grant portion of IFAD, Dev Banks inputs: FAO-IFAD- value chain outputs: country UNIDO teams analysis strategy papers 19
… linked in value chain maps 20
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public support: policies, institutions, infrastructure pre-production: agricultural post-production post-processing the market the resource production processing resource efficient packaging, clean technology eco-design domestic skills traceability markets fertilizers, pesticides supplementation finance quality control and international marketing energy markets food safety organization: pollution water machinery containment clusters, consortia business development services along supply chains 22
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 24
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