160 likes | 178 Views
Learn about AgBiz's value chain competitiveness program for Macedonian agriculture, market targeting, enterprise capacity enhancement, and more to boost Balkan agribusiness. Explore challenges and opportunities in increasing competitiveness through private and public sector support. Overcome barriers with financial support, study tours, human capacity programs, and policy reforms to capitalize on the emerging market trends.
E N D
RCI Regional Competitiveness Conference Enhancing the Competitiveness of Balkan Agribusiness Value Chains – challenges and opportunities
Introduction and Objectives • Jim Maxwell – Chief of Party, USAID’s Macedonian AgBiz Program • Background – 28 years in private sector (international) agribusiness development with major multinationals, 12 years international agribusiness development related to USAID • AgBiz - a value chain competitiveness enhancement program focused on increased exports of Macedonian value added agriculture-based products • Presentation – the AgBiz approach to value chain competitiveness enhancement and the opportunities and challenges experienced
Private and Public Sector Competitiveness Enhancement Objectives
VC Competitiveness Enhancement • 1. Select the Optimal Target Markets • Market Size & Growth Trend • Current & Profitable Demand • Potential Value Chain Competitiveness • Broad-based Positive Impact • 2. Align the Right Products to Market Demand
VC Competitiveness Enhancement • 3. Identify the Characteristics for Qualifying and Differentiating Products and Service to the Basis of Competition • BoC = criteria buyers use to choose among sellers • 4. Identify Committed and Capable Entrepreneurs – with financial capacity
VC Competitiveness Enhancement • 5. Enhance Enterprise Capacity to Meet all Qualifiers and Exceed on 1 or 2 Differentiators • The Plan • Productivity • Physical and HR Capacity • 6. Supporting Chains Constraint Identification and Capacity Enhancement
VC Competitiveness Enhancement • 7. Forward Links Capacity Assessment and Enhancement • Sales and distribution • Reducing middlemen • Increased competitiveness of middlemen • 8. Install Capacity to Anticipate and Resolve Competitiveness Constraints • BSPs • Associations • Supporting private sector value chains • Supporting public sector value chains
VC Competitiveness Enhancement • 9. Install Operations Performance Monitoring • Schedules • Responsibilities • Contributions • Benefits • Results feedback • 10. Facilitate Public Sector Enabling Environment and BSP Constant Capacity Upgrading
AgBiz VC Competitiveness Enhancement Opportunities • Value Chains • Processed Vegetables – branded and pepper-based • Fresh Vegetables – tomatoes, cucumbers, etc. in retail packs • Table Grapes – value added packs • Wild Gathered Products – value added mushrooms and berries • Bottled Wine – including regional varieties and barrel aging • Target Markets • Serbia and Croatia • EU Markets – especially those with large Diaspora • Developed Markets
AgBiz VC Competitiveness Enhancement Challenges • Increasing Importance of Major Retail Chains • Konzum, Delta, etc • Average Size Firm • Scale economies • Order size fulfillment issues • Staff specialization – e.g., export manager • One Man Show – owner/operator dominated firms • Fixation with Fixed Assets & Production • Weak Understanding that “Marketing “is Much More than Price (supply push vs. demand pull) • Sales and Distribution via Relatives and Friends of Friends • Weak Backward Linkages – especially with producers • Poor Value Chain Coordination/Cooperation • Limited Finance and Accounting Knowledge & Information • Difficulties of Moving from Bulk to Retail Packs • Small, Undeveloped Domestic Market • Sporadic Excess Capacity – not producing for 22 million people
Capitalizing on the Opportunities & Overcoming the Challenges • US$500,000 in financial and technical support to 16 – 18 export expansion projects • AgBiz support averages less than 30% of total project cost • Study tours to target markets • Trade fair support • Aggressive human capacity enhancement program • Special focus on access to finance – inc. IPARD • Experience-based policy & institutional reform • Voucher system for use of qualified local consultants
Enhancing the Competitiveness of BalkanAgribusiness Value Chains – challenges and opportunities Questions? Thank you!