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RCI Regional Competitiveness Conference

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

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RCI Regional Competitiveness Conference

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  1. RCI Regional Competitiveness Conference Enhancing the Competitiveness of Balkan Agribusiness Value Chains – challenges and opportunities

  2. 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

  3. Private and Public Sector Competitiveness Enhancement Objectives

  4. What is a Value Chain

  5. Private Sector Supporting Value Chains

  6. Public Sector Supporting Value Chains

  7. The Value Chain Complex

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. Enhancing the Competitiveness of BalkanAgribusiness Value Chains – challenges and opportunities Questions? Thank you!

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