Public Private Partnership „Promotion of Russian agriculture by practical training and extension” EastAgri annual meeting GTZ-House, Berlin, 4-5 May 2006 Dr. Detlev Boettcher, GTZ-Policy Consultancy in the Agriculture, Fisheries and Food Sectors
Index: • Public Private Partnerships • Project: Promotion of Russian Agriculture • Objective • Partner Companies • Status quo • Components • Achievements so far
Public Private Partnerships • Public Private Partnerships combine business interests with development policy goals. Partners share costs and risks. • GTZ supplies know-how and contacts, supports concept-development and financing, coordinates the various measures, and networks with other important decision-makers. • Private companies contribute technology, capital and expertise and are usually responsible for on site implementation.
Public Private Partnerships Public Private Partnerships are projects jointly planned, financed and implemented by the public and private sector …number of partnerships until April 2006 • Completed projects 272 • Current projects in total 125 • Central Asia 8 • Eastern Europe 47 • Funding in millions of EUR in total 194.0 • GTZ 68.3 • Private partners 92.9 • Third parties 32.8
Public Private Partnership – Competence building in agriculture • Quality-management training for farmers, including on-the-job training. • Support and training for producer associations and cooperatives. • Transfer of marketing know-how. • Training in environmentally sound farming methods, farm management, ecologically sound pest control, harvest methods, crop storage, conversion of conventional cultivation methods to organic farming.
Public Private Partnership - Criteria • The contribution of both partners must complement each other, so that all sides achieve their respective goals: development policy benefits and commercial success. • The project goes beyond the participating companies core competencies. • The private partners cover at least 50 % of the project costs. • The project must be conform to the development policy of the German government.
Promotion of Russian AgricultureProject Objective • In four Russian agricultural regions (Moskau, Krasnodar, Belgorod, Novosibirsk) centres for demonstration, training and extension are established by March of 2008. • Overall investments are about 1.220.000 EUR of which 720.000 EUR are privately funded.
Partner Companies • KWS. International company for breeding and multiplication of seeds for grain, sugar beet, corn, rape and potato-cultivation. More than 2300 employees worldwide. Already producing in Moscow region. • Lemken. One of the leading companies in Europe for manufacturing of soil preparation and seed drilling implements. More than 600 employees. Already established a joint venture in Russia with 50 employees for local production.
Partner Companies • Claas. One of the world’s leading manufacturers of agricultural machinery. Market leader for combine harvesters in Europe, world no. 1 for forage harvesters. 8000 employees. Opened a production site in south Russia. • BASF. International chemical company with 5 business segments, 80.000 employees. In the project context supplier of fertilizers and chemicals to the farming communities. Established agro-centres for applied research and demonstration in Russia.
Status quo • Many Russian agricultural companies are facing income levels insufficient for necessary investments in production means and at the same time agricultural technology levels too low for increasing yields and farm incomes. • The lack of management knowledge is the most limiting factor for the development of the Russian agricultural sector.
Components • Establishment of field trials and demonstration centres on private agricultural farms at four different sites to develop good farming practices. • Conducting studies on production techniques and farm economics to analyse typical farming systems and prepare sound development concepts. • Advising farmers on production techniques and farm management by field days, seminars, and direct extension services.
Components • Qualification of specialists and management staff of agricultural farms, local administration, training and extension institutions through seminars, on site and in Germany including visits to best-practice farms. • Support of interested local institutions (agricultural administration, institutes,universities) in developing sustainable extension services using established centres and trained personnel.
Achievements so far • Suitable local farms for the joint development of best-practices identified, field trials and demonstrations plots prepared, and training of local staff in progress. • Advising local farmers on production techniques by field days and workshops started and ongoing. • Discussions with interested institutions about their involvement in developing extension concepts initiated.
Many thanks for your attention