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The Use of Technology to Improve Competitiveness of SMEs in the Agribusiness Sector Dr. André Gordon Strengthening the Caribbean Agri-food Private Sector: Competing in a globalized world to foster rural development 18-19 October 2010 Grenada, W.I. Introduction.

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slide1

The Use of Technology to Improve Competitiveness of SMEs in the Agribusiness Sector Dr. André GordonStrengthening the Caribbean Agri-food Private Sector:Competing in a globalized world to foster rural development18-19 October 2010Grenada, W.I.

introduction
Introduction
  • In challenging times many businesses focus on what they need to do to survive.
  • However, survival is not good enough. Caribbean firms must find ways to make themselves sustainably competitive
  • Application of carefully selected, appropriate technology to make changes in the way firms operate can result in sustainable, improved global competitiveness
introduction3
Introduction
  • Background anchored in work with companies and organizations throughout the Caribbean
    • For Technological Solutions Limited (TSL)
    • At and for the Jamaica Exporters Association
    • With and for the Competitiveness Company
introduction4
Introduction
  • Will move from the use of highly capital-intensive, technologies to less capital-intensive, more people-centred “soft” technology
  • Will cover a range of agri-business products
global competitiveness
Global Competitiveness
  • Developing the capacity and systems to deliver goods and services as, when and where needed in the desired quantity and at the expected level of quality to discerning consumers willing to pay a price for them that is profitable for the business (premium price, preferably).
slide7
How?
  • Developing and applying world-class technology in a practical, hands-on manner that is respectful of the culture of the people, organizations and countries involved
six components of successful export activity
Six Components of Successful Export Activity
  • Market Expansion and Diversification
  • Production & Technology
  • Product Innovation
  • Supply of Inputs (Supply Chain Mgmt)
  • Financing
  • Information Generation, access and use
technologies applied or developed
Technologies Applied or Developed
  • Electron Microscopy (EM)
  • Ingredient Technology (IT)
  • Sensory Measurement Technology (SMT)
  • Texture Profile Analysis (TPA)
  • Rheology
  • Predictive Modeling Technology (PMT)
  • Shelf Life Measurement & Prediction (SLMP)
  • Thermal Process Development (TPD)
  • Process Optimization (including PMT)
technologies applied or developed12
Technologies Applied or Developed
  • This work improved the quality, manufacturing and shelf life of a range of products to globally competitive levels
  • Facilitated new or continued market access into key metropolitan markets
  • Grace Kennedy, the many small manufacturers that supplied them and Jamaica benefited
  • All of this applied technology work was published in refereed, international journals or fora, where possible
examples of application and outcomes
Examples of Application and Outcomes
  • EM, IT and SMT were used to:
    • Allowed the continued operation of a meat processing plant in the face of tremendous competitive pressures caused by devaluation and continuously escalating input prices
    • Viennas and frankfurter, supporting the local pork industry
  • IT, SMT, TPA and Rheology.
    • Address product quality and performance challenges, mitigate the effects of declining competitiveness and the develop of new products
    • Developed a range of new products for the local and global markets using these technologies and approaches
examples of application and outcomes14
Examples of Application and Outcomes
  • Created meat products, drink mixes, drinks, juices, sauces and soups, among others
  • Through product matching created Fresh Start® which remains a flagship product and brand, and Grace Fish Tea® and other soups
examples of application and outcomes15
Examples of Application and Outcomes
  • Created the first formula safe, uncooked commercial jerk seasoning
  • During this period, our work added approx US$20Min sales and US$4M in profit by end of the 4th year
examples of application and outcomes16
Examples of Application and Outcomes
  • PMT, SLM, Rheology and IT were used to:
    • Develop a range of combined approaches and technologies that continue to be used routinely by Caribbean manufacturers and exporters today
    • Solve problems with a range of products made regionally by small producers from local ingredients (inc. Browning and Juices)
application of technology for competitiveness in caribbean firms
Application of Technology for Competitiveness in Caribbean Firms
  • In 1996, with the formation of TSL, our focus shifted to SME’s more directly and the Caribbean, in general
  • Required the incorporating all lessons of the past into the use of “softer”, more people oriented, less capital-intensive approach
application of technology for competitiveness in caribbean firms18
Application of Technology for Competitiveness in Caribbean Firms
  • Focus on systems technology, catalyzing our initial work with value chains and clusters
  • Focus: problem solving, developing and strengthening value chains, gaining or maintaining market access and systems implementation
application of combination and systems technology
Application of Combination and Systems Technology
  • Key successes in using the approach developed to the application of technology included:
    • Regaining EU market access for Strombus giga (Queen Conch)
    • Regaining US market access for Blighia sapida (Ackees) after a 27 year ban
    • Regaining US market access for Canned Process Cheese (Tastee)
application of combination and systems technology20
Application of Combination and Systems Technology
  • Key successes (cont’d):
    • Improving the quality, upgrading, and gaining market access for Benjo Seamoss
    • The transformation of Ackee and Conch manufacturing and export in Jamaica
    • Upgrading, improved competitiveness and commencement of sustainable exports of Barbadian SME manufacturers
    • The transformation of many SME production and export operations in the agribusiness sector across the Caribbean
application of technology for competitiveness in caribbean firms21
Application of Technology for Competitiveness in Caribbean Firms
  • Key successes (cont’d):
    • The application of technological know how to the layout and design and/or redesign of pack houses, food processing plants and technical centres across the Caribbean
      • Plants and Pack houses - Haiti, St. Lucia, Grenada, T&T, SVG, Dominica, Jamaica (Walkerswood, Hounslow Pack house)
      • Technical Centres – SKNBS/MPL complex (St. Kitts); NCTE (Dominica), GTC (Jamaica)
application of technology for competitiveness in caribbean firms23
Application of Technology for Competitiveness in Caribbean Firms
  • Key successes (cont’d):
    • Gaining new markets in the Caribbean and contract packing for MTS’ product
    • Application of Systems Technology to Coconut Water production
    • Certification of Caribbean firms to access the US and EU markets
application of technology for competitiveness in caribbean firms24
Application of Technology for Competitiveness in Caribbean Firms
  • Key successes (cont’d):
    • Use in structuring approach to market access/trade agreements
    • The application of the approach to building productive collaboration and value chains – Jamaica Business Recovery Programme (JBRP), JEA and CC Clusters
temperatures and lethality during tastee process cheese manufacture
Temperatures and Lethality During Tastee Process Cheese Manufacture

20 PU – regarded as sufficient for adequate pasteurization for AFs (NFPA)

the process
THE PROCESS
  • NOT a Flash Pasteurization Process
  • HOT FILL AND HOLD
the process35
THE PROCESS
  • Traditional Processes 85°C / 10-15 min
  • Give Pasteurization Cookof 340 PU/min (3,400 PU - 5,100 PU)
  • Dairy’s Hot Fill and Hold Process gives a Pasteurizing Cook of > 9,000 PU in total
slide37

Model for “Formula-Safe” Concept

  • Moisture
  • pH
  • Total salts
    • NaCl
    • Phosphate-based emulsifier
  • Water activity not good predictor of safety
  • Lactate effect

Tanaka et al, 1986

the tanaka principles38
THE TANAKA PRINCIPLES
  • Ensure safety of Process Cheese based on a combination of factors that must be met
  • These combined safety “hurdles” allow the safe production of process cheese without “sterilization”
table 4 correlations between the independent and dependent variables of coconut water quality
Table 4 Correlations between the Independent and Dependent Variables of Coconut Water Quality

* significant p < 0.05

** highly significant p < 0.001

socio economic importance
Socio-economic Importance
  • Ackees are largely grown and processed in rural areas where other employment opportunities are limited
  • it directly impacts 13 communities across the island
  • approx. 3,000 directly employed
  • 6,000 indirectly employed
ripening stages of ackee 5 to 10
Ripening Stages of Ackee (5 to 10)

Stage 5

Stage 6

Stage 7

Stage 8

Stage 9

Stage 10

slide52
Build Back Better: The JBRP StoryApplication of Technology through the Cluster Concept along Value Chains
application of technology under jbrp
Application of Technology under JBRP
  • Developing input supplier, farmer, buyer relationships: building and strengthening the value chain
  • Understanding of the concept of producer/buyer relationships as an enterprise in itself
  • Use of specifications, planning and management in the business of agriculture
application of technology under jbrp54
Application of Technology under JBRP
  • Soil analyses, crop types, proper spacing, fertigation, proper crop rotation, etc
  • Importance of plant nutrition
  • Harvesting, post-harvest handling & storage – appropriate technology (field crates, etc)
  • Basic IPM techniques - Pest scouting, use of barrier technology, use of pheromones, Bacillus thurigenesis (Bt), etc for infestation and disease control
field preparation management
- Field Preparation & Management

- Pest and Disease Management

- Protected Agriculture: Greenhouses

detailed step by step greenhouse construction operation
Detailed Step-by-Step Greenhouse Construction & Operation

Source: JBRP Production Manual 04: Greenhouse Production

detailed step by step greenhouse construction operation57
Detailed Step-by-Step Greenhouse Construction & Operation

Source: JBRP Production Manual 04: Greenhouse Production

detailed step by step greenhouse construction operation58
Detailed Step-by-Step Greenhouse Construction & Operation

Source: JBRP Production Manual 04: Greenhouse Production

application of technology under jbrp59
Application of Technology under JBRP
  • Results: significant yield increases >40 - 50% in some cases, better quality, dramatically reduced losses.
  • Agriculture being seen as technology intense, interesting; a BUSINESS; a CAREER worth pursuing
  • Young people/farmers getting back into agriculture
  • Basis for current successful thrust into technology-led and protected agriculture in Jamaica today
summary
SUMMARY

Our Approach over the years included:

  • Technology Application in
    • Effective Product Development
    • Problem Solving
    • Product and Process Optimization
  • Application of Systems Technology in
    • Market Access and Value Chain Strengthening
    • Building Global Competitiveness in Caribbean Firms
summary application of technology for competitiveness in caribbean firms
Summary: Application of Technology for Competitiveness in Caribbean Firms
  • Range of different kinds of technology, hard and soft applicable
  • Need to apply in a manner that is relevant to the circumstance
  • Must be cognizant of absorptive capacity of persons being targeted
summary application of technology for competitiveness in caribbean firms63
Summary: Application of Technology for Competitiveness in Caribbean Firms
  • The knowledge base of all personnel involved, the equipment and capabilities available, and building in constant upgrading and development are critical to success and sustainability
summary application of technology for competitiveness in caribbean firms64
Summary: Application of Technology for Competitiveness in Caribbean Firms
  • Must gear information such that it can be understood by the persons who are the intended target – no use being “high science” when the users are intimidated by it.
  • Must be sensitive to culture of the country and organization if success is to be achieved.
  • Target sustainability. This can only be achieved by a change in culture
application of technology for competitiveness in caribbean firms65
Application of Technology for Competitiveness in Caribbean Firms
  • Caribbean firms that have benefited include:
    • Benjo Seamoss – seamoss (Dominca)
    • Mountain Top Springs Limited – water/coconut water (St. Vincent & the Grenadines)
    • Dairy Industries Jamaica Limited – dairy products (Jamaica)
    • Lasco Group Limited – range of food products (Jamaica)
    • Sranan Fowru - poultry (Suriname)
    • JBM SA – mangos, produce, F&V (Haiti)
changing the game67
CHANGING THE GAME
  • Starting with the objective, and only the objective in mind
  • Planning to achieve it without placing any limitations on how it will be done
  • Ignoring the current state or rules of play – totally.
slide68

“Every morning in Africa, a gazelle wakes up. It knows that day it must outrun the fastest lion or it will be killed.

Each morning, a lion also wakes up. It knows it must outrun the slowest gazelle or it will starve to death.

It matters not whether you are a lion or a gazelle. When the sun comes up, you better hit the ground running.”

dr andr gordon technological solutions limited agordon@cwjamaica com

Dr. André GordonTechnological Solutions Limitedagordon@cwjamaica.com

references
References
  • Gordon, A. and Barbut, S. 1991. Raw meat batter stabilization: Morphological study of the role of the interfacial protein film. Can. Inst. Food Sci. Technol. J. 24(4): 136-142.
  • Gordon, A. and Barbut, S. 1991. The effect of chemical modification on the microstructure of raw meat batters. Food Structure 10: 241-253.
  • Gordon, A. and Ahmad, M.H. 1991. Thermal susceptibility of S.faecium strains isolated from frankfurters. Can. J. Microbiol. 37: 609-612.
  • Gordon, A. and Barbut, S. 1992. The effect of chloride salts on protein extraction and interfacial protein film formation in meat batters. J Sci. Food Agric. 58: 227-238.
  • Gordon, A. and Barbut, S. 1992. The effect of chemical modification on the stability, texture and microstructure of cooked meat batters. Food Structure 11: 133-146.
  • Gordon, A. and Barbut, S. 1992. The mechanism of meat batter stabilization: A review. CRC Crit. Rev. Food Sci. Nutrit. 32: 299-332.
references71
References
  • Gordon, C.L.A. and Ahmad, M.H. 1993. Bacteriological conditions of a chicken hatchery in Jamaica. World J. App. Microbiol. Biotechnol. 9: 282-286.
  • Gordon, A. 1993. Studying comminuted meat products using corroborative techniques. Food Res. Intl. 26: 209-216.
  • Gordon, A. and Barbut, S. 1995. Meat batter proteins - effect of chemical modification on structure. J. Sci. Food Agri. 68: 457-464.
  • Gordon, A. and Barbut S. 1996. Meat batters: effect of chemical modifications on protein recovery and functionality. Food Res. Int.
  • Gordon A., Barbut S. and Smith A.K. 1996. Effect of cooking temperature on the microstructure of meat batters prepared with salt on phosphate. Libensm.-Wiss.u.-Technol., 29: 475-480.
  • Blake, O.A., Jackson, J.C., Jackson, M.A. and Gordon, C.L.A. 2004. Assessment of dietary exposure to the natural toxin hypoglycin in ackee (Blighia sapida) by Jamaican Consumers. Food Res. Intl. 37: 833-838.
references72
References
  • J.C. Jackson, C.L.A. Gordon, G. Wizzard, K.McCook, R. Rolle. 2004. Changes in chemical composition of coconut (Cocos nucifera) water during maturation of the fruit. Journal of the Science of Food and Agriculture 84, (9) 1049-1052;
  • Gordon, A and Jackson, J.C. 2010. Effect of ripening on the microbiological profile of Jamaican ackees (Blighia sapida). Food Res. Intl. submitted.
  • Gordon, A. 1992. The use of electron microscopy techniques in meat batter technology research : a review. The 25th Anniversary Scanning Elect. Microsc. Conf., May 9-14, Chicago, Il.
  • Gordon, A. 1992. The future of the food industry in Jamaica: is there a role for science and technology? The Jamaican Food Processor 30 (2): 16-20.
  • Gordon, A. 1994. How storage of meat batters prior to cooking affects stability. Innovations '94 (CIFST Annual Conference), Vancouver, Canada (Abstract).
  • Gordon, A. 1995. Microstructure, texture and sensory properties of Vienna sausages as affected by comminution protocol and added water. IFT Annual Meeting, Annaheim, CA. June, 1995 (Abstract).
references73
References
  • Gordon, A. and Barbut, S. 1990. The role of the interfacial protein film in meat batters. Scanning Elect. Microsc. Conf., May, 1990, Bethesda, MD., May 5-10, (Abstract).
  • Gordon, A. and Barbut, S. 1990. The microstructure of gels in raw meat batters made with five chloride salts. Scanning Elect. Microsc. Conf., Bethesda, MD., May 5-10. (Abstract).
  • Gordon, A. and Barbut, S. 1990. The effect of chloride salts on protein extraction and interfacial film formation in meat batters. IFT Annual Meeting, Anaheim, CA. June, 1990 (Abstract).
  • Gordon, A. and Barbut, S. 1991. The effect of chemical modification on raw meat batter microstructure. Food Structure Conf., Bethesda, MD., May 5-10. (Abstract).
  • Gordon, A., Malcolm-Jackson, M. and Gooden, V. 1992. Optimization of the sensory and textural characteristics of boneless sliced ham. Sixth Annual S.R.C. Conf. on Science and Technol., "Food and Nutrition". The Jamaica Conference Centre, November, 1992.
references74
References
  • Gordon, A. and Morgan, V. 1992. Use of sensory evaluation in product development. Sixth Annual S.R.C. Conf. on Science and Technol., "Food and Nutrition". The Jamaica Conference Centre, November, 1992.
  • Barbut, S., Gordon A. and Smith A.K. April 1994. Microstructure of meat batters during gelation and the effects of NaCl on phosphate - presented at the Annual Poultry Science Conference (April 1994).
  • Brown, M and Gordon, A. 1995. Use of accelerated shelf life testing in predicting the shelf life of fruit drinks, Institute of Food Technologists Annual Meeting, Anaheim, CA, June, 1995 (Abstract).
  • Morgan, V. and Gordon, A. 1995. Application of sensory evaluation and the hurdle concept to the commercialization of Jerk Seasoning. Institute of Food Technologists Annual Meeting, Anaheim, CA, June, 1995 (Abstract).
  • Wizzard, G., McCook, K., Jackson, J and Gordon, A. 2003. Quality of bottled coconut water during storage; pH as a reliable indicator of coconut water spoilage pre-processing. Caribbean Institute of Sciences Conference, Mona, Jamaica (Abstract).
references75
References
  • Gordon, A. 2005. Food safety in the Caribbean. Challenges in the global food market. Invited lecture to the US. Food and Drug Administration, Bethesda, Maryland, USA, 2005.
  • Gordon, A. and Lindsay, C. 2007. Effect of processing and handling on hypoglycin levels in ackee. CARPIN Annual Conference, Kingston, Jamaica, May, 2007.
  • Gordon, C.L.A and Jackson, J.C. 2010. The effect of ripening on the microbiological profile of Jamaican ackees (Bilghia sapida). Food Res. Intl. (submitted).
references76
References
  • Gordon 2001
  • Gordon, A. 2002. Traditional Beverages of the Caribbean. Institute of Food Technologists Annual Meeting, ***, *, June, 2002 (Abstract)
  • Gordon and Jackson, 2002
  • Gordon A and J.C. Jackson, 2003. Microbiological profile of Jamaican ackees (Blighia sapida) during maturation. Institute of Food Technologists Annual Meeting, ***, June** 2003 (Abstract)
  • Gordon, A. 2003. Technical Issues in the positioning of the Caribbean in the FTAA. Institute of Food Technologists Annual Meeting, ***, June** 2003 (Abstract).
  • Blake, O., Jackson, J.C., Gordon, C.L.A and Jackson, M.A. 2003. Assessment of dietary exposure to the natural toxin hypoglycin in canned ackee (Blighia sapida) by Jamaican consumers. Institute of Food Technologists Annual Meeting, ***, June** 2003 (Abstract)
  • Blake, O., Jackson, J.C. and Gordon, A. 2004. The safety of ackee fruit. Institute of Food Technologists Annual Meeting, ***, June** 2004 (Abstract)
references77
References
  • Mendonca, A and Gordon, A. 2004. Control of food safety and quality in Caribbean countries: Implications for international trade. Institute of Food Technologists Annual Meeting, ***, June** 2004 (Abstract)
  • Knight, O.S. and Gordon, A. 2004. Alicyclobacillus in tropical Caribbean beverages: Incidents and intervention strategies for control of this threat to the industry. Institute of Food Technologists Annual Meeting, ***, June** 2004 (Abstract)
  • Roosblad, M.R. and Gordon, A. 2010. Handbook for the export of fruits and vegetables. Trade Sector Support Programme, IDB/IICA, Paramaribo, Suriname, South America. April, 2010. Suriprint, N.V.