UNIDO TCB event

Horticultural Products From Africa: A view from the field

Typical Vegetable Supply Chain

A Private Sector Solution Vertical integration EU marketing division Vertical integration Private Standards Vertical integration Lead Supplier MARKETS PRODUCTS COSTS INFORMATION CAPITAL EXPERTISE

The model that was needed Organized farmers and agri sector Diagram Source re-governing markets IIED Bill Vorley

SO WHAT WAS MISSING ?

Receptive commercial sector
“ To you it is a bag of salad, dropped into the supermarket trolley with the weekly groceries”
“ The world is running out of water and British supermarket shoppers are contributing to global drought”
The Independent May 2006

Receptive commercial sector – still under pressure
Asda
Part of Wal-mart Group
UK Sales of $25B
UK No #2 retailer
Loyal customer base
High customer trust
Committed to supporting Fair trade at home and abroad
Andy Bond, President and CEO of ASDA will today (Tuesday 6th May) pledge to source an additional £30 million worth of fresh produce from African farmers over the next five years at the Africa Millennium Goals Summit hosted by Prime Minister, Gordon Brown. ASDA PRESS CENTRE Tuesday 6th May, 2008

The model that was needed Some organized farmers and agri sector Diagram Source re-governing markets IIED Bill Vorley

Organised Agriculture Partnerships - Challenges
Availability of land
Current ownership
State Vs Current occupants
Heritage land and natural boundries
Migration paths of people and animals
Lack of structural points of contact
Joint venture potential
Expansion capital investment - high cost locally
Eventually acquisitions became inevitable as easier
Integration of local independent capacity (flexibility) – not visible

Organised Agriculture Potential - Challenges
Long productive seasons with short “shoulders”
Seasonality causes
Loss of skilled staff or high costs of retention
Transport critical mass issues leading to higher costs
Potential window for competitors to “steal” supply base
Multiple crops or multiple use of the same crop
‘ Added Value’ or processing potential
Alternative markets or local cash crops
Possibility of flexible land use with neighbours or other agri-business

Organised Agriculture
Small Farmers bring OPPORTUNITY
Premium products
Flexibility
Proven technical ability
Good PR for hard pushed brands
Fresh produce is commoditised and uncertain it is unlikely that small farmer virgin projects will emerge from a cold start
The coordination and consolidation of projects into bigger more efficient entities is more likely to succeed but who will be the convener ? – SCALE !

The model that was needed Some organized farmers and agri sector Diagram Source re-governing markets IIED Bill Vorley

Facilitating public technical sector
Exporting to Europe
Competent authority (EU)
Local certification bodies (PVS)
Suitable testing laboratories (MRLs)
Pesticide registration scheme
GlobalGap BRC ETI smallholder Fair Trade Organisation BOPP – UK packhouse Tesco Natures Choice M&S Field to Fork Ministry Of Labour Department Of Health Kenya Bureau Of Standards NEMA – National Environment HEBI – Ethical Business FPEAK – Exporters Assoc Marketing Stds 1148/2001 Harmful Organisms 29/2000 Food Safety - 882/2000 MRL Residues 91/414/eec Traceability 178/2002

Facilitating public infrastructure
Operating in country
Labour, agriculture ministries, educational infrastructure
Neutral fiscal policies for exporters (import / export )
Stable currency to £,$,€
Public / Private partnership
Opportunities to develop shared infrastructure
Potential to delegate infrastructure operations to local business over time
Effective public bodies and /or parastatals – facilitators not barriers
Transport infrastructure
Local links to airports and ports essential
Air / tourist and passenger traffic helpful – competition attractive
Mature industrial relations and high %age operation statistics at exit points

A Private Sector Solution - A closed private loop ? Vertical integration EU marketing division Vertical integration Private Standards Vertical integration Lead Supplier MARKETS PRODUCTS & A UNIDO Solution ? Develop Competitive Supply-side Capacities Prove Conformity with Market Requirements Connect to the Market Compete Conform Connect

Connecting to markets ten years on .... Compete Conform Connect MARKETS Connect ? Standards Institute Accreditation Board Industrial Metrology Institute BIPM International Weights and Measures ISO ILAC / IAF Calibration Laboratories Inspection Bodies System Auditors System Certifiers ISO 22000 ISO 9000 ISO 14000 Testing Services Adapted from UNIDO TCB

Thank you

UNIDO TCB event

by Steve Homer

Accessibility

Upload Details

Usage Rights

1 Embed 1

Statistics

UNIDO TCB event Presentation Transcript