AgriBusiness Forum 2011 - Doyle Baker-FAO

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AgriBusiness Forum 2011 - Doyle Baker-FAO

  1. 1. Need to Create Space for Private Sector Partnerships in the Public Agriculture Development AgendaDoyle BakerRural Infrastructure and Agro-Industries DivisionFood and Agriculture Organization
  2. 2. Examples ofConcrete Contributions
  3. 3. Product, process & technology innovation leverage unique private sector competencies Commercialization of public sector technologies – NAIP Product packaging and labelling – Malaysia trade development New product development – KFRI, Korea Machinery and equipment supply – many in Africa (many not successful)
  4. 4. Business climate and regulatory reform economic development, protect welfareExamples of national involvement – PSDA(Kenya), TPSF (Tanzania)Codex, IPPC, Rotterdam Convention
  5. 5. Capacity developmentaugment limited resources and competenciesCompanies provide support to smallholderfarmers – Global - Heineken, General Mills, Unilever, Bunge SMAEs – many have technical agentsContracting to build farmers’ supply capacities Many examples cited in Forum Book in progress [anyone want to promote their case?]
  6. 6. Infrastructure investmentaugment scale and scope of investment projects Market-oriented agricultural infrastructure – several examples FAO/NRI review Agri-food parks – India and Brazil experiences; interest in RSA, trying in Kenya
  7. 7. Business financingabsorb risk when too much for financial sectorAECF, Norfund – public money run by fundmanagers for sustainable business developmentLundin, BMGF – private money for sustainablebusiness development
  8. 8. Modalities inValue Chains Era
  9. 9. Projects to develop inclusive business models and value chainsFunded by public but involving private - manyFunded by private sector foundations andcompanies – many
  10. 10. Market and services development projectsSchemes – warehouse receipts, commodityexchangesNew era of business development serviceprovidersCommodity associations, producer organizations
  11. 11. Growth corridor, breadbasket and regional programmesSAGCOT and Beira perhaps best known inAfricaEast Africa Agro-Enterprise and Agro-IndustriesDevelopment Programme (E3ADP) – perhaps?
  12. 12. Dialogue and partner platformsGlobal Agro-industries Forum (FAO, UNIDO,IFAD, Government of India)World Banana ForumAfrica Agribusiness and Agro-Industries Initiative(3ADI)New Vision for Agriculture (WEF)Sustainable Food Laboratory
  13. 13. Looking to Future – Priority Action AreasInstitutional MainstreamingSustainable Food ChainsFood Systems Governance
  14. 14. From frontline pilots to institutional mainstreaming and strategic initiativesFrom talk on process Beyond private sector(mechanisms, principles) development toto action on content partnering on broader (development agenda) development agenda
  15. 15. Institutional Mainstreaming Business financing Capacity development Infrastructure investment Dialogue and partner platforms Markets and services development Business climate and regulatory reform Product, process & technology innovation
  16. 16. Sustainable food chainsEnhance social and environmental sustainabilityand the commercial viability of food supplychains, while also increasing value addition andcapture in developing regions
  17. 17. Food losses reductionFood demand cannot be met through increasedproduction aloneNew strategy: losses along food chainsProprietary technologies needed for logistics,packaging, cold chains, preservation, etc.Food waste in industrial countries needs attentionRequires significant changes in foodmanufacturing, retail and food service companiesin both developing and industrialized companies
  18. 18. Greening food supply chainsGrowth to meet food demand must be “greengrowth” in light of resource limitationsCommercially viable technological optionsneededMarket mechanisms for environmental servicesIndependent and objective assessment ofsustainability claimsClarify need for and nature of appropriateincentives and regulations
  19. 19. Small and medium agro-processing sector SMAEs have inherent sustainability characteristics Impetus to local products and recipes Generate decent work and tied to local communities Partnering arrangements mobilizing global company support to SMAEs Rebalance governance relations in global food chain Reinforce capacity to supply high quality and safe products to domestic and regional markets Reduce risks and costs to global companies
  20. 20. Food systems governanceDevelop rational and fair multistakeholdergovernance of the global food system in order tomitigate and start to reverse some of theimbalances that have developed
  21. 21. Global Food System Imbalances Greater capacity Too many Global companies to supply niche external social have greater products to high and resources andincome countries environmental power than do than to supply costs many countries that food to domestic are supposed to and regional protect public markets interest
  22. 22. Private sector voluntary standardsProliferation creates complexity, costs, potentialfor market exclusionMost originated in industrial countries and drivenby their values and interestsCan be important mechanism for developingresponsible supplyLack of commercial viability of most standardsBenchmarking and adaptation to reduce costsand risks, increase benefits
  23. 23. Responsible business practicesMainstream business models and practices thatsupport public development agendaBuild on New Vision for Agriculture (WEF), MilanPrivate Sector Statement, othersIdentification and benchmarking of indicatorsRating scheme(s) and awards; perhaps code ofconduct
  24. 24. Voluntary guidelines on contractingDistinctive feature of modern food supplysystems is shift from open market transactionsto contract based transactionsContributes to efficiency and alignment of supplyand utilization along food chainsPublic interest in fair and equitable contractingalong food chainsVoluntary guidelines, good practices or evencode of conduct needed
  25. 25. Challenges
  26. 26. Consensus on public sector strategic priorities Value propositions to agricultural companies
  27. 27. Thank you

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