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Innovations that will impact the herbs & spices industry


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Presentación (inglés) de la Caribbean Agri-business Association (CABA) en el marco del Eleventh regional planners forum on agriculture and Symposium on innovation systems for sustainable agriculture and rural development, realizado en Barbados del 13 al 15 de septiembre de 2017.

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Innovations that will impact the herbs & spices industry

  2. 2. DEFINITION & CONTEXT DEFINITION---INNOVATIONS New combination of existing and/or new resources which solves problems or exploit opportunities with new commercialised products, services, processes, business models and management system. SECTOR CONTEXT-FOR INNOVATIONS • Dynamic & volatile (Pest & diseases, climate, government regulations, company specifications) • Higher risk & uncertainty of the future payoff of investments • 8-10 years to bring new varieties to market • Slow change in consumer demand pattern
  3. 3. HERBS & SPICES INDUSTRY TARGETS PRODUCT CATEGORY Est. Regional Imports in 2017 USM Displmnt. Target in 2022 US$M Est. export value in 2017 US$M Target in 2022 Value US$M) Total Increase in 2022 U$M Herbs and Spices Including pepper mash) 14.5 3.625 14 20 9.63 Food preps Including condiments/sauces/ soups/ 100 10 29.1 60 40.90 Essentials oils /soaps /perfumery/ Tioleteries 5 61 80 19.00 Teas (excluding herbals) 11.5 2.875 1 5 6.88 Alcoholic beverages 285 5.7 n/a 5 10.70 Non-Alcoholic beverages 95 4.75 n/a 10 14.75 Bakery products 5 n/a 5 10 TOTAL 506 31.95 105.1 185 111.85
  4. 4. INNOVATIONS INNOVATION AREA PROBLEM/ OPPORTUNITY INNOVATIVE SOLUTIONS STAGE OF IMMPLENTATION INSTITUTIONAL CABA as a Not-For-Profit company with no public sector financing, very limited and uncertain grants,-cannot attract private sector investment to implement it strategy. Identify aspect of the strategy that can attract private sector investment and establish For-"Profit Company" to implement those projects and generate revenue to support CABA's development projects. Caribbean Agribusiness Development Company (CADCO) established with group of private individuals (from young to retirees) POLICY Inadequate policies and strategies for the elimination of povery and hunger Use comparative agribusiness advantages of the community , to establish community owned sustainable business ventures to assist in the eradication of household hunger and poverty and engender sustainable community development. FAO agree to support CABA in its “Sustainable Community Development Through Agribusiness” (SC-D-TA) programme, aimed at the establishment of sustainable community development projects e.g Pomeroon project, Freeport Cassava Peeling Project.
  5. 5. INNOVATION AREA PROBLEM/ OPPORTUNITY INNOVATIVE SOLUTIONS STAGE OF IMMPLENTATION MARKET/ DEMAND SIDE 1. High barriers to entry into traditional markets. 2. Very limited funds for promotion & market development 1. Find new channels through E-commerce 2.Establish company to undertake collective marketing by SME's. 3. Make it easy for stakeholders to find and communicate with buyers & suppliers. 4.Promote food &cuisine more intimately and innovatively with sports and music. 1. on-line shop "my Caribbean" established and will be operational by end of 2017. 2. New SME owned company Caribbean Agribusiness Export Company (CABEXCO) established and operational. 3. Agribusiness directory established and functional with over 350 firms already registered. 4. CADCO/CABA Caribbean Food & Things Annual Showdown in advance stage of planning with strategic foreign partners.
  6. 6. INNOVATION AREA PROBLEM/ OPPORTUNITY INNOVATIVE SOLUTIONS STAGE OF IMMPLENTATION SUPPLY SIDE 1. Disorganised, unreliable and uncertified small farmer. 2. Lack of Access to certified processing infra- structure 1. Establishment of certified farmer clusters under contractual arrangements backed with technical support. 2. Promotion of the establishment of certified contract processing Centres 1. Several such farmer groups established in Trinidad with contracts for processing centre. Detailed plan developed for the PEPA in Guyana. 2. Business plan prepared and investment been sought for first one in Trinidad
  7. 7. INNOVATION AREA PROBLEM/ OPPORTUNITY INNOVATIVE SOLUTIONS STAGE OF IMMPLENTATION INFORMATIO N KNOWLEDGE & EDUCATION 1. Inadequate access to planning and trading information. 2. Inadequate technical knowledge and lack of formal recognition for knowledge & experience gained on the job by farmers and agro processors 1. Establish comprehensive on-line agribusiness information service. 2. Establish internationally recognized Industry led on- line training and certification programme that will allow stakeholders to conveniently and affordably increase knowledge and skills and obtain formal recognition. 3.Increase capacity of stakeholders to communicate and share information 1. CARICOM established and been supported by CABA. 2. CADCO/ CABA website established and agreement reached with USA based International Business Training Association (IBTA) 3.CADCO's social media network established and operational.
  8. 8. INNOVATION AREA PROBLEM/ OPPORTUNITY INNOVATIVE SOLUTIONS STAGE OF IMMPLENTATION INVESTMENTS Difficulty in attracting investment particularly in primary production and in SME firms as government investment promotion agencies lacks the required capacity. Establish private sector firm dedicated to promoting investment in the sector using innovative methods to attract investors. CADCO committed to this objective and has begun to use innovative strategies such as' active search" "service for equity" , "product for equity" and "shark tank pitches" to identify firms in need and provide innovative equity and debt financing. 10 projects are now been pursued in 5 Caribbean