2. 2
OUTLINE
UNIDO SME Cluster Development: a tool to promote inclusive
and sustainable local development
Towards an Integrated Cluster Approach: linking Food,
Creative Industries and Tourism: the case of Montenegro
Cluster Development and Sustainable Tourism
3. 3
Clustering: a tool to promote Inclusive and
Sustainable Local Development
Clusters are promising environments for:
a) the development of linkages for SME
competitiveness
b) the creation of public-private partnerships for
inclusive and sustainable development
5. 5
UNIDO Cluster Projects’ coverage
Cluster Development Ongoing
Cluster Development Completed
Export /Origin Consortia
Nicaragua
Mexico
Honduras
Jamaica
Tunisia
India
Colombia
Senegal
El Salvador
Zimbabwe
Morocco
Nigeria
Ecuador
Thailand
Pakistan
Uruguay
Morocco
Egypt
Peru
China
Indonesia
Serbia & Montenegro
Hungary
Jordan
Iran
Ecuador
Colombia Bolivia
Ethiopia
Russia
South Africa
IVC
Vietnam
Vietnam
Turkey
6. 6
Tourism Driving Local Economic development
• Tourism is experiencing steady growth. Linkages between productive
industries (e.g. agricultural, handicraft, etc.) and the tourism sector can help
producers access new markets and generate new income and employment
opportunities.
• Food and beverage consumption represents a significant part of visitors
expenditure but it can also be a high area of economic leakage. Developing
and promoting sustainable, locally sourced products helps ensure the host
country captures the positive social and economic impacts of tourism.
• Food and cultural products differ by region – encouraging the discovery of
regional products through tourism can help disadvantaged regions to
capitalize on their particular assets. It also rewards producers for their
commitment to sustainable agricultural practices and biodiversity.
7. 7
An Integrated Cluster Approach:
Delicious Montenegro
……..An approach towards linking agri-food clusters and tourism
8. 8
Technical assistance focus
•Cluster branding & promotional strategy
•Quality & Traceability
•Joint sales events
Olive Oil
Cluster
•Upgrading of production processes
•Initiation of National Freshwater Fish
Association to articulate common challenges
vis-à-vis-government
Trout Cluster
•Development of joint offer for tourists
•Joint sales events
•Joint promotional web portal
Wine Cluster
9. 9
Cluster Case Study – Olive Oil
Cluster: 16 SMEs – olive oil producers in two municipalities in the South of
Montenegro
• Challenges:
• Low level of production (low quantities) and difficulty to compete with
cheaper imports on the basis of scale or price
• Poor packaging and visibility
• Weak sales channels (90% of cluster products sold from their house and only
5-10% through official sales channels to some restaurants, hotels and local
supermarkets.
• Within this scenario only the up-market segment is one where local
producers could look at increasing sales on the local market (particularly to
tourists) and exports in the medium term (and still remain profitable).
• Opportunities:
• Very old ancient olive trees in the cluster region identified as a main
competitive advantage– joint approach required!!
10. 10
Project Results – Olive Oil Cluster
• Cluster firms assisted in developing a joint product line from trees
older than 1,000 and 2,000 years 42°N 19°E – branding
developed, internationally recognized laboratory analysis - first
exportable product of the cluster.
• Harvest done jointly in presence of quality assurance inspections –
same for pressing and bottling.
• UNIDO cluster development agent supported the trust building
process and helped to develop linkages
• The first 2 bottles of the newly created brand were given to Prince
Charles and his wife Camilla in March 2016.
• Cluster website (http://oliveoilmontenegro.me/), two olive trails
for tourists as well as a joint sales events in shopping malls
organized.
• Video on the olive oil cluster:
https://www.youtube.com/watch?v=loWIBbnjOco
11. 11
Introducing Delicious Montenegro
• Montenegro’s nature and cultural heritage give the
local delicacies unique flavor and taste.
• To promote market access for agri-food clusters
(initially wine, fish and olive oil) and capitalize on
Montenegro as a travel and tourist destination,
UNIDO developed 'Delicious Montenegro’.
• By uniting different agri-food producers under one
umbrella brand and fostering linkages with
gastronomy and the tourism sector, Delicious
Montenegro helps disadvantaged regions capitalize
on their assets and their distinctiveness.
http://deliciousmontenegro.me/
13. 13
Delicious Montenegro received the “most innovative fair exhibitor” award at the
41st Food Fair held in the Montenegrin town of Budva in March 2015.
Delicious Montenegro in Practice
14. 14
Delicious Montenegro in Practice
• Olive trails developed
linking oil producers with
touristic spots and local
heritage sites
15. 15
Delicious Montenegro - Sustainability
• Delicious Montenegro network maintained & constantly expanded
• Partnership with the Student Business Club of UDG University of
Montenegro
• Strong linkages with the
national Chamber of Commerce
• Regular promotional efforts
16. 16
Benefits of the Approach
INCLUSIVE
Development of linkages and
local networks ensures social
inclusion and reduces
tourism leakage.
Food differs by region -Agri-
food focus ensures rural and
remote areas also benefit
from income generating and
employment benefits of
tourism.
EFFICIENT
Umbrella branding
encourages cooperation
between enterprises and
institutions. Joint activities
enhance collective
efficiency and reduce
individual risk.
Improved dialogue and
coordination streamlines
support services to the
industry, leading to a more
efficient use of resources.
INNOVATIVE
The cross-sector, inter-
regional branding approach
encourages information
exchange, knowledge
creation and innovative
solutions to challenges faced
by MSMEs and opens up new
opportunities.
SUSTAINABLE
Brokering linkages
between agri-food
producers, tourism and
related industries mutually
re-enforces demand for
local produce and
enhances the tourism offer.
Rewards producers for
commitment to biodiversity
and preservation of natural
and cultural resources.
Local ownership of the
brand also ensures
sustainability
17. 17
Cluster Development & Sustainable Tourism
• A fundamental condition to achieve sustainable tourism is the
collaboration among different stakeholders in a region
• It is important to identify the synergies between tourism sector and
other sectors: agricultural and handicraft
• Through collaboration among stakeholders and synergies among
sectors (Integrated Cluster Approach) it is possible to promote
economic growth by protecting and valorising the natural and cultural
landscape
18. 18
Agro-food, Tourism and Creative Industries
- an integrated cluster approach
Web links:
• Executive Summary
https://www.unido.org/sites/default/files/files/2018-
03/2017-10-
18%20EXECUTIVE%20SUMMARY%20EN%20WEB.PDF
• Full report
https://www.unido.org/sites/default/files/files/2018-
03/2017_10_23%20CLUSTER%20REPORT%20EN%20WE
B_0.PDF
