Robert A. Reid - RFCD Conference @ Arthur Lok Jack GSB - November 2011

1. BEST PRACTICES IN CARIBBEAN AGRIBUSINESS CLUSTER DEVELOPMENT Robert A. Reid International Agribusiness Specialist Inter-American Institute for Cooperation on Agriculture 1 st Regional Forum on Cluster Development in the Caribbean “ Opportunities for Competitiveness and Growth” 9 th November 2011 Hyatt Regency Port of Spain, Trinidad.

3. IICAAgribusiness & Commercialization Programme

7. Relative Competitiveness of Caribbean Economies & Agriculture/Agribusiness Sector

8. Relative Competitiveness of Selected Caribbean Economies Source : Global Competitiveness Report 2010 – 2011, UNDEP

9. Competitiveness of Caribbean Economies BASED ON GLOBAL MEASUREMENT OF COMPETITIVENESS, THE ECONOMIES OF THE LARGER CARCOM COUNTRIES ARE DEEMED AS ‘IN TRANSITION’, AND RELATIVELY UNCOMPETITIVE

10. CARICOM Agriculture/Agribusiness Sector – Competitiveness Factors

13. Agribusiness Clusters Initiatives in the Caribbean Region

14. THE CARIBBEAN SCENARIO RECENT FOOD CLUSTER INITIATIVES (REGIONAL) Caribbean Trade & Private Sector Development (CTPSD) €1.5 M 2008--‐2011 : Overall objective is to support integration of CARIFORUM countries into the world Economy. 7 clusters, including:  Agro Products  Business Support Organizations  Food and Beverage

15. THE CARIBBEAN SCENARIO RECENT FOOD CLUSTER INITIATIVES (NATIONAL) The Jamaica Cluster Competitiveness Project (JCCP) 2002‑08 designed to increase international competitiveness of selected Jamaican enterprises. Phase I of the project (2002‑2005/06) served to identify/create fresh markets, distribution channels and partnerships Guyana Trade and Investment Support (GTIS) $7.4 million 2004--‐2013 (Phase2) : M arket- led approach to expansion of non--‐traditional exports. Focus is on facilitating Business relationships that Result in new deals.  Aqua--‐culture  Fresh produce  Timber  Tourism (birding) Jamaica Million Private Sector Development Project (PSDP):€28.67 The primary purpose of the Programme was to enhance the competitiveness of MSMEs and strengthen their support institutions.  Eggs  Small ruminants  Fish  Gifts & crafts

20. Lessons Learnt/Best Practices Agribusiness Clusters in the Caribbean Region

24. * (Study carried out by IICA-Interagency Group on Rural Development (USAID, IDB, ECLAC, IFAD, GTZ, World Bank) 2003 Country AGDP/ GDP GDP Expanded Agriculture / GDP Argentina 4.6 % 32.2% Brazil 4.3% 26.2% Chile 5.6% 32.1% Mexico 4.6% 24.5% United States of America 0.7% 8.1% Venezuela 4.0% 20.5% Costa Rica 11.3% 32.5%

26. 3. Proper, targeted articulation of the Cluster approach as a means of improving comparative advantage and competitiveness 4. Horizontal Cooperation between industry sectors and countries to reinforce articulation and actor’s internalizing of cluster concept

28. 7. Detailed assessment of Cluster Actors – their capacities, business and other relationships, relative levels of competitiveness (benchmarking) etc – Cluster Mapping

29. 8. Establishment of Focus groups and Dialogue Platforms of Actors to examine cluster assessment, define industry/ product bench marks, visions, objectives/target, monitoring, communication mechanisms etc

30. 9. Identification of anchor firms has proven to be an effective platform from which to strengthen the cluster(value chain). 10. The need to make investments along the Value Chain relating to infrastructure and training (clearly link to new differentiated products)

31. 11. Sector Plans to support sustainability of value chains and clusters should be developed from the onset

32. 12. Need for participating actors to have entrenched competitive and collaborative mindsets and long-term commitment. Many times participating firms tend to be suspicious that any promising business opportunities would be appropriated by either competitors or by government institutions

33. 13. Due to complicated operating environments, with an enormous number of stakeholders to be consulted, never underestimate the time required to build consensus amongst agribusiness firms and other actors

34. SUMMARY & CONCLUSION Within a relatively uncompetitive economic and sector environment, clustering initiatives continue to be made within the Caribbean agribusiness sector, a sector which have tremendous potential for value addition, linkages, multiplier effects, and economic gains. From these initiatives, several lessons have been identified, and if applied, can in the long- term make the cluster approach extremely useful in the development of competitive agribusiness sector in the Caribbean region.

35. BEST PRACTICES IN CARIBBEAN AGRIBUSINESS CLUSTER DEVELOPMENT Robert A. Reid International Agribusiness Specialist Inter-American Institute for Cooperation on Agriculture 1 st Regional Forum on Cluster Development in the Caribbean “ Opportunities for Competitiveness and Growth” 9 th November 2011 Hyatt Regency Port of Spain, Trinidad.