AgriBusiness Forum 2011 - Doyle Baker-FAO

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  • 1. Need to Create Space for Private Sector Partnershipsin the Public AgricultureDevelopment AgendaDoyle BakerRural Infrastructure and Agro-Industries DivisionFood and Agriculture Organization

2. Examples ofConcrete Contributions 3. Product, process & technology innovationleverage unique private sector competenciesCommercialization of public sector technologies NAIPProduct packaging and labelling Malaysiatrade developmentNew product development KFRI, KoreaMachinery and equipment supply many inAfrica (many not successful) 4. Business climate and regulatory reform economic development, protect welfareExamples of national involvement PSDA(Kenya), TPSF (Tanzania)Codex, IPPC, Rotterdam Convention 5. Capacity developmentaugment limited resources and competenciesCompanies provide support to smallholderfarmers Global - Heineken, General Mills, Unilever, BungeSMAEs many have technical agentsContracting to build farmers supply capacitiesMany examples cited in ForumBook in progress [anyone want to promote theircase?] 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. 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. Modalities inValue Chains Era 9. Projects to develop inclusive businessmodels and value chainsFunded by public but involving private - manyFunded by private sector foundations andcompanies many 10. Market and services development projectsSchemes warehouse receipts, commodityexchangesNew era of business development serviceprovidersCommodity associations, producer organizations 11. Growth corridor, breadbasket andregional programmesSAGCOT and Beira perhaps best known inAfricaEast Africa Agro-Enterprise and Agro-IndustriesDevelopment Programme (E3ADP) perhaps? 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. Looking to Future Priority Action AreasInstitutional MainstreamingSustainable Food ChainsFood Systems Governance 14. From frontline pilots to institutional mainstreaming and strategic initiativesFrom talk on processBeyond private sector(mechanisms, principles) development toto action on contentpartnering on broader(development agenda)development agenda 15. Institutional Mainstreaming Business financingCapacity development Infrastructure investment Dialogue and partner platforms Markets and services development Business climate and regulatory reform Product, process & technology innovation 16. Sustainable food chainsEnhance social and environmental sustainabilityand the commercial viability of food supplychains, while also increasing value addition andcapture in developing regions 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. 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. Small and medium agro-processing sectorSMAEs have inherent sustainabilitycharacteristicsImpetus to local products and recipesGenerate decent work and tied to local communitiesPartnering arrangements mobilizing globalcompany support to SMAEsRebalance governance relations in global food chainReinforce capacity to supply high quality and safeproducts to domestic and regional marketsReduce risks and costs to global companies 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. Global Food System Imbalances Greater capacity Too manyGlobal companiesto supply niche external socialhave greater products to highandresources andincome countriesenvironmental power than do than to supply costs many countries that food to domesticare supposed toand regional protect publicmarkets interest 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. 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. 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. Challenges 26. Consensus on public sectorstrategic priorities Value propositions toagricultural companies 27. Thank you