Need to Create Space for Private Sector Partnerships

in the Public Agriculture Development Agenda

Doyle BakerRural Infrastructure and Agro-Industries Division

Food and Agriculture Organization

Examples of Concrete ContributionsConcrete Contributions

Product, process & technology innovation

� Commercialization of public sector technologies

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)

Business climate and regulatory reform

� Examples of national involvement – PSDA

economic development, protect welfare

Examples of national involvement – PSDA

(Kenya), TPSF (Tanzania)

� Codex, IPPC, Rotterdam Convention

Capacity development

� Companies provide support to smallholder

augment limited resources and competencies

Companies provide support to smallholder

farmers –

� Global - Heineken, General Mills, Unilever, Bunge

� SMAEs – many have technical agents

� Contracting to build farmers’ supply capacities

� Many examples cited in Forum

� Book in progress [anyone want to promote their

case?]

Infrastructure investment

� Market-oriented agricultural infrastructure –

augment 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

Business financing

� AECF, Norfund – public money run by fund

absorb risk when too much for financial sector

AECF, Norfund – public money run by fund

managers for sustainable business development

� Lundin, BMGF – private money for sustainable

business development

Modalities inValue Chains EraValue Chains Era

Projects to develop inclusive business

models and value chains

� Funded by public but involving private - many

� Funded by private sector foundations and

companies – many

Market and services development

projects

� Schemes – warehouse receipts, commodity

exchanges

� New era of business development service

providersproviders

� Commodity associations, producer organizations

Growth corridor, breadbasket and

regional programmes

� SAGCOT and Beira perhaps best known in

Africa

� East Africa Agro-Enterprise and Agro-Industries

Development Programme (E3ADP) – perhaps? Development Programme (E3ADP) – perhaps?

Dialogue and partner platforms

� Global Agro-industries Forum (FAO, UNIDO,

IFAD, Government of India)

� World Banana Forum

� Africa Agribusiness and Agro-Industries Initiative

(3ADI)

� New Vision for Agriculture (WEF)

� Sustainable Food Laboratory

Looking to Future –Priority Action AreasPriority Action Areas

Institutional Mainstreaming

Sustainable Food Chains

Food Systems Governance

From frontline pilots to institutional

mainstreaming and strategic initiatives

From talk on process(mechanisms, principles)

to action on content(development agenda)

Beyond private sector

development to

partnering on broader

development agenda

Institutional Mainstreaming

Capacity development

Business financing

Infrastructure investment

Business climate and regulatory reform

Product, process & technology innovation

Markets and services development

Dialogue and partner platforms

Sustainable food chains

Enhance social and environmental sustainability

and the commercial viability of food supply

chains, while also increasing value addition and

capture in developing regions

Food losses reduction

� Food demand cannot be met through increased

production alone

� New strategy: losses along food chains

� Proprietary technologies needed for logistics,

packaging, cold chains, preservation, etc.

� Food waste in industrial countries needs attention

� Requires significant changes in food

manufacturing, retail and food service companies

in both developing and industrialized companies

Greening food supply chains

� Growth to meet food demand must be “green

growth” in light of resource limitations

� Commercially viable technological options

neededneeded

� Market mechanisms for environmental services

� Independent and objective assessment of

sustainability claims

� Clarify need for and nature of appropriate

incentives and regulations

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� 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

Food systems governance

Develop rational and fair multistakeholder

governance of the global food system in order to

mitigate and start to reverse some of the

imbalances that have developed

Greater capacity

to supply niche

products to high

Too many

external social

and

Global companies

have greater

resources and

Global Food System Imbalances

products to high

income countries

than to supply

food to domestic

and regional

markets

and

environmental

costs

resources and

power than do

many countries that

are supposed to

protect public

interest

Private sector voluntary standards

� Proliferation creates complexity, costs, potential

for market exclusion

� Most originated in industrial countries and driven

by their values and interestsby their values and interests

� Can be important mechanism for developing

responsible supply

� Lack of commercial viability of most standards

� Benchmarking and adaptation to reduce costs

and risks, increase benefits

Responsible business practices

� Mainstream business models and practices that

support public development agenda

� Build on New Vision for Agriculture (WEF), Milan

Private Sector Statement, othersPrivate Sector Statement, others

� Identification and benchmarking of indicators

� Rating scheme(s) and awards; perhaps code of

conduct

Voluntary guidelines on contracting

� Distinctive feature of modern food supply

systems is shift from open market transactions

to contract based transactions

Contributes to efficiency and alignment of supply � Contributes to efficiency and alignment of supply

and utilization along food chains

� Public interest in fair and equitable contracting

along food chains

� Voluntary guidelines, good practices or even

code of conduct needed

ChallengesChallenges

Consensus on public sector

strategic priorities

Value propositions to

agricultural companies

Thank you