2016 Central America Summit

Panelist: Session III

Policy and Partnerships: Creating an Enabling Environment

Ricardo Santa Cruz

Director of RED I+D+I Guatemalan Association of Exporters

Central America Summit: Forging a Viable Future

Borlaug Institute for International Agriculture, Texas A&M University

Creating an Enabling Environment Ricardo Santa Cruz Rubí

28 -29 June 2016

Established in 1982…

VISION Making Guatemala an

exporting country

What does AGEXPORT do?

Provides support services for clusters

Guatemala Exports Structure

Productos Tradicionales

75%

ProductosNo tradicionales

25%

Productos Tradicionales

27%

Productos No Tradicionales

73%

1986 2013

Café Banano Azúcar Cardamomo Carne Algodón

US$ 1,061 Millones US$ 10,562.2 Millones

Productos agrícolas Manufacturas Muebles, Artesanías Vestuario y textiles Acuicultura, Servicios

Otros Productos13%

Piedras preciosas4%

Caucho2%

Flores0%Frutas

3%Tabaco rama1%

Vegetales1%

Ajonjolí0%

Pesca2%

Madera y Manuf.1%

Plásticos3%

Alimentos10%

Farmacéuticos2%

Químicos1%

Otras manufacturas16%

Petróleo3%

Banano6%

Cardamomo2%

Café 7%

Azúcar9%

Vestuario y Tex.14%

0%

Source: Bank of Guatemala –BANGUAT-

2015 1986

STRATEGIC MILESTONES

EXPORT DEVELOPMENT

R&D+I

EXPORT PROMOTION

TRAINING & T.A. BUSINESS DEVELOPMENT

PPP TO ENABLING BUSSINES ENVIRONMENT,

COMPETITIVENESS AND TRADE FACILITATION

MICRO BUSINESS DEVELOPMENT /

CORPORATE SOCIAL RESPONSABILITY

SECTORS

Around. 1,000 Members -85% SMEs-

Agricultural and Aquaculture

Fruits

Vegetables

Ornamental Plants

Specialty Products

Fishery and Aquaculture

Manufacturing

Plastic

Food and Beverage

Manufacture Products

Clothing and Textiles

Furniture

Handicrafts

Cosmetics

Services

Software

Laboratories

Contact Centers

Health and Wellness Tourism

Sustainable Tourism

Digital contents and Development

Services to exporters

Activities

• Strategic Plans for each sector/commissions

• Trade Promotion Platforms

• Training Programs for SME

• R&D+i to diversify, add value and fulfil int´l standards and get certifications

• Productivity & Competitiveness

International Trade Missions

International Trade Fairs in Guatemala

1985 1991

2014 1985

1991

1994

1996 2000 2001

2002

2002

2007 2011

Policy Proposals

Programs supported by int´l agencies

More than 20 Cooperating effectively sponsored programs for the development of SME exporters – MULTI-SECTORIAL

Examples: • EUROPEAN UNION/ AL INVEST, USAID, DANIDA, BID,

JICA, CONCYT, HIVOS, FIDA OMC, MINECO, INVEST IN GUATEMALA, CBI, GIZ/DESCA, CATO, FIF FOMIN, MAGA/DACREDITO, FONAGRO, GUATEMALAN MUNICIPALITY, PTB GERMANY, SES GERMANY, FAO, INGUAT, DUTCH EMBASSY, INTECAP AND OTHERS

Environmental Management Platforms

AGEXPORT has been recognized as the first

NEUTRAL CARBON entity in Guatemala

• 6 Events Responsible Carbon

• 3 Events Carbon Neutral

Regional Alliances Central American and Dominican Republic Federation of Chambers and Exporters Assn. • Encourage the strengthening and development of member institutions within a free enterprise scheme. • Foster regional union and integration • Regional Commercial promotion, specially of non traditional products • Create cooperation programs for the exchange of best practices and experiences • Facilitate support services to SME’s

Bussiness Chain Alliances Program

Producers

MSME/ ORGANIZATION WITH ENTREPRENEURIAL & ASSOCIATIVITY SPIRIT

Companies (buyer) with

Corporate Social Responsability

Basic services & infrastructure

Eco-Business Chains

• Irrigation systems • Rural roads • Post-harvest facilities • Rural financial services • Local authorities support • Education & training • Public health services

• Market opportunities • Technical assistance • Technology & Innovation • Sustainability • Market intelligence • Certifications

•Employment • Income • Economic recovery • Nutrition • Food safety • Equity • Poverty reduction • Competitiveness • Environmental

sustainability

Public Sector

Private Sector

INTEGRAL RURAL DEVELOPMENT MSME

Effects Market

AGRICULTURAL CHAIN MODEL FAMILIAR AGRICULTURE FOR EXPORT

BUYER

TECHNICAL ASSISTANCE PLAN

BUSINESS PLAN

BASELINE DIAGNOSIS

Market

Competitiveness

Production

Potential

US$ 60.000

PRODUCERS

IDENTIFICATION OF ECO-BUSINESS CHAINS

BUSINESS MANAGEMENT

MSME

• Business administration and management of accounting, costs and legal issues.

• Compliance with tax obligations.

• Financing management, access to formal credit, investment studies to apply for bank loans.

• Business leadership.

• Technical assistance in production processes and quality, BPA, BPM

• Diagnosis, implementation and quality certificatio

• n. Training in logistics, processing quality and volume.

• Technology transfer, field tours, exchange trips.

• Production processes, traceability, food safety.

• Certifications.

PRODUCTION MARKETING

• Prototype development, product diversification.

• Brand development, logos, packaging design, product information materials, web pages, catalogs, Access to comercial information technologies, international visits (trade promotion).

LEADERSHIP

• Business leadership. • Associativity. • Rol of Boards. • Types of leadership. • Rural entrepreneurship. • Roles in the company. • Commercial risks. • Power management. • Associative corporate

governance.

• Environmental management focused on micro watershed.

• Good Agricultural practices BPA.

• Good manufacturing practices BPM.

• Certifications. • Clean production. • Environmental

studies. • Local environmental

management.

• New & alternative technologies

• knowledge • Innovation • Human developm. • Adaptation and

mitigation of climate change.

• REDD Initiatives. • Networks. • Risks prevention

R&D+i ECO-ENTERPRISES

ECONOMIC EMPOWERMENT OF RURAL WOMEN

• Awareness and training coordinators and technicians.

• Diagnostics for woman inclusion.

• Identifying leaders and needs.

• Provide tools for technical and personal strengthening.

• Network and best practices.

• Associative Business Leadership.

FOOD SECURITY

• Basics of food safety.

• Importance of nutrition in human development.

• Food safety and productivity.

• Safety and food hygiene.

• Alternatives to improve access to food.

• Alternatives to combat malnutrition.

MEDICIÓN DE RESULTADOS: INDICADORES

Created jobs

Invoiced sales

INTEGRATED RURAL DEVELOPMENT: Nutrition, Food safety,

Equity, Environment, CC, etc.

ECONOMIC / SOCIAL / ENVIRONMENTAL

DEVELOPMENT

SMALL CONTRIBUTION POVERTY REDUCTION

PERIOD 2006-2016

# Value chains 293 Created jobs 35,092 Sales in US$ 61 millones

RESULTS

KPI MEASURING IMPACTS

“A contribution to sustainable development of GUATEMALA”

GRACIAS!!