AgBiz Export Competitiveness Enhancement

RCI Agribusiness WorkshopNovember 10, 2009

Skopje

Program Basics

• Name - USAID’s AgBiz Program (AgBiz)• Four Year Program• Launched March ‘07 (30 months operations)• $5.85 million LoP Budget• Nine Long-term Staff• Cooperative & Supportive USAID Mission• Nascent Agribusiness Sector - not long out of

central planning & public enterprises

AgBiz Components

TitleLoE AllocationLoP/FY ‘10

Description

Value Chain Activities

50/62%Multi-company value chain competiveness enhancement events such as trade fairs, study tours, technology transfer & training

Business Expansion Projects

40/20%

Firm level, export-focused expansion project development & implementation via financial support & technology transfer, e.g., market entry and share expansion & facilities upgrading or expansion

Enhanced Access to Finance

7/10%Introducing customers to & assisting them to secure advantageous sources of financing

Policy Reform 3/8%Identification, prioritization & stimulating reform advocacy for competitiveness constraining policies

Enhancing the Competitiveness of Macedonian Wines

Fresh Fruits & Vegetables Competitiveness Enhancement

Processed Vegetables Competitiveness Enhancement

Results

• Projects – LoP projections– $28.7 million in increased exports– $14.6 million in increased raw material purchases– 2,700 households benefited with increased income– $9.3 million in increased investment– 5% AgBiz and 95% grantee investment

• 80 Activities – LoP actual– 13 trade fairs with 92 participants who received $5.8 million in orders– 14 study tours, 10 trainings, 4 workshops, 5 roundtables, 4 market research

studies, 4 value chain profiles, 2 significant association development activities– 170 agribusinesses, 88 new technologies & 906 trainees– 46% AgBiz and 54% customer cost sharing

• Access to Finance – LoP actual– Supported 29 firms to access finance worth $6.5 million

• Policy reform – LoP actual– 6 major reform needs identified and addressed– Cooperated with USAID’s BEA to analyze & propose resolutions– Issue with who to advocate due to only 1.5 trade associations

What Has Worked • Projects - Leveraged support for fixed asset

upgrading/expansion & market entry costs, e.g., slotting fees or in store promotions– Good preparation for IPARD & regulatory/procurement conformity

• Well planned & managed international trade fairs– Staff LoE intensive, extensive support to customers required– Cost sharing essential – customers >50%, other donors (GTZ, SIPPO, CBI) &

government financial support very important– Effective follow-up required – 3 & 6 months results measurement

• Highly targeted study tours & B2B meetings– Which markets; achievable market & goals– Local consultant support needed– Cost sharing limited to customers & occasionally the local embassy– Must be highly relevant to customer needs & objectives– South Africa and California Table Grape Study Tours– Need “lessons learned” & application follow-up/workshops; field trials

• Primary customer interest is in short term sales results

What Hasn’t Worked Well • Formal training

– No perceived immediate benefit

– Customer not likely to pay a significant % of actual cost

• Market surveys & value chain profiles– Who can I sell to, minimal interest in understanding the market

– Biggest benefit is informing staff

• Association development (yet)– Member commitment, dues??, political factions, lack of assn management

experience, mandatory CoC membership negative carryover

• Backward linkages – contract production (yet)– Miss trust, poor sales projections, mutual desire for full flexibility, how to

determine price?, complex system to manage, requires up front costs for inputs, TA, etc.

– Producer organization development – insufficient time & cost + poor donor support track record , so no AgBiz plans to support

Questions/Discussion Points

• Other’s success at leveraged training?

• Lessons learned in sustainable trade association development?

• Extent & type of public: private partnerships for export promotion/export competitiveness enhancement?

• Extent of government support for trade fairs & B2B meetings? How structured/from what kind of government entity?

• Support for producer organizations, especially as defined by the EU? IPA support available?