Agricultural export promotion Role of Trade & Investment Support Institutions and Good Practices

FAO “Agricultural export promotion in Kyrgyzstan” WorkshopMartin Labbé, Senior Officer, Institutional Development, ITCBishkek, 18 October 2016

ITC 100% Aid For Trade, including Institutional Development

A Global Footprint of Institutional Development Across the World

AIM for Results: An Integrated Approach to Institutional Development

Assess Improve Measure

Information

Training

Advisory

Benchmarking

Institutional Mapping

Strategy and Management

Result and Impact Measurement

Networking

Developing a Service Portfolio

Modes of Delivery

Foreign Trade Representation

Business Generation

M1

M2

4

www.tisibenchmarking.org

Agro-Business Trade Promotion: Global Perspective

Percentage of TPOs promoting Agro-Food by Region & Income Level (2014)

100%

87.5%

58.1%

82.6%

74.1%

Average: 72.3%

Source: ITC Research

The Role of TPOs and other Institutions, and the importance of private-public coordination

Suppliers & service providers

Industry associations

International Networks Regional Networks National associations, like AFVE

http://eng.afve.org/

Customers

SMEs Brokers & Traders Retailers (integrated value chains) Direct marketing (B2C)

Analysts

National sector-specific consultancies

Global sector specific consultancies Global cross-cutting consultancies

Governments/International organizations

Governments, regional & local authorities

FAO / ITC /World Bank Bilateral development

organizations: GIZ, CBI, …

Input suppliers (fertilizers, seeds…) Equipment suppliers Tech companies (Agriculture 4.0) Consultancies (bid participation)

Producers

Individual farmers Cooperatives Integrated “from field to fork”

companies Foreign investors, multinationals

1

4

6 2

5 3

Agro-Business Trade Promotion: From Market Research to Market Penetration

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Understand market supply and its evolution over time

World Production of AvocadosMexico

31%

Dom.Republic

8%Colom

bia6%

Peru6%

Indonesia6%

Kenya4%

USA4%

Chile3%

Brazil3%

Rwanda3%

Other25%

2013

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Source: FAO Stats

Beyond Market Statistics: Understanding Granular Market Requirements

Pre-cooling Retail CPackhouse Supermarket O

Grower Washing Importer Break bulk C-stores NProducer Grading Wholesaler Ripener Independents S

Packing Retailer Re-packer Garage forecourts UCold Store M

Traditional wholesaler EFood Service R

Processor

The Growing Role of certifications and voluntary standards & how to handle them

http://www.standardsmap.org

Road to Market for Rwandan Coffee – Production Options

UnbrandedDomestic Production

UnbrandedExport

Production

Co-BrandedExport

Production

Partnership with Coffee market leader

BrandedExport

Production

Launch own-brand « Thousand Hills »

Relative Marketing Sophistication

(transformation, processing, certifying)

Valu

eH

igh

Low

Simple Complex

Branding and Trasformation

Even the raw

product can be

branded

Moldovan Walnuts Investment Promotion

Agro-Technology in Israel

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From theory to practice: the reality on the groundOn the micro level of the companies, IPD also identified gaps in the ability of Kyrgyz suppliers to access the market: • Some companies have problems finding or keeping English speaking

staff.• Lack of certifications, notably ISO 22000, HACCP and Organic. • Lack of product specifications, no cost calculations and no knowledge

about UNECE standards or SOP.• Packaged dried goods (they have installed new vacuum packaging

equipment).• Check international standards on walnuts and start implementing them.

Good Practices in Agro-Business Trade Promotion

The Trade Promotion Toolkit

• Directories, online and offline• Events, like Trade Fairs (domestic, regional, global) and

seminars• B2Bs (targeting specific buyer profiles on target markets)• Identification of agents and sales representatives (clustering

suppliers) – also online

Remember: TPOs work with sector TISIs Build Private-Public Partnerships (for instance R&D

investment) Reprioritise resources to focus on emerging and high-growth

markets

Classics of Trade Promotion: the Directory

Trade Fair Participation

“Mongolian food companies participated at the biggest food exhibition of Shanghai, China”23 Mongolian local food company representatives such as AlkoGroup, Gem International Co.,LTD, Darkhan Deejis LLC, and Thermo Tech LLC participated at “FHC China-2012" 16th International exhibition of Food, Drink, Hospitality, Food service, Bakery & Retail Industry between 14-16th of November, 2012 in Shanghai, China. Setting up a dedicated pavilions Product tasting Inviting buyers and partners to their stand(http://www.mongolchamber.mn/en/index.php/news/214-2012-12-10-162142)

The Growing Role of Digital (Social Media, Mobile)

http://www.meinekleinefarm.org

Warning!Digital is

often overrated

Latvian Online Food Products Promotion

http://www.foodlatvia.com

Virtual Market Places?

A real virtual market place powered by Alibaba – selling even US pork

Serbia’s Farmia, a virtual livestock trading platform

Martin LabbéSenior Officer, TISI Strengthening International Trade Centrelabbe@intracen.org