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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

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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

3

www.tisibenchmarking.org

Agro-Business Trade Promotion:

Global Perspective

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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

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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 AvocadosMexico31%

Dom.Republic8%

Colombia6%

Peru6%

Indonesia6%

Kenya4%

USA4%

Chile4%

Brazil3%

Rwanda3%

Other25%

2013

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

Source: FAO Stats

Beyond Market Statistics: Understanding

Granular Market Requirements

Pre-cooling Retail C

Packhouse Supermarket O

Grower Washing Importer Break bulk C-stores N

Producer Grading Wholesaler Ripener Independents S

Packing Retailer Re-packer Garage forecourts U

Cold Store MTraditional

wholesaler E

Food Service R

Processor

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The Growing

Role of

certifications

and

voluntary

standards &

how to

handle them

http://www.standardsmap.org

Road to Market for Rwandan Coffee –

Production Options

Unbranded

Domestic

Production

Unbranded

Export

Production

Co-Branded

Export

Production

Partnership with Coffee market leader

Branded

Export

Production

Launch own-brand « Thousand Hills »

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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

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Agro-Technology in Israel

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.

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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

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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)

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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

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Virtual Market Places?

A real virtual market place powered

by Alibaba – selling even US pork

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Serbia’s Farmia, a virtual livestock

trading platform

Martin Labbé

Senior Officer, TISI

Strengthening

International Trade Centre

labbe@intracen.org