LAMP – Linking Agricultural Markets to Producers 1a

Linking Agricultural Markets to Producers LAMP

Goals, Expected Results, Activities

Accomplishments and Lessons LearnedBosnia and Herzegovina

The contents and views expressed in this publication are the sole responsibility of the authors and can in no way be taken to reflect the views of the United States Agency for Development or the United States Government.

Presentation is prepared by ARD Inc., USAID Contractor

January 2008

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Introduction

1996• 60% of livestock was

killed during the war• GDP was only 20% of

pre-war level• Weak culture of

commercial agriculture – BiH was not a prime-agricultural producer in the former Yugoslavia

2003• Estimates indicate that

60% of food consumed is imported

• 50 - 60% of population is dependent on agricultural activities

• 800,000 ‘farms’, average size 3 hectares

Agriculture Background of Bosnia-Herzegovina (BiH)

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Increase the rate of economic growth in the agricultural

sector through expanded, environmentally sustainable

production and sales of value-added agricultural products.

Goals

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1. Facilitate competitive domestic market production

and sales, and foster export potential

2. More jobs for people involved in the agricultural

sector, and

3. Increased incomes for BiH farmers.

Expected Results

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• Market linkages– Network meetings were conducted that brought

together producers and processors to encourage the formation of new contractual relationships.

• Technical Assistance– Technical experts provided on-site assistance to

farmers, cooperatives, associations and processors. • Finance

– Credit Application Assistance– Micro Credit Loans– Small grants

• Policy Reform

Activities

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Sub sectors assisted:

LAMP has focused on selected sub-sectors determined by the project to have a high impact on increased competitiveness:– Fruits and Vegetables (fresh and processed),– Dairy– Medicinal and Aromatic Plants, and Honey– To limited extent, wine and fish.

Activities, continued

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• Assistance provided for adoption of the standards in the F&V sector as a precondition for sales to supermarket chains and EU markets. EurepGap/GlobalGap standards are promoted and already introduced by several clients;

• Increased competitiveness of the dairy sector which improved domestic milk quality products, increased employment as well as revenues and profits for dairy farms and milk processors

Accomplishments

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• Emphasized competitiveness at both the firm and sector level through focusing on the improved productivity, greater sales and higher profitability

• Strengthened associations and cooperative unions’ management and marketing capacities as well as their advocacy skills with the objective of enhancing the policy and regulatory framework

Accomplishments, continued

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• Improvements of the sectors’ competitiveness catalyzed investments, in the dairy sector, in particular, as well as exports in other sectors

• The individual training, programs through associations and cooperatives as well as train-the-trainers’ programs, contributed to increased skill level of the agr workforce

Accomplishments, continued

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• Beginning activities of the project were determined by detailed, location-tailored research, and inventory reports essential for project implementation

• Learn the legal system and its application as soon as possible

• Project’s key to successes is in the transfer of knowledge and know-how’s to local counterparts and local training experts

• A strong focus on leveraging and building the local counterpart capacity for business services; including, strengthening their abilities in lobbying efforts and advocacy

Lessons Learned

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• Establish quantifiable goals and management processes that address expectations and behaviors, and then use them

• Select and define key clients, market integrators; recognize their needs vs. demands (e.g., grant requests, study tours and trade fair visits, and other)

• Emphasizing communication between donors and beneficiaries and the counterparts

Lessons Learned

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• A strong focus on not distorting the market with grants (both smaller and those facilitating access to finance)

• The sustainably of project efforts should be a key criteria from day one!

Lessons Learned