AGRO-PROCESSING VALUE CHAIN DEVELOPMENT A POTENTIAL MODEL FOR CARICOM Presented by Vassel E. Stewart At the COMMONW

1. AGRO-PROCESSING �VALUE CHAIN DEVELOPMENT A POTENTIAL MODEL FOR CARICOM Presented by Vassel E. Stewart At the COMMONWEALTH BUSINESS FORUM NOVEMBER 25TH 2009

2. Fundamentals of the value-chain Model At the MACRO level -Government must get the policies right. At the MESO level�Support Institutions must have requisite resources and capabilities to implement policies. 3. AT THE MICRO LEVEL� Private sector must get the strategies and tactics right in order to exploit opportunities created by the policies and markets.

3. THE MACRO LEVEL�POLICIES Clear role for the sector � Food security, economic diversification and growth, rural development, good health strategy, tourism differentiation, social development strategy. Balanced trade policy �Food security vs export competitiveness �create domestic market space consistent with WTO-Special products agreement and open export markets through trade agreements.?? Investment policy � Provide stable fiscal incentives, infra-structure, legal and regulatory measures.- To attract private sector investment. Sustainability Policy �Ensure Protection of the environment & that investments have clear economic (financial and social) benefits. 5. Good governance policy �Transparency and equity.-Ensure that their delivery of products and services are transparent and done fairly, especially as it relates to the most vulnerable.

4. MESO LEVEL POLICY IMPLEMENTATION Reform and restructure public sector institutions and provide appropriate incentives to ensure commitment to excellent service delivery. Provide funding and technical support to create strong, flexible and sustainable private sector institutions. Provide mechanisms or institutions to facilitate public/private sector dialogue and partnership.

5. AT THE MICRO LEVEL�TO EXPLOIT POLICY AND MARKET OPPORTUNITIES - FIRMS MUST Understand and know the market to determine realistic opportunities. Select the right products and services. Target the right market segments. Get the right people and provide right incentives Get and use the best technology Build the relationships Provide good governance

6. IMPLEMENTATION OF THE MODEL IN TRINIDAD AND TOBAGO

7. TRINIDAD & TOBAGO - MACRO POLICIES The government through the Ministry of Agriculture has prepared a sector transformation plan entitled �From Agriculture to Agribusiness� which outlines; A Motivating vision (by the year 2020 must be competitive and possess the capacity to sustain competitiveness by becoming resilient, adaptive, technology focus and market driven) A defined role for the sector (Food security, economic diversification and growth, rural development, good health strategy, tourism differentiation, Social Development Strategy) Specific policy objectives (Transform, re-structure, expand) Specific policy measures (Financing, infra-structure, incentives, trade policy, implementation mechanisms) Specific output targets in terms of food security and exports ( at least 25% of 6 food group obtained from local and regional supplies and 10 new export competitive products.) Specific strategies to support achievement of the targets (12 specific strategies)

8. Meso �Institutional strategies 1. Co-ordination of policy objectives & institutional support for the creation of the enabling conditions for the sector. Cabinet Sub-committee Food & Nutrition Policies (currently called Prices and Inflation Committee). A co-coordinated mechanism for the public sector- agencies responsible for implementing the non-commercial component of the plan ( EMBDC, NAMDECO, ADB, CDA). 3. A co-ordinate mechanism through (TTABA) which has a Board comprising all the major private associations responsible for implementing the commercial component NADP. (farmers, agro-processors, supermarkets, hotels and restaurants, food exporters, input suppliers, consumers).

9. MICRO-The value-added Strategy�The national Agri-business Development Programme.  A public/Private sector partnership for; Transforming the sector through; REPOSITIONING---Government policies from agriculture to agri-business ( agriculture, agro-processing, food manufacture food service, agro-entertainment )and from minor to major sector. RESTRUCTURING� Small farmers organized in Community and Industry Associations, establishment of large farms and introduction of Contract Production and Marketing. EXPANDING� Focus on agro-processing, food manufacturing, food services and agro-entertainment

10. COMPONENTS OF THE PROGRAMME Marketing Service Contract Production Service The National Agro-processing Service The Research and Development Service

11. GRAND VALUE-CHAIN STRATEGY

12. PRODUCTS Commodities have been identified for priority development based on food security ( 6 food groups) and export competitiveness. Staples---Cassava, sweet potato Fruits--- paw-paw pommecythere, melons Vegetables-- Spinach, Callaloo, sweet corn Legumes-- Red beans, black eye Oils and fats� coconut, avocado, ackees Food from animal� Rabbits, aqua-culture

13. MARKET SERVICE Domestic Market �Target food manufacturing and institutional markets with semi-processed bulk and institutional packaged products and consumer markets with retail branded products � aim to displace % of imports ( staples and legumes) to increase per capita consumption where desired (e.g fruits and vegetables). EXPORT MARKET 1� High end of the institutional and retail markets with branded institutional and consumer packaged products ( ethnic and specialty markets) EXPORT MARKET 2� Caribbean Cultural Restaurant Franchise- Caribbean cuisine based on used of at least 70% of food grown and or produced in the Caribbean linked to Caribbean music, sports and theatre.

14. PRIMARY PRODUCTION STRATEGY CARONI 2 ACRE PLOTS (7000 Ex sugar cane workers with 2 acre plots --- Propose they establishment 1 or 2 companies and undertake contract production and marketing with TTABA and other buyers. SMALL FARMERS--- Farmers Association organized by TTABA with contract production and marketing arrangements. LARGE FARMS---farms of over 100 acres leased from government who provide infra-structure to the farm gate Individual contracts established with TTABA.

15. AGRO-PROCESSING SERVICE

16. RESEARCH AND DEVELOPMENT SERVICE PRIMARY RESEARCH -aimed at increasing productivity and sustainability; New varieties Clean planting material New production technology New utilization SECONDARY RESEARCH �aimed at new competitive food and non food products. Snacks Beverages Meals Feeds Medicinals Fuel Annual national new food product competition to generate continuous creativity and innovation. Research priorities set by industry associations and carried out by TTABA and various national, regional and international research entities

17. INSTITUTIONAL SUPPORT SERVICES Administrative support to farmers, commodity and other agribusiness organization. Training of farmers, processors and traders Advocacy on trade and other policy and support issues Active facilitation of access to resources- funds and infra-structure.

18. A VIEW OF THE CARICOM FOOD MARKET