AgBiz Export Competitiveness Enhancement

1. RCI Agribusiness Workshop November 10, 2009 Skopje AgBiz Export Competitiveness Enhancement

2. 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

3. AgBiz Components

4. Enhancing the Competitiveness of Macedonian Wines

5. Fresh Fruits & Vegetables Competitiveness Enhancement

6. Processed Vegetables Competitiveness Enhancement

7. 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

8. 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

9. 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

10. 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?