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Outline of Presentation - The Cluster Concept - Adopted Village Concept

Outline of Presentation - The Cluster Concept - Adopted Village Concept - Application of the Triple Helix Concept in the Adopted Village Project - Model of Adopted Village Concept – The- Ubaha – Oriented Agricultural Community Project - Conclusion - Annex

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Outline of Presentation - The Cluster Concept - Adopted Village Concept

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  1. Outline of Presentation - The Cluster Concept - Adopted Village Concept - Application of the Triple Helix Concept in the Adopted Village Project - Model of Adopted Village Concept – The- Ubaha – Oriented Agricultural Community Project - Conclusion - Annex Roles of Stakeholders in an Adopted Village Project

  2. Objectives of Presentation To explain the Adopted Village Concept as a typical model of the Nigerian experience in the appllication of the Triple Helix Concept of Cluster approach to the stimulation of rural SME industrialisation

  3. INTRODUCTION - Cluster Concept – not new - Effective application in real situation presents challenges - Competitiveness is key in making clusters efficient - Competitiveness is sustained by technology and innovation

  4. Cluster Competitiveness – how do you achieve it ? - Increase interactions in the Triple Helix in the economy generally - Enhance support systems - build technological and human capacities - increased communication (via knowledge flows and technology information); - co-operation and linkages (both within and across enterprises in the clusters – fostering endogenous knowledge flow or feedback as well as inputs from external sources – exogenous knowledge flow); - improved management skills and organized social structures

  5. How do you achieve it? Contd. For Nigeria : i. Should consider peculiar socio-economic environment ii. key factors to address: - poor infrastructure e.g. electricity, roads, water, etc, very low capital as well as poor access to credit facilities, - dominance of informal business enterprises

  6. How do you achieve it? Contd. - low level of education - traditional technologies, - poor linkage with knowledge centers for research and development input. - Inadequate market information - Predominance of real sector activities in the rural areas –agriculture and mineral

  7. Adopted Village Concept(ADC) - Strategy to Address Peculiar Competiveness Challenges in Nigeria - Targeted at rural settings in Nigeria – to stimulate rural based industrialisation - Applies the Triple Helix Concept

  8. Pillars of AVC Project - Promoted by the Raw Materials Research and Development Council (Federal Ministry of Science and Technology) - National Root Crops Research Institute (Federal Ministry of Agriculture) at Ubahu-Oriendu community, Nigeria.

  9. AVC Model - Ubahu-Oriendu Community(UOC), Abia State, Nigeria - a typical Nigerian rural community (village) - in Umuahia North Local Government Area Abia state, Nigeria. - UOC is endowed with agricultural resources - 70% rural population engaged in farming for livelihood.

  10. AVC Model – UOC Background Contd. - the mode of farming - peasantry, subsistent and characterized by drudgery - use of traditional farming techniques. - Consist of small holder farmers with an average holding of less than 2 hectare farmland per farmer. - major crop grown in the community is cassava - Used as food and cash crop

  11. How Did UOC Start ? - Initiated by the traditional ruler of the community - established a cassava processing factory (De-Philajomes Cassava Processing Factory) in the community. - Collects raw tubers (roots) from local farmers - feed stock for processing

  12. How Did UOC Start ? Contd. Farmers : Partly manual production - For gari production for the market, the farmers are expected to produce partly processed tubers to the factory. - peeling and grating the roots into mash, - dewatering - fermentation for 2 days - transport to factory Factory – 2nd Level Processing • frying (toasting) into gari – using mechanized equipment

  13. Benefit from Knowledge Centre - Location - UOC is about 10km from the National Root Crops Research Institute (NRCRI) Umudike - NRCRI national research mandate on cassava and other root crops.

  14. NRCRI Input into UOC - Enhance improved production of the cassava roots, - NRCRI introduced technologies for growing improved high yielding varieties of cassava to the community. - NRCRI uses the village community as “a show-room” for practical application of their research findings. - Through this approach planting materials of improved varieties of cassava produced by NRCRI were supplied to the farmers in the village for planting. - Increase production to an estimated 30% per annum.

  15. Linkages with SMEs - several milling machines and hydraulic press equipment exist in the community. - Proceeds from demonstration farms are milled and supplied to the factory - Individual entrepreneurs are mainly involved in contract grating, dewatering and fermentation of the cassava mash for the farmers. - The agglomeration of these micro business entities stimulated the introduction of clustering concept to the community.

  16. Objectives of UOC - Encouraging large scale adoption of improved technologies. - Promoting value addition - Economically empowering the resource poor farmers. - Creating job opportunities for youths. - Enhancing and ensuring food security

  17. UOC – an example of Clusters in Traditional African Setting Background: - Non enterprise business attitude of the farmers - Non adaptation of improved process technologies to produce a variety of value added products - Poor infrastructure especially road network, electricity, water etc - Poor market information service - Non availability of business development services - Non availability or difficulty in accessing credit facilities - Poor linkage to the National System of Innovation (NSI)

  18. Transformation of UOC into an Innovative Cluster Expected features : - Participatory technology generation and dissemination; - Empowerment of the communities through initial provision of some facilities; - Capacity building of the communities through training. - Empowerment of farmers to identify their problems and search for solutions; - Facilitation of communal activities through the process of cooperative society - Grass-root extension in the communities to be carried out by the NRCRI and other cognate research institutes to be promoted and coordinated by RMRDC.

  19. Transformation of UOC Contd. - Institutional linkages in the NSI and partnership also to be coordinated by RMRDC; - Operation of a resource and skill acquisition centre; - Promotion of the farmer-to- farmer information exchange; - Participatory monitoring and evaluation(M&E) - Promotion of value addition to cassava in the community; - Improved rural infrastructure;

  20. Transformation of UOC Contd. - Cost-sharing among the farmers, processors and intervention by relevant development agencies; - Keeping up-to-date records of all activities by the local entrepreneurs - Linking the village to markets/end-users for purchase of products from the community - Macro-economic impact.

  21. Infrastructure and Activities

  22. Products

  23. Some Added Value in UOC - Animal feed production – using cassava grits - Piggery – using the cassava grits - Piggery has attracted the assistance of the Niger Delta Development Commission (NDDC) and the Bank of Agriculture (BOA). Potential Funding - The West African Agricultural Productivity Programme (WAAPP) - The Agricultural Transformation Agenda (ATA) of the Nigeria Federal Government

  24. INTERVENTION BY GOVERNMENT - RMRDC

  25. Interventions Contd.

  26. Conclusion Adopted Village Concept will : - strengthen rural industrialization - improve quality of outputs - Enhance market access - Attract basic infrastructure to enhance socio-economic transformation of the rural community - Create jobs and improve standard of living

  27. Annexes ROLES OF STAKEHOLDERS The Federal Government - Provision of policies to facilitate and drive cluster development e.g. issues related to multiple taxation, tarrifs, export promotion and other incentives. - Setting achievable standards for products and cluster practice through enabling laws and legislations. - Promotion of cluster policies through encouraging various government agencies to play specific roles in cluster development e.g. RMRDC, NBTI, SMEDAN, Development Banks, NRCRI and other research and tertiary institutions etc. - Infrastructure provision

  28. The state government - Ensure access to land - Provision of all season motorable rural roads, electricity, water (bore holes) and other infrastructure - Provision of soft loans and credit guarantee. - Assist with business development services - Reduce double taxation

  29. Local government - Provision ofadequate security to the cluster - Develop market infrastructure - Assist in the provision of access roads and other rural infrastructure - Assist in reducing double taxation

  30. Rural Farmers and Processors - Ensure adequate production of raw cassava and sustaining its processing. - Ensure confidence in the leadership of the cluster initiative - Sustain the cooperative society and its structure - Maintain close cooperation, collaboration, trust and sharing among each other - Ensure honesty in the use of funds and commitment\faithfulness to credit conditionalities - Ensure maintenance of approved standards for various products produced as well as good packaging of the products.

  31. RMRDC - Assist in upgrading the processing factory - Assist in cluster monitoring and evaluation - Assist in providing product market and process technology information - Assist in capacity building for cluster operators on new processing technologies - Help in developing the AROC, ASOC, and the resource center in the cluster - Promote innovation within the cluster - Any other area of assistance within its mandate that could promote the competitiveness of the cluster

  32. NRCRI – Knowledge Centre in the Proximity of UOC - Maintain its Adopted village process in the community and assist in any other way it considers appropriate within its mandate. MOUA is also to be involved in the same way as NRCRI especially in the transfer of relevant R&D findings to the cluster and upgrading innovative findings within the cluster Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) • Assist in Business Development Services to the operators and any other way it considers appropriate • Assist in sourcing of funds from the donor agencies

  33. NIGERIAN AGRICULTURAL CREDIT AND RURAL DEVELOPMENT BANK (NACRDB)\ THE MICRO FINANCE BANKS. - Provide credit facilities to the cluster operators under favorable conditions - Assist in market sourcing for products to enhance the sale of products.

  34. THANK YOU RMRDC - ADDING VALUE TO NIGERIAN RAW MATERIALS RESOURCES WINNER OF 2009 NATIONAL PRODUCTIVITY MERIT AWRD (May 2009) Website: www.rmrdc.gov.ng

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