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The Use of Technology to Improve Competitiveness of SMEs in the Agribusiness Sector Dr. André Gordon Strengthening the Caribbean Agri-food Private Sector: Competing in a globalized world to foster rural development 18-19 October 2010 Grenada, W.I. Introduction.
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The Use of Technology to Improve Competitiveness of SMEs in the Agribusiness Sector Dr. André GordonStrengthening the Caribbean Agri-food Private Sector:Competing in a globalized world to foster rural development18-19 October 2010Grenada, W.I.
Introduction • In challenging times many businesses focus on what they need to do to survive. • However, survival is not good enough. Caribbean firms must find ways to make themselves sustainably competitive • Application of carefully selected, appropriate technology to make changes in the way firms operate can result in sustainable, improved global competitiveness
Introduction • Background anchored in work with companies and organizations throughout the Caribbean • For Technological Solutions Limited (TSL) • At and for the Jamaica Exporters Association • With and for the Competitiveness Company
Introduction • Will move from the use of highly capital-intensive, technologies to less capital-intensive, more people-centred “soft” technology • Will cover a range of agri-business products
Global Competitiveness • Developing the capacity and systems to deliver goods and services as, when and where needed in the desired quantity and at the expected level of quality to discerning consumers willing to pay a price for them that is profitable for the business (premium price, preferably).
How? • Developing and applying world-class technology in a practical, hands-on manner that is respectful of the culture of the people, organizations and countries involved
Six Components of Successful Export Activity • Market Expansion and Diversification • Production & Technology • Product Innovation • Supply of Inputs (Supply Chain Mgmt) • Financing • Information Generation, access and use
Development & Applicationof Technologyfor Global Competitiveness
Technologies Applied or Developed • Electron Microscopy (EM) • Ingredient Technology (IT) • Sensory Measurement Technology (SMT) • Texture Profile Analysis (TPA) • Rheology • Predictive Modeling Technology (PMT) • Shelf Life Measurement & Prediction (SLMP) • Thermal Process Development (TPD) • Process Optimization (including PMT)
Technologies Applied or Developed • This work improved the quality, manufacturing and shelf life of a range of products to globally competitive levels • Facilitated new or continued market access into key metropolitan markets • Grace Kennedy, the many small manufacturers that supplied them and Jamaica benefited • All of this applied technology work was published in refereed, international journals or fora, where possible
Examples of Application and Outcomes • EM, IT and SMT were used to: • Allowed the continued operation of a meat processing plant in the face of tremendous competitive pressures caused by devaluation and continuously escalating input prices • Viennas and frankfurter, supporting the local pork industry • IT, SMT, TPA and Rheology. • Address product quality and performance challenges, mitigate the effects of declining competitiveness and the develop of new products • Developed a range of new products for the local and global markets using these technologies and approaches
Examples of Application and Outcomes • Created meat products, drink mixes, drinks, juices, sauces and soups, among others • Through product matching created Fresh Start® which remains a flagship product and brand, and Grace Fish Tea® and other soups
Examples of Application and Outcomes • Created the first formula safe, uncooked commercial jerk seasoning • During this period, our work added approx US$20Min sales and US$4M in profit by end of the 4th year
Examples of Application and Outcomes • PMT, SLM, Rheology and IT were used to: • Develop a range of combined approaches and technologies that continue to be used routinely by Caribbean manufacturers and exporters today • Solve problems with a range of products made regionally by small producers from local ingredients (inc. Browning and Juices)
Application of Technology for Competitiveness in Caribbean Firms • In 1996, with the formation of TSL, our focus shifted to SME’s more directly and the Caribbean, in general • Required the incorporating all lessons of the past into the use of “softer”, more people oriented, less capital-intensive approach
Application of Technology for Competitiveness in Caribbean Firms • Focus on systems technology, catalyzing our initial work with value chains and clusters • Focus: problem solving, developing and strengthening value chains, gaining or maintaining market access and systems implementation
Application of Combination and Systems Technology • Key successes in using the approach developed to the application of technology included: • Regaining EU market access for Strombus giga (Queen Conch) • Regaining US market access for Blighia sapida (Ackees) after a 27 year ban • Regaining US market access for Canned Process Cheese (Tastee)
Application of Combination and Systems Technology • Key successes (cont’d): • Improving the quality, upgrading, and gaining market access for Benjo Seamoss • The transformation of Ackee and Conch manufacturing and export in Jamaica • Upgrading, improved competitiveness and commencement of sustainable exports of Barbadian SME manufacturers • The transformation of many SME production and export operations in the agribusiness sector across the Caribbean
Application of Technology for Competitiveness in Caribbean Firms • Key successes (cont’d): • The application of technological know how to the layout and design and/or redesign of pack houses, food processing plants and technical centres across the Caribbean • Plants and Pack houses - Haiti, St. Lucia, Grenada, T&T, SVG, Dominica, Jamaica (Walkerswood, Hounslow Pack house) • Technical Centres – SKNBS/MPL complex (St. Kitts); NCTE (Dominica), GTC (Jamaica)
Application of Technology for Competitiveness in Caribbean Firms • Key successes (cont’d): • Gaining new markets in the Caribbean and contract packing for MTS’ product • Application of Systems Technology to Coconut Water production • Certification of Caribbean firms to access the US and EU markets
Application of Technology for Competitiveness in Caribbean Firms • Key successes (cont’d): • Use in structuring approach to market access/trade agreements • The application of the approach to building productive collaboration and value chains – Jamaica Business Recovery Programme (JBRP), JEA and CC Clusters
Building Global Competitivenessin Caribbean Firmsthrough Applied Technology Case Studies
Temperatures and Lethality During Tastee Process Cheese Manufacture 20 PU – regarded as sufficient for adequate pasteurization for AFs (NFPA)
THE PROCESS • NOT a Flash Pasteurization Process • HOT FILL AND HOLD
THE PROCESS • Traditional Processes 85°C / 10-15 min • Give Pasteurization Cookof 340 PU/min (3,400 PU - 5,100 PU) • Dairy’s Hot Fill and Hold Process gives a Pasteurizing Cook of > 9,000 PU in total
Model for “Formula-Safe” Concept • Moisture • pH • Total salts • NaCl • Phosphate-based emulsifier • Water activity not good predictor of safety • Lactate effect Tanaka et al, 1986
THE TANAKA PRINCIPLES • Ensure safety of Process Cheese based on a combination of factors that must be met • These combined safety “hurdles” allow the safe production of process cheese without “sterilization”
Figure 2 Yeast and Coliform Growth in Bottled Coconut Water during Storage
Table 4 Correlations between the Independent and Dependent Variables of Coconut Water Quality * significant p < 0.05 ** highly significant p < 0.001
Socio-economic Importance • Ackees are largely grown and processed in rural areas where other employment opportunities are limited • it directly impacts 13 communities across the island • approx. 3,000 directly employed • 6,000 indirectly employed
Ripening Stages of Ackee (5 to 10) Stage 5 Stage 6 Stage 7 Stage 8 Stage 9 Stage 10
Ackee Ripening and Hypoglycin A ContentSource:Brown et al., 1991