edward seidler, senior officer, marketing, agsf cei working group on agriculture, rome, 22 may 2006...
TRANSCRIPT
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Edward Seidler, Senior Officer, Marketing, AGSF
CEI Working Group on Agriculture, Rome, 22 May 2006
FAO’s Activities in Agricultural Marketing, Management and Finance
Central and Eastern Europe
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Key issues for rural areas across CEE
• Lack of economic opportunity, low incomes and high levels of unemployment;
• Limited qualification levels of human capital and poorly developed management and commercial skills;
• Inadequate rural infrastructure;
• Lack of access to suitable rural finance and credit facilities for small to medium-sized enterprises (SMEs);
• Inadequate support for business in the form of information and mutual organization.
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Challenges in Central and Eastern Europe
•Need to overcome difficulties in accessing markets due to lack of information and knowledge of market requirements, small volume and variable produce quality;
•The need to respond to international, national and industry food quality standards, vertical coordination and retail chain concentration by greater integration in the food supply chain;
•The need to become more competitive and efficient suppliers to combat imports and allow exports.
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Trends
• Increasing diversification of farming activities into new products;
• Incomes from farming activities dependent on improving production, management and marketing skills and increasing intensification and scale of production;
• Increasing realisation that small producers benefit by grouping together for production support, input procurement and marketing.
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Farm commercialisation and rural enterprise development
Pillars for FCRED
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Issues and constraints to FCRED
• Lack of strategic planning to address sector modernisation, consolidation and intensification in a sustainable way;
• Lack of market information, market analysis and appraisal, inadequate market research and promotion;
• Low level of credibility in contracts with producers and processors;
• Individuals and organizations have no experience of community activities;
• Need for a legal framework for farmers’ organizations and improved legislation on cooperatives;
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Issues and constraints to FCRED
• Low competency of advisory services for rural business development;
• Limited availability of finance to underpin farm modernization and production intensification;
• Weak infrastructure for marketing and distribution- roads, markets and transport services;
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Farm Business Management
• Stakeholder Workshops:i) Farm Commercialization and Income
Diversification on the Road to EU Accession Participants from Albania, Bulgaria, Croatia, Czech
Republic, Hungary, Romania, Slovakia and Slovenia
Key constraints identified: o lack of working capital and investment funds,o lack of appropriate managerial expertise and know-
how,o unstable market environmento poor and ineffective legislation (competition, contracts,
property rights and poor governance) ando inadequate economic infrastructure (roads, railways
and water supply).
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Farm Business Management
• Trends and Issues in Commercial Farming, Agribusiness and Rural Enterprise Development - Experiences from Selected Central and Eastern European Countries , 2005
participants from Armenia, Hungary, Macedonia, Moldova, Serbia and Montenegro and Ukraine
Discussed: The declining role of Agriculture Restructuring of former state and cooperative
farms EU and CEE experience in vertical integration and
agri-food chain concentration and growing importance of scale economies
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Field Projects
• Bulgaria- TCP Project “Capacity Building for Sustainable Delivery of Agribusiness Advice to Market-oriented Farmers:
• Provided training in: (i) farm business management and marketing (ii) farm management and marketing data
analysis, (iii) agribusiness management, (iv) group presentation and communication skills, (v) farm record keeping
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FAO- CEI/EBRD Project (GCP/RER/014)
• CEI Wholesale Markets Foundation:• Project started in October 2001 to support the
functioning and activities of the CEIWMF• Membership comprises markets in Albania
(2),Croatia (3), Hungary, Romania and Poland;• Meetings have discussed:
Operation of Logistics PlatformsRegulatory Frameworks affecting MarketsDiversification of Market activitiesProduce Quality Enhancement and Export regulationsRole of markets in supporting producer groupsWholesale Market operations under EU Accession
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FAO Projects (Marketing)
Albania: GCP/ALB/005- Agriculture Production Support(Integrated approach to food chain development): Supports development in: milk and dairy, fruits and
vegetables, wine and grape brandy and olive oil sectors:Provided support in:• Agronomy- new varieties, chemicals, protected
cultivation• Input supplies- planting materials, chemicals, farm
equipment• Group formation and development- management, rules,
finances, marketing arrangements• Processing improvement- milk and cheese, olive oil, wine• Business and Marketing plan preparation
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OLIVE AND OIL CHAINOLIVE AND OIL CHAIN
• Most notable achievements include:• Two farmers’ association were formalized with 136 members,
owning 11,800 trees);• Various training and extension provided;• IPM campaign organized/conducted;• Olive pruning and sanitation conducted;• Infrastructure and technological renovation completed;• Improved quality of oil (bottled and labelled
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FAO Projects ( Marketing)
• The Macedonia project GCP/MCD/001 (NOR):• linked farmers with processors and fresh buyers and
provided market and buyer requirements to farmers; • agreed quantities, deliveries; quality standards and
production levels between farmers and buyers;• provided farmers with the latest farming technology
and fertilizers and agro-chemicals on credit and arranged credit repayment through buyers;
• provided training, extension advice, agro chemical advice and pest control advice to farmers;
• advised farmers on EUROPGEP standards and compliance.
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Rural Finance Study
• Undertaken in Romania and Bulgaria on behalf of EBRD:
• rapid appraisal and analysis of the supply of and demand for bank lending to small and medium sized enterprises (SME) in rural areas – for EBRD’s and the EU SME Finance Facility for small and medium-sized enterprises in EU Accession Countries.
• This facility aims at providing, through partner banks and leasing companies, finance to farms and other rural enterprises.
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Thank you for your attention