Ricardo Santa Cruz. Director of RED I+D+I Guatemalan Association of Exporters Central America Summit. Panelist: Session III

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1 2016 Central America Summit Ricardo Santa Cruz Director of RED I+D+I Guatemalan Association of Exporters Panelist: Session III Policy and Partnerships: Creating an Enabling Environment

2 Central America Summit: Forging a Viable Future Borlaug Institute for International Agriculture, Texas A&M University Creating an Enabling Environment Ricardo Santa Cruz Rubí June 2016

3 Established in 1982 VISION Making Guatemala an exporting country

4 What does AGEXPORT do? Provides support services for clusters

5 Guatemala Exports Structure ProductosNo tradicionales 25% 1986 Otras manufacturas Petróleo Café Banano Azúcar Cardamomo Carne Algodón Productos Tradicionales 75% Farmacéuticos 2% Madera y Manuf. 1% Alimentos 10% Plásticos 3% Pesca 2% Químicos 1% 16% Productos No Productos Tradicionales Tradicionales 27% 73% Ajonjolí 0% Vegetales Flores 1% Frutas 0% Tabaco rama 3% Piedras Caucho preciosas 1% 2% 4% 3% Banano 6% Productos agrícolas Manufacturas Muebles, Artesanías Vestuario y textiles Acuicultura, Servicios Otros Productos 13% Cardamomo 2% Café 7% 0% 2015 Azúcar 9% Vestuario y Tex. 14% US$ 1,061 Millones US$ 10,562.2 Millones Source: Bank of Guatemala BANGUAT-

6 STRATEGIC MILESTONES EXPORT DEVELOPMENT R&D+I MICRO BUSINESS DEVELOPMENT / CORPORATE SOCIAL RESPONSABILITY EXPORT PROMOTION PPP TO ENABLING BUSSINES ENVIRONMENT, COMPETITIVENESS AND TRADE FACILITATION TRAINING & T.A. BUSINESS DEVELOPMENT

7 SECTORS

8 Around. 1,000 Members -85% SMEs- Agricultural and Aquaculture Fruits Vegetables Ornamental Plants Specialty Products Fishery and Aquaculture Manufacturing Plastic Food and Beverage Manufacture Products Clothing and Textiles Furniture Handicrafts Cosmetics Software Services Laboratories Contact Centers Health and Wellness Tourism Sustainable Tourism Digital contents and Development Services to exporters

9 Activities Strategic Plans for each sector/commissions Trade Promotion Platforms Training Programs for SME R&D+i to diversify, add value and fulfil int l standards and get certifications Productivity & Competitiveness

10 International Trade Missions

11 International Trade Fairs in Guatemala

12 Policy Proposals

13 Programs supported by int l agencies More than 20 Cooperating effectively sponsored programs for the development of SME exporters MULTI-SECTORIAL Examples: EUROPEAN UNION/ AL INVEST, USAID, DANIDA, BID, JICA, CONCYT, HIVOS, FIDA OMC, MINECO, INVEST IN GUATEMALA, CBI, GIZ/DESCA, CATO, FIF FOMIN, MAGA/DACREDITO, FONAGRO, GUATEMALAN MUNICIPALITY, PTB GERMANY, SES GERMANY, FAO, INGUAT, DUTCH EMBASSY, INTECAP AND OTHERS

14 Environmental Management Platforms

15 AGEXPORT has been recognized as the first NEUTRAL CARBON entity in Guatemala

16 6 Events Responsible Carbon 3 Events Carbon Neutral

17 Regional Alliances Central American and Dominican Republic Federation of Chambers and Exporters Assn. Encourage the strengthening and development of member institutions within a free enterprise scheme. Foster regional union and integration Regional Commercial promotion, specially of non traditional products Create cooperation programs for the exchange of best practices and experiences Facilitate support services to SME s

18 Bussiness Chain Alliances Program

19 INTEGRAL RURAL DEVELOPMENT MSME Basic services & infrastructure Public Sector Market Companies (buyer) with Corporate Social Responsability Producers MSME/ ORGANIZATION WITH ENTREPRENEURIAL & ASSOCIATIVITY SPIRIT Irrigation systems Rural roads Post-harvest facilities Rural financial services Local authorities support Education & training Public health services Eco-Business Chains Private Sector Market opportunities Effects Employment Income Economic recovery Nutrition Food safety Equity Poverty reduction Competitiveness Environmental sustainability Technical assistance Technology & Innovation Sustainability Market intelligence Certifications AGRICULTURAL CHAIN MODEL FAMILIAR AGRICULTURE FOR EXPORT

20 IDENTIFICATION OF ECO-BUSINESS CHAINS Market BUYER Competitiveness US$ TECHNICAL ASSISTANCE PLAN Production BUSINESS PLAN Potential BASELINE DIAGNOSIS PRODUCERS

21 BUSINESS MANAGEMENT MSME PRODUCTION MARKETING LEADERSHIP Business administration and management of accounting, costs and legal issues. Compliance with tax obligations. Financing management, access to formal credit, investment studies to apply for bank loans. Business leadership. Technical assistance in production processes and quality, BPA, BPM Diagnosis, implementation and quality certificatio n. Training in logistics, processing quality and volume. Technology transfer, field tours, exchange trips. Production processes, traceability, food safety. Prototype development, product diversification. Brand development, logos, packaging design, product information materials, web pages, catalogs, Access to comercial information technologies, international visits (trade promotion). Business leadership. Associativity. Rol of Boards. Types of leadership. Rural entrepreneurship. Roles in the company. Commercial risks. Power management. Associative corporate governance. Certifications.

22 FOOD SECURITY ECONOMIC EMPOWERMENT OF RURAL WOMEN ECO- ENTERPRISES R&D+i Basics of food safety. Importance of nutrition in human development. Food safety and productivity. Safety and food hygiene. Alternatives to improve access to food. Alternatives to combat malnutrition. Awareness and training coordinators and technicians. Diagnostics for woman inclusion. Identifying leaders and needs. Provide tools for technical and personal strengthening. Network and best practices. Associative Business Leadership. Environmental management focused on micro watershed. Good Agricultural practices BPA. Good manufacturing practices BPM. Certifications. Clean production. Environmental studies. Local environmental management. New & alternative technologies knowledge Innovation Human developm. Adaptation and mitigation of climate change. REDD Initiatives. Networks. Risks prevention

23 KPI MEDICIÓN DE RESULTADOS: MEASURING INDICADORES IMPACTS RESULTS Invoiced sales Created jobs INTEGRATED RURAL DEVELOPMENT: Nutrition, Food safety, Equity, Environment, CC, etc. PERIOD # Value chains 293 Created jobs 35,092 Sales in US$ 61 millones ECONOMIC / SOCIAL / ENVIRONMENTAL DEVELOPMENT SMALL CONTRIBUTION POVERTY REDUCTION

24 GRACIAS!! A contribution to sustainable development of GUATEMALA