Approach and Experiences

Transcription

1 Development of coordinated supply chains in Bosnia-Herzegovina & Georgia Approach and Experiences 15 December 2005 Sabine Willems

2 Project Area Herzegovina: Federation and the Republic of Sprska Two Project Units Start of project: December 2004 Georgia: Country-wide One Project Unit Start of project: July 2005

3 Project Objectives Detailed planning of and support to the development of profitable and feasible coordinated agricultural supply chains in Herzegovina and Georgia. Development of a strategy to support small-scale producers to participate in these supply chains.

4 Project Focus Type of supply chains: National supply chains (supermarket, wholesale, etc.) Regional supply chains (surrounding countries) International supply chains (West Europe and Russia) Selective products Selective companies and producers groups

5 Approach Phase 1 Phase 2 2 months 4 months Identification of potential sectors and participants Formulation of a detailed Action Plan Phase 3 ±2 years Execution of the Action Plan Phase 4 2 months Monitoring and Evaluation

6 Phase 1: Identification of coordinated supply chains Selection of promising private businesses Selection of promising producer groups Involvement of small-scale producers First design of the supply chains Identification of possible market partners (national, international) Identification of and linking to activities of international organizations and local NGOs Period: 2 months

7 Phase 1: Selected products Herzegovina: Honey Vegetables Wine Georgia: Hazelnut Citrus Vegetables Hand-processed tea

8 Products and Entrepreneurs

9 Phase 2: Detailed Action Plan Workshop with potential producers, processors and traders Where will the sector be within three years! Which actions need to be achieved Which forms of collaboration are necessary Design of supply chain Which inputs from the sector and which from the project Period: 4 months

10 Supply chain organization

11 Honey supply chain in RS Projected Honey Supply Chain in RS Beekeeper A Other Beekeepers Honey 1 Beekeeper B Herzeg Med Beekeepers A + B + D + Others Beekeeper C Beekeeper Co-operative Final Customers Beekeeper D Beekeeper Honey 2 n Wax Production Line Other Customers Beekeepers C + n + Others PRIMARY PRODUCTION PACKING AND MARKETING

12 Citrus supply chain in Georgia Projected Adjara Mandarin Export Supply Chain Grower A Exporter 1 Nursery Garden, Seedling Sector Grower B Grower C Grower n Two Packing Houses Exporter 2 Exporter 3 Exporter 4 Logistics Platforms for Export Customers Abroad PRIMARY PRODUCTION PACKING AND MARKETING

13 F&V supply chain in Georgia Projected GE Fruit and Vegetable Export Supply Chains Nursery Garden, Seed and Seedling Sector Demonstration Plots Primary Producers MIS Gori Fruit Grower Association, Gori Fruit Export, Georgian Fruit, JSC Laboratories Logistics Providers Customers Abroad

14 Actions

15 Actions for the Honey sector in RS Control of bee diseases Development of production guidelines (GAP) Technical Assistance to RS Honey Sector EU Quality Regulations Labelling - EU 2001/110 Management of distintictive quality elements of honey Sensory tests Beekeepers Herzeg Med HACCP Procedures Honey Expert Laboratory Setting up of a cooperative of beekeepers Wax Production line Survey on existing laboratories

16 Actions for the Citrus sector in Georgia Nursery Garden, Seedling Sector Improvement Understanding and use of Quality Standards Grower A Contract Farming, Vertical Integration TA Exporter 1 Projected TA to GE Mandarin Supply Chain Garden Renovation, Production Innovation Grower B Grower C Two Packing Houses Logistics Platforms for Export Customers Abroad Grower n Organisation of Producer Group Clusters Modern Sorting Grading Packing Lines Exporter 2 Exporter 3 Exporter 4 PRIMARY PRODUCTION PACKING AND MARKETING

17 Actions for the F&V sector in Georgia Technical and Financial Assistance to GE Horticultural Sector Nursery Garden, Seed and Seedling Sector Demonstration Plots Appropriate use of inputs, accurate cost calculation Primary Producers Production Input Supply, Contract Farming, Supply Planning Quality Regulations (EU, GOST, etc.) Organisation of Producer Groups Gori Fruit Grower Association, Gori Fruit, Georgian Fruit Co, JSC Agricultural Practice Record Keeping Packing Materials - Labelling Basic HACCP Procedures, Selfinspections, Selection of Suppliers Laboratories MIS New Markets Seeking Logistics Providers Accreditation of existing laboratories

18 Experiences - local project team Willing but insufficient knowledge of supply chain development No business orientation Lack of marketing experience Time consuming procedures (private sector is loosing interest) Hesitation to allocate budget to activities Lack of capacity Limited communication with the sector Limited collaboration with other donor organizations and local NGOs (competition between donors)

19 Our action Recruitment of a business oriented project supply chain coordinator Study tour to Italy Organizing a supply chain course in February 2006 (joint event of the two countries) Short-term action plan for the next 6 months Implementation of practical actions to involve the private sector Linking and collaborating with other donor organizations and local NGOs Easing of (some) procedures PR activities (brochure, etc.), explaining procedures and services

20 Experiences - private sector Large number of small-scale producers Little collaboration within the sectors, between entrepreneurs Little awareness about increasing quality and safety demands Lack of working capital Transportation problems (borders, costs, losses, etc.) Focus on traditional markets (Balkan and Russia) Lack of accredited laboratories Unfavorable credit conditions Disappointed in the donor community

21 Our action Focus on a number of enthusiastic and promising companies, producers and producer groups (pilot group) Implementation of initial practical activities to show quick results and create commitment Selection of a supply chain coordinator within the sector (trusted and accepted by the sector) Organization of a supply chain course for lead companies and producers in February 2006 (joint event of the two countries) Set up of an organizational structure for the project period

22 Conclusions Key elements for supply chain projects Business and market orientation Focus on promising companies and producers Link small-scale producers to these promising companies and producers Quick action and reaction to create trust, commitment and ownership Flexibility in budget allocation and procedures Engagement of a dedicated supply chain coordinator Create win-win situation for all

23 Thank you for your attention

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25 Georgia