Food Parks Initiative - FARA Africa

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					Food Parks Initiative

        FAO/AGS Presentation on the basic concepts in ‘Food
        Parks Initiative’ for discussion, Strategy with Rome-
        Based Food Agencies Organisation”
    The Food Parks concept
   Concentrated agro-industrial estate or zone/cluster, mainly
    focused on value addition/agro-processing services of food

   Support agri-business development (in food commodities)
    especially small and medium enterprises (similar to industrial

   Based on the concept of Private-Public Partnerships:
       Shared investments,
       Shared common services/facilities efficient provision of services
       Creation of economies of scale in service provision
       Improved access to technical support and information and management
       Access to infrastructure
       Improved agri-business linkages between & within value-chains
    Components of the food park hub

   Agro-processing/value addition
    units or centre

   Agri-business service centre –
    e.g. consortiums of trainers,
    technical experts such as
    engineers, designers, auditors,
    accountants, legal advisers,
    food technologists, information

   Agri-input suppliers e.g.
    packaging materials, waste
    disposal services
     Components of the food park
   Common services; –         Mallapuram Food Park:
    warehouses, cold stores,     Common Facility
    quality control labs,
    transport services
   Retailer linkages hub
    (marketing linkages)
   Technology incubation/
    demonstration centre
   Coordination Hub:
    effective communication
    and information flow
    ‘one stop shop’
Mallapuram Food Park, India
Features of the food park
   Provide opportunity for diagonal linkages. i.e. there may be
    opportunities for recycling wastes and/or using rejected products
    from one processing stream as raw material for the next. E.g. using
    byproducts or rejects from a vegetable packing unit for animal feed
   Provide strong incentives for agricultural commercialization through
    market oriented production for small and medium scale primary
    production – e.g. support systems such as contract farming,
    warehouse receipts, etc
   Support agro-industrial development by enhancing access to raw
    materials and marketing facilities and other support services
   Support enhanced competitiveness for the chain actors through
    improved efficiency and reduced operational costs
Features of the food park
   Provide effective network between
    primary producers, markets/
    traders/retailers, agro-processing
    – strengthen agribusiness
    linkages between the chain actors

   Support synergy for agro-
    processing units to work together.
    I.e. it is easy to organize common
    services such as warehouse, cold
    storage facilities, transport, quality
    control services, waste
    management, etc, as a pool
    (horizontal linkages  economies
    of scale
Requisites for an effective food park
   Access to support
    services such as
    technical information,
    laboratories, packaging
    material, legal services,

   Incentives to investments

   Access to financial
    Requisites for an effective food park
   Access to production
    catchment area to supply raw
    material need for consistent
    qualities and quality
    organised production

   Established market demand;

   Access to physical
    infrastructure; roads/rail,
    electricity, water, etc
Role of public sector
   Facilitate public-private partnerships
   Support policy strategies/incentives to encourage private
    investments, e.g. tax exemptions, custom/duties procedures and
   Support capacity building in agribusiness linkages and
   Facilitate the coordination hub i.e. between chain actors and service
    providers, investors, etc
   Support SME institutional strengthening (primary producers
    coops/commodity groups, traders associations, agro-processor, etc)
   Subsidisation(?)
   Infant sector protection(?)
The KENYAN Park concept
   Food Park co-operative model –
   Support to food processing co-operatives – i.e. registered
    with approved business plans with set targets and having
    governance structure including a board and management
    in place.
   Italian-Kenyan partnership including entrepreneurship
   Re-structuring of support services in food processing co-
   Technology incubation/demonstration facility/centre
   Mentoring by the more established agri-business firms
   Facilitative roles from the Departments of Agriculture; and
    Trade and Industry
 Opportunity for an effective integration of
  small scale producers, traders and
  processors into the formal markets
 Compliments other government initiatives
  such as land reform, BEE
 Could provide a useful model to the sub-
   High requirements for financial resources
    and incentives to investors
 Food  Park co-operative model needs
  further conceptualization
 Coordination
        Areas of possible technical support from
   Technical support to conduct a feasibility study to
    establish the potential/profiles of the Food Park and the
    constituting agribusiness units (agro-processing/ value-
    addition )
   Technical support in the design of a food park
   Policy and institutional strengthening to support food
    park concept
   Support to development of strategies for agricultural
    commercialisation / agro-industrial development
   Capacity building and integration of value chain
    development strategies
   Capacity building in quality/hygiene control  Good
    Agricultural Practices (GAP) & Good Manufacturing
    Practices (GMP)

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