Annual Report 2009 - Asian Productivity Organization

AGRICULTURE SECTOR
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and processed food products in Germany and other
major markets in the EU; identified opportunities for
exports of agricultural and processed food products to
those markets; explored networking with importers;
and attended relevant sessions of the Anuga 2009
Food and Beverage Fair in Cologne. The mission was
attended by 18 participants from nine countries.
Program coverage: Business opportunities in the German
food and beverage market; Trends in production
and trade (import-export) of agrifood products in
Germany and the EU; Relevant rules and regulations
on imports of food products in Germany and the EU;
and Key drivers of the food product market in Germany:
Demographic and income factors and consumer
behavior. Participants visited the wholesale market in
Nuremberg; the organic farming enterprise Biolandhof
Kreppold in Wilpersberg; supermarket chain
Viktualienmarkt in Munich, and the 2009 Anuga Food
and Beverage Fair in Cologne. Participants also held
a meeting with the organizers of the fair led by Mr.
Christian Mieles, Managing Director of the Federal
Food Trade Association.
Planning and Management of Agroprocessing
Enterprises
Agro-based processing enterprises are diverse and
in many countries they add significant value to
agricultural products and create job opportunities.
The planning and management of agroprocessing
enterprises should take into account the interrelationships
of capital and returns on investment, advanced
production technology, and logistics and marketing.
Another new dimension that must be considered is
raw material sourcing to meet standards of quality and
safety. Production processes must also meet social and
environmental impact standards. For sustainable operations,
investors must plan and undertake in-depth
feasibility studies incorporating various dimensions.
The APO organized a training course on Planning and
Management of Agroprocessing Enterprises, 19–24
October, in Lao PDR to equip participants with tools
and techniques for developing business plans for starting
and managing agroprocessing enterprises. Twentythree
participants from 12 countries attended this
training course. Two resource persons were invited to
conduct the course.
Program coverage: Management of agroprocessing
enterprises; Product development process and
marketing of agroprocessing enterprises; Agribusiness
supply chain management; Product quality and safety
management; Finance-based decisionmaking for
agroprocessing enterprises; and Case studies. A field
visit was made to Veunkham Salt Co., a salt producer
operating outside Vientiane.
Successful Cases of Employment Generation in Rural
Areas
Many governments in Asia have been
pursuing employment generation in rural
areas since these areas are economically vulnerable.
In most cases, the main employer in rural
areas is agriculture. However, the job-generating
capacity of agriculture has been constrained due
to a number of factors. It is therefore necessary
to consider this issue from a broader spectrum
of viewpoints, without relying solely on agriculture.
The development of various nonfarm activities,
promotion of food-processing industries by utilizing
local agricultural products, diversified agricultural
production, promotion of green tourism, and other innovative
economic activities based on local resources
may offer great potential for creating additional jobs.
The APO organized a multicountry observational
study mission on Successful Cases of Employment
Generation in Rural Areas, 10–17 November, in Japan
to enhance participants’ knowledge of the approaches
and strategies for rural employment generation and to
formulate strategic approaches for promoting the best
practices of rural employment generation in member
countries. Thirteen participants from eight countries
with four local resource persons attended.
Program coverage: Employment generation in
rural areas in Japan; The trend of the employment
and policy of rural labor force in Japan; and Rural
revitalization and employment generation through
farmers’ market promotion. Field visits were made to
Nagano Tomato Co. Ltd., an example of employment
generation through the food manufacturing industry;
Horigane Shopping Center, a farmers’ market; the city
of Iiyama, illustrating green tourism; and the city of
Obuse, to observe tourism and other job-generating
measures.
Development of Competitive Supply Chains in
Agribusiness
Globalization in agricultural and food products offers
attractive opportunities for producers and exporters
from developing countries. To benefit, however, agribusiness
firms need to be prepared for stiffer competition
both from regional companies and multinational
agribusiness and retail giants strategically linked with
various partners in their supply chains. Competition is
no longer between firms and farms but between supply
chains. This has serious implications for agribusiness
SMEs and small-sized producers in member countries
which are not linked to supply chains. For domestic
agribusiness firms to survive, they must develop and
manage their own supply chains or be linked in the
chains of global players. Supply chain management is
a powerful tool to achieve such linkages.