لوح ريرقت Report of the Report of the Regional Agro-Industries REGIONAL AGRO-INDUSTRIES FORUM ةيعارزلا تاعانصلل يميلقلإا ىدتنلما MIDDLE EAST AND NORTH AFRICA ايقيرفأ لاشمو طسولأا قرشلل for the Lima (Peru), 5–7 October 2009 2011 برمفون 18-15 في ،نانبل ،تويرب في دقعنلما Beirut (Lebanon), 15–18 November 2011 FOR A COMPETITIVE, INNOVATIVE AND INCLUSIVE AGRO-INDUSTRY ISBN 978-92-5-007340-8 9 789250 073408 I3051Bi/1/09.12 Report of the Report of the Regional Agro-Industries REGIONAL AGRO-INDUSTRIES FORUM FORUM FOR LATIN AMERICA MIDDLE EAST AND NORTH AFRICA for the Lima (Peru), 5–7 October 2009 Beirut (Lebanon), 15–18 November 2011 FOR A COMPETITIVE, INNOVATIVE AND INCLUSIVE AGRO-INDUSTRY FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION THE GOVERNMENT OF LEBANON Rome, 2012 The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. 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Applications for permission to reproduce or disseminate FAO copyright materials, and all queries concerning rights and licences, should be addressed by e-mail to [email protected] or to the Chief, Publishing Policy and Support Branch, Office of Knowledge Exchange, Research and Extension, FAO, Viale delle Terme di Caracalla, 00153 Rome, Italy. © FAO 2012 Contents Acknowledgments iv Executive summary 1 1. Forum proceedings 5 1.1 Introduction 5 1.2 Opening ceremony 6 1.3 Introduction to the Forum 8 2. Plenary addresses 11 2.1 Global trends and patterns (Mr Carlos da Silva) 11 2.2 Agro-industry strategies for achieving pro-poor economic growth in the MENA region (Mr Adel Cortas) 14 2.3 Roles of agro-industries in reducing food losses and improving food security (Mr Adel Kader) 15 2.4 Increasing food supply to domestic and regional markets in the MENA region (Mr Rafiq Hamdan) 16 2.5 Roundtable sessions 18 3. Workshop sessions 27 3.1 Facilitators 27 3.2 Workshop observations 27 4. Stakeholder panels and statements 31 4.1 Secretaries/ministers of agriculture perspectives 31 4.2 Secretaries/ministers of industry, commerce, economy and trade 31 4.3 Private sector 33 4.4 Financial sector and donors perspectives 34 4.5 United Nations Organizations 35 5. Conclusions and recommendations 37 5.1 Key conclusions 37 5.2 Key recommendations 37 APPENDICES 1. Exhibitions, visits to food industries, touristic sites and other events 39 2. Speeches from the opening ceremony 41 3. Plenary papers and presentations 43 4. List of participants 45 5. Acronyms 55 iii ACKNOWLEDGEMENTS The Food and Agriculture Organization of the United Nations (FAO) would like to thank the Government of Lebanon (represented by the Ministry of Agriculture, the Ministry of Economy and Trade, and the Ministry of Tourism) for hosting the Forum. Appreciation is also expressed to members of the Local Organizing Committee for their efforts to ensure the success of the event. Thanks are expressed to the food processing and packaging enterprises that were visited by participants during the field trip. The contributions of the team of the United Nations Industrial Development Organization (UNIDO) officers and participation of the International Fund for Agricultural Development (IFAD) are hereby gratefully acknowledged. Profound gratitude is expressed to the plenary speakers, resource persons and members of the technical and logistical Joint Organizing Committees who contributed to the success of this Forum. iv Executive summary The Regional Agro-Industries Forum (RAIF) for the industries in the region and the roles agro-industries Middle East and North Africa (MENA) was held in Beirut, can play in addressing the most important agricultural Lebanon, from 15 to 18 November 2011. The Forum was sector development challenges in the region. On the organized by the Food and Agriculture Organization of second day, eight roundtable sessions were conducted the United Nations (FAO) in partnership with the United to discuss a core set of issues that had been identified Nations Industrial Development Organization (UNIDO) after an extensive consultative process with diverse and in collaboration with the Lebanese Ministry of stakeholders in the region. On the third day two the- Agriculture representing the Government of Lebanon. matic parallel workshops were held in which partici- pants identified priorities for enhancing the roles of The purpose of the RAIF was to raise awareness about agro-industries in regional development. Closing the the roles of agro-industries in achieving sustainable event, the stakeholder groups in attendance at the development and to facilitate information exchange Forum presented statements to reflect their views on and dialogue on strategies and practical actions to the issues and recommendations for moving forward. enhance the contribution of agro-industries to food security, employment generation and sustainable eco- During the three days of the technical programme, an nomic development in the MENA region. The RAIF was exhibition was held at the Forum venue in which 16 also intended to help clarify priorities in the assistance exhibitors displayed information materials to promote that FAO, other UN agencies and other development their activities. On the first evening of the Forum, par- partners might provide to support agro-industries de- ticipants were hosted to a dinner by H.E. the Minis- velopment at the regional and national levels. ter of Agriculture of Lebanon, while on the evening of the third day participants attended a reception at The Forum was attended by representatives from the Government House hosted by H.E. the Prime Minister following 18 countries of the MENA region: Algeria, of Lebanon. On the fourth day of the RAIF, a field trip Bahrain, Egypt, Iran, Iraq, Jordan, Lebanon, Libya, Mau- was organized to visit a number of food packaging/ ritania, Morocco, Palestine, Qatar, Saudi Arabia, Sudan, industries as well as cultural sites. At the end of the Syria, Tunisia, United Arab Emirates and Yemen. Other field trip, participants were hosted to dinner by the participants were from organizations outside the re- Lebanese Ministry of Tourism. gion with interests in developing agro-industries in the MENA region. In total, 150 participants attended the The following conclusions can be drawn from the pre- Forum. This included senior government officials and sentations and discussions of the technical programme decision-makers, non-governmental organizations, pri- of the RAIF: vate sector enterprises, research and academic institu- tions, and international cooperation and development 1. The potential for agro-industries development in organizations operating in the region. the region is substantial to meet increasing and diversified food needs, to create employment and The first three days of the RAIF were dedicated to the to uplift local economies. Development has been technical programme. During the first day an open- constrained by a lack of coordinated policies and ing ceremony was held in which welcome statements insufficient priority being given to agricultural and were delivered by the Organizing Committee, UNIDO agro-industry development. and FAO, followed by a keynote address given by H.E. Hussein Hajj Hasan, Minister of Agriculture of Leba- 2. There has been inadequate coordination and con- non, in his capacity as a representative of the Prime sultation between public and private sector stake- Minister of Lebanon, H.E. Najib Miqati. Two sessions of holders and between concerned ministries respon- plenary presentations were made on the status of agro- sible for agro-industry development, which has led 1 Report of the Regional Agro-Industries Forum for the Middle East and North Africa to weak and insufficient policies and incentives to The deliberations in the technical programme of the support agro-industry development. RAIF led to the following recommendations being advanced: 3. There are important opportunities for further development of small and medium agricultural 1. Concerned national ministries (Agriculture, Industry, enterprises. The forum confirmed that priority Commerce and Trade) require to coordinate their attention should be given to supporting the SME approaches to agro-industry development, accord sector to improve efficiency, develop new products, higher priority to developing agriculture and agro- ensure product quality and safety, and strengthen industries, and promote territorial concentration of linkages with the primary production sector. enterprises through facilitating clusters, networks and industrial parks and technopoles. 4. Agro-industry development has been constrained by the lack of sufficiently trained 2. Concerned ministries should develop appropriate manpower and the fragmentation and small enabling and facilitating policies and strategies to scale of industries on the one hand and the support agro-industry development notably occurrence of large, dominant industries on through improving infrastructure, ensuring availa- the other. bility of adequate financial resources, and improv- ing the provision, focus and coordination of re- 5. Infrastructure constraints (utilities, communications, search and technology services. transport and markets) limit the pace of agro-indus- try and overall agriculture development. 3. Governments should promote the development of integrated value chains; support the establishment 6. Research and development institutions have been of professional associations and the grouping of weak and have provided inadequate support to farmers into associative forms and encourage con- develop agro-industry due to their poor linkages tract farming arrangements to reinforce linkages, and coordination with concerned stakeholders enhance service provision, and promote increased (farmers and industries). and more reliable production. 7. The costs of doing business and overall business 4. Public and private sectors should together reinforce climates are still not sufficiently conducive to their efforts to reduce post-harvest losses through encourage investments, and the absence of suitable improving crop handling, transport and storage financing schemes limits investments. infrastructure thereby enhancing competitiveness; farmer cooperatives have a role in supporting post- 8. Much remains to be done to ensure better coordina- harvest loss reduction by providing improved tion and cooperation between farmers and indus- storage and transport infrastructure and educating tries to ensure adequate supplies and to improve members on correct practices. quality and safety of products. 5. Governments in pursuit of industry and trade 9. There is a need and an opportunity to reduce reli- expansion should exploit complementarities ance on imported food through accelerated devel- between countries and re-visit bilateral and regional opment of agro-industries. While it is desirable to trade agreements to ensure stronger and favourable increase capacities for producing agricultural raw linkages between countries in the MENA region. materials in the region, this should not be seen as The adoption of standardized rules on food safety a pre-condition. In some cases, countries should also and quality across the region would facilitate trade look at opportunities for developing agro-industries between countries. based largely on imported raw materials, particu- larly when this can increase value addition and em- 6. The private sector should be actively involved and ployment generation within the region participate in policy and strategy formulation and trade negotiating strategies for the development 10. Bilateral and regional trade agreements have not of national food industries. been sufficiently conducive to support increased exports and sometimes have adversely affected 7. The UN agencies should continue their support of local production and industries. agricultural and agro-industry development 2 Executive summary through promoting continuing dialogue and advis- ing on appropriate policies, institutions and support services to create enabling environments to support agro-industries development in the MENA region. 8. The concerned UN agencies should reinforce their programmes related to capacity building especially on compliance and certification systems for food quality and safety, innovation and technology development, contract farming and value-chain coordination and efficiency improvement. 9. Governments and the private sector should adopt market centric policies nationally and regionally and seek to re-enforce their trade opportunities through improving subregional and regional trade agreements, notably the Greater Arab Free Trade Agreement (GAFTA). 33 Chapter 1 Forum proceedings 1.1 INtroDuCtIoN series of country background papers was commissioned The Regional Agro-Industries Forum (RAIF) for the leading to the organization of an expert consultation Middle East and North Africa (MENA) region was held on 6–7 December 2009 in Cairo, Egypt. During the in Beirut, Lebanon, from 15 to 18 November 2011. The consultation several key issues were identified, and Forum was organized by the Food and Agriculture guidance was provided on potential areas of FAO Organization of the United Nations (FAO) in partnership support to the region’s efforts to develop its agro- with the United Nations Industrial Development industries. One of the main recommendations of the Organization (UNIDO) and in collaboration with the consultation was that FAO and partners should seek to Lebanese Ministry of Agriculture representing the further clarify the issues and refine the identification of Government of Lebanon. strategies and priority actions. In follow-up discussions, it was agreed that the next most important step would The MENA-RAIF is the fifth of a series of global be to organize a RAIF for MENA countries in response and regional events organized to raise awareness to this recommendation. of the roles of agro-industries in economic and social development and to establish priorities for The RAIF had three main objectives: policies and programmes aimed at the promotion of i. To raise awareness among government officials, sustainable, inclusive and equitable agro-industries. A public and private agro-industries enterprises, re- Global Agro-industries Forum (GAIF)1 was organized gional and international organizations, and agri- in New Delhi in April 2008 by UNIDO, FAO and IFAD culture research institutions and all those involved in partnership with the Government of India. It drew in agro-industries development about the vital roles more than 500 participants from over 100 countries that agro-industries can play in achieving sustain- who considered strategies and practical actions for able and inclusive development at the national and agro-industries development. A key recommendation regional levels; by the participants of the GAIF was that the organizing ii. To facilitate information exchange and dialogue UN agencies should undertake appraisals at the on strategies and practical actions to enhance the regional specific level in order to better clarify agro- contributions of agro-industries to food security, industry development strategies and priorities, and employment generation and sustainable economic the support required at the regional and national development in the member countries of the MENA levels. As a follow up to GAIF, and in response to this region; recommendation, a Regional Forum was organized iii. To help clarify priorities in the assistance that in October 2009 in Lima, Peru, focusing on Latin FAO, other UN agencies and other development American countries. This was followed in November partners might provide to support agro-industries 2009 by a Forum in Yangling, China, for the Asia-Pacific development at the regional and national levels region. A high-level conference on the development with the ultimate intention of reducing poverty of agribusiness and agro-industries in Africa was held and creating an enabling environment to develop in March 2010 in Abuja, Nigeria. competitive agro-industries that incorporate small- holders as significant stakeholders in the agric- In 2009, FAO’s Regional Office for the Near East and food supply chains. North Africa launched an initiative to clarify strategies and priorities for FAO support to agribusiness and As listed earlier, the MENA-RAIF was attended by agro-industries development. Among other activities, a representatives from the following 18 countries: 1 Further information on GAIF is available at: http://www.gaif08.org/. 5