Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

FAO’s Technical Assistance Framework for Trust Funds in the

Western Balkans 2006 – 2009-

Food Chain Approach

Raimund JehlePolicy Officer

Regional Office for Europe

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Geographical Focus

AlbaniaBosnia and HerzegovinaFYR of MacedoniaKosovoSerbia and Montenegro

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Why a framework now?

FAO has developed significant field programmes in the WeBa countries during the last 10 years

due to: – emergency and reconstruction – donor money available

New situation– consolidation and clarification roles of the main

institutions donors and IO– reduction of donor money

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Framework Objectives and Basis?

Coherency of the Organization’s work in the Region

EU Integration Process in the Western Balkans

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Rural Region… % of people living in rural areas

Source: WB Global poverty monitoring

58 57

4238

5060

0

10

20

30

40

50

60

Albania Bosnia andHerzegovina

Croatia Macedonia,FYR

Serbia andMontenegro

Kosovo

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

… Importance of Agricultureshare of agriculture in the economy in %

Source: WB WDI 2001

34

24

42

14

30

56

12

32

56

26

36

38

29

34

37

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Albania Bosnia andHerzegovina

Macedonia,FYR

Serbia andMontenegro

Kosovo(1996)

Agriculture Industry Services

It implies… The WeBa countries must

count with the agricultural sector to sustain their growth

But… Non-farm employment

must be also addressed in rural areas to improve the competitiveness of

agriculture

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Institutional Challenge…

Requirements on the road to EU Membership– Competitive agriculture production and

processing Globalization and Free Trade

– Management and marketing skills for high value crops

Cross Border Collaboration and Regional Integration– Rural Development could reduce ethnic tensions

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

FAO’s Focus in the Western Balkans

Facilitate income generation through agriculture and non-farm activities;– Food Chain Approach, Farmers Group Formation,

Capacity Building in Rural Communities; Specific Population Groups; Rural Development, Research and Education

Bottom-up approach for policy change Regional collaboration

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Food Chain Approach

Improved production and diversification at small scale farm level

Linking farmers to markets, processors and retailers

Facilitate better access to credit by establishing links to local banks/microfinance institutions or revolving funds

Mobilization/Integration of local expertise

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Group Formation

Thematic training and demonstration days for commodity groups

Contract farming Bulk purchase of inputs and marketing of

high value produce

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Capacity Building of Communities

Identification of non-farm income opportunities (e.g. Wool processing, tourism, sport fishing; arts and crafts);

Regional Marketing( e.g. Rural Fairs, labeling);

Training in business planning and SME formation

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Research and Education

Educational programmes in partnership with agricultural schools – For future agricultural technicians and young

agriculture entrepreneurs– Including marketing and farm management

Postgraduate curricula on subjects such as:– Agriculture Economics;– Rural Development etc.

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Vulnerable Groups

Adapt activities to the specific needs of vulnerable groups

Facilitate the integration of vulnerable groups and improve their livelihood

Technical assistance and methodological support to other agencies (IO, Int’l and national NGOs)

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Policy ChangePolicy Change

Mapping and zoning of rural areas Definition of micro-regional development Definition of micro-regional development

strategiesstrategies Targeted support to young farmers of Targeted support to young farmers of

marginal rural areas to stop outmigrationmarginal rural areas to stop outmigration Promote and assist incentive policies for farm Promote and assist incentive policies for farm

business developmentbusiness development

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Cross-border und Regional Collaboration

At regional level– Assistance in networking for e.g. food

safety, phytosanitary and veterinarian services in order to adopt common approach in the implementation of the recommended preventive measures

At local cross-border level– Development of projects in line with the

proposed approach of RD

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Importance of the Food Chain Approach

Raises awareness at farmer‘s level; Establish business links between farmers, processors and

traders; Shows results and brings investment to the farmers Creates a business environment (contract farming,

competition); Identifies institutional gaps at policy level (Regulations,

Standards, EU-laws, EUOPGAP, HACCAP); Allowes testing of regulations in pilot areas; Provides a demonstration effect.

Meeting of the CEI Working Group on Agriculture – Rome, 22 May 2006

Thank you for your attention