Report: Value Chain Management in Agribusiness Workshop, October 29-November 2, 2012, Indonesia

Group Photo of Participants

Group Photo of Participants

BRIEF DESCRIPTION / BACKGROUND OF THE PROJECT

The workshop focused on the definition, principles and practices of value chain management in agribusiness. By definition, it was differentiated from supply chain management as the former encompasses a total business concept approach while the latter focused on the operational aspect of the business only. A global perspective on agribusiness as well as upcoming market trends were also discussed during the workshop to further provide insights for agribusiness players who may want to explore potential international markets. On the sustainability forefront, various models on raw material and product sourcing were also presented and discussed.

The intention of the workshop was to elucidate insights from country case studies on various agricultural commodities-based agribusiness as well as emerging ideas, concepts and translating these into practice as gained from the specific paper presentations of key resource persons invited to the workshop, as well as field immersion activities. From this elucidation, it is expected that participants should be able to bring back the learning into their respective organizations or companies, as well as institutions that are dealing with enhanced productivity in the agribusiness sector.

OBJECTIVES FOR PARTICIPATION

Our objectives for participating in the APO project are as follows:

1. To learn the basics of value chain management in agribusiness in the eyes of the private and public sector participants, as well as civil society participants and multilaterals/bilateral;

2. To observe  specific business cases of value chain management in agribusiness at the local and community/village-levels through  field immersions/trips;

3. To study specific case studies from the visited local firms and provide learning insights to further support any value chain improvements;

4. From the principles and practices in # 1 above, generate specific insights as to how these learning can be brought into our practical day-to-day work, and re-echo the same to interested parties;

5. Follow through on the sharing program (among participants and resource persons) and generate traceability studies as to the applicability of the principles learned from the workshop into the success of institutions/organizations that were benefited out of the re-echo seminar;

6. Moving forward for continuity and continuous improvement, develop local agribusiness projects and programs that can be funded by APO (thru the NPO-DAP for the food chamber with support from the government esp. those related to developing Micro and SMEs).  This can be done with support of other food chamber members to develop a strong local supplier base especially for multinationals and niche market opportunities.

PROFILE OF PARTICIPANTS

Total of 25 international participants from 13 countries (except Vietnam) and 5 Resource Persons attended the workshop. Participants have wide demographics, came from various professional and cultural backgrounds, varied with both professional and practical experiences, yet thoroughly grounded on the basics. Most of all, the group participants have had fun while learning from each other.

Two (2) participants from the Philippines attended the workshop. “Art”, who has a technical educational background and  professionally-exposed to a lot of corporate and functional support roles to the business and “Ken” who is into academic, government projects and policy programs.

SCOPE, CONTENT AND METHODOLOGY

1. Day 1 focused on a formal opening programme by APO and local Ministry of Agriculture, followed by brief self-introduction of participants.  Resource persons also introduced themselves with their PowerPoint presentations (focusing on basic of global trends in agribusiness, the value chain in agribusiness and experiences contract farming).  Similar PowerPoint presentations were made for each country case study.  Each country case study was unique with no duplication in terms of commodity topics and focus (see enclosed CD).

2. Day 2 focused on more PowerPoint presentations by the resource persons and the country presenters.

3. On the 3rd day, a field trip was conducted to immerse the participants to the realities of the value chain concept taking into account a community-based Arabica coffee micro-business (Kopi Luwak Coffee Farm), a special red rice value chain under a UNESCO World heritage sustainable community system (Jatiluwi Red Rice and Subak System), as well as an example of a upstart, medium enterprise model (SHREGG Beverages Case).

4. Day 4 was devoted to continuation of country case presentations with Case Studies (participants were divided into 3 Groups) in the afternoon. Case studies were derived from the Day 3 Field Immersion activities. And focused on key improvements to support the different businesses moving forward.

5. Day 5 focused on the presentation of case studies by each group after which a short closing and awarding programme was conducted by APO and the local Ministry of Agriculture.

6. Basic Question and Answer (Q&A) methodology was implemented during the course of the workshop. Ambiance was informal to formal, with much activity, camaraderie and fun developed amongst the participants. It was really fun and learning all the way.

HIGHLIGHTS OF THE PHILIPPINE PRESENTATION

Mr. Baria delivered his PowerPoint presentation on the Robusta Coffee Value Chain in the Philippines while Mr. Garabiag presented the Rice Value Chain.

Mr. Baria was deeply honored to deliver the “Closing Remarks/Response” on behalf of the private sector participants in the conference during the closing ceremonies.

Both participants received completion certificate from APO.

OUTCOMES AND EVALUATION

Differentiation of value chain versus supply chain. Former has a larger dimension as it covers the whole business aspects, including operational supply chain. The latter only focuses on the operations side of the value chain.

Value chain covers both monetary as well as non-monetary value (tradition, cultural aspect of the product, etc. as Unique Selling Proposition)

Expectations were met and resource persons were knowledgeable. Different perspectives from the private, public and international organizations that were presented to the participants coupled with a good balance of case studies and study tour/field visits conducted made the event meaningful enough. These learning are to be brought and shared by the participants going back to each home country.

RECOMMENDATIONS AND ACTION STEPS

Level of APO Project Participants:
Strengthen and expand Networking and Stakeholder Engagement activities amongst different country participants.

Level of NPO:
Engage the NPO to send more private sector participants as part of its productivity thrust. Engage NPO to conduct tracing research of all APO delegates and what happened after participation in APO – related projects to this, ensure a re-entry activity or project (with appropriate funding support), program directly-related to APO-led continuity programs for the industry (private) and enabling program of the government.

Level of Food Chamber:
Ensure representation of the private sector, especially representative of the SMEs and Micro-Enterprises, to participate in future APO-related projects and programs thru the auspices of the NPO-APO-DAP Liaison Office. Re-echo the project learnings to the Food Chamber and various value chain players of the coffee industry, as appropriate.

Action Plan to disseminate information:
Thru the Food Chamber’s Office, ensure communications platform to disseminate learning. A re-echo seminar can be conducted as a joint DA-Food Chamber programme.

Action/Impact Project or Program:
Ensure a long-term joint project between the Food Chamber and APO (thru NPO-DAP) to ensure productivity and competitiveness of the Philippine food industry (in this case). Liaise with the local government units, the concerned government executive branch/es, and local businesses to create a productivity linkage program that would ensure a platform for APO Grantees to strategize and execute “support programmes” for these institutions.

SUBMITTED BY:

ARTHUR R. BARIA, M.SC.
Vice Chairman, Sustainable Agriculture Initiatives (SAI) Committee
Philippine Chamber of Food Manufacturers, Inc.

KENNEDY A. GARABIAG
OIC-Planning Officer V
Agricultural Credit Policy Council
Department of Agriculture

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