COMMODITY COUNCILS and RESEARCH CENTERS LESSONS ...

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Feb 22, 2013 (4 years and 5 months ago)

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PHILIPPINE BANANA CONGRESS

Davao City, November 7
-
8, 2012


COMMODITY COUNCILS

and RESEARCH CENTERS

LESSONS FROM EXPERIENCE

Rolando T. Dy, Ph.D.

Executive Director

Center for Food and
Agri

Business

University of Asia and the Pacific

Pasig City, Philippines


OUTLINE



RATIONALE


INTERNATIONAL and LOCAL
EXPERIENCES and LESSONS


PHILIPPINE BANANA INDUSTRY
DEVELOPMENT COUNCIL

R. Dy, UA&P, October 2012

RATIONALE


Strong organizations


….. success factors


Research as a vehicle of a
competitive industry


Unified advocacy


International lessons

R. Dy, UA&P, October 2012

BANANA Australia


Australian Banana Growers’
Council Inc. (ABGC)
is the national
industry body representing the
interests of over 800 commercial
banana growers.


The Board comprises 8 Directors:
5 from

Queensland, 2 from

New
South Wales and 1 from Western
Australia/Northern Territory.


R. Dy, UA&P, October 2012


Banana Australia



In 2008 a levy, managed by Horticulture Australia
Limited (HAL), was implemented.


Over 2011
-
2014, HAL will likely to invest about A$25
M in banana R&D, plant health and marketing
projects on behalf of industry and the Government.
Commercial interests, State agencies and others are
likely to invest a similar amount.


Levy funds need to be invested strategically



A cohesive and coordinated national direction will
drive profitability, improve practices and generate
success in a global market
.

R. Dy, UA&P, October 2012

Banana Plan Australia




http://www.abgc.org.au/

Objective 1:
Increase consumer demand of
Australian bananas by 15% by 2014 through
marketing and promotion


Objective 2:
Increase production efficiency by 5%
by 2014 with minimal to no environmental impact

Objective 3:
Ensure a positive return on
investment of industry levies by enhancing the
industry's leadership, capacity and influence





R. Dy, UA&P, October 2012

HORTICULTURE


NEW ZEALAND


Horticulture New Zealand (
HortNZ
),


the industry association representing 6,000
commercial fruit, vegetable, berry fruit and olive
growers.



HortNZ

is a NZ$4 B industry: exporting 60% of
production with a total value of NZ$2.23 B to
more than 110 countries.


R. Dy, UA&P, October 2012


HORTICULTURE NZ


Reputation for innovation, quality, early
adoption of new technology and smart
response to market demand.


Production area of more than 100,000
hectares.


Major exports: kiwifruit, apples, avocados,
onions,
kabocha
, processed vegetables and
potatoes. Citrus,
berryfruit

and olive oil are
developing export products.

R. Dy, UA&P, October 2012


HORTICULTURE NZ

Principal objectives:


Industry leadership


Industry profile


The right to grow and farm


A positive business environment


http://www.hortnz.co.nz



R. Dy, UA&P, October 2012


HORTICULTURE NZ


Board of 8: all growers; staff of 20


In 2006, growers voted for a compulsory
levy

for all fruits and vegetables.


For 2012: the Board proposed a grower levy
of 15 cents for every $100 of sales on all fruit
and vegetables, taking effect from the first
year of the new levy (2013

14). The proposed
levy rate is forecast to raise about $2.5 M.



http://www.hortnz.co.nz

R. Dy, UA&P, October 2012

http://www.hortnz.co.nz

R. Dy, UA&P, October 2012


CORB

CO CORBANA

Costa Rica


La
Corporación

Bananera

Nacional

(CORBANA) is
a non
-
profit public organization to serve banana
producers.


A board of five members represent three
sectors.

The Chair is appointed by the President
and represents the National Government.


Two members are elected and represent the state
banking sector.



The other two, chairs of the board, are
representatives of the banana producers, elected
among themselves by a special assembly.

R. Dy, UA&P, October 2012


CORBANA Costa Rica


Marketing and commercialization strategies


Research and technical advice and support
services to farmers


Virtually all of plantations had at least one
international certification
for safety or quality.


Lobby with government, fruit vendors and
with industry partners in the international
community.


R. Dy, UA&P, October 2012


CORBANA Costa Rica


Outstanding successes in fertility and
nutrition, plant pathology,
nematology
, tissue
culture, soil and drainage, soil microbiology
and agronomy.


Advice in the control of nematodes, black
Sigatoka

leaf and soil analysis, design of
drainage and irrigation or land suitable
classification banana.


R. Dy, UA&P, October 2012


CORBANA Costa Rica


Voluntary, tax
-
free contribution (US$0.05 per
box of exported bananas) from banana
producers.


Increased investments in R&D from US$1
million in 1981 to US$12 million in 2006.



Between 2007 and 2009, moreover, CORBANA
established two new research facilities
including a the Banana Molecular Biology
Center.

R. Dy, UA&P, October 2012


CORBANA Costa Rica CSR


Through the Banana Institutional Council, the industry
develops programs for the community and addresses
the concerns of the different sectors within civil
society.


BIC members: Dole, Chiquita Brand's, Del Monte,
Chamber of Independent Banana Producers , the
National Banana Chamber, the National Banana
Corporation, and the Environmental Commission
Banana.


R. Dy, UA&P, October 2012


AEBE Ecuador


Established by


Ministry of Trade, Industry and
Fisheries



AEBE brings together 33 companies national
export accounting for 80% of total fruit
shipped


Board of seven members


Includes



R. Dy, UA&P, October 2012


AEBE Ecuador


18,875 banana producers on 207,193 hectares
in 2011
(
64% below 10 hectares
)


284.6 M boxes in exports of 18.16 kg.









Funded by voluntary contributions
(?)




Affiliates: suppliers, shipping companies





R. Dy, UA&P, October 2012


AEBE Ecuador



No/little funding for research from producers .


Black
Sigatoka

disease has been wreaking havoc on banana plantations for
more than two decades. About 70,000 hectares of banana plantations
have been affected by the black
sigatoka

so far in 2012. As a result, the
supply of fruit for export fell by 25 million boxes. Some 30% of the costs are
concentrated in controlling Black
Sigatoka
.


Ecuador’s Biotechnology Research Center (CIBE)
specialist

Dr
Efren

Santos: “ we have a protocol
developed for the genetic transformation of bananas.”


Government interference in fixing export price.



r to the world.

Also affiliated to our association as partners


adherents, shipping companies, industry and export carton


banana.


As shown in the table below, there is no monopoly or


oligopoly, because the composition of the percentages


R. Dy, UA&P, October 2012

COFFEE GROWERS
FEDERATION
Colombia



Colombian Coffee Growers Federation
(FNC) has become probably the largest rural
NGO in the world. Organized in 1927.


The FNC is a democratic and federated
organization that represents the interests of
more than 563,000 coffee growing families


Source: www.federaciondecafeteros.org/

R. Dy, UA&P, October 2012


Innovation and
TechnologyTransfer
:

Cenicafé


the
Federation’s research center.


Tree Renovation Programs:

Programs that offer
either cash or in kind incentives to maintain the
coffee trees at their optimal level of productivity


Purchase Guarantee

and Coffee
Commercialization:


FNC guarantees to all
Colombian coffee growers the full purchase of
harvest at a transparent price that is based on
current international prices.

COFFEE GROWERS
FEDERATION
Colombia

R. Dy, UA&P, October 2012



Quality and added value:

Campaigns for the
adequate management of crops, pests and
diseases.


Promotion and Advertising:


Promotional
campaigns throughout its history.







COFFEE GROWERS
FEDERATION
Colombia

R. Dy, UA&P, October 2012


FNC manages the National Coffee Fund. The fund
is

composed of

contributions made by the coffee
growers, the coffee sales and Juan


Valdez® brand
royalties.



In order to carry out its social and environmental
projects, the FNC also manages resources
obtained from Colombia’s national and regional
governments as well as from clients and other
domestic and international partners and donors


Source: www.federaciondecafeteros.org/

COFFEE GROWERS
FEDERATION
Colombia

R. Dy, UA&P, October 2012


Fruits
-
Chile


Fedefruta

F.G., was founded in 1985 as a non
profit trade federation related with public and
private organizations.
Fedefruta

groups total
more than 1000 producers and 20 associations.



Its goal is to serve the national fruit and
vegetable sector in terms of defense, promotion,
dissemination, training, studies and certification.



http://www.fedefruta.cl/ingles/

R. Dy, UA&P, October 2012

Activities


Lobbying


International promotion


Fedefruta

Newsletter


Price and statistics digest


Grower committees


Crop forecasting


Annual fruit growers convention


International Business Round Table Chilean Fresh Fruit
and Vegetables for Export


Research

R. Dy, UA&P, October 2012

BANANA Taiwan


The

Taiwan Banana Research Institute

(TBRI) was
founded in
1971.


Best
known for mass plantings of tissue
-
culture
plantlets in heavily infested fields to select high
-
yielding

Cavendish type
cultivars that are resistant
to
Fusarium

oxysporum

f. sp.
cubense

Race 4.


Formosana

and
Tai
-
Chiao

#1

have been distributed to
banana growers to sustain the banana industry .
The
former
is grown on around 1,500 ha , the latter on 500
ha.


Provides
tissue
-
culture plantlets and extension
services
.


R. Dy, UA&P, October 2012

BANANA Taiwan


Its overhead
expenses are covered by the interest
generated by the Foundation's fund,
charges
collected on export bananas and revenues from
an experimental farm
.


The
Fruit Cooperative supports the technical
services.


As a member of

BAPNET, TRBI participates in
international research activities. It also provides
training courses on tissue culture at an
international level.


R. Dy, UA&P, October 2012

BANANA TBRI



Micro
-
propagation


Varietal improvement


Pest management


Germplasm

collection


TBRI
has a
germplasm

collection of 229 accessions, which
include diploids, triploids,
tetraploids

and

abaca.


Source: http://www.promusa.org/tiki
-
index.php?page=TBRI

(Retrieved October 16, 2012)

R. Dy, UA&P, October 2012


The Malaysian Rubber Board (MRB) is
the custodian of the rubber industry in
Malaysia.


Established in 1998, it has under its fold
three well
-
established agencies (RRIM,
MRRDB and MRELB*), which are now
merged into one.



* Rubber Research Institute of Malaysia (RRIM), Malaysian Rubber Research and Development
Board

(MRRDB) and Malaysian Rubber Exchange and Licensing Board (MRELB)

RUBBER BOARD Malaysia

R. Dy, UA&P, October 2012

Vision:
To be a leading organization in all
areas of the rubber industry for the
benefit of society.

Mission:
To enhance the competitiveness
and viability of the Malaysian rubber
industries through focused research and
development, effective transfer of
technology and quality support services.


RUBBER BOARD Malaysia

R. Dy, UA&P, October 2012




Objective


assist the development and modernization of
the industry in all aspects: from cultivation of
the rubber tree, the extraction and processing
of its raw rubber, the manufacture of rubber
products and the marketing of rubber and
rubber products.


RUBBER BOARD Malaysia

R. Dy, UA&P, October 2012



RUBBER BOARD Malaysia

Funding


Export
Cess
: MS$ 0.04 per kilo of export
value of selected rubber products such as
sheets, plates, etc. but not
tyres

R. Dy, UA&P, October 2012

Chair:
Government Minister

1.
Rep of Ministry of Plantation and Commodities

2.
Rep of Treasury

3.
Rep of Rubber Industry Smallholder Development
Authority (RISDA)

4.
Rep of Smallholders

5.
Rep of Estates/Plantations

6.
Rep of Rubber Processors

7.
Rep of Rubber Trade

8.
Rep of Rubber Products Manufacturers (2)

9.
Appointed by Minister of P&C (2)

10.
State Representatives (2)

11.
Director
-
General

RUBBER BOARD Malaysia

R. Dy, UA&P, October 2012


RUBBER RESEARCH : Malaysia


The Rubber Research Institute of
Malaysia (RRIM) was founded in 1926.


Premier natural rubber research
institute in the world.


Funding: RM 0.04/kilo of rubber export

R. Dy, UA&P, October 2012


RUBBER RESEARCH: Thailand


Rubber Research Institute of Thailand
(RRIT)


Government agency


The private group,
Thai Rubber
Association
, sits in the Executive Board.


Funding: 5% of export
cess

collection.
About PhP750 million in 2011.

R. Dy, UA&P, October 2012


Philippine Rice Research Institute


PhilRice

is a government corporate
entity attached to the DA. It was
created in 1985 to develop high
-
yielding and cost
-
reducing technologies.



C
entral and six branch stations, and 70
seed centers nationwide.


Staff: Eight Ph.D.s, and 11 masters.


Government
-
funded.


R. Dy, UA&P, October 2012

Philippine Sugar Research


Institute Foundation



Philsurin

is a private sector initiative
created by the National Council of
Sugar Producers.


Registered with the SEC in August
1995.


Board (7): Four planters federation; two
mill associations; and Sugar Regulatory
Administration.



R. Dy, UA&P, October 2012

Philsurin


Research Staff: 8 scientists at its modern
lab in
Victorias
, Negros Occ.


Funding: PhP2 per 50 kilo bag sugar.
Voluntary contributions from all sugar
producers as contained in SRA Sugar
Order No. 2, series of 1995.



50% to
Philsurin
; 50% to Mill District
Development Council


Amount has been reduced by inflation


Free rider
problem


R. Dy, UA&P, October 2012


Philsurin

Members


PLANTERS

Confederation of Sugar Producers Associations, Inc.

National Federation of Sugarcane Planters, Inc.


United Sugar Producers Federation of the
Phils
., Inc.

Panay Federation of Sugarcane Farmers, Inc.


MILLERS

Philippine Sugar Millers Association, Inc.


Association of Integrated Millers

Sugar Regulatory Administration












Sugar Regulatory Administration

Administrator Rafael
Coscolluela



R. Dy, UA&P, October 2012


INTERNATIONAL LESSONS


Every model has its own pluses and
minuses


Positive element in having
cess
/lien as
shown by many countries


R & D, extension services and business
climate are good for competitiveness


R. Dy, UA&P, October 2012

RESTORING
COMPETITIVENESS


1.
PURSUE PRODUCTIVITY


2.
BUILD THE COMMONS AND THE BUSINESS


(Critical role of business environment)


3. REIN IN SELF
-
INTEREST


(Stopping self
-
interested actions that weakens the
commons)



-

Adapted from Porter and
Rivkin

(2012). What Business Should Do to Restore U.S.
Competitiveness. Porter and
Rivkin

(October 29, 2012, Fortune)

BUILDING THE COMMONS

AND THE BUSINESS


IMPROVING SKILLS


(
Partnering with education institutions
)


UPGRADING SUPPORT INDUSTRIES




(Supplier networks)


SUPPORTING INNOVATION
AND

ENTREPRENEURSHIP


(
Entrepreneurs
-

key to job creation)


BOLSTERING REGIONAL STRENGTH


(Clustering)

-

Adapted from Porter and
Rivkin

(2012). What Business Should Do to Restore U.S. Competitiveness. Porter
and
Rivkin

(October 29, 2012, Fortune)


PROPOSED BANANA INDUSTRY
DEVELOPMENT COUNCIL TOR




Productivity and Quality


Pest and Disease Control


R&D and Extension Services


Policy Advocacy


CSR


R. Dy, UA&P, October 2012

Council

Board Seats Criteria


Fresh banana export value


Processed
cardava

export value


Other varieties


Geographic representat
ion

R. Dy, UA&P, October 2012



Banana Industry Development Council

Suggested Membership




Pilipino Banana Growers and Exporters Association
(PBGEA)


Mindanao Banana Farmers and Exporters Assn
(MBFEA)


Mindanao
Cardava
/Saba Processors


ARMM Group


Central Mindanao Group


Northern Mindanao Group


Visayas

Group


Luzon Group


Government (6) non
-
voting


TOTAL (21)

R. Dy, UA&P, October 2012

Banana Industry Development Council

FUNDING OPTIONS


Members’ contribution


Export
cess

(voluntary)


Export
cess

(by law)


Government contribution for specific
projects, i.e., R&D and pest and
disease contro
l



R. Dy, UA&P, October 2012

THE NEXT STEPS?




An organization's ability to learn,
and translate that learning
into

action

rapidly, is the ultimate
competitive advantage
.”



-

Jack Welch, former CEO, GE





R. Dy, UA&P, October 2012

DAGHANG

SALAMAT!