Territorial tools for agro-industry development - A Sourcebook

398 Pages·2017·3.69 MB·English

GIS SEZ ABI
Territorial tools for
agro-industry development
A Sourcebook
GIS SEZ ABI
GIS SEZ ABI
Territorial tools
for agro-industry development
A Sourcebook
Edited by
Eva Gálvez Nogales
and Martin Webber
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 2017
Recommended citation
FAO. 2017. Territorial tools for agro-industry development – A Sourcebook,
by Eva Gálvez Nogales and Martin Webber (eds.), Rome, Italy.
Cover photographs
©FAO/Edward Seidler
©FAO/Giuseppe Bizzarri
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ISBN 978-92-5-109650-5
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iii
Contents
Acknowledgements ix
Executive summary x
Abstract xxiv
Acronyms xxv
1. Introduction 1
Eva Gálvez Nogales, Martin Webber and Kevin Murphy
1.1 About the Sourcebook 1
1.2 Concepts, approaches and issues in territorial development 7
1.3 Organization of the Sourcebook 21
References 23
2. Agricultural growth corridors 29
Kevin Murphy and Eva Gálvez Nogales
2.1 Definition and background 29
2.2 Goals, objectives, benefits and reported impacts of agrocorridors 39
2.3 Key actors – their roles and objectives 43
2.4 From a transport corridor to an agrocorridor:
“hard” and “soft” components 46
2.5 Framework for agricultural growth corridors:
planning, implementation and investment 52
2.6 Challenges and solutions 57
2.7 Two cases: agrocorridor experiences in developing countries 58
2.8 Lessons learned 79
References 81
3. Agrobased clusters 89
Kevin Murphy
3.1 Concepts 90
3.2 Why clusters? 94
3.3 Unique characteristics of agrobased clusters 97
3.4 Agrocluster promoters 101
3.5 Benefits and challenges of agrocluster initiatives 107
3.6 How to implement successful agrocluster initiatives 110
3.7 Lessons learned from successful agrifood clusters 116
References 120
iv
4. Agro-industrial parks 125
Eva Gálvez Nogales and Karen Isahakyan
4.1 Concepts 125
4.2 Rationale and history of agro-industrial parks 127
4.3 Typology 129
4.4 When to use the agro-industrial park model 132
4.5 Framework for model agro-industrial park 136
4.6 Planning and management of agro-industrial parks 153
4.7 Lessons learned 167
4.8 Case studies 172
References 178
5. Special economic zones for agro-industry 183
Stephanie Haile
5.1 Concepts and definitions 183
5.2 History of special economic zones 184
5.3 Framework for special economic zone model 193
5.4 Policy, legislation and regulation: challenges and good practice 211
5.5 Case studies 214
References 230
6. Agribusiness incubators 235
Eva Gálvez Nogales, Costanza Rizzo and Anabella Bruch
6.1 Agro-incubators – basic concepts and definitions 236
6.2 Rationale and evolution of agribusiness incubators 238
6.3 Incubator typology 244
6.4 Survey of specific incubation models 249
6.5 Guidelines for establishing agribusiness incubators 256
6.6 Evolution in agribusiness incubators 265
6.7 Benefits of agribusiness incubators 268
6.8 Challenges and solutions 269
6.9 Conclusions 273
References 275
7. Attracting agro-industrial investments 279
Martin Webber and Eva Gálvez Nogales
7.1 Introduction 280
7.2 Investment attraction for agribusiness
spatial development initiatives 282
7.3 Good practice in investment promotion 294
7.4 Case study in the Philippines 297
References 306
v
8. Governance issues and public institutional support 313
Martin Webber
8.1 Challenges and requirements 313
8.2 Governance 316
8.3 Role of the public sector in governance and implementation 318
8.4 Public sector roles in promoting and operationalizing
territorial agro-industrial initiatives 322
8.5 Role of public–private partnerships 337
8.6 Case study: Implementation issues facing the national policy
promoting food processing parks in India 340
References 348
9. Conclusions and checklists for designing
and implementing agroterritorial initiatives 357
Martin Webber and Karen Isahakyan
9.1 Conclusions 357
9.2 Checklists for designing and implementing
agroterritorial initiatives 362
References 368
FIGURES
1. Enablers of agribusiness and agro-industrial competitiveness 14
2. Potential development path for corridor initiatives 30
3. Southern Africa: the Beira Agricultural Growth Corridor (BAGC) 34
4. Greater Mekong Subregion (GMS) corridors 35
5. Central Asia Regional Economic Cooperation (CAREC) corridors 36
6. Economic corridors supported by the PRA project 37
7. Potential benefits of agrocorridors 42
8. Timeline of selected corridor programmes 46
9. Corridor interventions according to broadness and scope of the project 50
10. Framework for design and implementation of agrocorridor initiatives 53
11. Phases of agrocorridor development 56
12. Criteria for successful agrocorridors 57
13. GMS corridor evolution phases 61
14. A visual representation of an agrobased cluster 91
15. Horticulture cluster map of the United Republic of Tanzania 113
16. Types of agro-industrial park according to development objectives 131
17. SEZ forms and development objectives 193
18. SEZ design and implementation process 210
19. Rocky Mountain hub and spoke SEZ model 218
20. Procedure for the registration of an agro-industrial economic zone 219
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21. Time line of establishment of SEZs in sub-Saharan Africa 224
22. Key factors influencing investment decision-making 293
23. Tools and governance responsibility vary by geography 318
24. Pursuing effective public–private dialogue 323
25. Hierarchy of enabling needs 326
26. Economic corridor development in Indonesia’s Masterplan 2011–2025 358
27. Investment promotion tools 360
28. Factors to be considered in the four checklists 363
TABLES
1. Territorial development models 19
2. Examples of various corridor types 38
3. Types of public–private collaboration present in corridor programmes 43
4. Doing Business ranking 2014 62
5. Examples of cluster diagnostic tools 112
6. Illustrative strategic initiatives and examples 115
7. Types of agropark 129
8. Possible stakeholders of an agro-industrial park 142
9. Agropark institutional design: challenges and solutions 156
10. Content of prefeasibility and feasibility studies 173
11. Questions to be resolved by prefeasibility studies,
and tools that can be used 175
12. Countries with SEZs incorporating agroprocessing and leather activities 186
13. Country performance and success indicators of SEZs 187
14. Regional SEZ characteristics in developing countries 189
15. Summary of SEZs in selected African countries 225
16. Types of agribusiness incubators 248
17. Constraints and scope of agribusiness incubators,
accelerators and science parks 268
18. Investment features of the five tools 281
19. Major legislation governing investment policy in the Philippines 299
20. Incentives offered by investment promotion agencies in the Philippines 300
21. Investment promotion strategies by type of investment 301
22. Philippines investment promotion agency scorecard, 2010 304
23. Important challenges and requirements related to governance
and public sector support 314
24. Pillars of governance 317
25. Main features of agro-industry investment promotion tools 359
BOXES
1. Types of corridors 31
2. How corridors can promote agriculture and growth in Africa 41
3. The important role of gateways in agrocorridors 47
vii
4. The SAGCOT Centre and Catalytic Fund Company 49
5. Hard and soft components: which comes first? The case of Peru 51
6. Key GMS programme milestones 60
7. Examples of key deliverables from 2014 Summit 61
8. Intraregional trade dynamics 63
9. Thai programme to foster regional agro-industrial growth 66
10. Yara seeks to increase fertilizer sales through
the Tanzania Agricultural Partnership 69
11. SAGCOT origins and milestones 71
12. Kilombero Plantations Limited 73
13. Focus on livestock 73
14. Navigating a complex land rights regime is a challenge for investors 74
15. Tanzania Investment Centre One-Stop-Shop 77
16. Thailand’s Western GAP cluster 93
17. Cluster upgrading through related and supporting industries in Kenya 95
18. Nashik grape cluster: the power of collective action 100
19. Chile salmon cluster: the importance of strong
and constant government support 101
20. Sri Lankan rubber cluster 102
21. United States of America’s “Cooperator Program” 103
22. Dominican rice cluster 104
23. Dominican cigar and tobacco cluster 106
24. Government-mandated efforts to create clusters: coffee in Viet Nam 110
25. Failure to elicit cluster cooperation in the Colombian leather cluster 117
26. Agrósfera: a green park project 132
27. Agro-industrial parks try to locate in an area
that maximizes logistical gains 138
28. Location of agro-industrial parks determined by key drivers 139
29. Varying dimensions of agro-industrial parks 141
30. Examples from Malaysia and India of public sector
involvement in agroparks 143
31. Role of private park developers in India 145
32. Infrastructure, facilities and services provided by Kakkanchery
and Tumkur Food Parks, India 150
33. Integrated Agro Food Parks: from theory to practice 152
34. Examples from China and India of PPP financing of agroparks 164
35. Strengthening backward and forward linkages of agroparks 166
36. Botswana agroprocessing initiatives 191
37. China’s Going Global strategy and investments in African SEZs 192
38. Caution against use of single company free zones regime 194
39. Factors to consider when evaluating comparative
advantages of agro-industry 195
40. Fiscal incentive packages: a note to policy-makers 196
41. International trade law compliance factors for SEZs 199
viii
42. Institutional structures for SEZ management and guiding principles 203
43. Senegal’s SEZ experience 204
44. Costly power deters investors from Sierra Leone’s First Step SEZ 206
45. Guidance on how to develop net positive fiscal regimes 213
46. SEZ investment incentives in the Philippines 216
47. Facilitating access to rural finance 222
48. Revised SEZ strategy for South Africa 229
49. Small businesses and incubators in the United States of America 235
50. Timbali Technology Incubator pre-incubation programme, South Africa 238
51. Agricultural development centres and agribusiness incubators 240
52. Examples of assets and services provided by agribusiness incubators 261
53. How ABI-ICRISAT incubates the UniBrain network
of agro-incubators in Africa 266
54. Which investment to promote? 284
55. Investors’ criteria for choosing a location 287
56. General and sector-specific information required
by most potential investors 288
57. Identifying the target 289
58. Ten international best practices for servicing investors 291
59. Incentives available to special economic zones –
Government of India SEZ Act, 2005 292
60. Examples of good practice in investment promotion 295
61. Steps to becoming a top investment promotion agency 303
62. Web site effectiveness factors 305
63. Lessons in governance and public sector support
for special economic zones 319
64. Cambodian SEZ law accords government a basic or leading role,
but permits private sector leadership 320
65. Maputo Development Corridor: championship, and balancing
the roles of the public and private sector 321
66. Nine roles of public institutions 323
67. Kenya policy framework for the industrial sector –
impact on agro-industrial development 325
68. Senegal’s challenges in integrating agriculture support policies:
weak coordination 331
69. Agrobased industries in Chile – success takes time 335
70. Scope of agribusiness public-private partnership typologies 339
71. Examples of mega agricultural public-private partnerships 340
72. Indian food processing sector 341
73. Land acquisition requirement 343
ix
Acknowledgements
The authors of the chapters of this book are Eva Gálvez Nogales and Costanza
Rizzo from FAO, and Martin Webber, Kevin Murphy, Karen Isahakyan, Stephanie
Haile and Anabella Bruch from Partners for Sustainable Development. Stephanie
Haile also authored the cases accompanying Chapters 2, 4, 7 and 8.
The editors wish to thank them for their contributions and for their readiness
to share willingly their knowledge and experiences on agro-industrial development
and territorial planning. They are warmly thanked for their commitment to this
project and for their prompt responses to our comments and suggestions through
the editorial process.
Other contributors to this document include Toshiaki Ono, former FAO staff,
and Shannon Will, Coby Joseph, Amy Daffé and Cynthia Macias, research assis-
tants in Partners for Sustainable Development.
Special gratitude goes as well to the informants and experts who have provided
valuable insights through the several interviews conducted by the authors. These
include: Ifor Ffowcs-Williams (CEO, Cluster Navigators Limited); S. Ramnath
(Managing Director of KINFRA Food Processing Park, Kakkancherry); Pierre-
Yves Coté (Owner and operator of Rocky Mountain Arabica Coffee Company
SEZ, Philippines); Thomas Farole (Senior Economist for the International Trade
Department of the World Bank); Jean-Paul Gauthier (Deputy Secretary General
and Acting Vice-President of the World Economic Processing Zones Association
– WEPZA); Steven Grudda and Jonathan Schafer (Operations Manager and Board
Chairman of First Step SEZ, Sierra Leone); Charles Krakoff (Founder and Manag-
ing Partner of Koios Associates); Michael Ducker (Entrepreneur expert/Founder of
EcoSystem Forum for J.E. Austin Associates); SM Karuppanchetty (Chief Operating
Officer at ABI-ICRISAT, India); Mohamed Roushdy (CEO of Flat6Labs, Egypt);
and Orlando Perez Richiez (Director of the National Entrepreneurship Program of
the Ministry for Education, Science and Technology, Dominican Republic).
A special word of thanks is due to Carlos A. da Silva, formerly with FAO, and
Patrick Labaste, FAO consultant, for their collaboration in the conceptualization
of this book and for their contributions as reviewers at different moments of its
development.
Finally, Roberta Mitchell is thanked for editing, Simone Morini for production
coordination, layout and cover design and Giuseppe Provenzano for proofreading.