kjp eaae seminar kiev 2016
TRANSCRIPT
Economic and Scientific Collaboration between East and West
Krijn J. Poppe, Wageningen Economic Research September 2016 EAAE Seminar, Kiev
Krijn J. Poppe
Economist Research Manager at
Wageningen Economic Research
Member of the Council for the Environment and Infrastructure (foto: Fred Ernst) Member Advisory Committee Province of South-Holland on the
quality of the Living Environment Board member of SKAL – Dutch organic certification body Former Secretary General of the EAAE, now involved in managing
its publications (ERAE, EuroChoices) Former Chief Science Officer Ministry of Agriculture
Wageningen Economic Research
Plant Sciences
Group
Animal Sciences
GroupAgro-
technology and Food Sciences
Group
Environ-mental
Sciences Group
Social Sciences
Group
Wageningen University Social Sciences Department
Wageningen Research Wageningen Economic
Research (LEI)
Wageningen Campus 2015
Aeres University of Applied Sciences
FrieslandCampina
NIOO Netherlands Institute of Ecology
Yili DairyStartHub
CSK Food Enrichment
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Background
There is a history of collaboration between East and West
First ideas for the EAAE and the European Review of Agricultural Economics were discussed at the IAAE Congress in 1970 in Minsk
This seminar is a nice opportunity to take stock and see how we can make progress
Focus of this presentation●The role of knowledge exchange in agricultural
development for the East of Europe●As complement to investments in land,
infrastructure and other institutions
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Content of the presentation
The economic relationship between East and West●to see if the relation in science can be linked to
that Trends in science and innovation Collaboration between East and West in science and
innovation Take home messages
1. The E-W economic relationship
Exports / Imports of agricultural products (bln. Euro) Of course there also: services, direct foreign investment
Exports from East to West: commodities
East is including -stan countries
2013-2015
Exports from West to East: high value
Potential future developments in trade ??
Pigs and poultry industry: could Ukraine and Russia become the “mid west” of Europe (see next slide)
Fruit and vegetables: based on the rich biodiversity of the Caucasus and the lower labour costs?
Basic material for the bio-economy (grains, wood, energy) ?
Relocating pig and poultry production?
LabourFeed Meat
?Future location
2. Trends in Science and Innovation
AKIS: Agricultural Knowledge and Innovation Systems Science, R&D, Innovation Trends in the organisation of R&D and Innovation
●Multi-actor / interdisciplinary●Public-private partnerships●Big data
THE FOOD CHAIN AND AKIS
Different objectives, methods, and public roles
Role of EU policy
SPECIAL ATTENTION IS NEEDED TO INCENTIVIZE RESEARCH TO BE RESPONSIVE TO THE NEEDS OF INNOVATION PROCESSES
Strong ICT trends: prescriptive farming?
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ROLE OF ICT: A SOURCE OF INNOVATION Input suppliers (tractors, pesticides) are moving from
products to services with the Internet of Things. Towards Big Data.
Changes / replaces some of the activities of farmers: remote control / advise
Advisors (and researchers?) want access to farmers’ data Some of the advise will be delivered in the form of apps. Research could create open systems for data exchange ICT helps to create access to advise and research from
other regions, could foster collaboration E-science, open access
INTERNATIONAL COOPERATION: INTERACTIVE MODEL ?Policy Brief of swg ARCH and swg AKIS
Best strategies for intercontinental research and innovation partnerships - towards greater impact on global challenges
Opportunities to align research themes in AR and ARD Multistakeholder collaboration for complex issues Cooperation on cross border issues (like pests) Research methods Research Infrastructures Institutional and governance aspects of research (e.g.
PPS) Align research and innovation, bottom-up
INTERNATIONAL COOPERATION: INTERACTIVE MODEL ?Suggestions to SCAR; EIARD; the Expert Group supporting the High Level Africa Initiative, the European Commission (DG DEVCO, DG AGRI and DG RTD) and the Member States’ governments: Europe from the outside is complex: coordinate! Bottom-up innovation and private sector involvement Make added value of European practices explicit Flexibility to experiment with new funding mechanisms
(prizes etc) Excellence, Relevance, Impact should be balanced in research
evaluation New intercontinental innovation partnerships could become
part of the global policy framework
3. Chances for East-West collaboration in science and innovation
Topics:●ICT and precision farming●Supply chain integration on food safety and food
quality management●Future studies and data gathering to improve
models●Policy research / support for institution building
Organisational form:●H2020: research infrastructures, multi-actor
projects (EU could give explicit attention in calls)●Public private programmes: e.g. EBRD
Two scenarios, with significant impacts ?
1. Scenario CAPTIVE PRODUCT CHAINS: ● Farmer becomes part of one integrated supply chain as a
franchiser/contractor with limited freedom ● one platform for breeder, machinery company, feed company,
farmers and milk processor.● Weak integration with service providers, government ?2. Scenario OPEN NETWORK COLLABORATION:
• Market for services, apps and data• Common, open platform(s) are needed• Higher upfront, common investment ??• Business model of such a platform more difficult?• More empowerment of farmers and cooperatives?
F
F
Chain organisation changes (©Gereffi et al., 2005)
inpu
ts
E
nd p
rodu
ct
PRICE
Shops
Complete Integration
Lead company
Leadcompany
Turnkey supplier
Relationalsupplier
Market Modular Relational Captive Hierarchy
Low Degree of explicit coordination and power asymmetry High
Leadcompany
Farmers
Chain contracts replace open markets?
Genetics and conditioning of the production environment makes planning possible (see vegetables)
Contracts with exchange of data (and compliance audits) for labels, sustainability brands, regional food (see egg production)
Genetics makes specialties and prescriptive farming possible (see IPR on hybrids in genetics in chicken)
ICT moves some decisions from the farm to the input industry or the food processing.
ICT makes long distance coordination and information exchange possible
Development of farm systems
Net value / ha
Time
Agricul-tural
Family Firms (sme)Family
farming
Lati-fundia
socialist state farms
Subsis-tence
farming
Ag. policy
AKIS.gov
Food supply networks
3rd gen. uni
Market integration
Supply chain integration
Urban farming
Residen-tial
farming
Metropolitan agriculture
3. Changes for East-West collaboration in science and innovation
Topics:●ICT and precision farming●Supply chain integration on food safety and food
quality management●Future studies and data gathering to improve
models●Policy research / support for institution building
How to organise:●H2020: research infrastructures, multi-actor
projects (EU could give explicit attention in calls)●Public private programmes: e.g. EBRD
Agribusiness in Ukraine Today
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32% of employment
30% of export
16% of GDP
11% of budget revenues
Agribusiness in Ukraine:
#1 Producer of sunflower seeds and oil, and exporter of
sunflower oil#3 Exporter of grains
and exporter of rapeseeds
#5 Producer of honey#8 Exporter of
poultry and producer of soybeans
Ukraine’s global role:
#23 agri-food exporter with high
potential
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EBRD Investments in Ukraine’s Agribusiness Sector
• EBRD is the largest private sector investor in Ukraine, with over €1.7bn invested in the agribusiness sector in the last 10 years
• €150-200m invested annually or 15-20% of the Bank’s total investments
• 2014 was a record year with 13 new transaction for total of €251m
Crop farming5%
Animal farming
28%
Commodity trad-ing
25%
Meat process-
ing31%
Edible Oil 7% Fruit
processing4%
Annual Business Investments (Dec 2015)
EBRD agribusiness investments 2012-15Country € million # projects
Ukraine 772 37
The Pilot Programme
Four components Promoting innovation for agribusiness on a case-by-case
basis – Ukraine Overcoming market access barriers through working
groups – Ukraine Assessing backward and forward linkages with SMEs –
Western Balkans Supporting FINTECC in greening agribusiness value chains
– Ukraine and other countries
1. Promoting innovation for agribusiness on a case-by-case basis – Ukraine
Component leader: Jos Verstegen Work on a case-by-case basis to
promote innovation Investigate what is needed to
improve competitiveness Showcase opportunities:
technological and business model ‘Anchor’ the process by involving
local institutions and building a platform between local businesses and institutions
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2. Overcoming market access barriers through working groups – Ukraine
Component leader: Siemen van Berkum Analyse trade and food markets Identify market access barriers Conduct a stakeholder survey Provide recommendations to public-
private working groups on how to tap into new markets for Ukrainian goods
Indicate priorities for Ukrainian reform
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3. Assessing backward and forward linkages with SMEs – Western Balkans
Component leader: Karin Zimmermann
Work with SMEs and retail to identify ways to improve competitiveness, operational efficiency and sustainability
Focus on uptake of innovative technologies at the retail stage and positive spill-over effects along the value chain
Develop indicators, benchmarks, action plan to link value chain parties
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4. Supporting FINTECC in greening agribusiness value chains – Ukraine a.o.
Component leader: Marijke Brune Conduct in-depth analysis of climate
technologies in Ukraine Design a voucher scheme with focus
on resource-efficiency and environmental sustainability
Build a network of experts and consultants
Provide recommendations on how to implement the voucher scheme (local embedding, database, etc.)
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Take home messages
We have to strengthen the East-West interaction in science, R&D and innovation
It could be linked to the economic relationship in trade and investments
ICT and supply chain management as topics and input for (data gathering for) future studies and policy research
Multi-actor and public private partnerships could be useful organisational arrangements
Thanks for your attention
www.wur.nl
Thanks to:• Siemen van Berkum (International
trade and policy evaluation)• Jos Verstegen (EBRD-project)