Introduction

This was a seminar aimed at consultants in the Agri-technolgy sector with presentations from a number of senior figures from the "funding industry".  I have a list of those attending and hard copies of the presentations should anyone want them.

To me is was disappointing in that there are clearly huge amounts of aid money available, but little is being directed at improving the lives of the poor and most (in some cases all) is aimed at "Politically Correct" projects on "The Environment".  Furthermore the structure of these agencies is so high level that there was little if any concept offered of how to identify projects which might be of interest or how to practically apply for funds.

Phillipa David - International Agri technology Centre (IATC)

This organisation is funded by Advantage West Midlands and is a subsidiary of Cambden BRI.  Its objective is to identify opportunity for UK Industry and is focussed on agri food sciences, environmental sciences, technology and innovation.   The key strategic areas it follows are EU funded projects and other Aid Funded business, chiefly in Food Security, "Trade not Aid", Capacity building (really capability building) and sustainability projects.

What was much less clear from the presentation was how it actually publicises and awards projects, as the whole emphasis was on structure rather than access, indeed that comment could be made about the whole event.

Yvonne Dale - Word Bank Group Procurement Procedures

The majority of this presentation was devoted to explaining the structure of this section of the British Embassy in Washington. Two websites where projects are announced were mentioned - www.worldbank.org (described as being very difficult to navigate) and http://www.iadb.org/.

Consultants appear to be hired by the bank to do studies, but these positions are not advertised and generally rely on knowing a person involved.  It is possible to register on the World Bank website, but how valuable this is is debatable.  It may be worth following up with the speaker who appears to see a role as an intermediate between the World Bank and potential suppliers of services.  The organisation offers an annual subscription service but this does seem to be aimed at large consulting firms with global presence

Mark Cackler - World Bank Strategy in Agriculture

This was an interesting presentation on the World Bank's current thinking on Agricultural Development and it did address the issues of poverty reduction.  Lots of good words, but again few ideas about how realistically to get involved.  I will paraphrase the presentation:-

75% of the world's poor are rural and most are involved in farming.  Development of agriculture remains fundamental for poverty reduction, economic growth and environmental sustainability.  Fundamentally a productivity revolution is needed amongst small farmers because growth from agriculture is especially effective in poverty reduction.  This can make a major contribution to important environmental factors as small farmers use 70% of the world's fresh water resources, 40% of its agricultural land area and contribute30% of its greenhouse gas emissions.

Global trade issues remain a major obstacle, particularly tariff and subsidy protection of the developed world farming industry which affects Cotton, Oilseed and Wheat in particular.  However there are other important issues:-

•·        Making growth "pro poor" by improving the connection of smallholders to new markets (but what about the latest fashion in food miles)

•·        Improving the assets of the poor, especially women (Anyone who has worked in Africa in particular will recognise this issue)

•·        Weakness of governance (ie corruption and centralisation of power)

•·        Trade Standards, Animal Health, Biodiversity

•·        Low spending on agricultural R&D in agriculture based countries (typically 4% of GDP)

•·        Misinvestment - spending on subsidies rather than investing to make agriculture more efficient

"The Good Words"

The World Bank Agriculture Action Plan will frame activities for the next three years (a pathetically short timescale over which little will be achieved)

•·        Raise Agricultural productivity

•·        Reduce risk and vulnerability

•·        Link farmers to markets

•·        Facilitate agricultural entry and exit

•·        Enhance environmental services and sustainability

How individual consultants can get involved in this was not mentioned.  There were many well qualified people at the meeting, but no connection.

A Final Comment

In 2008 50% of the maize crop in Ghana was lost due to inadequate storage - this is typical in subsistence farming. I can't believe it is that difficult or expensive to save 50% of this loss, increasing food supply by 50%.  If Acumentia wanted to initiate one "global" project, find money for one initiative, wouldn't this be a good one?

Juan Pablo Bonilla - IADB Focus on assisting with climate change in Latin America

The Inter American Development Bank is basically a funding organisation.  This presentation largely consisted of an exposition on how much money had been given to aid alcohol from maize facilities in South America.  The IADB only hands out money to businesses it sees as attractive.

Wojtec Boniaszcuk - The European Bank for Reconstruction and Development

The EBRD has a number of key objectives but lends to existing viable projects which are brought to it rather than initiating projects per se.  It generally only loans 35% of the cost of a project

•·        Support the transition to market orientated economies

•·        Mobilise foreign direct investment

•·        Support privatisation and restructuring

Jan Soeltenfuss - European Union External Aid

This presentation was by a member of the Commercial Section of the UK Permanent Representation to the EU.

Whilst there are massive EU funds available in the Agricultural sector there is an extremely structure system for awarding funds and information which is publicly available is likely to be too little and too late for anyone to be successful on this basis.  In addition companies need a strong track record and a partnership with a business in another EU country with links to the target country to have any chance of success. 

The Commercial Section can provide information and support to businesses via a range of chargeable services which seem to be the only way of finding out information on possible opportunities early enough and in sufficient detail even for those with the track record and resources available.

A couple of the warnings which were issued were quite telling:-

•·        Success is likely to take many years of effort and require substantial corporate structures

•·        Ensure that you have the capacity to spare to run and manage the bidding process

•·        Involvement is expensive and could severely affect the cash flow of a business

Jeri Jensen - The Milennium Challenge Corporation

The MCC is an American foreign assistance programme designed to "reduce poverty through sustainable economic growth".

Grants are made for projects in countries which can demonstrate:

•·        Sound Governance, economic and social policies

•·        Country Ownership of projects

•·        Clear objectives and measurement of results

The majority of projects seem to be infrastructure rather than agriculture per se - for example building roads to improve communications and irrigation.  Likely to be of interest to contractors rather than consultants, but perhaps an entrée for consultants to contractors?

Their tenders are published daily on their website - www.mcc.gov/procurement