Appraisal of Institutional Mandates for Agribusiness Support in Asia

Background

The Rural Infrastructure and Agro-Industries Division (AGS) of the UN Food and Agriculture Organization (UN-FAO) commissioned SEARCA to undertake an appraisal of the institutional mandates for agribusiness support in Asia. The purpose of the appraisal was to identify and characterize the organizational models being introduced by the Ministries of Agriculture (MoAs) to carry out new functions related to agribusiness. The appraisal also aimed to provide sound guidance on how MoAs would become more effective and efficient service providers to support agribusiness and agro-industries development.

Project Components

The appraisal was conducted in two phases, namely:

1. Phase I - scoping survey which identified existing organizational structures with mandates related to agribusiness in all the countries of East, South, and Southeast Asia.
2. Phase II - in-depth country cases for several countries in Asia which analyzed the innovative organizational structures for agribusiness in terms of their mandates, functions, scope of services, institutional comparative advantage, and strengths and weaknesses.

The focus of the appraisal was on the specific sub-set of possible institutional arrangements, namely:

1. Agribusiness or agro-industry units within the ministry of agriculture.
2. Cross-ministerial committees that have mandates related to agribusiness or agro-industries.
3. Sectoral (or sub-sector) development programmes dealing with the agribusiness and agro-industrial sectors (e.g. cluster or value chain programmes).

Key Findings

During the FAO Outreach Event on Institutional Support for Inclusive Agribusiness and Agro-industries Development in Asia held on 6–7 November 2012 in Dusit Thani Hotel, Makati City, Philippines, Ms. Eva Gálvez, Agribusiness Economist of the FAO AGS Division, presented the following key findings from the in-depth case studies on six countries (Bangladesh, Indonesia, Malaysia, Nepal, Philippines, and Vietnam):

• Quality and effectiveness of the institutional structure(s) with the mandate to support agribusiness development is important and cannot be taken for granted if countries want to enjoy a vibrant agribusiness sector.

• Promote an enabling agribusiness environment and ensure good governance.

• Organizational and enabling environment processes should go hand in hand and reinforce each other.

• Heterogeneous institutional development, but ample room for regional cross-learning.

• New principles and mechanisms have been designed and put in place (e.g. Indonesia and the Philippines) to improve intra- and inter-ministerial coordination through planning convergence (Philippines) and downstream off-farm consolidation (Indonesia).

• Forward-looking countries (e.g., Indonesia and Malaysia) have been able to adapt and attune faster to new functions (e.g., agro-value chains).

• FAO can help member countries to build their capacities to deliver traditional and new functions for agribusiness development and foster better agribusiness governance.

Related Article:

SEARCA Implements FAO-funded Study on Agribusiness in Asia