Prof. Rolando T. Dy, Ph.D. Executive Director, Center for Food and Agri Business Dean, School of Management University of Asia and the Pacific
ASEAN AS A GLOBAL FOOD BASKET: Challenges, Opportunities and Global Competitiveness Bogor, Indonesia May 2010 R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
Role of Agriculture and Agribusiness The Global Picture: Challenges and Opportunities The ASEAN Global Presence The ASEAN Strategic Advantage Competitiveness Guidelines Challenges Food for Thought
OUTLINE R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
Economic contribution to GDP, food, raw materials for processing, and exports Linkages user fertilizers, machinery, transport, storage, finance and trade Livelihood - jobs Environment - impact of water use, deforestation, coral reefs, climate change
Source: World Bank, World Development Report 2008; Author, 2010 STRATEGIC ROLE OF AGRICULTURE R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Strong synergies between agriculture and economic development Dynamic and efficient agribusiness spurs agricultural growth Strong links between agribusiness and smallholders can reduce rural poverty - WDR 2008 AGRIBUSINESS AND ECONOMIC GROWTH R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 AGRICULTURE Grains, fiber, fruits, vegetables, tree crops, fishery, aquaculture SERVICES -Banking -Transport -Storage -Trade -Consulting -Government INDUSTRY -Processing - Fertilizers - Machineries Farm Inputs Food & Raw Materials AGRIBUSINESS AND SECTORAL LINKAGES R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Agriculture as % of GDP Agribusiness as % of GDP
Multiplier Indonesia 20 33 1.6 Malaysia 13 36 2.8 Thailand 11 43 3.9 Argentina 5.6 32.2 5.8 Brazil 7.5 26.6 3.6 Chile 8.5 32.1 3.8 Costa Rica 12.8 32.5 2.5 Source: World Bank (2008), Guilhoto ( 2004 ), Jaffee (1999). AGRIBUSINESS AND MULTIPLIERS R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 THE SHARES OF AGRICULTURE AND AGRIBUSINESS IN GDP CHANGE AS INCOME RISES (WDR 2009) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 THE RATIO OF FOOD PROCESSING TO AGRI. VALUE ADDED RISES WITH INCOME R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 GLOBAL TRENDS
Diversification toward high-value production - a demand-driven process in which the private sector plays a vital role Higher incomes, urbanization, and changing preferences cause domestic consumer demand for high-value products Food spending is shifting from grains and staples to vegetables, fruits, meat, dairy, and fish. Demand for ready-to-cook and ready-to- eat foods is also rising, particularly in urban areas. - IFPRI, 2007 R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 THE GLOBAL CHALLENGES
Pressure on food supply Rising energy costs High fertilizer costs Increasing land scarcity Increasing water scarcity Climate change Stringent food standards
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Pressure on Food Supply Growing demand for food, feed, and biofuels Industrialization, urbanization and infrastructure reduce prime farm lands Less water for agriculture
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Rising Input Prices Energy and fertilizer Sustained demand for food and bio- fuels production No/few new discoveries of large oil fields (peak oil?) Non-renewable supplies of natural gas (urea-N) phosphate (P) and potash (K) Sources limited to few countries
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Land and Water Scarcity Conversion of farm lands to many uses Competing water use: agriculture, industry, infrastructure, housing Today: agriculture accounts for about 70% Climate change R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Climate Change Increasing variability Rising intensities of droughts, floods, and typhoons. Impact on farm areas and yields
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Food Safety Standards New non-tariff barriers New opportunities are stifled by rigorous safety and quality standards of countries, processors and retailers Traceability certifications can be costly for SMEs Many developing, agri-exporting countries are ill-prepared. R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 GLOBAL OPPORTUNITIES Rising incomes and wealth in Asia - China, India, ASEAN Supply chain transformation Bio-fuels boom Technology advances (Life sciences + ICT) Liberalized trade Cross-border investments
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Moving goods efficiently With faster turnaround Multi-points sourcing Lower final costs to consumers
Impact: Countries, regions and firms with better logistics have the competitive edge. Supply Chain Transformation R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Bio- ethanol Raw materials: sugarcane, cassava and sweet sorghum Bio-diesel Raw materials: palm oil, palm kernel oil, coconut oil, jatropha(??)
Biofuels (Mandated In Many Countries) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 GMO impact of increasing yield and shelf life, better nutrition, cost-effective plant architecture, nitrogen-fixing trait, and elimination/reduction of cost of farm chemicals use. ICT impact on connectivity: rapid transmission of market signals, market transactions, new technologies, and decision-making Technology advances (Life sciences + ICT) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Liberalized Trade AFTA China-AFTA Bilateral FTAs APEC WTO R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Cross-border investments FTAs enlarge markets, lift economies of scale, and attract foreign direct investments (FDI) Improving risk profile attracts attract foreign capital into emerging economies Simplified customs and quarantine Lower barriers of nationalism R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Rising incomes and wealth in Asia - China, India, ASEAN
Population size Rapid economic growth Fast-rising middle class R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Population Sizes, 2008 1,326 M 1,140 M 192 M 142 M 128 M 228 M 90 M 86 M 67 M 49 M 27 M 15 M 6 M 5 M 0.4 M ASEAN R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 China: 1,326 M Ave. economic growth: 10% p.a. 300 M middle class (mostly in the coastal cities) Olympic and Expo dividends China Market R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 "By 2025, China will have 221 cities with more than one million inhabitants compared with 35 in Europe today and 24 cities with more than five million people." "By 2030, 1 billion people will live in China's cities 170 mass-transit systems could be built40 billion of square meters of floor space will be built in five million buildings 50,000 of which could be skyscrapers.
Source: Mckinsey Global Institute, J une 2008 China in 15-20 Years R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Mainland China has: 22 provinces 5 autonomous regions 4 municipalities. 20 provinces have population of over 30 million! Each province is a different country!!
China Market R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 2004 2007 2008 (e) Consumer Spending $ billion 758 1,160 1,226 Food Spending $ billion 276 295 405 China Consumer Market Large Size, High Growth Shanghai GDP surpassed Hong Kongs in 2009 Source: Euromonitor R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Key agriculture and food imports: Vegetable oils Fresh fruits Seafoods Raw materials (rubber, hides, cotton, etc.) China Food Market R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 China Since 1978, agriculture growth has exceeded the growth of population by nearly five times, transforming the country's food economy.
But, with 240 million small farms (ave. < 0.6 ha), there are challenges in moving the system into a modern, vertically integrated and able to meet the nation's increasing demand for safe, traceable and reliable food.
Source: Huang, L.(2008) Regoverning Markets Programme http://www. eldis-agriculture@lyris.ids.ac.uk R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
Supermarkets and hypermarkets are expanding and packaged food is getting more common. From 2000 to 2008, the average real annual growth in retail sales of packaged food was 10.8% on the mainland, way above the average 4.2% in the Asian region as a whole.
- HKTDC (March 13, 2009) China R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Nowhere in the world is there a market like this nowhere. To me, the 21 st
century will be the Chinese century. China will change the economic balance of the world.
- Guy McLeod, President, Airbus China (China CEO: Voices of Experience by Fernandez and Underwood, John Wiley, 2006)
CEO Quotes R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Population: 23 M start of aging? High income: ~$20,000 per person Food importer: over $3 B a year Wheat, soybeans, corn Processed foods
Source: http://www.cepd.gov.tw/ Taiwan R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 2004 2007 2008 (e) Consumer Spending $ billion 195 222 226 Food Spending $ billion 42 50 51 Taiwan Developed Country Lifestyle Source: Euromonitor R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Population: 128 M High income market Aging and declining population Large tourists base
Japan Rich but Aging R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Japan Quality-conscious but stagnant market 2004 2007 2008(e) Consumer Spending $ billion 2,546 2,394 2,391 Food Spending $ billion 363 330 325 Source: Euromonitor R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Food importer: $60 B a year Grains for feeds; some rice Meat Fruits, vegetables Seafood Quality and food safety concerns
Japan R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Consumer Market: 49 M High income markets Aging population Home to Samsung,LG, Hyundai and Kia
South Korea R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 2004 2007 2008(e) Consumer Spending $ billion 337 492 504 Food Spending $ billion 50 72 73 South Korea Developed Country, High Density Source: Euromonitor R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Food import: over $12 B a year Grains except rice Fruits and vegetables Seafood Quality and food safety concerns
South Korea R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Rising incomes and wealth
Global corporations are transforming opportunities for small agricultural producers. Transactions along the corporate food chain have increased. Between 2004 and 2006, global food spending grew by 16 percent from US$5.5 trillion to 6.4 trillion (Planet Retail 2007).
- IFPRI, December 2007 R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 The ASEAN Nearly 600 M consumer market Indonesia 228 M, Philippines 90 M, Vietnam 86 M, Thailand 67 M, Malaysia 27 M Over 150 M middle class Diverse cultures and markets Heavy food importer: wheat, meat, fish, fishmeal, temperate fruits, but a global exporter. R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 THE ASEAN
In the whirlwind of opportunities. A global agri-food player: over US$90 B in exports Rich resources: land, seas, and people. R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 ASEAN COUNTRIES ARE GLOBAL FOOD PLAYERS Global Rank 1 2 3 Rice Thailand Vietnam India Palm oil Indonesia Malaysia Thailand Coconut oil Philippines Indonesia India Chicken meat Brazil EU Thailand Coffee, robusta Vietnam Indonesia Brazil Sugar Brazil Thailand Australia Banana, fresh Ecuador Philippines Costa Rica Pineapple, canned Thailand Philippines Indonesia R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 ASEAN COUNTRIES ARE GLOBAL FOOD PLAYERS Global Rank 1 2 3 Shrimps China Thailand Vietnam Catfish Vietnam China USA Canned tuna USA Thailand Spain Tapioca starch Thailand Vietnam Indonesia Pepper Vietnam India Brazil Cashew Vietnam Nigeria India Cacao Ivory Coast Ghana Indonesia R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 ASEAN Presence in World Food Trade (000 tons) Product ASEAN Export World Export % Share ASEAN Remarks Rice 14,600 28,670 51 2008/09: Thailand, Vietnam, Cambodia Palm oil 32,223 35,480 91 2008-09: Indonesia, Malaysia, Thailand, USDA Coconut oil 1,401 1,516 92 2008/09: Philippines, Indonesia Coffee 1,380 5,376 26 2008/09: Vietnam, Indonesia USDA Chicken meat 385 8,183 5 2006: Thailand. USDA Sugar 6,000 48,180 12.5 2008/09:Thailand, Philippines USDA Banana, fresh 1,856 17,666 10.5 2007: Philippines. FAO Pineapple, canned 896 1,173 76 2007: Thailand, Philippines, Indonesia R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Product ASEAN Export World Export % Share ASEAN
Remarks Total Fishery Products 13,582 93,520 14.5 2007: All fishery and aquaculture, FAO (US$ million) Shrimps 901 3,691 24 2006: FAO Catfish ~500 ~600 > 80 2008: Vietnam Canned tuna 480 1,026 47 2004: Thailand, Philippines, Indonesia (Globefish) Cassava, dried 6,086 6,897 88 2007: Thailand, Vietnam Indonesia. FAO Pepper 156 258 53 2007: Vietnam, Indonesia, Malaysia, FAO Cashew 165 345 47 2007:Vietnam, FAO Cacao beans >356 2,535 >14 2007/08 Indonesia, ICO ASEAN Presence in World Food Trade (000 tons) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 ASEAN AGRI-FOOD PLAYERS (Revenues of US$1,000 million and over in 2008)
Wilmar International (Singapore) CP Group (Thailand) Sime Darby (Malaysia) Olam International (Singapore) Felda Holdings (Malaysia) IOI (Malaysia) Indofood (Indonesia) San Miguel (Philippines) Thai Union Frozen Seafoods (Thailand) RGM (Singapore) Golden Agri Resources (Indonesia) KLK (Malaysia) SMART (Indonesia) Musim Mas (Indonesia) Asia Pacific Breweries Ltd (Singapore) Kulim (Malaysia) F&NHB (Malaysia) Universal Robina Corp (Philippines) Vinafood 2 (Vietnam) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 ASEAN AGRI-FOOD PLAYERS (Revenues of US$300-US$1,000 million in 2008)
Astra Agro Lestari (Indonesia) Petra Foods (Singapore) Thai Vegetable Oil (Thailand) Halil Karsa (Indonesia) QAF Holdings (Singapore) Saigon Beer Alcohol Beverage (Vietnam) Liwayway Group (Philippines) Vietnam Dairy Products (Vietnam) Mayorah Indah (Indonesia) Tunas Baru Lampung (Indonesia)
Ha Hai Company (Vietnam) Del Monte Pacific (Philippines) Top Glove (Malaysia) Monde Nissin (Philippines) Khon Kaen Sugar Industry (Thailand) Guiness Anchor (Malaysia) United Plantations (Malaysia) Genting Plantations (Malaysia) Bakrie Sumatera Plantation (Indonesia) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 ASEAN Food Retailers SM Investments (Philippines) Matahari (Indonesia) The Store (Malaysia) Central Food Retail (Thailand) NTUC Fair Price (Singapore)
Jollibee (Philippines) Minor Food (Thailand) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Selected ASEAN agriculture exports Values in 2007 Exports ($ B) Imports ($ B) Balance ($ B) Export/ Farm Area ($) Indonesia 23.4 10.5 +12.9 710 Malaysia 20.5 10.6 +9.9 2,710 Thailand 25.0 8.4 +16.6 1,420 Vietnam 11.7 6.1 +5.6 1,500 Source of basic data: WTO, CIA R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 COMPARATIVE AGRICULTURE AND FISHERIES RECORD (Revealed Comparative Advantage) Export Value in$ B INDON MALAY THAI VIET Fish, etc. 1.6 2.3 2.5 Veggies 0.7 0.2 Fruits and nuts 0.5 Coffee 0.9 1.6 Cocoa and prep 0.9 0.6 Cereals & prep 2.7 0.9 Vegetable oils 6.1 7.0 Seafood prep 0.3 4.0 0.6 Rubber prod 5.5 4.8 8.9 0.9 All products 15.8 12.4 22.8 7.3 Products Revealed Comparative Advantage (RCA) >1 (2006) Source: ITC R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 INDONESIA as ASEAN Anchor Feed Indonesia, then feed the world, was the recent call by President SBY. Between 2010 and 2030, Indonesia expects to become one of the world's biggest producers of rice, maize, sugar, coffee, shrimp, meats and palm oil, senior agriculture ministry official Hilman Manan said. R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 INDONESIA as ASEAN Anchor
The first area targeted for development is 1.6 million hectares in Papua - the Merauke Integrated Food and Energy Estate. We chose Merauke because it's the ideal place for food crop cultivation, such as rice, corn, soybean and sugar cane. Merauke district has 4.5 million hectares of land; 2.5 million hectares are ideal for cultivation, The area is flat and has a good climate. Its soil is appropriate for those crops. Sumatra is already congested with other plantations, such as palm oil, and Kalimantan is already full of mining areas and many plantation areas also. - by Hilman Manan (AFP Report, Feb 21, 2010) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
Factor endowment Difference in productivity and costs Dynamic economies of scale
Source: Colliers and Venable (2007), Eifert, Gelb and Ramachandran (2005), and Wood and Mayer (2001) as quoted in the World Development Report 2008 SOURCES OF COMPETITIVE ADVANTAGE R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Factor endowment
Natural resources Land, Water, Sea Human capital Quantity and Quality
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
Business climate Infrastructure Institutions
Productivity and Cost Drivers
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 On Business Climate
Good macroeconomic fundamentals Reasonable fiscal and external balances, realistic exchange rate, low inflation and interest rates, competitive markets Social and political stability.
- ADB (2005) Philippines: Moving Towards a Good Investment Climate.
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
Infrastructure availability and quality of roads and ports, telecommunications, power and water supply. Maintenance of assets
- ADB (2005) Philippines: Moving Towards a Good Investment Climate.
On Business Climate R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
Governance and institutions: Transparency and efficiency in regulation, taxation, and legal system Strong and well-functioning financial sector, labor market flexibility Skilled labor force.
- ADB (2005) Philippines: Moving Towards a Good Investment Climate.
On Business Climate R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Economies of Scale Size matters Critical mass of raw materials Early movers have an advantage ECONOMIES OF SCOPE Supplier industries and services in the cluster Support institutions
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Near Large Markets (China, Japan, Korea) Large Internal Market Natural Endowments (Land, Water, Seas) Skilled Manpower Entrepreneurship Logistics Hub (Singapore/Malaysia)
ASEAN Strategic Advantage R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 IMPORT Domestic Price < Border (CIF) Price
EXPORT Domestic Price < Border (FOB) Price GLOBAL COMPETITIVENESS R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 PROCESSORS INPUT SUPPLIERS GROWERS/ PRODUCERS CONSUMERS DISTRIBUTORS RETAILERS Seed supplier Breeder Researcher Propagator, etc. Abbatoir Cannery Mill, etc. Farmer Grower Grazier Pastoralist Wholesaler Importer Exporter Transport company, etc. You and me Restaurant Supermarket Hotel, etc. SOURCE: New Industrial Development Program (NIDP) MADE IN AUSTRALIA, Number 1, Series 3, AFFA (2003). THE SUPPLY CHAIN
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
AT THE FRONT OF THE SUPPLY/ VALUE CHAIN: The cost, availability, and reliability of raw materials delivered to the processors
DETERMINANTS OF GLOBAL COMPETITIVENESS Source: AFFA R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
ALONG THE SUPPLY/VALUE CHAIN: The relative efficiency in value adding Importance of financing, manufacturing, packaging, branding, marketing and distribution.
DETERMINANTS OF GLOBAL COMPETITIVENESS Source: AFFA R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 When raw materials are priced below world prices: Processors are able to compete in price-sensitive markets provided supply chains are efficient.
Source: AFFA AGRO-INDUSTRIAL COMPETITIVENESS R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Inter-connectivity of roads to ports Land consolidation for large scale raw materials Supply chain efficiencies
IMPLICATIONS R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Where raw materials are priced at near world prices: good marketing innovative product development a sound understanding of consumers are keys to compete in value sensitive markets
Source: AFFA AGRO-INDUSTRIAL COMPETITIVENESS R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Investing in marketing and export development Investing in product R&D Investing in market research and intelligence IMPLICATIONS R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Where the prices of raw materials are higher than those of competitors:
it would be tough to develop products for the export. Source: AFFA AGRO-INDUSTRIAL COMPETITIVENESS R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Address longer term issues of: productivity plant efficiencies logistics scale IMPLICATIONS R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010
Increase farm productivity Expand market-led diversification Promote non-farm and off-farm jobs through supply/value chain linkages
RESPONSE TO THE CHALLENGES AND OPPORTUNITIES R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 AGRICULTURE pathways out of poverty
Increase productivity in food sector Connect smallholders to rapidly expanding high-value horticulture, poultry, aquaculture, as well as dairy markets Generate jobs in the rural nonfarm economy. Source: World Bank, WDR 2008 R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 RESPONSE TO THE CHALLENGES Rising energy costs: ENERGY FROM BIO-MASS AND BIO- FUELS? High fertilizer costs: GOING ORGANIC? Increasing water scarcity: R&D into less water intensive crops and dryland crops
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 RESPONSE TO THE CHALLENGES Climate change: mitigation, preparedness, and R&D Stringent food standards: Laboratory facilities, trainings in GMP and HACCP Strategic Alliances: supply chain, global marketing, and R&D
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 R & D is a major catalyst of agriculture growth in competitor countries. Education and roads are next.
RANKING OF PUBLIC INVESTMENT EFFECTS ON SECTORS (INTERNATIONAL EXPERIENCE) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 Item China India Thailand Vietnam Ranking of Returns in Agriculture Production Agriculture R & D 1 1 1 1 Education 2 3 3 3 Roads 3 2 4 4 Telecommunications 4 - - 2 Irrigation 5 4 5 5 Electricity 6 8 2 - Soil and water conservation - 6 - - Item China India Thailand Vietnam Ranking of Returns in Poverty Reduction Agriculture R &D 2 2 2 2 Roads 3 1 3 4 Education 1 3 4 3 Telecommunication - - - 1 Electricity 4 8 1 - Irrigation 6 7 5 5 Source: Shenggen Fan (2005). The Role of Agriculture in Poverty Reduction: Evidence from Asia. IFPRI RANKING OF PUBLIC INVESTMENT EFFECTS ON SECTORS (INTERNATIONAL EXPERIENCE) R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 FACTORS IN AGRI DEVELOPMENT MACRO ECONOMIC POLICIES PUBLIC INVESTMENT INFRASTRUCTURE AND R & D
INSTITUTIONS (Bureaucracy) LAND MARKETS AND LAND LAWS PRIVATE INVESTMENTS (INVESTMENT CLIMATE) HUMAN CAPITAL AND EDUCATION POLITICS, ELECTIONS CONTINUITY AGRICULTURE DEVELOPMENT
ACCESS TO NATIONAL AND GLOBAL MARKETS R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 FOOD FOR THOUGHT Know your enemy, know yourself, and you can fight a hundred battles with no danger of defeat. When you are ignorant of the enemy but you know yourself, your chances of winning and losing are equal. If you dont know your enemy or yourself, you are bound to perish in all battles.
- Sun Tzu, The Art of War as cited by Ghemawat,Strategy and the Business Landscape, 2006 R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 FOOD FOR THOUGHT Globalization is about producing where it is most cost effective, sourcing capital from where its cheapest and selling it where it is most profitable. - N.R. Narayana Murthy, Infosys, 2003 as cited by Ghemawat, Redefining Global Strategy, Harvard Business School, 2007.
R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 FOOD FOR THOUGHT
Innovation has become a primary force in determining industry growth and performance. Unfortunately, a wide gap exists between aspirations to innovate, and the ability to execute. - Paraphasing The McKinsey Quarterly 2007 R. Dy, UA&P, March 2010 R. Dy, UA&P, May 2010 TERIMA KASIH! MARAMING SALAMAT! THANK YOU!