AgroIndustry & Food Security

In line with the Millennium Development Goals and within the framework of poverty reduction, the issue of food security has attracted international attention. The concept of food security means food availability as well as individuals capability to access to enough of it. In general, it is recognized that poverty affected people living in rural area where livelihood is mainly based on agriculture. What emerges in Developing Countries is that despite implemented efforts to improve agricultural productions, the amount of the population that live below the poverty line and suffering food insecurity is still high. In these Countries, the main issues concern resources and money lack. Given that there are not investments coming from local parties, and that these Countries security food systems are not so developed as Industrialized Countries ones, poverty is considered the first barrier to food security.

Within this framework and in order to improve food supply, UNIDO assists African Continent through the promotion of some specific projects and programmes directed to agro-industry and food security as well as highlighting the need to develop technologies and techniques to reduce post harvest losses, to increase quality systems and, therefore, to enhance food safety.
It should be also mentioned the organization of some round table discussions to create a positive environment for competitive agro-industries in order to achieve food security as well as economic growth in Developing Countries.

At this purpose, the Service emphasises the importance of agricultural production growth to fight poverty as well as the strengthening of production capacity building through technological development for value adding.
In this context, preservation/storage and processing/packaging techniques have been implemented with the aim to reach a safety food production in small and medium agro-industries as well as in local clusters.

Additionally, the Service provides support trough policy advice and coordinated activities in rural area on the basis of specific programmes that are submitted to the donor communities for funding.

Within this framework, UNIDO ITPO Italy actively operates for the promotion of some targeted projects concerning the issue of food security and food safety in Developing Countries. In particular, the implementation of these programmes aims to increase food security measures in Senegal as well as in Mozambique, a Country in which food security policies have been adopted only after the war period and required an innovative and inter-sectorial approach.

In the Senegalese context, ITPO Italy manages some projects aimed to the modernization of packaging industry. To this end, the promotion of better type packaging processes aims to protect the food from microbial and chemical contamination, oxygen, water vapour and light. In this Country the sector mainly interested in food security is the fishery industry, because some products have to be cooked or washed and then graded and frozen at -40°C. In addition, they have to be conserved at -18°C before being stored in containers for export.

Moreover, at the aim to promote technology and know-how transfer to ensure food security, and in a context of fight against hunger, UNIDO ITPO Italy collaborates with Ipack-Ima Spa, the biggest Italian international exhibitions organizer in the fields of food processing, packaging and logistic technologies.
This cooperation has the goal to promote events, in Italy and abroad, focused on technology transfer in Developing Countries, aimed to build a specific path with a view to Expo 2015 in Milan, whose main theme is “Feeding the Planet, Energy for Life”. In January 2010, UNIDO ITPO Italy and Ipack-Ima signed an agreement to strengthen their collaborative relationship in this field.

Their shared commitments to improve food security in Developing Countries is attested by international conferences, organized by Ipack-Ima and UNIDO ITPO Italy, such as: “More Technology, Security&Quality and Less World Hunger” Milan 2009; “Ipack-Ima days- Technologies for Food Security” Bologna 2010; “International Fair” Düsseldorf 2011 as well as the International Trade Fair on packaging and food processing that will be held from 28th February to 3nd March 2012 in Milan. In this occasion, UNIDO ITPO Italy Technological Innovation Award for Food Safety in Developing Countries (launched within Düsseldorf Fair) will be assigned to worldwide stakeholders that have adopted best innovative solutions for what concerns technologies to improve food security and food supply management, as well as better transportation and distribution services within the framework of humanitarian emergencies.

Industrial Priorities

The demand of fishery products is high and it is growing in international market. The sector is affected by two big issues: decreasing of catches and strong pressures on some of the main fish stocks. The evident consequence is a limited availability supply, despite the recent growth of aquaculture.

The above mentioned sector features lead to the existence of a highly fragmented value chain for the capture of wild fish and a total absence of leading specific group of actors. Differently from the value chain of other products, retailers and brand manufactures are not so dominant in the fishery sector.

In Developing Countries, there is a lack of fish processing before export causing a loss of product value compared to the processed one. The ability of Developing Countries to export value-added products is hindered by the establishment of some tariffs in the market, imposed by Developed Countries against imported and processed fishery products. In addition, Developing Countries have to comply with safety and quality standards imposed on the market by the international community but the lack of technical know-how and financial resources hinder them to meet these standards.

The role of UNIDO, in technical assistance to fishery industry, covers: characteristic technological features of small, artisanal fishery and of large scale, as well as off-shore operations up to the factory ship level, choice of technology in developing countries. The support of UNIDO in the fishery sector is also based on training programmes for fishermen and boat owners, as well as good operational management practices along the entire fisheries chain. The Service also provides technical advice for the improvement of fishing boats, landing sites and instruments to record traceability of fishery products processed for exports.

Within this framework, UNIDO ITPO Italy supports some projects to favour the development of fishery sector in Mozambique and Senegal.
Mozambique is heavily endowed with fishery resources, both marine and fresh water. Moreover, sea fishing represents more that 90% of the total fish production relying on 120.000 tons of fish, of which the 80% composed by homemade fisher’s catches. The most important marine varieties include: marine crustaceans (shrimps, deep water’s little shrimp, crawfishes and crabs), cephalopods and marine molluscs.

Concerning Senegal, the primary sector is based on the dominant role of fishery industry. The sector is a source of 100,000 jobs for nationals. Despite the strong importance of this sector both in economic and social dimensions, Senegalese fishery industry has to face two issues: the over-exploitation of coastal stocks resources and the decreasing of market supply. Compared to the past, now the fishery activities mainly concern exports oriented products.

It should be noticed that through the implementation of the Delegate Programme, UNIDO ITPO Italy conducts several promotional activities in order to establish a cooperation between the companies coming from Development Countries and Italian ones. In this context, ITPO Italy has hosted two Delegates, namely from CPI Mozambique and DASP Senegal, who have promoted some projects regarding this sector. Beyond the projects, the activity of the Delegates was aimed to establish a cooperation based on a chain perspective at the aim to reach a better development of the fishery sector in the Countries. The goal is to strengthen links between the above mentioned Countries and Italian business community at the aim to promote direct investments and technology transfer.

The establishment of fruit and vegetables processing industry in Developing Countries aims to solve specific problems. These Countries are affected by weak infrastructures, insufficient demand and inefficient transportation service that cause large money losses for raw materials producers. As a result, the exceeding production becomes feed for animals or it rots causing a decrease of food availability.

The two main reasons that lead to the development of fruit and vegetable processing sector are to ensure a nutritious and safe food supply as well as to reduce Developing Countries dependence from imported products like: tomato souces, jams, squashes and pickles.

The role of UNIDO, in the technical assistance for the implementation of projects related to this sector, aims to contribute to the economic growth and poverty reduction in Developing Countries. In particular, the fruit and vegetable processing industry helps these Countries to improve their market access and competitiveness.

With this purpose, the Service helps these Countries in capacity building activities directed to small, intermediate and large scale enterprises in the above mentioned sector. It should be noticed that the implementation of new projects in this sector are good chances to reach the following objectives: diversification of the economy, reduction of imports and growth of export activities, development of new value-added products, generation of jobs and therefore a new sources of income for farmers.

The Service also provides assistance for the selection of suitable fruit and vegetables processing locations, at the aim to implement a reduction of handling and transportation costs. In general, the best sites are close to fruit and vegetables growing area or urban centre, in order to avoid some problems that could arise if the choice fell on rural area. In addition, the Service offers its technical assistance through the implementation of training opportunities.

Within this framework, UNIDO ITPO Italy promotes some projects in order to reach a great development of this sector in Mozambique and Senegal, helping the local Companies in finding partnership or technology transfer.

As regards Mozambique fruit and vegetables processing industry, the focus is on the establishment of tomato production and processing plants as well as on the implementation of fruit processing plants for juice and jam production and other products related to this sector. Moreover, some projects concern crops like wheat, maize and soybeans as well as other rotating ones. The aim is to reduce local farmers fruit losses (in particular in the Gondola District, Manica Province) and to improve domestic market supply. To strengthen this sector also means to develop various vegetable greenhouses, in order to ensure the offset production season based on improved and high productivity power seeds.

The agro-industry is one of the most important economic sector in Senegal. In this context, the millet represents 70% of the production. Nevertheless, the quantity of processed product is lower than the market requests. In order to solve this matter, some projects aimed to process cereals have been implemented. Furthermore, the Country aims to adopt new technologies to improve the processing of Bissap and other tropical fruits in order to transform them in different finished products like syrup and jam.

In particular, at the aim to support the fruit and vegetables processing industry both in Mozambique and Senegal, UNIDO ITPO Italy provides its assistance to establish an industrial cooperation between Developing Countries companies and Italian ones. Within the framework of some specific projects related to this sector, UNIDO ITPO Italy aims to promote technology transfer and direct investments aiming to support Developing Countries economic growth.

Wood and other forest products, such as bamboo, are renewable and highly versatile natural resources that can fuel a wide range of labour-intensive processing industries. However, in developing countries, this sector is predominantly characterized by inefficiency and low productivity due to insufficient technical skills and know-how. It also suffers from poor product quality and outdated product designs that severely limit access to world markets.

The Service has a long record of success in promoting a higher share of operations that add value to forestry products and allow a more sustainable use of forest resources. Relying mainly on south-south cooperation for technology transfer, it has helped develop the bamboo industry on three continents. From food and furniture to bamboo based boards, numerous industrial bamboo products are now being exported in considerable quantities by developing countries. An increasingly evident consequence of this development is the generation of employment opportunities in remote rural areas.

The main vehicle for bamboo development are technology centres created in recent years in close cooperation with national partners. They provide technical skill training, prepare manuals and feasibility studies and, as a network, constitute a global reservoir of expertise.

Within this framework, and concerning mainly the wood sector, UNIDO ITPO Italy supports some projects in order to improve Gabon rural industries for economic and social development. In the Country, the forest area covers about 85% of the territory, of which about 12% is protected, thanks to the 13 existing national parks. In addition, Gabonese wood sector employs 20.000 people and it is at the second place as regards the national exports through which 80 different types of wood are sold in foreign Countries. Nonetheless, most of wood resources are exported as raw material, not allowing the development of the corresponding chain. At the aim to avoid this process, a national law establishes that 75% of timber must remain in the Country in order to be processed and then exported. For these reasons, within the framework of “Gabon vert” and “Gabon industriel”, two projects promoted by the President Ali Bongo Ondimba, the Country decided to stop un-worked timber exports and support companies that want to work national timber before export process.

In particular, at the aim to support the development of the Gabonese wood chain UNIDO ITPO Italy assists local companies for what concerns the scouting of suitable technologies, namely equipment and machineries produced by Italian companies. The benefits that derive from the implementation of these projects concern the creation of new local jobs and an add value to the exports.

Cost pressures, oversupply and fierce competition are threatening the textile and garment industry the world over. The paradigm change from the simple assembling of garments to “full package” services (design, fabric sourcing, trims and logistics) requires additional skills and knowledge and therefore specialized training. Moreover, existing trade barriers are likely to be replaced by demands that producers adhere to quality and environmental norms, such as ISO9000 and eco-labeling, which cannot be easily met by manufacturers in developing countries.

The Service supports both conventional and informal producers of textiles and garments with advice on adequate technology, product diversification and the identification of market opportunities. Special attention is given to value addition in processing natural fibers such as silk, coir, cotton and jute. Product development in this and other areas is facilitated through the establishment of design centres. Computerized colourimetry and colour matching helps enterprises improve product quality and reduce pollution. To disseminate basic skills in poverty-stricken areas, the Service produces special manuals such as multi-media CD/ROMs for training sewing-machine operators. The Service conducts an intensive campaign to upgrade the African textile and garment industry which is poised to benefit from the US-Africa Trade Bill (Africa Growth and Opportunity Act).

Within this framework, UNIDO ITPO Italy supports the development of this sector in Armenia and Vietnam both sharing with Italian Companies the opportunities coming from these Countries and creating a strong industrial cooperation.

The textile and garment industry in Armenia is divided in sewing, knitting and textile processing. This sector produced an output of 6,4 billion drams in 2002, 5,2 billion drams in 2006-2008 and up to 4,1 billion drams in 2009. At the same time, in 2009, the total volume of exports reached 14.5$ millions while imports were about 91$ millions. Concerning the SMEs, which represent a small part of the whole industry, they work at 25-35% of their total capacity. The strategic potential of exports in Armenia is composed by a high volume and high quality products at low prices. In addition, the Country has an abundant workforce and availability of machinery. For these reasons, local companies can quickly increase their volume production through collaboration with foreign partners.

As regards the textile and clothing industry in Vietnam, the sector is today the first manufacturing industry in the Country and it is also registering a strong increase in the textile exports. These results in terms of growth have been achieved thanks to the clothing sector, whereas the textile production is still underdeveloped. In addition, purchase power of the local population is expanding and this is an opportunity for the pret-à-porter brands. Despite Vietnamese textile industry can count both on a huge number of SMEs that want to enter in the local market and a very competitive advantages for what concerns the labour costs, there is still a lack of professionalism training in this sector.

In particular, at the aim to support the textile and clothing industry both in Armenia and Vietnam, UNIDO ITPO Italy facilitates the exchange of knowledge between Italian and local Companies and creates a positive environment in order to evaluate some possibilities of mutual beneficial partnerships.