(8,14, 15, 33, 64)
Its objective was to enhance global competitiveness and increase exports of processed foods in the following ways:
· by collecting, analyzing and disseminating market information;
· integrating new food processing technologies;
· improving adherence to international food quality and safety standards;
· enhancing marketing in line with consumer business skills;
· strengthening associations;
· and forming strategic alliances
Industry and manufacturing is one of the key sectors to the Egyptian economy. In the last decade, manufacturing was transformed by the privatization of state-owned enterprises and reforms that encourage the private sector. USAID Egypt worked hand in hand with the Egyptian government to help clusters of specific industries improve their opportunities to compete in global markets. This is conducted through the collaborative efforts of the private sector and policy makers to strengthen the business environment, raise production standards, create buyer-seller market linkages and reduce or remove impediments to investments.
Industry specific assistance was provided for the food processing industry and ancillary industries (e.g., packaging, pest control, etc.) and associations to improve their competitiveness and help achieve sustainable export growth. USAID/Egypt through the Agriculture Led Export Businesses (ALEB) activity worked to help food processors and service firms to improve and optimize their current processing, management, operation, quality, personnel and other systems, with an eye on improving product quality, production efficiency and, hence, exports of processed food products. USAID assistance was focused on five primary target product clusters: dehydrated fruits and vegetables, frozen fruits and vegetables, herbs and spices, juices and concentrates and pickled products. Assistance to the processed food industry included services to assist:
· Companies operating in the food processing industry improve their marketing, production, and management systems and to access financial services. These included providing sources of market information, tailored technical assistance in the areas of marketing and production economics, and packaging, labeling, and product development. USAID also sponsored study tours to trade fairs worldwide to introduce Egyptian exporters to new markets and form strategic linkages with importers and suppliers.
· Market Pulse Egypt (MPE), annual Situation and Outlook Reports in five commodity clusters, and Special Opportunity Focus Reports. These sources of market information assisted companies operating in the food processing industry to better orient their planning and marketing strategies to meet the demands of target markets. Technical assistance for the processed food companies was provided in the areas of marketing and production economics. In production economics, for example, USAID/Egypt provided assistance in all issues that influence a company's profitability and ultimate success In the world market place, which includes marketing, food input supply, process operations, quality assurance, organizational structure, management, and business and strategic planning. Among the programs that were offered: ISO 9000, Hazard Analysis and Critical Control Points (HACCP)(64) and other programs that focus on HACCP prerequisites, such as pest control and sanitation.
· Technical assistance and training were also provided to service companies (pest control, packaging, cold storage, etc.), in order to enhance their ability to serve the processed food Industry, as well as to strengthen cross linkages between food processors and service companies.
· Further support to the processed food industry included developing resources for trade associations, assisting associations with developing strategic alliances, organizing study tours, training in policy advocacy and following up on market linkage and strategic alliance opportunities and helping ALEB’s client companies to pursue these opportunities.
By the year 2004, ALEB had delivered technical assistance to 36 food processor and service firms. Technical assistance has been delivered on a variety of topics, including, new product development, organic certification, cold chain technology, and US food labeling regulations. ALEB have been working with six companies as a "pilot" group to receive technical assistance in implementing a quality program in their plants. As the original six companies complete their plans, emphasis and effort were shifted to other companies. It is worth mentioning that Hazard Analysis and Critical Point Program (HACCP) certification is an integral step to entering European and American markets. From March 2004 -June 30, 2004, ALEB conducted seventeen workshops on various technical subjects such as Internal Auditing and Environmental Regulations for Export. As of end of June 2004, ALEB conducted a study tour, bringing twelve participants to training in quality management, to Italy to give several Egyptian tomato processors the opportunity to see Italian tomato processing facilities, farms and tomato variety trials.
ALEB has also conducted study tour to the post harvest course at the University of California in Davis. f field trips to packing houses, cooling and storage facilities, produce distribution centers, modified atmosphere facilities for transit and storage, and transportation terminals in California.
Via ALEB's website, the project also delivered key technical information. This includes a series of "toolboxes" on export standards; on HACCP implementation; on US nutritional labeling which it presented on a workshop on Package Labeling and Design and to the Chamber for Food Industries. ALEB also conducted a workshop at HEIA on Crop Varieties for the Food Processing Industry.
In addition, ALEB assisted four processors to procure commercial quantities of vegetables. The Seeds and Varieties program has brought several new products to the market, and other new products to the stage of advanced development. These include Pickled Gherkins (Hi Tadi company), Frozen Sweet Com (Givrex, Farm Fresh and Farm Frites co.), Baby Artichokes (EgySpan; not new but lower cost of materials since the field yield is about double) and Whole Peeled Tomatoes (Harvest). ALEB has also worked with HEIA, on post-harvest issues. Thus far in 2004, ALEB has worked with ten local short term technical experts in areas such as HACCP, process measurement and personal hygiene for workers.
ALEB attempted to capitalize on Egypt’s unexploited export marketing potential, particularly in the European Union and the Gulf and Middle East. It addressed many of the competitiveness challenges that will affect Egyptian agriculture over the next decade. Moreover, as the skills ALEB helped to develop in processed food exports move backward along the supply chain, they will more easily be transferred to producers who sell only domestically. High quality processed foods manufactured locally will help enable Egyptian processors to meet the growing demand from the domestic market and compete more successfully with imports, which are certain to increase with the advent of the World Trade Organization. Marsh (64) (FAO 33)(FAO 34)
A more complete story on the new Food Export Council can be found in chapter 9, but the following excerpt sets the tone for its efforts:
"The FTC will be run as a demand-driven private business in every sense of the word," Berzi says, "with the overall objective of helping the Egyptian food industry develop into world-class exporters. We will tackle issues like accreditation, hygiene, food safety, technical assistance, testing and professional training."