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TITLE PAGE

DEDICATION & INTENT OF THE AUTHOR

OUTLINE OF REPORT

INTRODUCTION—A WAY OF LIFE

EGYPT TODAY

THE NILE RIVER

CHAPTER 1 ANCIENT EGYPT

CHAPTER 2 MUHAMMED ALI

CHAPTER 3 POLICIES IN 20TH CENTURY

CHAPTER 4  CAPACITY BUILDING– NARP

CHAPTER 5 POST NARP

CHAPTER 6 RESEARCH TODAY

CHAPTER 7 AGRICULTURE AND ECONOMICS

CHAPTER 8  AGRICULTURAL GROWTH AND EMPLOYMENT

CHAPTER 9  EGYPT’S FUTURE—HORTICULTURE

BIBLIOGRAPHY


 


 

 

Chapter 5--Post NARP Projects

Strengthening agricultural development is a critical element of economic development. USAID’s strategy in Egypt aims at increasing the competitiveness of the agriculture sector by investing in systems that would support the production of goods that contribute to increased market share in both domestic and international markets. USAID/Egypt works with numerous participants in agricultural development in Egypt with the following goals:

·  to promote policies that support the ability of farmers and other rural producers to improve their production;

·  to provide sound legal framework within which businesses can operate;

·  to integrate small and medium farmers into the export sector;

·  to enable scientific development of new and more productive varieties;

·  to improve agribusiness responsible for processing products and assuring timely flow of agriculture inputs to develop new and profitable markets; and

·  to provide schools and universities that prepare students for the skills needed in real life.


Agriculture-Led Export Businesses (ALEB)

One of the recommendations of the NARP review committee was to develop activities in market research and development for both export and domestic markets. In recent years, the demand for processed foods in major markets has increased the demand for convenience foods. Egyptian processed foods have been far from a major beneficiary of this trend; processed foods make up a tiny proportion of Egypt’s exports. ALEB was designed to provide technical assistance and support to Egyptian food processing companies, ancillary service firms, and trade associations. (details)

 

Agricultual Technology Utilization and Transfer (ATUT)

With the conclusion of NARP, it was clearly recognized that much of what had been done in this program needed to be continued and expanded. Research had to be expanded in the areas of horticulture and field crops. Extension and technology transfer capability was still immature and needed improvement. New varieties were needed with improved resistance to pests; tolerance to environmental stress efficient use of water. Further it was clear that improved and expanded research in the basic sciences of genetics and biotechnology would be essential factors for such accomplishments. The project which was developed with USAID for this mission was Agricultural Technology Utilization and Transfer (ATUT). It was active from 1995 to 2002.(details)

The Agricultural Policy Reform Program  (APRP)

Governments  must  work  with  agriculture-based industry to minimize the difficulties of adjusting to increased competition when liberalization occurs.  Globalization of the world economy is an established fact.  Removal of trade barriers, increased foreign investment, and enhanced competition should be accepted with purpose, care and with ample safeguards, but accepted just the same.  Since the 1980’s, the Egyptian government has moved toward trade liberalization and a market economy especially through the agricultural economy.  Agricultural reform began in 1986 with the Agricultural Production Credit Project followed by the Agricultural Policy Reform Program in 1996.(details)

Agribusiness Linkages for Egypt (AgLink)

Started in 1996, agribusiness linkages for Egypt (Aglink) was a 7 year initiative which made an impressive contribution to transforming and strenghtening the Egyptian livestock sector.  It increased the quality and availibilty of milk and meat for local consumption, created a substantial rural employment base and stimulated trade linkages with the US.  Aglink was awarded first place ranking for three consecutive years by Price, Waterhouse  Cooper based on the number of recomendations adopted, services delivered and trade linkages facilitated.(details)

 

Agricultural Exports and Rural Income (AERI)

 AERI began in the last quarter of 2003. It builds on USAID/Egypt’s previous efforts and focuses on:

  • increasing agricultural incomes to stimulate rural off-farm employment, especially in Upper Egypt;

  • improving the productivity and competitiveness of smallholders to achieve increased incomes;

  • broadening horticultural development efforts to diversify crops and markets,

  • enhancing the role of small growers as suppliers to exporters,

  • integrating the fresh and processed segments of the industry,

  • expanding the use of good agricultural practices in horticulture;

  • improving the smallholder livestock sector as a means to increase agricultural incomes, especially for women who dominate this sector; and

  • bringing about world class research and training that is more responsive to private sector needs.

As of March 2005, AERI through the small horticultural activity trained about 6,119 small and medium growers, in 88 training events, to increase their capacity to respond to market opportunities. Training and workshops programs included preparing farmers for production, harvest and post-harvest handling of green beans, melons, medicinal and aromatic plants and drying and oil extraction of both essential and aromatic oils. AERI is also working through the small dairy and livestock activity on improving smallholder product quality and volume. Current efforts include providing technical assistance to Small Farmers Groups includes training sessions, seminars, video presentations, direct consultations and business linkages. Training is provided in: (1) animal herd management, (2) animal nutrition, (3) animal health care and (4) dairy processing. (138)

As of March 2005, a total of 4,806 participants attended 191 training-days. Further, AERI through ‘Support to Trade Associations and Smallholder Groups activity’ works to strengthen the capacity of smallholders in Upper Egypt to expand into new markets for horticultural and livestock products through improved linkages with agricultural trade associations, and improved market development support by those associations. Thus, AERI works to provide flexible and appropriate technical assistance and grants to support agriculture trade associations that are of critical importance for expanding volumes of high quality agriculture products (dairy and fresh/ processed horticulture) for export and the domestic market.

As of April 2005, USAID/Egypt evaluated and approved fourteen grant applications for the following:

  • two feasibility studies related to grants for the construction of the Luxor post harvest facility and microbiological laboratory;

  • grant to HEIA’s Cairo Air Terminal expansion facility;

  • technical assistance for implementing a "Total Quality Management" system for the branding of cut flowers;

  • feasibility study for re-organizing the HEIA training department; and

  • two grants to the Food Processors Export Association.

In addition, AERI through the ‘Institutional Linkages Activities (ILA)’ works with research biotechnology institutions in order to strengthen Egypt’s capacity in biotechnology research and its application. Efforts to promote market relevant research resulted in approving six proposals for applied biotechnology research. The proposals were selected by the Biotechnology Advisory Committee.(138, 139)

 

Growth Through Globalization project (GTG)

The main purpose of Growth through Globalization project (GTG) (1996 - 2004) was to promote the competitive efficiency and exports of the private sector entities working in labor intensive products (US$ 133.5 million).(140))

GTG efforts included strengthening trade linkages between Egyptian and oversees businesses and connecting Egyptian firms with international trading partners. This was achieved through various services such as trade fairs, trade missions, study tours, the marketing correspondents’ network and the business matchmaking service.

Technical assistance to farmers was carried out by implementing a capacity building strategy that focused on building the marketing, technical, and financial capacities of farmer associations within a sustainable farming environment. Office equipment such as computers and fax machines were provided to the farmer nongovernmental organizations (FNGOs) depending on their needs, capacity and level of export activity. Additional support included the provision of packaging materials in order to improve the quality of their products for the export market. The FNGOs utilized this equipment, especially computers and printers, in producing promotional materials – brochures- which included information on their mission, vision, activities, and contact information. In addition, farmer associations learned how to use computer technology to analyze their production and marketing problems. Some of them worked to develop their own websites.

In order to optimize the marketing and technical assistance, USAID/Egypt emphasized the importance of investing in human resources. Training was provided through the ‘Agriculture Reform’ activity for board members of FNGOs’ on conducting Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. Training was also provided for top management of member farms and companies on Good Agricultural Practices (GAP) specifications.

There was also an effort to bridge knowledge through adaptive research by collaborative research on four food crops (rice, maize, wheat, and fava beans) among U.S., Egyptian, and international research institutes. That resulted in the introduction of biotechnology techniques in breeding programs, the development of DNA markers for bread wheat and a molecular marker map for durum wheat. (AGERI--7)

 

The AgReform Project—CARE

AgReform is designed to increase incomes among economically marginal farm households in Upper Egypt by improving their access to new markets and appropriate new agricultural production technologies. AgReform, initiated in the governorates of Fayoum, Sohag and Qena, in March 1996, continues to use the FarmLink Project strategy (1990-95) that directly links community-selected innovative farmers to sources of agricultural information. AgReform is based on the FarmLink experience, and has adopted most of its concepts, terminology, approaches, and data collection instruments. FarmLink successfully pioneered a participatory linking approach to agricultural extension in the horticultural sector.

As of September 30, 2001, AgReform has worked with 6,320 community-selected innovative farmers to create linkages that improve agricultural practices, 7,928 small farmers through the strengthening of 111 local agricultural and marketing groups, and the enhancement of local livestock services for 4,250 small livestock producers. In addition, the project collaborated with local government agencies in each governorate to enhance and strengthen the extension services’ capacity to better meet the small farm household’s needs and to manage and replicate AgReform activities beyond the life of the project. 292 Government Extension Workers have been involved in the project. In 2001, the AgReform grant was amended to add the farmer NGO component. To date, twelve farmer NGOs have been created and training is being provided to strengthen their capacity to coordinate the dissemination of marketing information for exports.

 

Center for Business Support—(IESC)

In June 2000, IESC was awarded a three-year USAID grant of $7.7 million to manage the Center for Business Support (CBS) in Egypt. The CBS program works with companies in three sectors: Information Technology, Tourism and Agribusiness. It has been working with companies in the food-processing sector since the program’s inception. Client companies receive subgrants to acquire technical consultants, attend trade shows, participate in trade missions, and develop websites. In the agribusiness sector, it has completed one major food processing trade mission event in cooperation with the USAID-funded Agriculture Led Export Business (ALEB) program. (8, 141)

 

Egyptian Exporters Association (EEA)

The EEA, and its operating arm, ExpoLink, is the successor to a long line of private sector general export promotion organizations funded by USAID. In previous incarnations it was known as the US Export Promotion Organization (USEPO) and the Trade Development Center (TDC). It provides services to firms in most of Egypt’s export-oriented sectors including IT, apparel and textile, furniture, fresh and processed foods, footwear and tanned leather, and marble. ExpoLink prepares firms to exhibit at international trade shows, provides technical assistance consultants, disseminates market information, prepares company literature and, latterly, advocates for policy reforms. The organization reported the following achievements in the agricultural sector during the period from 1997 to 2001:

The total number of agriculture-sector clients served since the inception of EEA in October 1997 to June 2001 was 522.

The total number of fresh and processed foods clients served since 1997 was 142 (27.2%).

The total number of clients served in the fourth year was 64.

The total number of fresh and processed foods clients served in year 4 was 14 (21.9%).

The type of information disseminated to fresh and processed food clients included new regulations for importing meat into Saudi Arabia, markets for herbs and spices in Malaysia and Indonesia, honey and honey wax in Holland; dairy and meat products, beverages, soups and dry mixes in Poland and Romania, herbs and spices in Japan, and the organic market in Europe. (142)

While EEA is an association in the legal sense, it did not begin to operate as an association until relatively recently. Now it is actively working to build membership, though there is no evidence of members voting for the Board of Directors.

CRITICISMS of EEA:

In a 2000 evaluation, the organization was criticized for:

·       lack of transparency, and for deploying a disproportionate amount of its funds on trade fair participation, while not taking advantage of other marketing tools;

·        quality of its market information and delivery mechanisms;

·        lack of either sector-specific or general hands-on export experience among many of its staff;

·        clients found EEA services too expensive and of questionable value.

·        While policy advocacy was part of its Grant Agreement, it did little in this area

·        The organization has in the past concentrated on larger companies over medium and smaller companies.

IMPROVEMENTS of EEA:

However, there are now positive signs that EEA is gradually correcting a number of these shortcomings. This is reflected in the most recent Client Satisfaction Review, where a preponderance of EEA clients expressed satisfaction with the services they received. Further, EEA is now becoming more positive—and transparent—in its policy advocacy activities. An example is a recent seminar on Customs Service Reforms attended by Customs Service officials, and senior USAID representatives. EEA has also begun to set up a network of representatives in major export markets; their task is to feed market-level information to EEA, which, in turn, makes it available to their clients.

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