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Rural-Based Food Processing Industry in Asia ©APO 2004, ISBN: 92-833-7026-0

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Rural-Based Food Processing Industry in Asia ©APO 2004, ISBN: 92-833-7026-0 From: Rural-Based Food Processing Industry in Asia ©APO 2004, ISBN: 92-833-7026-0 Report of the APO Multi-Country Study Mission on Rural-Based Food Processing Industry (SME-OS1-00) Japan, 6–13 March 2001 Edited by Dr. Alastair Hicks, Bangkok, Thailand. Published by the Asian Productivity Organization 1-2-10 Hirakawacho, Chiyoda-ku, Tokyo 102-0093, Japan Tel: (81-3) 5226 3920 • Fax: (81-3) 5226 3950 E-mail: apo@apo-tokyo.org • URL: www.apo-tokyo.org Disclaimer and Permission to Use This document is a part of the above-titled publication, and is provided in PDF format for educational use. It may be copied and reproduced for personal use only. For all other purposes, the APO's permission must first be obtained. The responsibility for opinions and factual matter as expressed in this document rests solely with its author(s), and its publication does not constitute an endorsement by the APO of any such expressed opinion, nor is it affirmation of the accuracy of information herein provided. Note: This title is available over the Internet as an APO e-book, and has not been published as a bound edition. RURAL-BASED FOOD PROCESSING INDUSTRY IN ASIA Proceedings of an APO Multi-Country Study Mission 6-13 March 2001 Tokyo, Japan 2004 Asian Productivity Organization Tokyo Report of the APO Multi-Country Study Mission on Rural-Based Food Processing Industry held in Japan, 6-13 March 2001 (SME-OS1-00) This report was edited by Dr. Alastair Hicks, Bangkok, Thailand. The opinions expressed in this publication do not reflect the official view of the Asian Productivity Organization. For reproduction of the contents in part or in full, the APO’s prior permission is required. ©Asian Productivity Organization, 2004 ISBN: 92-833-7026-0 TABLE OF CONTENTS Part I Summary of Findings ....................................................... 4 Part II Resource Papers 1. Characteristics and Problems of Agribusiness for Rural Development in Japan ……………………………………………………………………… Sueo Futatsugi .21 2. Status of Rural-Based Small and Medium Food Processing Industry in Japan ………………………………………………………………………… Isamu Sakurai .27 3. Issues and Strategies in Development of Rural-Based Small and Medium Food Industry in Asia and the Pacific……………………… Alastair Hicks .30 Part III Country Papers 1. Bangladesh…………………………………………… Mushfiqur Rahman Bhuiyan .41 2. Republic of China………………………………………………… Ming Chang Wu .46 3. India…………………………………………………………… Amiya Kumar Behera .53 4. Indonesia………………………………… Siti Baroroh and Teungku A. R. Hanafiah .60 5. Islamic Republic of Iran………………………… Mohammad A. Kamali Sarvestani .67 6. Republic of Korea……………………………………………………… Kyei-Im Lee .72 7. Malaysia……………………………………………… Mohamed Kaberi bin Ghani .79 8. Mongolia…………………………………………………… Sanjaadorj Munkhnasan .84 9. Nepal (1)…………………………………………………… Padam Prasad Poudel .88 10. Nepal (2)………………………………………………………… Shailesh C. Singh .92 11. Pakistan (1)………………………………………………… Abdul Hafeez Chaudhry 103 12. Pakistan (2)………………………………………………… Sohail Younas Moghal 108 13. Philippines………………………………………………………… Divina G. Sonido 118 14. Sri Lanka………………………………………………… Chopadithya Edirisinghe 126 15. Thailand……………………………… Krailert Taweekul and Sukoncheun Sringam 132 16. Vietnam………………………………………………………… Pham Van Chuong 141 Part IV Appendices 1. List of Participants, Resource Speakers, and Secretariat........................ 153 2. Program of Activities ................................................... 157 FOREWORD The rural food processing industry can play a vital role in rural poverty alleviation and sustainable development in many Asia-Pacific countries. It can enhance farm incomes by offering a ready market for farm products, generate off-farm employment, and reduce rural–urban migration. Rural-based food processing industries are mostly small- and medium-sized enterprises (SMEs) and face such constraints as poor infrastructure, shortage of entrepreneurial talent and skilled manpower, limited access to appropriate technologies, volatile demand, and small profit margins. In some member countries, successful attempts have been made to develop rural-based food processing SMEs. For example, some advanced member countries have developed well-integrated rural food processing industries employing state-of-the-art technologies and a participatory integrated rural development approach. Others have developed efficient production–processing–marketing chains through farmers’ associations. In this regard, the experience of Japan could be extremely useful for other APO member countries in the development of efficient and viable food processing SMEs. The APO organized the multi-country study mission on the “Rural-based Food Processing Industry” in Japan to learn about the latest developments in the small- and medium-scale rural-based food processing industry and to examine the possibilities of applying its experience in other member countries. This publication is a compilation of the papers and proceedings of the study mission. It is our hope that this publication will prove useful to our readers, especially policymakers, planners, and managers involved in the development of the food processing industry in the Asia-Pacific region. The APO is grateful to the Government of Japan, especially the Ministry of Agriculture, Forestry and Fisheries, for hosting the study mission, and to the Association for International Cooperation of Agriculture and Forestry for implementing the program. Our appreciation also goes to the resource persons for their valuable contributions and to Dr. Alastair Hicks for editing this publication. TAKASHI TAJIMA Secretary-General Tokyo April 2004 SUMMARY OF FINDINGS INTRODUCTION The Multi-Country Study Mission on Rural-Based Food Processing Industry was held in Tokyo from 6 to 13 March 2001. The study mission was organized by the Asian Productivity Organization (APO) and hosted by the Government of Japan. The Association for International Cooperation of Agriculture and Forestry (AICAF) implemented the program with the financial and technical assistance of the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF). Eighteen participants from 14 member countries and three resource speakers from FAO and Japan attended the study mission. The objectives of the study mission were: 1) to observe and review the rural-based small and medium food processing industry established in the host country; and 2) to examine its links with support services, supply of raw materials, marketing, etc. and discuss the possibilities of application of such systems in the member countries. The study mission consisted of the presentation and discussion of resource papers, field visits to various food processing facilities in Gifu and Shizuoka prefectures, presentation of country papers and a workshop. The topics covered by the resource papers were: Characteristics and Problems of Agribusiness for Rural Development in Japan; Status of Rural-Based Small and Medium Food Processing Industry in Japan; and Issues and Strategies in Development of Rural-Based Small and Medium Food Industry in Asia and the Pacific. The country papers focused on the status review of rural-based small and medium food processing industry in the participating member countries. In the workshop, the participants identified the major issues and problems affecting the rural-based food processing industry in the member countries; and suggested specific strategic actions to address such issues. The highlights of the Study Mission are presented as follows: HIGHLIGHTS OF THE RESOURCE PAPERS Characteristics and Problems of Agribusiness for Rural Development in Japan (Dr. Sueo Futatsugi) Agriculture in Japan is undergoing transformation. Rural areas are scattered mainly in and around villages but also around towns and cities. Agribusiness for rural development is thus scattered around villages, towns and cities of Japan. There are three main food consumption systems in Japan, i.e., fresh foods directly purchased by the consumers, processed food products directly consumed by the people, and processed food products first going to restaurants and then consumed. The paper describes characteristics and problems of agribusiness for rural development in Japan with emphasis on small and medium food processing industry based on a farm village as follows: 1. Meaning of Agribusiness for Rural Development C What is agribusiness for rural development? C The background that is required for agribusiness for rural development C The motivation for starting agribusiness for rural development and the effects of such agribusiness. 2. Agriculture and Farm Village Marketing (Agri-marketing) and Agribusiness for Rural Development C Agri-marketing and local management aspects C Putting value-added to local resources and agribusiness for rural development C Exchange activities between cities and farm villages and creation of local customers. 3. Local Small and Medium Food Processing Business Projects that Form the Center of Agribusiness for Rural Development C Local food processing business projects with a clear customer target C Local food processing business projects that enable exchange activities between different business categories voluntarily within a region to function - 3 - C Local food processing business projects with a wide variety of business styles—agricultural cooperatives, agricultural associations, limited companies, corporations, women groups, etc. 4. Examples of Local Food Processing Business Projects with Some Features C JA Sawada agricultural cooperatives (Nakanojo-machi, Gunma prefecture) with a history
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