FAO-RAP 2014. Policy Measures for Micro, Small and Medium Food Processing Enterprises in the Asian
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Cover photographs: Top left: Hiroyuki Konuma Top right: Zulkarnaen Syrilokesywara Bottom left: Roby Hartono Putro Bottom right: Norbert Ambagan RAP PUBLICATION 2014/27 Policy measures for micro, small and medium food processing enterprises in the Asian region FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS REGIONAL OFFICE FOR ASIA AND THE PACIFIC Bangkok, 2014 i The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. ISBN 978-92-5-108682-7 © FAO, 2015 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights, and for resale and other commercial use rights should be made via www.fao.org/contact-us/licence-request or addressed to [email protected]. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. For copies write to: Rosa S. Rolle FAO Regional Office for Asia and the Pacific Maliwan Mansion, 39 Phra Atit Road Bangkok 10200 THAILAND Tel: (+66) 2 697 4194 Fax: (+66) 2 697 4445 E-mail: [email protected] ii Foreword The importance of micro, small and medium enterprises (SMEs) in contributing to food security and nutrition and to the well-being of Asian economies cannot be overstated. Formal and informal SMEs together account for 60 percent of gross domestic product (GDP) and for more than 90 percent of employment in both developing and advanced economies. In Asia-Pacific, SMEs account for over 97 percent of all enterprises and employ over half of the workforce. The Food and Agriculture Organization of the United Nations (FAO) has been providing support to micro, small and medium food processing enterprises since its inception in 1945. This support has taken the form of technical assistance and advice to member countries to support livelihoods development in the context of value chain development. Equally important, FAO supports the generation and documentation of knowledge on the experiences of different countries and regions of the world in agro-food processing. This publication provides status reports on agro-industrial policy measures for micro, small and medium food processing enterprises (MSMFEs) in nine Asian countries at different levels of development – Bangladesh, Bhutan, China, Indonesia, Malaysia, Philippines, Republic of Korea, Sri Lanka and Thailand. The studies were commissioned by the Food and Agriculture Organization of the United Nations, Regional Office for Asia and the Pacific (FAO-RAP) during the period 2010–2012. Key issues highlighted in these reports were discussed during a Regional Workshop to Promote Agro-industrial Policy Measures for Micro, Small and Medium Food Processing Enterprises in the Asian Region convened by FAO-RAP in 2013. Participants included 21 representatives from the public and private sectors, as well as from academic and research institutions, representing 15 countries in Asia. Representatives came from a diversity of backgrounds including food science, food policy, environment, agri-business and finance. This publication includes an overall analytical review of the key issues and policy recommendations based on the findings and deliberations of the regional workshop and the nine country reports. It is hoped that the information documented in this publication provides a useful basis for countries in developing and upgrading their policies on micro, small and medium food processing enterprises. Hiroyuki Konuma Assistant Director-General and FAO Regional Representative for Asia and the Pacific iii iv Table of Contents Page Foreword ....................................................................................................................................................................... iii POLICY MEASURES FOR MICRO, SMALL AND MEDIUM FOOD PROCESSING ENTERPRISES (MSMFEs) IN THE ASIAN REGION ......................................................................................................................... 1 Rosa S. Rolle FAO Regional Office for Asia and the Pacific 1. Introduction .............................................................................................................................................. 1 2. Micro, small and medium food processing enterprises in Asia and the Pacific region .................................................................................................................................... 1 3. External forces that currently shape MSMFE development in the region ........................ 3 4. Critical issues for MSMFEs.................................................................................................................... 4 5. Policy recommendations ..................................................................................................................... 6 References.................................................................................................................................................. 7 POLICIES AND STRATEGIES FOR THE DEVELOPMENT OF SMALL AND MEDIUM SCALE FOOD PROCESSING ENTERPRISES IN BANGLADESH ................................................................................................. 8 Indrajit Roy Independent Consultant 1. Introduction .............................................................................................................................................. 8 2. Review of SMFEs and their contribution to development in the country ........................ 9 3. Status of food processing in the country with a specific focus on SMFEs ....................... 14 4. External forces that shape the SMFE sector in the country ................................................... 44 5. Government policy and legal frameworks .................................................................................... 46 6. Status of national institutional infrastructure .............................................................................. 48 7. Status of industrial infrastructure ..................................................................................................... 54 8. Analysis of constraints and strategic priorities for enhancing competitiveness in SMFEs ..................................................................................................................................................... 60 9. Summary and conclusions .................................................................................................................. 67 References.................................................................................................................................................. 68 POLICIES AND STRATEGIES FOR THE DEVELOPMENT OF SMALL AND MEDIUM SCALE FOOD PROCESSING ENTERPRISES IN BHUTAN............................................................................................................. 71 Sonam Tobgay Independent Consultant 1. Introduction .............................................................................................................................................. 71 2. Review of small and medium food processing enterprises in Bhutan .............................. 74 3. Critical issues and considerations for sectoral development ................................................ 78 4. Status of government policy and legal frameworks ................................................................. 80 5. Status of industrial institutions.......................................................................................................... 84 6. Status of industrial infrastructure ..................................................................................................... 88 7. Analysis of constraints and strategic priorities ............................................................................ 90 8. Conclusion and recommendations .................................................................................................. 92 References .......................................................................................................................................................... 93 v Table of Contents (continued) Page POLICIES AND STRATEGIES FOR THE DEVELOPMENT OF SMALL AND MEDIUM SCALE FOOD PROCESSING ENTERPRISES (SMFEs) IN CHINA ............................................................................................... 94 Wu Jingxue Chinese Academy of Agricultural Sciences 1. Introduction .............................................................................................................................................