Funded by the FundedFunded by the People's Republic of China People’sPeople's RepublicRepublic of of China China FINAL PROJECT REPORT FINAL PROJECT REPORT FINAL PROJECT REPORTDemonstration of Agro-industry Innovation Demonstration of Agro-industry Innovationthrough Science and Technology in Fujian through Science andDemonstration Technology inProvince ofFujian Agro-industry Innovation Province through Science and Technology in Fujian Province, China From June 2015 to May 2018PTC/AGR/FSN June 2015 – May 2018 PTC/AGR/FSN June 2015 – May 2018 1 DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. The selection of projects to illustrate UNIDO's engagement aims at demonstrating their geographic and thematic variety and scope and is not endorsed by UNIDO. CONTENT EXECUTIVE SUMMARY ................................................................................................. 4 1. PROJECT DESCRIPTION ......................................................................................... 6 2. KEY PARTNER – THEIR ROLES AND ACHIEVEMENTS .................................................7 2.1 Fujian Provincial S&T Exchange Center with Foreign Countries (FSTEC)........... 7 2.2 Fujian Shenliu Health Food Co., Ltd., focusing on Spirulina ............................. 8 2.3 Fujian Xianzhilou Biological Science & Technology Co., Ltd., focusing on Lingzhi ..........................................................................................................12 2.4 Fujian Shenghe Modern Agriculture Co., Ltd., focusing on reclamation of saline land .........................................................................................................17 3. PROGRAMME STEERING COMMITTEE: MANAGEMENT, MONITORING AND EVALUATION ...................................................................................................... 22 3.1 2016 PSC Meeting ............................................................................................ 22 3.2 2017 PSC Meeting ............................................................................................ 22 3.3 2018 PSC Closing Meeting................................................................................ 22 4. SUSTAINABILITY................................................................................................. 23 5. ACHIEVEMENTS .................................................................................................. 24 6. LESSONS LEARNED ............................................................................................ 26 EXECUTIVE SUMMARY Embracing the philosophy that science and technology strengthens the modernization of agriculture, and facilitates inclusive and sustainable industrial development and economic growth, the project targets and contributes to creating employment opportunities, alleviating poverty through increasing productivity, reducing environmental pollution, applying proper technology, improving management efficiency at both farm and enterprise level, and showcasing the lead agriculture enterprises’ models of best practice. Through knowledge transfer, and technical and managerial capacity building to the lead agriculture enterprises, further information and knowledge dissemination via demonstration bases enables other actors along the target value chains – namely vegetables on saline land, spirulina and Lingzhi mushroom – to access to knowledge, technical know-how and best practices, etc. The institutionalization of the demonstration bases guarantees sustainable knowledge transfer of scientific and technological innovations that are applicable to various agro value chain actors participating in the improvement of technical and management capacities, so as to continuously create job, to better and more ecologically utilize resources, and to strengthen opportunities to enter the markets at wider scales. Graphic 1 shows the approach applied. Graphic 1: Knowledge transfer through demonstration bases THE PROJECT WORKED WITH: THREE LEAD AGRICULTURE ENTERPRISES, namely Fujian Shenliu Health Food Co., Ltd., Fujian Xianzhilou Biological Science and Technology Co., Ltd., and Fujian Shenghe Modern Agriculture Co., Ltd. To access advanced cultivation and processing technologies; To increase productivity and management efficiency; To explore and enter new markets; and To establish demonstration bases around the lead agriculture enterprises for knowledge transfer and skills upgrading. 4 And PROVINCIAL AND LOCAL GOVERNMENTS: To assist in the adoption of necessary industrial policy frameworks and instruments; To support the development of the targeted value chains in the province; and To release guidance and facilitate the development of new local and regional markets as well as entering international markets. THE PROJECT TARGETED AND LINKED: The lead agriculture enterprises and local farmers; Practitioners participating in the demonstration bases for cultivation, processing and trade; Relevant industrial associations, academia and educational institutions; Local and provincial governmental authorities that support the development and promotion of the related agro value chains; and End consumers. THE PROJECT ORGANIZED AND FACILITATED IN TOTAL 31 VARIOUS PROJECT ACTIVITIES: 10 technical trainings 4 technical study tours 8 industrial conferences and technical seminars 4 market promotion activities 1 baseline survey 1 technical exercise for improving irrigation and fertilization 3 annual PSC meetings. THE THREE COMPANIES IN THE THREE YEARS OF THE PROJECT IMPLEMENTATION ACHIEVED: 561,882 square meters of land newly-utilized for cultivation (breeding) 65 new domestic and international markets explored 32 patents applied and 30 obtained 12 new varieties of products developed in cooperation with domestic and international universities and R&D institutions An increase of CNY 26,000 in the average annual income of the farmers 1,278 employees, including 490 men and 788 women trained 297 jobs, including 72 for men, 200 for women and 25 for the disabled, created locally approximately CNY 560 million (equivalent to USD 90.3 million) output value created and tax amounting about CNY 33 million (equivalent to USD 5.32 million) paid. 5 PROJECT DESCRIPTION FACT SHEET O THROUGH SCIENCE AND TECHNOLOGY IN FUJIAN PROVINCE” Project starting date June 2015 Project end date May 2018 Project inputs USD 442,478, excluding 13% support cost Donor China International Center for Economic and Technical Exchanges (CICETE) Fujian Provincial Science and Technology Exchange Center with Foreign Countries (FSTEC) Counterparts Lead agriculture enterprises: Fujian Shenliu Health Food Co., Ltd. Fujian Xianzhilou Biological Science and Technology Co., Ltd. Fujian Shenghe Modern Agriculture Co., Ltd. Counterparts inputs USD 1,490,000 ($1,000,000 co-financing from the three enterprises and as per the project $490,000 cost sharing from FSTEC) document Total input of the USD 1,990,000 project Graphic 2: Project description 6 2. KEY PARTNER – THEIR ROLES AND ACHIEVEMENTS 2.1 FUJIAN PROVINCIAL S&T EXCHANGE CENTER WITH FOREIGN COUNTRIES (FSTEC) FSTEC is a public institution directly affiliated to the Fujian Provincial Department of Science and Technology. As the Managing and Implementing Office of the project “Demonstration of Agro- industry Innovation through Science and Technology in Fujian Province”, FSTEC has been involved in the management throughout the entire process of project application, implementation and finalization. Picture 1: The Programme Steering Committee at work As implementing the project, FSTEC directly participated in the organization of more than 20 project activities with remarkable results, building on technical training, market promotion activities,in- country trainings, international technical study tours, industrial exchange seminars etc. In addition, the launching ceremony, annual Programme Steering Committee meetings and project closing ceremony were also organized by FSTEC to ensure the smooth implementation of the project. During the project activities, FSTEC fulfilled the project commitments and provided necessary facilities and logistical support, as well as served as bridging body between UNIDO, the enterprises as well as scientific bodies and provided administrative and technical support. FSTEC continuously monitored the project progress and kept close communication with the UNIDO project team to timely report the progress and achievements of the project and coordinate project activities. FSTEC actively communicated with the enterprises to identify their needs and provided technical guidance to the enterprises. In addition, by fully utilizing its resource and network in the area of science and technology, FSTEC proactively helped the enterprises to establish linkages with advanced