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Territorial Tools for Agro-Industry Development a Sourcebook GIS SEZ ABI GIS SEZ ABI Territorial Tools for Agro-Industry Development a Sourcebook GIS SEZ ABI Territorial tools for agro-industry development A Sourcebook GIS SEZ ABI GIS SEZ ABI Territorial tools for agro-industry development A Sourcebook Edited by Eva Gálvez Nogales and Martin Webber FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 2017 Recommended citation FAO. 2017. Territorial tools for agro-industry development – A Sourcebook, by Eva Gálvez Nogales and Martin Webber (eds.), Rome, Italy. Cover photographs ©FAO/Edward Seidler ©FAO/Giuseppe Bizzarri 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 978-92-5-109650-5 © FAO, 2017 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]. iii Contents Acknowledgements ix Executive summary x Abstract xxiv Acronyms xxv 1. Introduction 1 Eva Gálvez Nogales, Martin Webber and Kevin Murphy 1.1 About the Sourcebook 1 1.2 Concepts, approaches and issues in territorial development 7 1.3 Organization of the Sourcebook 21 References 23 2. Agricultural growth corridors 29 Kevin Murphy and Eva Gálvez Nogales 2.1 Definition and background 29 2.2 Goals, objectives, benefits and reported impacts of agrocorridors 39 2.3 Key actors – their roles and objectives 43 2.4 From a transport corridor to an agrocorridor: “hard” and “soft” components 46 2.5 Framework for agricultural growth corridors: planning, implementation and investment 52 2.6 Challenges and solutions 57 2.7 Two cases: agrocorridor experiences in developing countries 58 2.8 Lessons learned 79 References 81 3. Agrobased clusters 89 Kevin Murphy 3.1 Concepts 90 3.2 Why clusters? 94 3.3 Unique characteristics of agrobased clusters 97 3.4 Agrocluster promoters 101 3.5 Benefits and challenges of agrocluster initiatives 107 3.6 How to implement successful agrocluster initiatives 110 3.7 Lessons learned from successful agrifood clusters 116 References 120 iv 4. Agro-industrial parks 125 Eva Gálvez Nogales and Karen Isahakyan 4.1 Concepts 125 4.2 Rationale and history of agro-industrial parks 127 4.3 Typology 129 4.4 When to use the agro-industrial park model 132 4.5 Framework for model agro-industrial park 136 4.6 Planning and management of agro-industrial parks 153 4.7 Lessons learned 167 4.8 Case studies 172 References 178 5. Special economic zones for agro-industry 183 Stephanie Haile 5.1 Concepts and definitions 183 5.2 History of special economic zones 184 5.3 Framework for special economic zone model 193 5.4 Policy, legislation and regulation: challenges and good practice 211 5.5 Case studies 214 References 230 6. Agribusiness incubators 235 Eva Gálvez Nogales, Costanza Rizzo and Anabella Bruch 6.1 Agro-incubators – basic concepts and definitions 236 6.2 Rationale and evolution of agribusiness incubators 238 6.3 Incubator typology 244 6.4 Survey of specific incubation models 249 6.5 Guidelines for establishing agribusiness incubators 256 6.6 Evolution in agribusiness incubators 265 6.7 Benefits of agribusiness incubators 268 6.8 Challenges and solutions 269 6.9 Conclusions 273 References 275 7. Attracting agro-industrial investments 279 Martin Webber and Eva Gálvez Nogales 7.1 Introduction 280 7.2 Investment attraction for agribusiness spatial development initiatives 282 7.3 Good practice in investment promotion 294 7.4 Case study in the Philippines 297 References 306 v 8. Governance issues and public institutional support 313 Martin Webber 8.1 Challenges and requirements 313 8.2 Governance 316 8.3 Role of the public sector in governance and implementation 318 8.4 Public sector roles in promoting and operationalizing territorial agro-industrial initiatives 322 8.5 Role of public–private partnerships 337 8.6 Case study: Implementation issues facing the national policy promoting food processing parks in India 340 References 348 9. Conclusions and checklists for designing and implementing agroterritorial initiatives 357 Martin Webber and Karen Isahakyan 9.1 Conclusions 357 9.2 Checklists for designing and implementing agroterritorial initiatives 362 References 368 FIGURES 1. Enablers of agribusiness and agro-industrial competitiveness 14 2. Potential development path for corridor initiatives 30 3. Southern Africa: the Beira Agricultural Growth Corridor (BAGC) 34 4. Greater Mekong Subregion (GMS) corridors 35 5. Central Asia Regional Economic Cooperation (CAREC) corridors 36 6. Economic corridors supported by the PRA project 37 7. Potential benefits of agrocorridors 42 8. Timeline of selected corridor programmes 46 9. Corridor interventions according to broadness and scope of the project 50 10. Framework for design and implementation of agrocorridor initiatives 53 11. Phases of agrocorridor development 56 12. Criteria for successful agrocorridors 57 13. GMS corridor evolution phases 61 14. A visual representation of an agrobased cluster 91 15. Horticulture cluster map of the United Republic of Tanzania 113 16. Types of agro-industrial park according to development objectives 131 17. SEZ forms and development objectives 193 18. SEZ design and implementation process 210 19. Rocky Mountain hub and spoke SEZ model 218 20. Procedure for the registration of an agro-industrial economic zone 219 vi 21. Time line of establishment of SEZs in sub-Saharan Africa 224 22. Key factors influencing investment decision-making 293 23. Tools and governance responsibility vary by geography 318 24. Pursuing effective public–private dialogue 323 25. Hierarchy of enabling needs 326 26. Economic corridor development in Indonesia’s Masterplan 2011–2025 358 27. Investment promotion tools 360 28. Factors to be considered in the four checklists 363 TABLES 1. Territorial development models 19 2. Examples of various corridor types 38 3. Types of public–private collaboration present in corridor programmes 43 4. Doing Business ranking 2014 62 5. Examples of cluster diagnostic tools 112 6. Illustrative strategic initiatives and examples 115 7. Types of agropark 129 8. Possible stakeholders of an agro-industrial park 142 9. Agropark institutional design: challenges and solutions 156 10. Content of prefeasibility and feasibility studies 173 11. Questions to be resolved by prefeasibility studies, and tools that can be used 175 12. Countries with SEZs incorporating agroprocessing and leather activities 186 13. Country performance and success indicators of SEZs 187 14. Regional SEZ characteristics in developing countries 189 15. Summary of SEZs in selected African countries 225 16. Types of agribusiness incubators 248 17. Constraints and scope of agribusiness incubators, accelerators and science parks 268 18. Investment features of the five tools 281 19. Major legislation governing investment policy in the Philippines 299 20. Incentives offered by investment promotion agencies in the Philippines 300 21. Investment promotion strategies by type of investment 301 22. Philippines investment promotion agency scorecard, 2010 304 23. Important challenges and requirements related to governance and public sector support 314 24. Pillars of governance 317 25. Main features of agro-industry investment promotion tools 359 BOXES 1. Types of corridors 31 2. How corridors can promote agriculture and growth in Africa 41 3. The important role of gateways in agrocorridors 47 vii 4. The SAGCOT Centre and Catalytic Fund Company 49 5. Hard and soft components: which comes first? The case of Peru 51 6. Key GMS programme milestones 60 7. Examples of key deliverables from 2014 Summit 61 8. Intraregional trade dynamics 63 9. Thai programme to foster regional agro-industrial growth 66 10. Yara seeks to increase fertilizer sales through the Tanzania Agricultural Partnership 69 11. SAGCOT origins and milestones 71 12. Kilombero Plantations Limited 73 13. Focus on livestock 73 14. Navigating a complex land rights regime is a challenge for investors 74 15. Tanzania Investment Centre One-Stop-Shop 77 16. Thailand’s Western GAP cluster 93 17. Cluster upgrading through related and supporting industries in Kenya 95 18. Nashik grape cluster: the power of collective action 100 19. Chile salmon cluster: the importance of strong and constant government support 101 20. Sri Lankan rubber cluster 102 21. United States of America’s “Cooperator Program” 103 22. Dominican rice cluster 104 23. Dominican cigar and tobacco cluster 106 24. Government-mandated efforts to create clusters: coffee in Viet Nam 110 25. Failure to elicit cluster cooperation in the Colombian leather cluster 117 26. Agrósfera: a green park project 132 27. Agro-industrial parks try to locate in an area that maximizes logistical gains 138 28. Location of agro-industrial parks determined by key drivers 139 29. Varying dimensions of agro-industrial parks 141 30. Examples from Malaysia and India of public sector involvement in agroparks 143 31.
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