Public Private Partnership Projects in
Eastern Europe
Experiences from the view of German agribusiness
Gerlinde Sauer
Director agribusiness, Committee on Eastern European Economic Relations
East Agri Meeting, 4. Mai 2005
1
The Committee on Eastern European Economic
Relations represents the interests of German business
in Central, Eastern and South-East Europe
•
The Committee on Eastern European Economic Relations was founded in 1952
•
It is a joint organ of the leading business associations representing German
industry (Federation of German Industries – BDI and also leading associations
in the area of trade, finance, insurance)
•
Membership is open to companies with interests in Russia, Central and
Eastern Europe, South-East Europe, the Baltic States, the Caucuses and
Central Asia
•
The task is to support and promote the efforts of German companies involved
in these regions in trade, industry, investment or the service sector
•
Within the Committee exist working groups regarding countries and special
branches (e.g. agribusiness)
2
The Working Group “Agribusiness” focuses
on the development of trade and investment in
agriculture and food industry
•
It was founded in 1998 as an initiative of the German ministry of agriculture to
support the cooperation especially with Russia and Ukraine and was
integrated to the Committee on Eastern European Economic Relations in 2001.
•
The activities are supported and financed by the leading business
associations representing Germany agribusiness:
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–
–
–
–
–
–
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agricultural machinery
seed production
plant protection
cattle breeding
food industry
agricultural cooperatives
trade and consulting
The aim of the working group is to support the development of agriculture and
food industry especially in Eastern Europe by modern agricultural technology,
know-how and direct investment.
3
Activities of the working group „Agribusiness”
Forum East-West
Working Groups on
Agriculture/Food Industry
within the bilateral
cooperation council
Bilateral committees in the
area of economy and
agriculture
Current Information
on agriculture in Eastern
Europe
Trade fairs for agriculture
Committees
Conferences
Support of German
companies at their
commitment in
Eastern Europe
Information
Networking
Specialized conferences
and workshops
German and European
business associations
Cooperation requests
Ukrainian agrarian
confederation
Information on relevant
events
Russian grain union
4
Russia and Ukraine are strategic markets
for German agribusiness companies
German agribusiness
exports to Russia
German agribusiness
exports to Ukraine
Mio. € 1800
Mio. € 1800
1600
1600
Food
1400
1400
Machinery for the food industry
1200
1200
1000
1000
800
800
600
600
400
400
200
200
0
0
Technology for agricultural production
2000
2001
2002
2003
2004
2000
2001
2002
2003
2004
After successful establishment of local trade cooperation German
companies now increasingly invest in local production
5
Eastern European countries are facing the challenge
to effectively realize their agricultural potential
•
Lack of modern technology for plant, meat and food production
•
Lack of financing for agricultural producers
•
Governmental structures are still hindering access to innovations in the area
of agricultural technology (e.g. difficult and expensive registration procedures
for new technologies)
•
Lack of management know-how for efficient and internationally competitive
agriculture
•
Insufficient education and professional consulting in the area of agriculture
Foreign companies distributing modern agricultural technology play
a central role in providing management know-how to agricultural
producers in Eastern Europe.
6
What is the outlook of the Committee on Eastern
European Economic Relations on
Public Private Partnership?
Networking
GTZ is member of the
working group
Joint events to foster
the personal exchange
between German
companies and
developing projects in
Eastern Europe
PPP-Projects of the
committee
Project for consulting of
business associations
in Moldova and Albania
Internship Program
„Zoran Djindjic“
(Serbia)
Initiation of PPP-Projects
of our members
PPP-Project in
cooperation with GTZ:
„Promotion of Russian
Agriculture by practical
training and extension“
German-Russian Youth
Exchange
7
Lessons learned on PPP-Project in Russia
•
PPP-Project targets the critical factors for the development of
Russian agriculture, especially insufficient management know-how
•
Extra costs of imported agricultural technology are only economically
reasonable if the products are employed efficiently
•
Development of PPP-Projects needs time and management capacity
•
Great demand for the services of the PPP-project
•
Local political support is of vital importance
•
Russian federal and regional government are advised to support PPPProjects in the area of education and professional consultancy
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