Public-Private Partnership to Promote Value Added Agriculture in ASEAN Region

OECD-ASEAN Regional Conference on Policies for Food Security, Bogor, Indonesia

11-12 November 2014

JAPAN

Contents 1. Size of Global Food Market

2. Establishment of the Food Value Chain

3. Joint Working Group on the Strategy for the Global Food Value Chain

4. Overview of the Strategy for the Global Food Value Chain

5. Public-Private Council for Promoting the Global Food Value Chain

6. High-Level Dialogue Meeting on Agricultural Cooperation

7. Food Value Chain at Joint Statements of AMAF & AMAF Plus Three

8. APEC Conference on Enhancing Global Food Value Chains in Asia Pacific

Contact Us: International Policy Planning Division Email: gfvc_maff@nm.maff.go.jp Tel: +81-3-3591-2657

Source:*1 The numbers were estimated by MAFF based on AT Kearneys data. The average exchange rate in 2009. 1 USD= 94.6 Yen

680 trillion yen (7.2 trillion USD)

340 trillion yen (3.6 trillion USD)

2009 2020

Food market size in the world (excluding Japan)

1. Size of Global Food Market

The size of global food market (excluding Japan) is predicted to expand from 340 trillion yen (3.6 trillion USD) in 2009 to 680 trillion yen (7.2 trillion USD) in 2020*1.

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Provisional Translation 2. Establishment of Food Value Chain

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Economic cooperation (Public Sector)

Investment (Private Sector)

Close Linkage

The Food Value Chain - Convey the value created by producers through to

consumers -

Production Consumption Manufacturing &Processing

Distribution

Horticultural farming centers

Farming machines and seeds

Agricultural infrastructure ( e.g. irrigation)

High-end cold chains

Cold distribution centers

Japanese-style CVS, supermarkets, department stores

Japanese restaurants

Food industrial parks

Food manufacturing facilities

Representatives from food-related private companies and organizations, academia, local and central organizations established The Joint Working Group on the Strategy for the Global Food Value Chain on 25 April 2014, for the purpose of discussing a strategy to establish the food value chain through Public-Private Partnership by utilizing the unique strengths of the Japanese food industry.

This Joint Working Group elaborated the Strategy for the

Global Food Value Chain on 6 June after thorough discussions at four meetings.

3. Joint Working Group on Strategy for Global Food Value Chain

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Provisional Translation 4. Overview of Strategy for Global Food Value Chain - Promote Made WITH Japan through Public-Private Partnership -

Develop the strategic Public-Private Partnership Establish a framework such as bilateral policy dialogue with partner economies and

public-private council Utilize the economic assistance strategically Develop food-related infrastructure such as cold chains in export markets Create favorable business and investment environment for food industry Strengthen the information-gathering system Develop human resources Develop the research and technology Facilitate the financing for overseas business

1. Basic Strategy

Establish food value chains in the following 7 regions and economies which have high potentials for private sectors investments through Public-Private Partnership.

2. Region-Specific Strategy

ASEAN China Middle East

Central and South America

India

Africa Russia and Central Asia

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2. Membership List (as of 16 October)

Private Companies (85)

Related Organizations (22)

Academia (5)

Local Governments (14)

Central Government (7)

3. Activities

1. History

Provisional Translation 5. The Public-Private Council for Promoting the Global Food Value Chain

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ASEAN task forces meeting of this Council, on July 31

The Public-Private Council has been launched on 20 June for implementing the Strategy for the Global Food Value Chain compiled on 6 June.

(1) The Council mainly works on the following activities to establish food value chains through Public-Private Partnership:

(i) Gathering, analysis, sharing and transmission of information which contributes to the establishment of food value chains

(ii) Collaboration and coordination of research, mission dispatching, project formulation, etc. (iii) Creating favorable environments for overseas business and investment development by the Japanese

food industry (2) Under the Council, country/region-specific task forces to strengthen the activities in

each country and/or region and study groups to explore possibilities to solve common issues of many countries/regions are set up.

[133 in total]

Taking the opportunity of the visit of H.E. Mr. Sang, President of Vietnam, to Japan, the basic consensus had been agreed between Japanese and Vietnamese agricultural ministers on March 2014. Based on the consensus, the first High Level Meeting of Japan-Vietnam Agricultural Cooperation Dialogue was held in Hanoi, Vietnam on 26 June, 2014. The representatives of 11 Japanese private companies, JICA, JETRO and the Embassy of Japan in Vietnam attended the dialogue.

It was confirmed that both sides will collaborate to form a medium-long term vision for establishing food value chains in Vietnam(establishment of model areas/five-year plan), aiming for its approval by the 2nd High Level Meeting to be held next June.

Japan: Mr. Hayashi, then-Minister of Agriculture, Forestry and Fisheries (co-chair), Japanese Ambassador to Vietnam, JICA(Japan International Cooperation Agency), JETRO( Japan External Trade Organization), representatives from Japanese private companies and organizations* * Acecook Co., LTD., Cool Japan Fund Inc., DREAM INCUBATOR INC., IT-

Communications, Inc., ISEKI & CO., LTD., Kubota Corporation, MAYEKAWA MFG. CO., LTD., JAMMA, Mitsui & Co. Ltd., Salad Bowl Co., Ltd., Sojitz Corporation

Vietnam: Mr. Phat, Minister of Agriculture and Rural Development (co-chair), IPSARDInstitute of Policy and Strategy for Agriculture and Rural Development), Vice-ministers of relevant ministries, representatives from Provincial Peoples Committee, representatives from and the Public Corporations

2. Participants

1. Overview

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6-1. The First High-Level Dialogue Meeting on Japan-Vietnam Agricultural Cooperation

Hanoi Distribution

&consumption

Nghe An (Production) Issues Model Area Measures

Production: Improving productivity and added value

Nghe An Province

Irrigation, Participatory water management, Proper usage of agrichemical and fertilizer, farmers organization

Manufacturing & Processing: Food processing and products development

Lam Dong Province

Promoting 6th industry involving food processing and tourism

Distribution Consumption: Improving distribution system and cold chain

Hanoi city &

Ho Chi Minh city

Meet the needs of consumers Preserve freshness Strengthening Cold-Chain by investment of private sector

Lam Dong (Processing)

Model areas to be determined, where various measures will be taken in collaboration with public and private sectors of both countries for tackling issues in each stage of the FVC. The medium-long term vision for 5 years to be formulated.

Viet Nam, 70% of population lives in rural area and the ratio of agricultural GDP accounts for approximately 20%.

Establishing food value chains from production, processing/manufacturing, distribution, to

consumption is very important for the development of agriculture.

Ho Chi Minh (Distribution

&consumption)

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6-2. The First High-Level Dialogue Meeting on Japan-Vietnam Agricultural Cooperation

The First High-Level Meeting on Japan-Myanmar Cooperation Dialogue for the Development of Myanmars Agriculture, Forestry, Fisheries and Foods was held in Nay Pyi Taw, Myanmar, on 23 September 2014. The Representatives of 14 Japanese private companies, JICA, JETRO and the Embassy of Japan in Myanmar attended the meeting.

Both sides confirmed that they would collaborate and explore concrete actions to establish food value chains in Myanmar.

Japan: Mr. Nishikawa, Minister of Agriculture, Forestry and Fisheries (co-chair), Japanese Ambassador to Myanmar, JICA (Japan International Cooperation Agency), JETRO (Japan External Trade Organization), representatives from Japanese private companies and organizations* * Cool Japan Fund Inc., ISEKI & CO., LTD., Japan Agricultural Machinery Manufacturers Association, Kokubu & Co., Ltd., KUBOTA Corporation, MAYEKAWA MFG. CO., LTD., Marubeni Corporation, Mitsui & Co. Ltd., NIPPON EXPRESS CO., LTD., Nippon Koei Co., Ltd., SATAKE CORPORATION, Sompo Japan Nipponkoa Insurance Inc., Sumitomo Mitsui Banking Corporation,

YANMAR Co., Ltd. Myanmar: Mr. U Myint Hlinag, Union Minister for Agriculture and

Irrigation (co-chair), Mr. U Win Myint, Union Minister for Commerce, Myanmar Federation of Chambers of Commerce and Industry, Myanmar Rice Federation and etc. 8

1. Overview

6-3The First High-Level Meeting on Japan-Myanmar Cooperation Dialogue for the Development of Myanmars Agriculture, Forestry, Fisheries and Foods

2. Participants

7. Food Value Chain at Joint Press Statements of AMAF & AMAF Plus Three The 36th Meeting of ASEAN Ministers on Agriculture and Forestry, September 2014, Nay Pyi Taw, Myanmar Para. 19 We supported the initiative on Public Private Partnership Cooperation for

Establishing Food Value Chain between ASEAN and Japan and noted that some activities have been conducted such as the establishment of Joint Working Group consisted of representatives from food-related private companies and organisations, academia, local and central organisations and the Strategy for Global Food Value Chain.

The 14th Meeting of ASEAN Ministers on Agriculture and Forestry and Ministers

of Agriculture of the Peoples Republic of China, Japan and the Republic of Korea, September 2014, Nay Pyi Taw, Myanmar

Para. 7 We noted Japans support on the Public Private Partnership Cooperation

for Establishing Food Value Chain in some ASEAN Member States. Building on this initiative, we encouraged the initiative to be expanded to the regional level.

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2. Participants

1. Date, Objective and Theme

Provisional Translation 8. APEC Conference on Enhancing Global Food Value Chains in Asia Pacific

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Conference on Enhancing GFVC in Asia Pacific, on June 19

Date: 19 June 2014, Tokyo Objective: Bridging APEC and OECD as the chairmanship of 2014 OECD Ministerial Council Meeting Theme: Enhancing global food value chains

About 100 participants from APEC economies, OECD and ASEAN countries, related international organizations and private sectors

Group Photo

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