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Public Private Partnership Projects in Eastern Europe

Experiences from the view of German agribusiness

Gerlinde SauerDirector agribusiness, Committee on Eastern European Economic Relations

East Agri Meeting, 4. Mai 2005

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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)

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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:

– 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.

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Activities of the working group „Agribusiness”

Support of German companies at their

commitment in Eastern Europe

ConferencesCommittees

Information Networking

Forum East-West

Trade fairs for agriculture

Specialized conferences and workshops

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

Cooperation requests

Information on relevant events

German and European business associations

Ukrainian agrarian confederation

Russian grain union

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Russia and Ukraine are strategic markets for German agribusiness companies

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2000 2001 2002 2003 2004

German agribusiness exports to Russia

Mio. €

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2000 2001 2002 2003 2004

Food

Machinery for the food industry

Technology for agricultural production

German agribusiness exports to Ukraine

Mio. €

After successful establishment of local trade cooperation German companies now increasingly invest in local production

After successful establishment of local trade cooperation German companies now increasingly invest in local production

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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.

Foreign companies distributing modern agricultural technology play a central role in providing management know-how to agricultural

producers in Eastern Europe.

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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)

German-Russian Youth Exchange

Initiation of PPP-Projects of our members

PPP-Project in cooperation with GTZ:

„Promotion of Russian Agriculture by practical training and extension“

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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 PPP-Projects in the area of education and professional consultancy