cfc adding value

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Adding value to bananas The results of a study andworkshop on the contribution ofMusa processing businesses torural development

Final Report

June 2006


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TABLE OF CONTENTS

1- Project Data Page 3

2- Executive Summary Page 3

3- Technical Report Page 4

3.1 Activities completed Page 4

3.2 Results and conclusions of the Workshop Page 6

3.3 Plans for promotion of the results Page 17

Appendix 1: Reformulated proposal to CFC Page 18

Appendix 2: Preliminary survey format Page 20

Appendix 3: Methods guide Page 24

Appendix 4: Workshop Participants list Page 62

Appendix 5: Workshop programme Page 70

Appendix 6: Workshop report by local

organizing committee Page 73


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1. Project data

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3. Technical report

3.1 Activities completed

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Table 2: Musa products by country according to five types of processing businesses

Type of

businessProducts/countries Strengths Weaknesses

Philippines bananacueCameroon banana fritters,roasted plantainNigeria dodo ikere, roastedplantainTanzania balagala, roastedplantain

Micro-enterprises:single productprepared andsold on thestreet (100sto 1000s ineach country) Malawi banana pancakes,

muffins, snack foods

Simple, low costtechnologyLabour intensiveQuality control byconsumerDaily cost accountingLow sale price

Difficult hygiene onstreet (dust, mud,lack of clean water)Precarious financesMinimal shelf lifeNot licensed orregulatedRaw material supply


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India chips, sweets,handicrafts, fibresNicaragua chips, sweets,baked ripe plantain, chocolatecovered ripe banana, vinegarCosta Rica chipsNigeria chips, beer

Tanzania beer, brandyMalawi banana pancakes,muffins, snack foods

Micro-enterprises:single productprepared athome for saleon street orfrom home

(100s to1000s in eachcountry)

Cameroon chips

Simple, low costtechnologyLabour intensiveDaily price accountingLow sale price

Labour efficiencyMinimal shelf lifeNot licensed orregulatedRaw material priceand supply

Chips Nigeria, Malaysia,India, Costa Rica, Nicaragua,Philippines, CameroonBanana relish, juice, jam, figs,sweets IndiaFlour Nigeria, CameroonBanana catsup Philippines

Small tomediumenterprises:mixed snackor foodproductionwith companylabel andlicense(few to 50 per

country)

Alcohol Cameroon

Traditional products forpopular tasteDiverse product mix forefficient use of installationsand labourLicensed and regulatedwhich permits expansionto legal marketsTechnology, packagingcan be upgraded

Strategic businessmanagement

Need for morespecialized servicesExternal financingneeded for expansionDependent on publicservicesVulnerable to cheapimported substitutesor changing tastes

Figs Cameroon, Tanzania,Nicaragua, Costa RicaWine Malawi, TanzaniaPaper products andhandicrafts Nicaragua,Tanzania, MalawiPre-frozen foods for export Costa Rica

Micro andsmallenterprisespromoted byNGOs(few to 10 percountry)

Yogurt Nicaragua

Access to training onmanagementAccess to technicaltrainingAccess to financingNew products for newmarkets

Uncertain financialsustainabilityServices for businessnot always availablelocallyMarket potentialpotentially limitedSmall volume

Frozen pre-cooked foods Costa RicaDairy products Cameroon,

Costa Rica, Nicaragua, India,Malaysia, MalawiPuree Costa Rica, India,PhilippinesChips Costa Rica,Nicaragua, IndiaFlour Nigeria

Medium tolargebusinesses

with modernprocessingtechnology(few percountry)

Wine Tanzania

Business strategy andmanagementVolume production for cost

reductionAccess to internationaltechnology and packaging

Raw material priceand supplyHigh cost product not

accessible to lowincome classes

3.2.2 Types of Musaprocessing businesses and their products

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3.2.3 Services employed by different Musaprocessing businesses

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Table 3: Services employed by five categories of processing business

Type of processing business

Type ofserviceproviders

Micro: singleproductprepared andsold on thestreet

Micro: singleproductprepared athome for saleon street or from

home

Small to medium:mixed snack orfood productionwith companylabel and license

Micro and small:promoted byNGOs

Medium to large:modernprocessingtechnology

TechnicalAssistance onprocessing

-- -- Public foodtechnologists,equipment andinput sales

Public foodtechnologists,foreignconsultants

Contractedinternationally orin-house

Simplepackaging

Recycledpaper,polyethylenebags, leaves,serving stick

New paper orpolyethylenebags, recycledbottles, bringyour owncontainer

New packaging polyethylene orpolypropylene,plastic container,bottles

Like smallbusiness

--

Advancedpackaging

-- No Paper labels orprinted bags,laminated oraluminium bags

Like micro andsmall business

Sealed for foodsafety withminimal handling,product branding

Raw materials /simpleingredients

Local markets Local markets Bulk purchases,contracts withgrowers andtraders

Local markets Bulk purchases,collectionnetwork, growercontracts

Specializedingredients

-- -- Spices,preservatives,flavourings

Speciallysourced bybusinessadvisors

Imported directly

Handequipment

Minimalkitchenutensils

Utensils forlarger batches

Similar to micro,but higher qualityand larger


Specialized orefficiency andfood safety

Small scaleequipment

-- Large pans,sieves, closedcontainers,stoves

Dryers, stoves,large pans, workersafety equipment


Imported directly,worker safetyequipment

Industrial

equipmentimporters

-- Plastic bags,

sealers

Cookers,

sterilizers, dryers,scales, packagesealers

-- Specialized

product linescustom designed

Businessservices

-- -- Accounting,investment plans

Training courses Specializeddepartments inhouse

Professionaleducation inprocessing

-- -- University foodtechnology

University foodtechnology

University foodtechnology

Practicaltraining inprocessing

On job, fromfamily

On job, fromfamily, on job inanotherbusiness

On-job,occasionalgovernmentservice

Training on newproducts

In house

Credit -- -- Government creditor friends

Training andtechnical

assistance free

Commercialcredit or parent

companyEnvironmentstandards

-- -- Water, wastes,noise

-- Water, noise,wastes

Food safetystandards

-- -- On siteinspections,health certificates

-- On siteinspections,healthcertificates, inhouse labs

Labour safetystandards

-- -- Worker safety -- Worker safety


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3.2.4 Mechanisms/linkages in business support environment to reachsmall and micro businesses

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Table 4: Quality and accessibility of business support environment for the promotion andexpansion of processing businesses among rural communities in nine countries studied

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3.2.4 Processing as a solution to production and market problems

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Table 6: Conclusions based on 9 country studies: Initiatives for the work plan of INIBAP andthe regional networks 12 Oct 2005

Issue Proposed InitiativeProcessing technology

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3.3 Plans for promotion of the results

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Appendix 1: Work plan and budget for workshop and INIBAP-facilitatedsupport platform to Add value to the banana - Presented to CFC and co-funders 3 December 2004

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Appendix 2: How can we add more value to bananas and plantains apreliminary survey

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Competitive small and medium rural enterprises for processing andmarketing;

A dynamic information and services support system which supportsinnovation and competitiveness among rural enterprises.

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Preliminary questionnaire: Small banana and plantain-processingbusinesses and their support system of information and services

1. What banana and plantain-based products are sold:

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2. Quick inventory of the support sectors for technical processingaspects of banana or plantain product businesses:

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3. Sectors related to small business set up and operations:

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4. Are there studies or statistics which are useful in knowing more aboutsize and nature of the banana and plantain product business?

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Appendix 3: Methods guide

Ruth Junkin CATIE CECECOCharles Staver IPGRI INIBAP

Sith Ying Snchez private consultant

April 2005


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Table of Contents

INTRODUCTION

A PRELIMINARY VIEW OFMUSA PROCESSING

Banana and Plantain Products on the market

Technical support sector

Sectors Related to Small Business start up and operations

Size and Nature of processing sector businesses

Production Potential

FORMING A NATIONAL (OR LOCAL) TEAM

Presentation of the goals of the study and the proposed methodology

Participant presentation of the strategies of their organizations

Mapping and characterization of processing businesses

Mapping and characterization of providers of business services anddevelopment assistance

Description of mechanisms, policies and programmes which promoteor inhibit the development of Musaprocessing businesses

Accessing secondary information on production, processing andservice providers

Developing a plan to carry out the study

ANALYSIS OF PROCESSING BUSINESSES

General information on the business

The original idea and the start up/establishment of the business

Technology and organization of the processing line of Musa

How is the business linked into the market

How is the business managed

Analyzing and summarizing the results on each business

Principal strengths and weaknesses

Analysis of the potential contribution to Rural Development


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Analysis of the Support Services

Interview guide for businesses and organizations

Learning from projects for the promotion of small processing businesses

Processing and organizing the results of the study

Planning and carrying out the final workshop

Follow up by the national team and workshop participants


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Traditionally, the organizations dedicated to bananas and plantains have dedicated theirefforts towards germplasm, new cultivars, pest management and agronomic practices.Although these themes are highly relevant to increasing crop productivity, they do not covernumerous options of how bananas and plantains might contribution to improved livelihoods.The processing and marketing of banana and plantain products is one of such opportunitiesthat requires a broader analytical perspective and work plans.

For rural households of modest means the decision to start up a small Musa processingbusiness is quite serious. The challenge is to convert an inspiration into a viable plan for aprofitable business. The future business owner has to gather diverse information what toproduce, for which consumers or clients, what production techniques to use, how to packageand distribute the product, how to compete with other similar small businesses and how tofinance the initial investment. Once the business has been set up, the business needs to be

vigilant to keep up quality and quantity standards, respond to an often fluctuating demand,keep informed about the competition and maintain and improve the standards of theequipment and the building.

Many rural businesses still do not have the technical and management capacity to competeeffectively in markets which are more and more demanding. They face difficulties to identifymarket opportunities, to diverse their clients and to comply with demands of quality, quantityand timeliness. All successful businesses access business support organizations forservices in marketing, management and production line design. The small processingbusiness needs not only business support services, but also support services which provideinputs such as raw material in a reliable supply, inputs, machinery, and packaging materialsto produce their final products.

In many cases, development organizations, NGOs or consultants offer these services as partof projects or programmes for development. Such services are also available to a limitedextent on a commercial basis. However, often these services are not well designed on theneeds of the businesses which most need their services. In some regions services may beabsent or not available to small, low capital businesses. The methods in this guide proposeto look at the match between the needs of Musa processing businesses and the servicesoffered by business development agencies, technical assistance groups and private sector.The strengthening of service providers which operate in rural communities where many smallprocessing businesses are located represent an opportunity to contribute to the sustainabledevelopment and competitiveness of the small business sector.

This guide has several objectives: Identify the strengths and weaknesses of small Musaprocessing businesses; Analyze the availability of information and services for small rural processing businesses

which contribute to their efforts to compete; Analyze the potential of small processing businesses to contribute to rural development; Profile the mechanisms for information flow and collaboration and areas of non-

communication among the important agents linked to adding value to Musa throughprocessing;

Analyze the experience of a project which promoted small rural processing businesses;


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Identify possible strategies for improving the conditions for the start up and expansion ofsmall processing businesses which contribute to rural development. These strategies maydepend on closer links among specialists from production, food processing and businesssupport;

This guide is for use by research and development agencies working with Musa. Tools andmethods are provided to analyse the needs of small processing operations to consolidate

and expand their businesses. The proposed approach calls for a collaboration amongagronomists, food technologists and small business advisors.

The diagnostic tools and methods proposed identify the strengths and weaknesses of smallbusinesses from a technical as well as a business point of view. The tools, at the same time,are designed to identify the links from small businesses to providers of different kinds ofservice and information to solve their problems and expand their production and sales inputs, machinery, technical design and layout, technical trouble-shooting, marketing,finances, management and planning. In this way, the team and other national collaboratorscan analyse the relations among the different agents in the whole sector, which contribute toor make difficult the start up and expansion of new businesses.

The guide diagnoses the support environment for the development of micro and smallbusinesses which have grown up in rural and small town households with modest resources.In general, such businesses use simple production and administrative systems. For thestudy of such businesses as well as their support environment, we will observe the followingpoints:

Infrastructure and equipment Availability and use of inputs Production processes Administration Short term and strategic planning and f inancial management Markets and marketing Investment strategies

Transportation and logistics

By comparing the needs of the processing businesses and the availability of supportservices, we will be able to identify preliminary strategies to strengthen the business supportenvironment for the establishment of processing businesses which contribute to ruraldevelopment.

The proposed method has six sections described in the following pages:

1. A preliminary survey of Musaprocessing

2. Forming a national (or local) team and mapping the sector3. An analysis of processing businesses4. An analysis of support sector businesses5. Documentation of the work of a project dedicated to small rural processing business6. Processing and analyzing results


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To begin the analysis of Musa processing businesses and their business supportenvironment we begin by gathering quite basic information on products sold, thecharacteristics and location of the businesses, their sources of inputs and other basicservices and the organizations which offer technical and business advice.

In this first section the questionnaire orients how we collect and organize preliminaryinformation before a more detailed study. The sources of information can be varied contacts, other studies and reports, visits to sales areas, even internet.

A. Banana and plantain products on the market

Fill in table describing banana and plantain-based products produced and sold by formalsector (legally registered businesses) and by the informal sector (small scale and local inthe street, at bus stops, sold by children)? Visit supermarkets and smaller shops in city,town, village. List banana and plantain-based products found. Compare number and qualityof banana and plantain-based products to other similar foods from other raw materials. Notewhether they are produced nationally or imported and from the informal or formal sector.

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Indicate the prepared food items from the formal sector in which banana and plantain are aminor ingredient?

Indicate the banana and plantain products produced and sold by informal sector in whichbananas and plantains are a minor ingredient?


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B. Technical support sector a quick inventory

Make a list with a short description of programs, projects and organizations which promote orsupport small scale processing businesses. This list should include:

Universities and research centres with food science programs Private companies and consultants which provide technical information on processing Businesses which provide processing equipment, packaging material and other

inputs used in food processing Food processing associations or chambers of commerce Commercial fairs Information sources on markets

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C. Sectors related to small business set up and operations

Make a list with a short description of programs, projects and organizations which promoteand/or support small processing businesses. The list should include:

Universities, private offices and NGOs which have programs with services for smallbusinesses

Credit agencies or funds for small scale businesses from the government, banks,local credit cooperatives or sources of commercial credit. Government agencies and offices which regulate and monitor small processing

businesses (worker safety, food quality, environmental safety, product registration,businesses licensing)


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Support sector for the Small Business

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Special projects are also often set up to promote the establishment of rural processingbusinesses of Musaand other crops. Please list projects in the past 10 years in the countryor local region which have promoted rural processing business. Who was the donor? Whichorganization ran them? Do you know a contact person?

1.

2.

3.

4.

D. Size and nature of processing sector businesses

List here any studies or statistics which are useful in knowing more about size and nature of

the banana and plantain product business? Are there any studies which estimate thepotential size of the market for processed products, especially relating to particularconstraints? Have any other diagnostic studies been done on processing businesses or thegeneral business environment for small rural enterprises?


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What is the contribution of the banana and plantain processing sector to the gross nationalproduct and the gross agricultural product?

E. Production potential

To evaluate the potential for the development of Musaprocessing businesses, it is useful tohave a general overview of the national production by types of Musa. In the chart below,information can be organized by category of Musaaccording to the situation in each country.

Productive potential

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The national team will lead the planning and implementation of the study of small processingbusinesses and their support environment. The team should be composed of key agents in

the Musa sector which have interest and actions directed towards the development ofprocessing businesses.

The information completed in the preliminary survey will assist in the identification of keyactors who might be invited to participate in the national or local team. In the case of largecountries such as Mexico, Brazil, Nigeria, Philippines, India, Colombia, etc, teams may beconvened by region rather than at the national level. Even in small countries it may be moremanageable to cover a small region in the study rather than the whole country. In each ofthe categories listed below at least three potential partners or participants might be identifiedto participate in the national study team.

Representatives of government ministries and offices which promote small rural

businesses regulate small businesses (product licenses and standards, workersafety, environmental hazards), provide credit or technical assistance for smallbusinesses, which promote cooperative businesses, which organize technicalassistance, which develop policies on technology development. Where possiblethese should have particular links to Musa.

Universities or research and development centres on food technology andprocessing, including Musa.

Representative of the national Musaprogramme which represents the country in theregional Musanetwork and other key team members related to processing.

NGOs and other support organizations which provide business support services tosmall rural processing businesses

Representatives of small business association, association from the food industry orother business organizations

Representatives of consumers organizations if such exist in the country.

The participants in the national team ideally should have experience and professionalpreparation in agronomy, food technology, small business promotion and management andcommunity development. This will contribute to a multi-disciplinary approach and potentialfuture collaborative programs. The national leader or principal scientist who represents thecountry in the regional INIBAP-facilitated Musanetwork can play a key role in the team. Heor she might participate directly or delegate a member of their research group.

A workshop to do a preliminary characterization of the processing sector

The representatives from the different sectors can be convened for a workshop of about oneday to set up the foundation of the study. The agenda for the workshop should include thefollowing points:


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F. Presentation of the goals of the study and the proposed methodology

A facilitator presents the goals of the study and the methods to be used. The participantscan be given a copy of the guide before the workshop. In this way they can review theproposal before the workshop and come prepared with comments and questions.

G. Participant presentation of the strategies of their organization

Each person introduces themselves and quickly describes their group. Later in the workshopthey can provide more information about their activities in support of the Musasector.


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Characterization of Processing Businesses

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H. Mapping and characterization of processing businesses

The first question is: How many processing businesses are there and how can we group them?What are the characteristics for grouping number of employees, type of technology, type ofproduct, market which is targeted, permits and registration? Once the groups are identified, theycan be represented on a large paper. For each group their number and other important

characteristics can be noted. The relationships among the businesses can also be discussedand represented with arrows, lines and descriptive phrases. At the same time the matrix ACharacterization of Processing Businesses - can also be completed with basic information oneach group. The information compiled in the preliminary survey may be useful for this task

I. Mapping and characterization of providers of business services anddevelopment assistance

To the map we can next add those businesses which provide services to processing businesses.These include inputs for processing, inputs for packaging, machinery, and small equipment.Another group provides technical and business development services such as businessmanagement, market studies and information, financial services such as accounting, credit,

technical assistance on production and marketing and industrial engineering. These can berepresented on the map with lines, arrows and descriptive phases to communicate therelationships among the sectors. Some providers may be linked to a single type of business,while others may serve diverse types of businesses. An example is shown of the initial mappingdone in Costa Rica by a small group from the production and processing sector in February2005.

In this discussion and mapping, the matrix can also be completed - Characterization of theProviders of Services for Business Support and Development. The information compiled in thepreliminary survey may also be useful in this task.

Once this matrix has been completed, the most important (organizations, agencies, projects,offices, associations) actors can be selected for an analysis of the relationships among them.

For this discussion the matrix Relationships among key Actors can be used. The group candiscuss how the actors collaborate, compete, coordinate, ignore each other, divide up the workor work in separate areas without any interactions.


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Characterization of Providers of services for Business Support and Dev

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Interactions among key actors

Actor 1 Actor 2 Actor 3 Actor 4 Actor 5 Actor 6 Actor

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J. Description of mechanisms, policies and programmes which promote orinhibit the development ofMusa processing businesses

To complete the mapping, the group can identify the mechanisms which exist to create moreeffective communication among the different actors. How do groups of actors access newinformation? Are there policies which seek to promote processing businesses? Are there

known problems which result from policies which inhibit new business development? Do thesepolicies favour certain types of businesses over others? These can be listed and described inthe format below and can be added to the map.

Mechanisms, policies and programs

"

K. Accessing secondary information on production, processing and serviceproviders

It is worthwhile to take a brief moment with the participants to share the list of studies, survey

and statistics which has been compiled on Musaprocessing. There may be other studies whichhave been done, but which have not been circulated widely among agents in the sector.

L. Developing a plan to carry out the study

At the end of the workshop, the group can then develop a work plan, budget, dates and peoplefor the study. The following activities are proposed:

interviews and visits to 2-4 Musaprocessing businesses, interviews with the principal business development service providers, interviews with several providers of technical and input providers to processing businesses. documentation of a project dedicated to rural processing business development. final workshop to review results.

Interview teams should be organized with different specializations (production, processing andbusiness development) represented in each team.


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!

The method proposes a visit and interview to profile a sample of Musaprocessing businesses.Several steps are involved:

Choice of businesses to be profiled

From the list that was established in the initial survey, a sample of 2-4 businesses can beselected, taking into account the following issues:

Work in the regions considered of primary importance for the organizations of thenational team. The final decision on the number and location of the businesses to beinterviewed will depend on the size of the country, the number of zones of particularinterest and the time and budget available for the study.

Select a cross section of businesses with varied characteristics in years in operation,size, organizational structure (association, cooperative, family, partnerships) and final

product.

Making contact with processing businesses and setting up a date for an interview

About one half day will be needed for the visit and interview with each processing business.When requesting an interview, a time should be chosen to assure the owner or representativecan dedicate full attention to the interview. It may also be useful to see the processingoperations in action. If possible, other important employees might be available to participate inthe interview, such as the administrator, the floor supervisor, someone from marketing or othermembers of the management. In the case of a family business, these jobs may all be done by afew people.

An overview of the interview and visit

The facilitator of the study should convene the other members of the team for the visit to theprocessing plant of about 2 hours. The team will gather the following information:

General information How the business was started the original idea and the start up process Technology and the organization of the processing procedure How is the processing business connected to the marketing chain Organization and management of the business

Since the team is multi-disciplinary, each member can carry out the different sections of the

interview. For example, the food scientist can conduct the interview on technology and theorganization of the processing procedure and the business development specialist can gatherthe information on the organization and management of the business. Often the team will needto adjust the methods described here according to the situation of business or the person beinginterviewed. The businesses may consider some information too sensitive to reveal. In suchcases general information is acceptable. Those interviewed also have the right to not answer.


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A team member might also take digital photos of the building, owner and staff, the products andthe processing line, if the owner agrees.Processing the information

As soon after each interview as possible, the team should meet to discuss and process theresults and develop conclusions. This will make full use of the different professions which are

represented in the team.

M. General Information on the business:

Name of the Business:

Address:

Telephone: Fax: email address:

Names of the contacts which provided information and their position in the company:

What are the primary products produced by the business? (Including label, weight, size,packaging, pricing). The products have any kind of certification?

Who are the clients for the products as they leave the factory?

Who are the final consumers of the products?


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N. The Original idea and the start up/establishment of the business:

In what year was the business set up? Who was responsible for setting it up?

Where did the idea for a business come from? Where there any special circumstances which contributed to thalso considered?

How were the following developed - the technical knowledge, the idea for the market, the feasibility study, the sources of information and collaboration? Were any organizations, agencies, projects or paid consultants involv

Did you do initial tests of the product, of the market, of the equipment?

How was the expansion achieved? How did you realize there were opportunities for growth? Did you have grew or became better established? What was key information which contributed to growth and where did it co

Have you used credit or other financial services for expansion? Where from and for what investment? Did yFor what reason?

What have been the key changes in the life of the business? How did they come about?

Did you have any special difficulties at any point? How did you resolve them? Were there any important inform

What have been the most important information sources contributing to the success of the business? Winformation to obtain?

Time Line: A method to organize the discussion

In this section, we want to document where the original idea for the business came frwas started and the important steps in its consolidation and expansion. To assist theorganization of the information, a time line can be used. Begin the line when the ideabusiness was generated and continue until the present time. The following questionsyou to construct the line.


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O. Technology and organization of the processing line ofMusa:

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A tour through the workshop or plant: a Method for to promote discu

In this section, the person being interviewed explains how he or she produces

important Musa product from obtaining the raw material to the storage of the pfacilitate the sequence of information gathering, the study team can walk the plamanager, stopping to discuss each step in the processing line, volumes of inpuproduction, time required, the number of persons working in each stage and their skilthe special issues with quality control at each stage. The food technologists may clarify certain issues and provide additional information to the rest of the team after tbeen completed.


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What happens with waste products, sub-products, waste water, used inputs?

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Does the business have to comply with norms and inspections of worker safety, health a


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Map of the Installations: (In this sheet, we want to understand the overall dimensions of of the primary activities and the route which the raw material and then the semi-processbuilding.)


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Q. How is the business managed

What are the short, medium and long term objectives of the business? (In the case inwhich they are well defined, they can be documented. If they are not defined, thenduring the interview the team can help in their clarification. The objectives can be

economic, technical and marketing.) What are the primary challenges which the business faces? Who helps to meet these

challenges? Individuals and organizations? What service or information do theyprovide?

Does the business receive any business management services? Any advisory service inbusiness management? Who are the principal providers? What are the conditions toreceive the services (fees, membership in a group, etc.)?

Does the business belong to any association or chamber of commerce? How many employees does the business have? What are their positions and their

responsibilities? A diagram of the organization might be useful to illustrate therelationships among the different positions. Do all the people who work in the factoryreceive salary? Did any of the staff receive professional training?

How does the business insure that the employees have the abilities to carry out theirwork? Are there training programs for employees?

Does the business maintain account books? Do you register costs? How frequently?Do you balance the accounts? How frequently?

Do you have operating plans and budgets? Do you have problems sometimes to paystaff and providers?

Does the business make a profit? Does the business have lots of debt?

Semi-structured interview: Method to gather information

In this section, we discuss how the business is managed, its strengths, the challenges, market

strategies and how tasks such as planning, financing and human resources are managed. Aguide based on a series of questions has been prepared and should be used with the director ofthe business or some other person who has ample knowledge of how the business is run dailyand its longer-term strategies.


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R. Analyzing and summarizing the results

At the end of the interview, once they have left the business site, the team should meet tosummarize the primary findings of the visit. These can be categorized in three groups:

principal strengths principal weaknesses potential contribution to rural or community development

1. Principal strengths and weaknesses

Discuss and make notes in the following table:

Principal strengths and weaknesses

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2. Analysis of the potential contribution to rural development

INIBAP, IPGRI and many national organizations and NGOs have as an objective to contribute torural or community development possibly by the promotion of small businesses. To measurethis contribution, we will identify how the business contributes to the five types of capital definedin the sustainable livelihoods framework.1

Contribution of the Business to Rural Development

2)

0" Education; knowledge, skills, health,nutrition, labour availability during the year

Does the business contribute to a localpopulation with additional skills and experience?Is the work place healthy?

& Integration among members of thecommunity; membership in business, socialor political groups; relations whichcontribute to the local potential fordevelopment

Does the business contribute to stable andpositive local social relations? Does thebusiness provide opportunities for establishinglinkages outside the community?

Physical infrastructure,telecommunications, electricity, water,health centres, schools, equipment andtools for production

Does the business contribute to the developmentof physical capital for production, for economicgrowth or for physical infrastructure at the locallevel

Sources of income during the year (jobs,remittances, labour migration, etc), savings,credit, debts

Does the business contribute to an increase inincome in local households? Does the businessattract other businesses?

Access to natural resources such as land;condition of soils, water, local biodiversity,agricultural activity

Does the business adequately dispose of wasteproducts? Does it use resources otherwiseneeded for marginal sectors? Is the business agood neighbour (smoke, smells, noise)?

The analysis of the potential rural development benefits should be done for each business.

There are two steps for this analysis identification of the groups of persons in the business andits surroundings and then analysis of the actual and potential benefits for each group. At theend these benefits are then identified by the 5 types of capital and a rating is given. The formatson the following pages can be used to organize the discussion.

1

See Guidance sheets on sustainable livelihoods prepared by Department For International Development (DFID)

and available at: http://www.livelihoods.org/info/info_guidancesheets.html


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Groups linked to the business and benefits received

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Summarizing the Actual and potential Benefits from the Business by type of Capital

2) &

0" Education; knowledge,

skills, health, nutrition,labour availability duringthe year

Does the business contribute to a local

population with additional skills andexperience? Is the work place healthy?

& Integration amongmembers of thecommunity; membership inbusiness, social or politicalgroups; relations whichcontribute to the localpotential for development

Does the business contribute to stableand positive local social relations? Doesthe business provide opportunities forestablishing linkages outside thecommunity?

Physical infrastructure,telecommunications,electricity, water, healthcentres, schools,equipment and tools forproduction

Does the business contribute to thedevelopment of physical capital forproduction, for economic growth or forphysical infrastructure at the local level

Sources of income duringthe year (jobs, remittances,labour migration, etc),savings, credit, debts

Does the business contribute to anincrease in income in local households?Does the business attract otherbusinesses?

Access to naturalresources such as land;condition of soils, water,local biodiversity,agricultural activity

Does the business adequately disposeof waste products? Does it useresources otherwise needed formarginal sectors? Is the business agood neighbour (smoke, smells, noise)?


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!

In this section we change our focus from the Musaprocessing businesses to the businesses and

organizations which provide services to them.

How to choose the providers of services for interviews:

The identification of providers to be interviewed should be based on the information gathered inthe preliminary survey, in the meeting for the formation of the national team and in the interviewswith the Musabusinesses. It is probably not possible to interview all the providers identified.However, with the information on hand, it should be possible to select those services which havemore links to Musa businesses, which are more relevant in the promotion of small ruralprocessing businesses and which represent a mix of the different services. See below:

equipment and machinery providers, processing line design, workshop layout

Input providers (flavourings, oil, packing material, label design, etc) Administrative Services (accounting, computer services, etc.) Business management Services (strategic and operational planning, investment

alternatives organization, etc.) Market and marketing services (market information, potential for expansion of same

market, entering new markets, marketing testing, product testing) Financial Services Technical assistance on processing line design, workshop layout, trouble shooting on

product quality, product diversification Transportation and logistics (distribution systems)

Making contact with processing businesses and setting up a date for an interview

About one to two hours is needed for the interview with each service provider. When planningthe interview, make sure your contact and other relevant persons from the business have time totalk with the team at the scheduled time.

Gathering informationA guide with questions has been prepared to structure the interview. One person in the teamshould conduct the interview, according to the type of business which the provider provides.The other team members can listen closely, take notes and add questions at the end for morecomplete coverage of the theme. This also provides the other members of the team with

insights into how the processing sector operates.

Processing the information

Alter each interview, the team should take time to meet, process the results and discuss theirpreliminary conclusions. This interaction among team members with different backgrounds andexperience will contribute to future collaborations as well as improve the analysis.


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Name of the organization or business:

Address:

Telephone: Fax: E-mail:

Names of persons interviewed who provided information from the business or

organization:

Interview guide for businesses and organizations

which provide support services to processing businesses

In what year was the business or organization established? What are the mission, objectives and services offered What kinds of clients are served, how many, what are the conditions for becoming a

client How many Musa processing businesses are clients/? From what type of Musa

processing businesses? What are the conditions for becoming a client? What is the geographical area served Financial sources for business or organization Are there other similar organizations also working with Musaprocessing businesses? How does the business or organization stay up to date in the services it offers? At the

national level and at the international level? How does the business or organization learn about the needs of clients? Are there

special mechanisms used to understand client needs? What are plans for future, will the business be expanded, in what ways. What are the principal challenges to small processing businesses? What are the principal opportunities for small Musaprocessing businesses?


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Learning from projects for the promotion of small processing businesses:

How did they operate and what did they achieve

During the preliminary survey a number of projects were identified which promoted processingbusinesses. This experience can be very useful for the design of new projects. This brief set ofquestions will provide enough information to extract important procedures and results from the

experience of the project. If more than one project is of interest for the Musasector, the team canchoose the project which is the easiest to document. The team can interview key members of theproject or beneficiaries and can also use the project documentation.

Title of project:

Project site:

Time period:

Approximate budget for small business related activities:

Executing agency/number and staffing specializations:

Collaborating organizations:

Objective of project:

Target population:

Principal project activities related to small processing business formation:

How many small processing businesses were set up during the project and how many peoplewere involved:

List the businesses related to Musaprocessing:

How many of the businesses are still currently in operation?

What were the major achievements of the project?

What were major difficulties or setbacks?


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What were the major important lessons for future projects of a similar nature?

Describe how people to set up and manage potential small processing businesses were identified.What was the role of the project staff?

Describe how products and activities of small processing businesses were identified. What wasthe role of the project staff? How were initial ideas developed? How was initial size of businessdetermined? Market studies done by whom? Feasibility studies done by whom?

Describe how processing technology was designed, set up and modified as needed. What wasrole of project staff? How did private sector input suppliers participate? Who provided training?How was quality control, hygiene and food safety taught? Were new products developed? Bywhom?

Describe how people managing small processing businesses improved their businessmanagement skills. What was the role of project staff? Who else participated? How weretraining needs determined? How was skill acquisition monitored and evaluated? Describe themajor blocks of training activities in business management. Were there any mechanisms fortroubleshooting and follow-up to training?

Describe how marketing was established and improved. What was the role of the project?

Describe how financing for small processing businesses was planned, obtained and managed.What was the role of the project? Were incentives or subsidies used? How were machinery andinstallations financed? Who paid salaries of small processing business managers and staff?What was expected time period for profitability and for payback of credits?

Describe how ownership of business was defined and managed. When did beneficiaries becomeowners? How was readiness determined? How were technical aspects, business managementand financing integrated in the business structure? How were business staff strengthened asentrepreneurs?

What was the project strategy to strengthen small business processing business contribution toimproved livelihoods for households and rural communities?

Obtain copies of training materials and other documents of interest to future projects:


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S. Planning and carrying out the final workshop

The study team(s) of the different businesses and organizations should close the study with apresentation of results to the group which participated in the workshop at the beginning of thestudy. During the course of the interviews, other possible participants may have been identified.Government and development organizations may also want to invite key decision makers forfuture programs. The study team(s) should meet to complete the information, prepare thematerials for the workshop and plan the program.

The workshop should include:

An introduction to the objectives of the study, a short review of the methods used and asummary of the activities carried out.

The results for each processing business. Emphasis should be given to the description andanalysis of the processing technology, marketing and business management. Key informationsources and services providers should be identified for each.

Summary discussion of the results of the processing businesses. What are major strengths andweaknesses? What are major sources of information? What is the contribution to ruraldevelopment?

The results of each service provider. Emphasis should be given to the types of servicesprovided, the types of clients which are served and their perspectives on problems andopportunities of the processing businesses. Key information sources both nationally and

internationally should also be identified.

Updating the overviews prepared in the first workshop. The map of the processing sector andthe matrix of connections from the first workshop can be reviewed. Where do the processingbusinesses and service providers fit into the map? Are there any types of processingbusinesses missing from the map? Are the main information and services which are provideddrawn on the map? Are there types of service providers missing? The important sources ofinformation to the service providers can also be added to the map. Are the linkages correctlydrawn and described? The group then identifies the most important modifications in the mapand matrix.

Analysis of the gaps between the limitations of the processing businesses and the services

offered by the providers. In this step the group should think about how the services meet theneeds of the different types of processing businesses. Are small rural Musa processingbusinesses linked to good sources of information which permit them to improve and expand theirbusinesses? Are service providers linked to good sources of information which permit them toimprove and expand their services? What are the most important gaps? What might be thecause of these gaps? Are there opportunities for service providers to expand? What does thatexpansion of coverage imply for their operations?


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Gaps between services needed and services offered

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Potential for contribution of Musaprocessing businesses to rural development. Whichbusinesses seem to offer the most contribution to rural development? What is the marketpotential for such businesses? What is the role of service providers in that potential? How canthe service support sector be strengthened to increase the opportunities for more suchbusinesses and expansion of the existing businesses?

Presentation of project which promoted small processing businesses. Based on the review ofthe activities and organization of the project on the promotion of processing businesses, asummary can be presented of the project approaches, achievements and lessons learned.


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Important sector linkages between production, processing, marketing. Looking at the matrix,what mechanisms operate to bring together groups of businesses or organizations with similarservices offered such as associations of processing businesses, chambers of commerce,intersectorial government planning commissions, trade fairs, public-private corporations, taskforces? These should be the principal mechanisms for information flow/ needs andopportunities identification among public sector, among private, public-private and which sizefirm is most represented.

T. Follow up by the national team and workshop participants

To complete the workshop, the participants can identify possible short terms tasks which mayhave been identified to contribute to the effectiveness of the sector to contribute to ruraldevelopment.

Follow-up Actions

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Appendix 5: Programme Workshop and Enterprise Fair

Musaprocessing businesses and their support environment

Potential contributions to rural development and biodiversity through value adding

10-13 October 2005

Southwood Park, Manila, Philippines

Expected products from workshop:

1. Country studies presented and analyzed to identify critical factors in the promotion of Musaprocessing businesses and in the strengthening of the corresponding business supportenvironment which contribute more effectively to rural development and Musabiodiversity;

2. Identification of project mechanisms for more effective Musaprocessing businessestablishment for rural development;

3. Proposal for preparation of manual on Musaprocessing technology developed by foodtechnologists;

4. Priorities, recommendations, themes for new projects, follow-up actions for Musaprocessing

enterprise platform identified by workshop participants;5. Strategy for feedback of results to regional Musanetworks;

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Appendix 6: Highlights of the Proceedings of the 1st Global Banana Uses

Enterprise Workshop and Banana Techno Fair

Manila Southwoods Manor and Cavite State University

Carmona and Indang, Cavite, PHILIPPINES

October 10-13, 2005

TABLE OF CONTENTSKeynote Speech

Welcome Remarks

Presentation of Country Studies1) Analysis of Banana processing businesses and their support environment in the Philippines2) MusaProcessing businesses and their support environment in India3) Musaprocessing business in Malaysia4) A Diagnostic of the Small Musaprocessing sector in Costa Rica5) A Diagnostic of the Small Musaprocessing sector in Nicaragua

6) Ananalysis of Musaprocessing business and their support environment in Cameroon7) A Study on the analysis of Musaprocessing business and their support environment in Malawi8) A Study on the analysis of Musaprocessing business and their support environment in Nigeria9) A Study on the analysis of Musaprocessing business and their support environment in Tanzania

Special Papers Presentations

Workshop Sessions11

Session 1: Issues and Initiatives - Working groups (WG) by disciplineGroup I: Processing TechnologyGroup II: Production GroupGroup III: Business Development

Session 2: Making the results of the studies and workshops available to other countriesin the networks - Working groups by region

BARNESABAPNETMUSALACMUSACO

Session 3: Project Strategies (Connectivity) ExerciseGroup 1: Cameroon, Malawi, MalaysiaGroup 2: Philippines, Nicaragua, Costa RicaGroup 3: Tanzania, India, Nigeria

Follow-up actions to the workshop participants

WORKSHOP EVALUATION - Client Satisfaction Feedback


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Outputs of the Enterprise Workshop:

Presented and analyzed the country studies to identify critical factors in the promotion ofMusaprocessing businesses and in strengthening the corresponding business supportenvironment which will contribute more effectively to rural development and Musabiodiversity

Identified the project mechanisms for a more effective Musa processing business

establishment for rural development Developed a proposal for the preparation of the manual on Musaprocessing technology

developed by food technologists Determined the priorities, recommendations, themes for new projects, and follow up

actions for a Musaprocessing enterprise platform identified by workshop participants Developed a strategy for the feedback of results to regional Musanetworks

Program Presentations:

Keynote Speech of Secretary Estrella F. Alabastro

(Department of Science and Technology-DOST, Philippines)

Growing and Nurturing our Small Banana Farmers and Processors

Banana has always been a part of Filipinos lives. There was a time when almost all ruralhouseholds with spaces to spare in their backyards grow not one but a couple of banana plantseither for their own consumption or for added income. And these plants didnt even cost farmersanything for they grow and bear fruits the traditional Filipino farmers way.

Then, there is the serving of the local dish adobo with steaming rice garnished with fresh slicedbanana to add flavor to the already delicious dish. Most rural mothers do this to boost the appetiteof their growing children. For snacks, Filipinos relish bananas covered with brown sugar andplaced on sticks, locally known as banana-que and the tasty chips loved by both the young andold alike.

And you will notice that fresh banana fruits will be served in at least one meal during thisworkshop to cap the already delicious food served for you. Such is the trivial yet important partof banana to the lives and diet of most Filipinos.

But more than these trivial importances, banana immensely contributes and plays a greater role inthe countrys economy providing it the needed income to push it forward.

Banana is the most important fruit of the country producing about 4 million tons annually. About2.8 million households are dependent on the banana industry. In 2003, the banana industrycontributed 40% of the Gross Value Added in fruits amounting to P13.15 billion.

In the global scene, the Philippines ranked fifth among the worlds top major producers of bananain 2003, with 5.37 million tons or a share of 7.63% of the world production. The country rankedthird among the banana exporting countries with Ecuador and Costa Rica on top of the list. We

are exporting fresh bananas, chips/crackers, and catsup. Fresh bananas constituted the main bulkof our export representing 98% of the total volume exported. In 1995-2003, the average volumeexported reached about 1.86 million tons valued at US$315 million. These were exported incountries like Japan, China, Korea, Taiwan, and the United Arab Emirates. In 2004, the totalexports for chips were 36,538 tons valued at US$ 36.86 million.

Overall, these show the lofting standing of the country compared with other banana-producingcountries in terms of banana production and income. It shows that we have what it takes andgiven the proper support and direction we can be the best in


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the industry. In the same manner, our standing as a global banana producer paints a brightpicture full of opportunities and optimism for the country and the thousands of banana producerswhere 75% constitute small growers. Shining more brightly is the opportunities presented by thebanana processing industry.

We at the Department of Science and Technology, along with other government stakeholders,share the same optimism and commit to transform that optimism to reality. This commitment we

have long tried to fulfill through various R&D programs and activities.Over the years, national programs have been implemented to support banana as an export winnercommodity. These programs include the Science and Technology Agenda for NationalDevelopment (STAND) of DOST, the High Value Commercial Crops Program (HVCC) of theDepartment of Agriculture, and the Investment Priority Plan (IPP) of the Board of Investments ofthe Department of Trade and Industries.

Although we gained considerable success in these endeavors, in terms of production and post-production technologies, and management systems, we also noted a remarkable differencebetween the corporate and smallholder banana farms. While big banana producers usedestablished technologies and strict quality control, the small growers employed low levels oftechnologies, which result in low quality product. Small growers were not benefiting much from ourefforts but chose to rely on their old practices to grow their crop.

To address the gap, the DOST through the Philippine Council for Agriculture, Forestry and NaturalResources Research and Development (PCARRD) funded and developed the S&T AnchorProgram for Banana in 2004. The program focuses on smallhold farmers growing saba, lakatan,and latundan in selected areas. It provides technological interventions and appropriate deliverysystems for a community-based farming system.

The aim of the program is to improve the productivity and socioeconomic welfare of small bananagrowers in selected growing areas. It hopes to transform the banana sub-industry to a higher levelof efficiency and competitiveness through its three major components R&D intervention; R&Dutilization; and socioeconomic studies.

We have also established a strong partnership with the International Network for the Improvementof Banana and Plantain (INIBAP) in drawing a workable scheme for the distribution and propermanagement of disease-free planting materials to farmer-cooperators. Likewise, INIBAP through

its wide germplasm material has introduced hybrids with good potential for processing.Along with these efforts, we are also implementing a separate but associated project in Luzon, theInvestment Package for the Commercial Production of Fresh Bananas, which started this year.The project aims to match technological intervention with proper marketing system and well-supported organizational structure. Through this, we hope to develop modernized and sustainablesmallhold banana farms that will supply the local fresh banana market and banana chipsprocessors in Luzon with the required quantity and quality fruits.

The plants for the projects Science and Technology farms are now in their fourth month in thefarmers fields in Cavite and Batangas. A recent farm visit of the project team showed that theplants are growing robust and the farmers are excited in trying out the recommended technologiesin their fields. They have learned to value the importance of these technologies, which providebetter results than their traditional way of growing bananas.

Complimenting the S&T anchor program on banana and the investment package are projectsaimed to spur the development of the processing industry. Today, we now have technologies andproducts that are waiting to be commercialized and adopted by the growing industry.

Leading this thrust is the Philippine Council for Industry and Energy Research and Development(PCIERD), which funded and coordinated various projects implemented by other DOST agencies.

We now have a variety of processed products developed by the Industrial TechnologyDevelopment Institute (ITDI). These include banana flakes, banana powder, flavored strings andcrackers, frozen turon (or crepe) and banana fries. These products have the potential to capture


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both the domestic and international markets because of the unique and delicious taste of bananaand the nutrients it can provide.

The Philippine Textile Research Institute (PTRI), on the other hand, has also developed a textilematerial derived from banana fiber. This will compliment our other popular export -- the abacafiber.

When all of these products are commercialized, we would definitely have new export products that

can earn for our country and give added income to our farmers.

Ready to provide technical support at the local level are the DOST regional offices through theProvincial Science and Technology Offices (PSTO). The PSTO supports prospective and evenexisting small food processing businesses with the preparation of feasibility studies and technicaltraining on food processing through the Small Enterprises Technology Upgrading Program (SET-UP) and the Technology Incubation for Commercialization Program (TECHNICOM).

SET-UP and TECHNICOM are among the flagship programs of DOST that seek to providesupport, including technology transfer, to at least three million local entrepreneurs.

In a nutshell, these are our current efforts in the promotion and development of our bananaindustry. We have all the elements now in place. What we need now is sustaining these efforts sothat farmers can truly use the technologies and information and benefit from these activities.

Indeed, banana is part of Filipinos lives, but we in the R&D sector aim to make it play an evenmore significant role that of feeding, clothing, and send-to-school families of our small bananagrowers. We hope that the results of our R&D efforts, matched with a good analysis of the presentcondition and requirements of the domestic and global markets, we will be able to achieve thisand hopefully further boost the countrys economy.

With the holding of the First Global Uses Enterprise Workshop, we know that we can learn andlikewise share information and experiences, which we can all use in our efforts in our respectivecountries. We also look forward to working with you through cooperation so that we can reallymake a difference in the lives of our banana farmers and processors.

Good morning and have a pleasant stay in our country.

Welcome Remarks of Dr. Patricio S. Faylon

(Executive Director, Philippine Council for Agriculture, Forestry and Natural ResourcesResearch and Development (PCARRD-DOST)

It gives me great pleasure to welcome long-time friends in collaborative research anddevelopment to this workshop. To our guests from all over the world - Latin America, Africa,Europe, and Asia - welcome to the Philippines. I hope you all have a rewarding and pleasant stayin our country.

Thank you for being here, for your great interest in this very important fruit, said to be the mostpopular fruit in the world, banana or Musaas we term it in the science and technology community.

Interestingly, just by being here, you bring with you a piece of history. From my readings, bananaoriginated from Malaysia, which then travelled from there to India in the 6th century. Eventually, thefruit reached Madagascar on the south-eastern coast of Africa, and then travelled westward to theCanary Islands. Many years after, Portuguese sailors got a taste of this sweet fruit and soonenough its rootstocks were being shipped to the Carribean around 1516. It wasnt long beforebanana spread its popularity throughout Central America. Three hundred fifty years later, theAmericans got their first taste of this delightfully sweet fruit. And the rest, as we say, is history.


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Indeed, banana is a fascinating fruit, as rich as its history. As we know, there are about 300species, but only 20 varieties are commercially cultivated. The two main varieties, the sweetbanana and the plantain, are the sources of our gastronomic delight, whether raw, cooked, orprepared in culturally different ways.

It is the perfect supplement for those who are anemic, those with high blood pressure, those whoare stressed out, those low in brainpower, and even those who suffer from depression. They say

that rubbing the inside of a banana skin on a mosquito bite reduces swelling and irritation. And aswe often joke about here, eating bananas will give you a smooth skin, like the monkeys.

Inasmuch as it is valued for its nutritional and health benefits, banana is an economicallyimportant crop for countries that grow it. In the Philippines, for instance, banana is one of our mostimportant fruit crops, contributing about US$200 million annually, mainly as fresh fruit exports.

If we reorient the industry toward high-quality processing enterprises for banana-based food andnonfood products, the country can be earning more. It is a viable rural and smallholder enterprise.

Therefore, we in the public research sector must make substantial progress in forging workablelinkages with the industry and the private sector so that we can help focus on a proactiveapproach to ensure successful banana-processing enterprises in particular, and a prosperous

banana industry, in general. From the planting material to production, postharvest, marketing anddistribution, until the fruit reaches the consumerthese are the components, which we have towork on improving.

It is important that we put premium effort not just on banana research and development, but alsoon its promotion as a viable business enterprise. Thus, I would like to express our deepappreciation to the International Network for the Improvement of Banana and Plantain (INIBAP)and the International Plant Genetic Resources Institute (IPGRI) for sponsoring this globalworkshop, which is a big step in that direction.

I cannot overemphasize the critical role our partnership play in creating the enabling environmentfor our small banana-based enterprises to prosper. We have to ensure that there is room for oursmallholders to grow, especially in this age of globalization.

If we look at it, the Philippines for example, a country of 84 million, we dont need to look beyondour shores for a market. The real market is here; the international market is a bonus, inasmuch asit is a gauge of quality standard with which local products have to measure up to. So whether weare producing for the local or the international market, value adding is the name of the game andcreating niche markets is the ultimate goal. We must produce quality products and identifyenterprise niches for our small farmers and entrepreneurs. This is where innovations inprocessing and product development come in.

For this reason, I am looking forward to the sharing of country experiences and studies. This isour venue to share, listen, and learn from international and local speakers about the enterpriseprospects of and innovations for this magnificent fruit called banana.

For instance, I understand that somewhere in Africa, they use bananas in brewing beer. In thePhilippines, we process bananas into food and beverages. In Uganda, theres a lucrativeenterprise for banana fiber-based paper. Bananas are also made into cosmetics and are used asanimal feed. The possibilities are endless. If coconut is the tree of life, then banana is its herbalcounterpart.

I am sure this global forum will give us fresh perspectives and open our senses into the manypossibilities for banana-based processing enterprises. Certainly, we are all keenly committed tomake the next three days dynamic and productive.


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Id like to end by saying this century is a time of rapid change, with huge opportunities for thosecourageous enough to put their best foot forward in forging win-win scenarios for all, especially forthe marginalized. No doubt that banana does more than keep the doctor away, as it is a versatilefruit not only as a source of nutrition and well being, but also of livelihood for farmers andentrepreneurs, whether small-scale or large-scale.

On behalf of the Department of Agriculture-Bureau of Agricultural Research and PCARRD-

Department of Science and Technology, I welcome you, once again, to this global workshop onbanana uses enterprise.

Presentation of Country Studies

1) Analysis of Banana processing businesses and their support environment in thePhilippines (Arturo Arganosa, Perlita Nuevo, Jocelyn Eusebio and Bessie Burgos)

Contributions of business to rural development

- Create market for bananas

- Generate jobs for farmers, processors and unemployed workers- Increase income- Increase knowledge through trainings- Increase economic activity in the community

Follow up Actions

- Develop strategies to establish connectivity among small food processors andsupport service providers

- Primer on available support services on food processing- Strategies to promote the importance of banana in the Filipino diet- Compliance to HACCP/GMP

Limitations of the Study

- Reluctance of the business owner to allow the survey team to enter into theirpremises

- Survey focus is limited to the Southern Tagalog Region

Support Services for SMEs in the Philippines (Mr. Jerry Clavesillas, Assistant Director,Bureau of Small and Medium Enterprise Development-Department of Trade and Industry.Philippines)

Presented the SME Development Plan 2004-2010, which integrates efforts to strengthen andstimulate the SME sector so it can contribute significantly to the countrys development. This aimsto make the SME sector a key factor in the countrys economic growth by 2010.

A) For individual SME

1. Developing capacities of entrepreneurs and workers- Information support- Counselling and advisory program- IT-enabled SMEs

2. Managing for Business Excellence and Competitiveness- Assistance from SME centers- Management advisory, technology and productivity development programs- Modeling from successful productivity applications

3. Harnessing knowledge and technology- Technology applications promotions


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4. Designing linkages and business models- Linkages through SME CENTERS AND INTER-REGIONAL FACILITATION- Organizing linkages for competitive support

5. Provision of business opportunities- Strategic business planning- Product dev

cfc adding value

Documents