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Coir Industry Research

 Coir Sector Analysis Composition

Sector Clustering making use of the Value Sequence Approach

Changing Relationships to Increase Competitiveness and Focus on End Markets

Undersecretary Merly M. Cruz DTI-Regional Operations Dev't Group 12 March 2012

OUTLINE OF PRESENTATION I Introduction (Concept, Legal Basis)

II Worth Chain as a Tool III Industrial Governance Framework IV National Sector Cluster Ability Enhancement Task (NICCEP)

Versus Sample Software (Coco Coir & Peat)

 Industry Clusters will be groups of competing, collaborating and interdependent businesses within a value chain.  It has more and more been acknowledged as an effective strategy in industrial development and promotion of micro, small , medium companies as it stimulates competitiveness.  The clustering process requires the operation of upstream (raw materials suppliers, production inputs) and downstream (logistics, value-adding, product packaging and marketing) economic activities to support the complete value-chain.

IDEA

VALUE STRING

- The value-creating circulation of a very good from RM, production, commercialization, & finally delivery to end-users or perhaps consumers.

INDUSTRY CLUSTER

- A geographic concentration of interconnected businesses, suppliers, & associated institutions creating direct & indirect synergies among them.

DEFINITION

 In the Philippine Development Cover 2011-2016,  Inclusive development and low income reduction aim  Increase productivity and efficiency in the industry and services  Contribute even more to financial growth and employment.  The technique towards clusters should have matched interventions to provide an integrated respond to the requires of the market clusters.  The PDP recommends making the most of public-private partnerships (PPP) inside the identification of solutions pertaining to the problems and concerns of the sector clusters.

Position to PDP 2011-16

Worth Chain Framework

Basic Features (chain links)

Provision of specific inputs Production Alteration Trade Last Sale

Offer - Products - Inputs

Grow Harvesting Dry and so forth,

Classify Procedure Pack

Transport Distribute Offer

Specific buyer market

Kinds of Chain Operators and their contact

Specific input providers Main producers Logistics centers, industry Traders Last Sales point/Retailer

Source: ValueLinks Manual, gtz

Mapping the Institutional & Policy Environment

for Agro Industry

Finalizing Production Collection

Agro market

Wholesale

Distributor

Retail

Flower nurseries

Consumption

Supplier

Distributor

Contemporary Retail

Client

Farmer

Collector

Food Companies Supplier

Association

Key Institutional/Policy Factors Influencing Chain Aspect and Acting professional Behavior Period Services Exclusive Standards Marketing regulations Community Standards Tariffs Foreign Expenditure Policy Social Preferences

Supportive law

Primary types of business clusters in developing countries

пЃ±

Groupings of large countrywide firms and native suppliers Groupings of Little & Method Enterprises Subsidiaries of MNCs and local suppliers

пЃ± пЃ±

Cluster-based Industrial Development Strategy

Advantages of Industry Clusters

Is actually demand-driven Needs raw materials production and optimizes utilization Reduces costs of operation and stimulates productivity Needs specialization of major players Provides an avenue for leveraging on another's specialties Improves opportunities to get innovation to be competitive Players pursue joint solutions to common problems That they build on common labor pool, technology and infrastructure They learn collectively what it takes to become competitive Cluster-based Industrial Expansion Strategy

Guidelines for Group Development

пЃ± Clear look at of the desired goals пЃ± Allow the private sector lead пЃ± One size does not in shape all пЃ± Match endeavours to the degree of government

support/program пЃ± Build a cluster firm пЃ± Endorsing and promoting, networking and co-operation Cluster-based Industrial Creation Strategy

How forward: new...

Links: his Team upon June twenty seven, 2011 by DTI-RODG Makati.

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