Public Private Partnership Projects in Eastern Europe Experiences from the view of German agribusiness Gerlinde Sauer Director agribusiness, Committee on Eastern European Economic Relations East Agri Meeting, 4. Mai 2005

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Public Private Partnership Projects in Eastern
Europe Experiences from the view of German
agribusinessGerlinde 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
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
Support of German companies at their commitment
in Eastern Europe
Conferences
Committees
German and European business associations
Ukrainian agrarian confederation Russian grain
union
Current Information on agriculture in Eastern
Europe Cooperation requests Information on
relevant events
Networking
Information
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Russia and Ukraine are strategic markets for
German agribusiness companies
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.
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What is the outlook of the Committee on Eastern
European Economic Relations on Public Private
Partnership?
Networking
PPP-Projects of the committee
Initiation of PPP-Projects of our members
GTZ is member of the working group Joint events
to foster the personal exchange between German
companies and developing projects in Eastern
Europe
Project for consulting of business associations
in Moldova and Albania Internship Program Zoran
Djindjic (Serbia) German-Russian Youth Exchange
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