UNIDO - Medicinal and Aromatic Plants project (EFTA)

Project completed

This project contributes with US$ 2.85 million over a period of 4 years in order to enhance the Medicinal and Aromatic Plants (MAP) sector in Egypt through a vertically integrated approach. For many years Egypt has been producing and exporting MAP products (herbs and spices). However, the Egyptian MAP sector suffers from limited capacity to produce in terms of quality and safety standards, lack of professional advisory services, in addition to a highly fragmented and underdeveloped supply chain. These factors negatively affect the position of Egyptian MAP products both in the local and export markets and consequently the ability to increase production of high value products in addition to weakening the bargaining power of Egyptian producers and exporters. This has a negative effect on the potential for income and employment generation. The project aims at raising the position, competitiveness and safety of Egyptian MAP products in export markets and at developing its entire local supply chain. Thus, it will be based on an integrated development approach composed of three pillars: 1) Quality enforcement- 2) Product development- 3) Access to exports markets.

Country/region Topic Period Budget
Egypt
Sustainable trade
15.10.2010 - 30.06.2016
CHF 3'157'000
Background For many years Egypt has been producing and exporting MAP products (herbs and spices). However, the Egyptian MAP sector suffers from limited capacity to produce in terms of quality and safety standards, lack of professional advisory services, in addition to a highly fragmented and underdeveloped supply chain. These factors affect the position of Egyptian MAP products both in the local and export markets and consequently the ability to increase production of high value products in addition to weakening the bargaining power of Egyptian producers and exporters. This has a negative effect on the potential for income and employment generation.
Objectives The project aims at raising the competitiveness and safety of Egyptian MAP products in export markets and at developing its entire local supply chain.
Medium-term outcomes 1) Quality enforcement : Improving linkages, productivity, quality and compliance to TBT/SPS requirements throughout the supply chain 2) Product development : Strengthening SME capacities in product development and value addition for export growth and diversification3) Access to export Markets: Enhancing position in export markets through coordinated efforts on enforcing compliance criteria, branding and pricing strategies
Results

Expected results:   1) Quality enforcement Output 1.1 2 MAP Service Centers established in concentrated production areas to provide advisory services to supply chain members (modular approach)Output 1.2 10 SMEs (final processors/exporters, representing 80% of the MAP exports) upgraded in terms of productivity, quality, food safety and traceability.Output 1.3 20 SMEs (pre-processors/local traders) upgraded in terms of GHP/GMP, food safety standards and production techniques.Output 1.4 Growers (50% MAP production) upgraded in terms of production and handling practices, food safety standards, GHP/GAP and responsiveness to demanded varieties.2) Product development Output 2.1 Product portfolio increased by min. 5 new products i3) Access to export MarketsOutput 3.1 Export consortium established for MAP products managing a collective export and branding strategyOutput 3.2 Market access improved with larger participation of local SMEs in the export markets


Results from previous phases:   Lessons learnt : UNIDO project in MAP sector in UruguayOne of UNIDO’s most successful projects in strengthening the trade capacity of the MAP sector was implemented in Uruguay during the last 4 years. The project is based on upgrading SMEs in terms of quality, productivity, management, technology and marketing. In addition to assistance to individual companies, they were supported to form an export consortium that started exporting under the same developed brand 'Phyto-Uruguay'. All the enterprises adopted a common GHP/GMP protocol based on national and international standards and market requirements including traceability, against which the beneficiary SMEs got qualified and certified internationally and decided to jointly invest in a lyophilization plant.


Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • Industrial Development Organization


Budget Current phase Swiss budget CHF   3'157'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   3'157'000
Project phases Phase 12 01.11.2013 - 31.12.2018   (Completed) Phase 7 01.06.2014 - 30.12.2017   (Completed)

Phase 6 15.10.2010 - 30.06.2016   (Completed)

Phase 2 01.01.2012 - 31.05.2018   (Completed)