Those countries are typically characterized by high GDP, a surplus of food, and high production capacity. Additional characteristics list include high-income per-capita, per hectare, per kg of produce, technological leadership, wealth of education and knowledge, advanced development and management ability, government (financial and regulatory) support for many initiatives, advanced agricultural culture, high yield per hectare, high quality of crop, strong established and recognized agricultural export. In other words, successful countries have in their core a successful agriculture sector. That sector is structured like a puzzle, from many parts, many small pieces, each has its role, creating a large mosaic that is inter-connected, and works simultaneously and in cooperation. A Delicate Mosaic Q: What do you mean by mosaic parts – what are those parts? A: Here is a partial list of the mosaic parts: land, water, energy, manpower, knowledge, R&D, experience, control systems, financing, auditing, management, technology, inputs (pesticides, fertilizers, etc.), marketing, branding, sales, target markets, agricultural culture, associations and organizations, laws, regulations and many more activities connected to the whole structure. It is delicate and sensitive to changes because it is enough that just one part of the mosaic, small or large, is missing or does not function properly, for the entire mosaic to miss-function, or even collapse. I refer to that entire, complete mosaic as "The Agricultural Package". Existing Models Q: And what are we doing to solve these problems? A: There are several agriculture-economic models, widely accepted in the world and used by countries of both types. The models are marketed as "strong countries supporting weaker countries", but in practice, they are mainly working in favor of the stronger. Let us start by describing some of the most common models: Note that I use the term 'sale' whenever there is a transaction of goods or services, even if given free of charge. Existing Model 1: Selling technological products. When a 'weak farmer' is buying equipment, the selling company will benefit immediately. However, the farmer will benefit only if he will make the best out of that product/technology. However, because of (his) many constraints, he cannot make ‘the best', and so he may end up spending more money than making. Existing Model 2: 'Bringing'/Selling knowledge. Commonly done by sending consultants/experts who come to visit and provide their opinion and advice. Those consultants have no responsibility for the utilization of their advice. They consult and shortly after return to their homeland, with no accountability to any results. Just as it is with equipment, most farmers do not have the 'tools' to use that provided knowledge properly, and so they end up with little or no benefit. Once again, farmers may end by spending more money than making. Existing Model 3: Turn-Key-Project (TKP). This is when a strong company or a state builds the entire project and submits it when it is 'ready to run' to the hands of the local user or 'operator'. Such TKP is a sort of “stand-alone” entity in the desert, which cannot survive without all other necessary (before and after) elements. In many cases, the TKP fate is well known, with the one-question remains; how much it cost and how long will it take to collapse? In other words; how much we lost this time? The Problems of the Strong andRich Q: What about the strong countries, do they also have some unsolved issues? A: Sure, everybody has problems, or as you call it 'issues'. If we look at the state of Israel, as an example of a strong country, we can see the following issues: * Lack of proper land for agriculture (size and quality). * Shortage of water. * Skilled labor shortages. * Competition for a high-quality workforce with local higher-earning workplaces. * Limited buying power by local markets. * A high-cost structure that makes farmers loss. * The high price of local products. * Extremely high production capacity, relatively to local needs, which leads to price decrease and therefore a continuous decrease in the number of the farmer who can operate under such business conditions. * Advanced and strong R&D, but limited in growth due to a small number of farmers and a multitude of needs. Trading Advantages Q: I am aware that some countries lack exactly what is widely available or exists in 'excess' in other countries. A: That is very true. Moreover, every country 'lack' something and have in excess of others. When I say 'something', I refer, in the broadest sense, to anything that is needed to improve its economy. That makes all countries ready to trade; export relative advantages and import relative disadvantages. Q: Then I conclude that there are problematic issues on both sides of the "weak" and "strong" countries. I also realized that existing models might be devastating for both types of countries/agriculture. Now I am interested to understand how the Green Valley model offers to do it differently. What is unique about it? A: The Green Valley model offers certain consolidation of two models: * The Industrial Model, which is already proven successful over the years, with * The Agricultural Model with its uniqueness. The Green Valley model takes parts from each model, adjusts and customizes it to enable a multi-national agriculture export-based economy approach. From the industrial model, the Green Valley model adopted several principles: 1) Integration - As with any advanced enterprise, Green Valley is a platform ready to combine input providers, working technologies and services originating from many countries and vendors. Most factories and industries do this for years, and so should the agri-sector do. 2) Mobility - an industrial plant can be enlarged, moved or add more production-sites. The same applied to agriculture. The farmer, like an industrialist, can grow bigger by enlarging his field, he can add neighboring fields within his own country or in other countries. In both cases, all is possible and is subject to professional and business considerations. Example: We can find a car factory in Korea, with Koreans workers, Koreans and American executives, Japanese designers, European technology, parts from China and products that African salesman sell in Africa. That factory can have a sub production of parts or assembly lines in other countries, and it is viewed as the best operational and most effective business wise approach. Furthermore, if conditions require, the factory owners can set up an additional factory in another location/country. Naturally, there will be a different structure of the components, while keeping the integration principle in place. Nowadays, no industrialist will think of producing anything, start to end, by himself. Just think that to produce anything you need machines, logistics, fuel, knowhow, service providers, sales and marketing, etc. Adopting those principles to agriculture will bring the rise of a new era to the agri-industry, and will produce greater value for all participants and contributors. Its effect will be far greater than the farmers alone.
A typical Green Valley project (in Africa as an example) might look like this: * Site location - Africa. * Farmers – African with Israeli participation. * Workers – Local (Africans). * Center of Excellence operated mainly by Locals and Israeli staff. * Managers - African, Israeli, Indian, etc. * Technology - European, Israeli or any other best suitable. * Equipment – the best cost-effective suitable, e.g. Israeli, Italian, US. * Target Markets – all over the globe, ready to buy and pay premium prices. * Regulation - African (matching and influenced by international regulation). * Financing – governmental, international private investors, NGO's, and international institutes. So who is most likely to benefit from this project? In my opinion, everyone benefits. Everyone who will be taking part in the operation will make good profitable and fair business and the reciprocity would only grow, which is in my view, a good thing. The Green Valley model is not a zero-sum game. Green Valley brings a fresh mindset of multi-player international collaboration, which will bring more benefits for each 'player' than each player could produce alone.
Broad collaboration based on mutual goals and trust enables everyone to earn more, in a long-term perspective. Adjusting the Model To succeed the Green Valley model has to relate to the local culture and workforce characteristics. Underpinning the Green Valley vision and goal is building a process that will enable participating countries to improve their economy through export. For this to happen, knowledge and 'soft skills' transfer must take place. In agriculture, where getting fruits from a tree that has just been planted may take 4 years, that education and learningprocess is very long and typically takes many years. The best way to transfer knowledge and soft skills is through continuous cooperation and collaborative support and work. This brings us to the third principle - 3) Continuity - a Green Valley project has only a starting date, and like any business endeavor, it will continue as long as all partners are satisfied. This principle is of the utmost importance because, like in any industry, significant investments are required here that only long-standing work will ensure the security required for the expected Return of Investment (ROI). For example, an Israeli farmer would not take part in the set-up of a plot in Africa without the confidence to pick the fruits for many years to come. Costly R&D projects to solve African agriculture existing problems (especially) with international collaborations, will not take place without long-term security. Packing houses, cold stores, nurseries, importers/exporters, and all stakeholders want to be assured that the project is safe and will last for years, or they will see ROI risk and simply not take part in it in the first place. The project will benefit if all partners find it so secure that they want to develop it to generate greater inheritance and value for their next generation, or to trade some of them after creating significantly higher value-added.
This is simple – if all involved will make good money. General Guidelines to the Model 1) Fully and Simultaneously. Just like any machine or factory, the Green Valley model will live out to its expectations when fully applied and operational. That may take a few years. 2) Export-oriented. Green Valley revolves around export. Export means; foreign currency income, but it also means values, which Green Valley wishes to promote and sees as its core. 3) High added value crops. Green Valley is about increasing the income of farmers, which is best done by the export of high-quality added-value crops to premium high price markets. 4) Vision2Market approach. Green Valley believes it should reflect the vision of the country where it is located and supported. 5) It's all about people. Green Valley is a model made by people for many people. 6) Government Involvement. Its role is to create conditions and business environment, including regulations and legislation, which will enable the Green Valley model to exist, perform well and succeed. 7) Business-oriented. Green Valley model and structure is fully business-oriented, with the expectation that all participants will do better with it than without it. However, it mainly emphasis on bringing prosperity to the country where the venture takes place. Summary The Green Valley model brings a whole new approach to agriculture, but I believe that the most significant and novel issues are: It is about values, with a clear vision in mind. It is about livelihood, based on export as its perpetual engine. It is about international business collaboration, getting the best of all parties. Green Valley considers agricultural export as a major tool for the sustainable economic development of the less developed countries with a shortage of food. Exports mean an influx of foreign currency into the country. That is not all; export also means promoting values and capabilities that are necessary for improving the economy over time. I believe that Export and Green Valley share common values of; Excellence, Leadership, Commitment, Persistence, Collaboration, Cooperation, Continuity, Quality, Integrity, Result Oriented Performance, and Respectable livelihood. The Green Valley model is suitable for all countries around the world, but less developed countries with a big agricultural sector are likely to benefit more by applying it. International and multinational cooperation at the core of the model, which is expected to bring major added value at the state level. Last, I would love to get your opinion on the model as well as reference to the following topics: Do you think Green Valley can work well in your country, and name factors that can help in its implementation as well as expected pitfalls. If you liked it, send it to a friend who needs to see it. |