Competitiveness Systems Strengthening Activity (CSS)
Strengthening the Competitiveness of the Food Processing Industry
Challenge
To compete in the global market, Serbian firms must be able to deliver a unique or higher-quality product more efficiently than their competitors. This firm-level competitiveness can only be achieved through reforms that build all levels of the value chain, including suppliers, producers, processors, and buyers, as well as support services and enabling environments.
Approach
Building on previous investments, successes, and lessons learned from initiatives implemented by the US Government and other donors in Serbia, the Competitiveness Systems Strengthening Activity (CSS Project) strengthened Serbia’s fruits and vegetables sector, using growth of sales as the key benchmark to measure success.
Through a market systems development approach, CSS made Serbia’s food and vegetable sector more competitive. The Project enabled local firms to develop and implement solutions to constraints they faced. CSS focused on value chains and products with the highest potential competitiveness in international markets.
The Project team closely monitored the progress of activities, mitigated risk, and used open communication and lessons-learned to re-prioritize as needed.
Goals and Results
- CSS supported and partnered with 893 organizations, including 580 small and medium enterprises (SMEs) in 114 municipalities.
- During the life of the Project, average sales of CSS-supported firms increased by 46%.
- CSS supported 84 small and medium enterprises (SMEs) to obtain financing for 90 investment projects with a total value of $42 million.
- In partnership with the Serbian Chamber of Commerce, the Development Agency of Serbia, the Ministry of Agriculture, and industry associations, CSS supported 93 companies to participate in international trade fairs in Europe, the United States, and the Middle East, and 662 firms to exhibit at trade shows in Serbia.
- Through collaboration with Industry leading companies and trade associations, CSS helped 164 SMEs and 3,231 fruit and vegetable growers enter new, high-value, export supply chains.
- CSS helped establish Serbia as a source of premium wine, focusing on the promotion of indigenous grape varieties, such as Prokupac.
- CSS supported workforce development by helping the Belgrade Faculty of Agriculture introduce specialized food industry certification courses.
- To support financing for micro agribusiness producers, CSS partnered with the Divac Foundation and nine municipalities to establish revolving funds, which provided local farmers with interest-free financing to buy equipment.