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Private-Sector Standards and
National Schemes for Good Agricultural Practices:
Implications for Exports of
Fresh Fruit and Vegetables from sub-Saharan Africa
Experiences of Ghana, Kenya, and Uganda
United Nations
New York and Geneva, 2008
United Nations Conference on Trade and Development
Note
This publication has been edited by Ulrich Hoffmann, UNCTAD secretariat, and René Vossenaar,
or reprint should be sent to the UNCTAD secretariat (c/o Administrative Secretary, Division on
iii
Foreword
and processors to ensure that their exported produce is properly documented and complies with the
capacities of FFV producers and exporters to meet requirements of international markets, such as food
Traditionally, the Ghanaian fresh produce industry has dealt mainly with independent buyers and
v
Contents
Foreword iiiAcronyms viii
x xi
I. INTRODUCTION...................................................................................................................... 1
II. EXPORTS OF FRESH FRUIT AND VEGETABLES (FFV) FROM
SUB-SAHARAN AFRICA (SSA).................................................................................................. 7
Composition and direction of FFV exports from SSARecent trends in FFV exports from SSA 9
9
III. CHALLENGES AND OPPORTUNITIES FOR SSA EXPORTERS OF FFV................ 15
Tariff preferences
Changing characteristics of FFV trade with Europe ........................................................................... 19Impacts of supply chain governance .................................................................................................... 21Small-scale growers ............................................................................................................................. 22Implications of private-sector GAP standards ..................................................................................... 25Local supermarkets .............................................................................................................................. 26Costs of EurepGAP compliance ........................................................................................................... 27
28National GAP initiatives ...................................................................................................................... 28
.................................................................................... 29Role of governments and other stakeholders in GAP development and implementation .................... 31Alternative markets............................................................................................................................... 32The Least Developed Countries’ perspective ....................................................................................... 33
Discussions at the international levelWorld Trade Organization.................................................................................................................... 34The process of private-sector standard setting..................................................................................... 35
IV. GHANA................................................................................................................................... 37
Challenges to be addressed to make GAP implementation successful................................................. 41........................................................................... 42
The private sectorDonor activities
Conclusions and recommendations
vi
V. KENYA ..................................................................................................................................... 51
Compliance and competitiveness
Donor activitiesConclusions
VI. UGANDA................................................................................................................................ 63
Production ............................................................................................................................................ 64Exports ................................................................................................................................................. 65
Quality systems for horticultural production
Institutional issues, roles of the government and other stakeholders .................................................. 69Involving smallholders ......................................................................................................................... 69Extension services ................................................................................................................................ 71
Conclusions and recommendations
VII. HORTICULTURE IN EASTERN AND SOUTHERN AFRICA (ESA):
ZAMBIA AND ETHIOPIA ........................................................................................................ 75
Standards8082
Conclusions
VIII. CONCLUSIONS AND RECOMMENDATIONS ........................................................... 85
ConclusionsRecommendations
ANNEX 89
References
STATISTICAL ANNEX 99
x
Acknowledgements
The editors wish to express special appreciation for the authors of the country case studies:
Ghana
number of experts, in particular:
Siobhan Casey
Stephen Mbithi
UNCTAD
xi
Executive Summary
Background
production of safe and healthy food, improved workers’ health and safety, application of modern
xii
The trade and development perspective
standards development and compliance may also help to enhance the competitiveness of the FFV
2 For example, SSA exporters are
2
stable economic policies, an attractive investment climate, competitive international transport connections, institutional
xiii
is less important for wholesalers, smaller supermarkets, street markets and ethnic/specialty outlets,
Adjustment strategies
xvi
GLOBALGAP benchmarking and standard setting
sectoral committees and the decision to form a smallholder task force to elaborate concrete proposals
Further work
Introduction 1
I. INTRODUCTION
and, in some countries,
countries, particularly those in South and Central America and North Africa, due partly to the erosion SSA exporters are required
that production practices are properly documented and comply with the complex requirements of complex requirements of of
capability led to the exclusion of many small exporters who were unable to meet supermarket
2 Private-sector standards and national GAP schemes
compliance schemes8 as a direct result of their inability to either obtain or retain compliance with 9
traditional markets still dominate, particularly in Africa which has a lower population density, lower
Apart from the quality assurance and product compatibility function, private standards also act as
Standards are also expected to play a catalytic role in Ghana’s efforts to shift the focus of export
World Development Report 2008,
8
9
Introduction 3
Development Priorities in National Codes on Good Agricultural Practices that can be Benchmarkedto EurepGAP,
Ghana
4 Private-sector standards and national GAP schemes
The information
The three countries examined here share a number of common aspects: all three have witnessed
Ghana
Kenya
The country has been
introduction of private process standards such as
Exports of fresh fruit and vegetables 7
II. EXPORTS OF FRESH FRUIT AND VEGETABLES (FFV) FROMSUB-SAHARAN AFRICA (SSA)
This chapter starts with an analysis of SSA exports of FFV based on statistics available from
8 Private-sector standards and national GAP schemes
(%)
FFV
EU-27
FFV
EU-27 as
of total FFV
(%)
Total FFV
SSA*
Namibia
Zimbabwe
Zambia
Malawi
Source:
Exports of fresh fruit and vegetables 9
A systematic analysis of trends in SSA countries’ FFV exports is not possible since only a few of them
FFV
FFV
FFV
FFV
Source
10 Private-sector standards and national GAP schemes
Source
a number of countries in South and Central America have recently received special tariff preferences
Table 3.
FFV
FFV
FFV
Source
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
0
2
4
6
8
10
12
14
16
Other
South and CentralAmerica
North AfricaSouth Africa
SSA
$ b
illio
n
Exports of fresh fruit and vegetables 11
FFV
FFV
FFV
Source
which trends in market requirements have had an impact on the industry concentration of production/
12 Private-sector standards and national GAP schemes
Source:
General characteristics
Medium-term trends (1996-2006)
0
100
200
300
400
500
600
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Uganda
Ghana
Kenya
SSA
All developingcountries
Ind
ex
Exports of fresh fruit and vegetables 13
affected FFV producers and exporters in SSA, but more detailed analysis would be needed to
Recent trends (2000-2006)
Challenges and opportunities for exporters of fresh fruit and vegetables 15
III. CHALLENGES AND OPPORTUNITIES FORSSA EXPORTERS OF FFV
These issues are not systematically addressed in this chapter, but some reference is made in the
20
are much smaller than they used to be, and tariff preferences are expected to play a smaller role in
inter alia
20
16 Private-sector standards and national GAP schemes
non-reciprocal trade concessions in favour of reciprocal
22
22
Challenges and opportunities for exporters of fresh fruit and vegetables 17
Peas 0
0 Guatemala
Morocco 0 Morocco
0(preferential
0
0
Morocco 0 Morocco
0(preferential
0
0 Costa Rica
0
0
China
Morocco 0
tariff
Morocco
Turkey 0 Turkey
Source
18 Private-sector standards and national GAP schemes
The erosion of tariff preferences and the limited supply capacity
28
29 the
Since the volumes and value of FFV from SSA did not decrease over the period, it is reasonably to assume that static
28
29
Challenges and opportunities for exporters of fresh fruit and vegetables 19
Changing characteristics of FFV trade with Europe31
very different characteristics
,000 smallholders involved
factors:
Fresh Fruit and Vegetables Import Manual
from all countries, such as coconut, no other FFV covered by the manual can be imported unless it appears on the list
20 Private-sector standards and national GAP schemes
supermarkets in explicit coordination of the chain were:
partly stemmed from the perception of supermarkets that smallholders would not be able to meet
Challenges and opportunities for exporters of fresh fruit and vegetables 21
countries also felt the need to rely more on their own production to ensure compliance with traceability
The
Impacts of supply chain governance
in combination with standards, predominate, whereas in the electronics industry all three clusters of
22 Private-sector standards and national GAP schemes
Small-scale growers
different prices into account that the two farm types receive for their produce, from an exporter
Challenges and opportunities for exporters of fresh fruit and vegetables 23
However, demands for private standards, which continue to increase in number and complexity, are
withdrawn from compliance schemes as a direct result of their inability to either comply or retain The authors concluded that while compliance with standards such as
(for further detail, see section on the cost
Outgrower schemes
However, they also point out that one
closer relationships with fewer suppliers creates the problems of transactional dependency and
Challenges and opportunities for exporters of fresh fruit and vegetables 25
Implications of private-sector GAP standards
introduction led to more pressure on exporters in
26 Private-sector standards and national GAP schemes
supermarkets and less so for wholesalers, smaller supermarkets, street markets and ethnic/
and
and practically a de facto
and explain the somewhat inconsistent behaviour of market partners (so far, standard adoption seems
Local supermarkets
Challenges and opportunities for exporters of fresh fruit and vegetables 27
Kenya,
Uganda,
Costs of EurepGAP compliance
28 Private-sector standards and national GAP schemes
been accompanied by improvements in product quality, which in some cases has been rewarded with
National GAP initiatives
key factors:
30 Private-sector standards and national GAP schemes
PMOs*
Total Total
World
Africa 998
South Africa 2
0
Ghana 29 8
9 2
8 8 0 0
0 0
0 0
Namibia 0 0
Cameroon 2 2 0 0
0 0
The United Republic of 0 0
North Africa
Morocco
Tunisia 0 0
82
Turkey
South/Central America
Mexico, Caribbean
All other countries
Source
Challenges and opportunities for exporters of fresh fruit and vegetables 31
Role of governments and other stakeholders in GAP development and implementation
Challenges and opportunities for exporters of fresh fruit and vegetables 33
Standard
The South African market, for example, may provide a market outlet
The Least Developed Country perspective
34 Private-sector standards and national GAP schemes
This illustrates that some
World Trade Organization (WTO)
de facto mandatory
For more detail, see: /
Challenges and opportunities for exporters of fresh fruit and vegetables 35
standards discussed do not cover food safety alone, but rather a mix of safety, environmental and
sector player to meet mandatory requirements in export markets, particularly those related to safe
The process of private-sector standard setting
This is
The benchmarked standard
Ghana 37
IV. GHANA
Based on a case study by Augustine AdongoFederation of Associations of Ghanaian Exporters (FAGE)
This chapter analyses the trends related to Ghanaian exports of FFV and the country’s experiences
combination of public and private actions and investments is needed to improve food safety and
Ghana 41
and experiences:
Challenges to be addressed to make GAP implementation successful
Middle management: There is a critical need in Ghana’s fresh produce industry, and
Quality management:
distinct set of skills that determine the capacity of an industry to link up with the dominant
42 Private-sector standards and national GAP schemes
efforts have tended to focus on pesticide issue and have yet to develop a traceability system
Research and development (R&D) and technological transfer:
Infrastructure:
Cluster development
Institutionalcapacity:
in both the public and private sectors may constitute an impediment to the development and
Special incentive schemes for smallholders to help lower and/or partly cover the costs incurred
Ghana 43
provided by international and national experts, the national extension service for industry members,
The Government of Ghana understands the importance of the horticulture sector to its economic
44 Private-sector standards and national GAP schemes
use
Government
(HAG)
Members
members
and commercial food safety
of private
companies in the various
aspects of food safety and
traceability, implementation
of food safety and
traceability systems, and
support services to the
horticultural export sector
Growers involved in the
horticulture production/
export value chain
(GTZ)
technical assistance
All
All
(FAGE)
All
Government All
business plan development,
for example in the
pineapple sector
consultants
All participants in
farmers, processors and
traders
46 Private-sector standards and national GAP schemes
less structured fashion and perceive implementation of strict documentation requirements as a burden
52 Private-sector standards and national GAP schemes
shared by the very donors who supported the process, seems to be that smallholder compliance to
• Awareness that in everyday practices, respect for wildlife and conservation is an important factor
Kenya 53
smallholder producers to ensure their survival in competitive markets, as well as to the creation of an
54 Private-sector standards and national GAP schemes
of
EU-27as a
of total
(%)EU-27
(%)EU-27
(%)
FFV
8
Chillies
Fruit
Avocados
fruit, fresh
Nuts
Source
FFV
Kenya 55
Avocados Smallholders
Fine beans Smallholders
Runner beans
Smallholders
Shelled peas
Snow peas
Chillies Smallholders
Smallholders
Green beans Medium producers
Smallholders
Source: Horticultural Crops Development Authority
56 Private-sector standards and national GAP schemes
level, investment in infrastructure at the macro level (for example in laboratories and distribution
Peas
Source
Kenya 57
producers, for which exporters’ investment and technical assistance to support compliance are likely
farmers were almost universally positive about
Uganda 63
VI. UGANDA
Based on a case study by Moses K. Muwanga,coordinator of the National Organic Agricultural Movement of Uganda (NOGAMU).
However, the
64 Private-sector standards and national GAP schemes
Production
With the exception of three companies that have their own
66 Private-sector standards and national GAP schemes
carried out by smallholders who, in most cases, have no appropriate infrastructure on their farms and
smallholders may be left out unless interventions are made to help them meet market requirements and
A variety of stakeholders from both the public and private sectors are involved in the work of the task
associations and stakeholders under one umbrella association, which resulted in the formation of the
now offers a more balanced forum composed of representatives from both the private and public
Uganda 67
establish the respective roles of the public and private sector institutions and to promote appropriate
68 Private-sector standards and national GAP schemes
Water analysis
by competent authorities and also recommends that water analysis be carried out by a suitable
Varieties and rootstocks
Record keeping
Workers’health, safety and welfare
Uganda 69
Institutional issues, roles of the government and other stakeholders
A few private associations exist that can play an important role in the development of a national
Involving smallholders
70 Private-sector standards and national GAP schemes
requirements, for example by:
include:
that are members of these associations would therefore be able to contribute to the development of a
Uganda 71
private sector should take the lead in its development, with the cooperation of the public
Extension services
72 Private-sector standards and national GAP schemes
There has been discussion on a possible initiative that could result in the creation of
(
more information see: p
Uganda 73
particular:
-
-
-
would need to be implemented in a more coordinated manner, and those that are too old to be relevant
Horticulture in Eastern and Southern Africa: Zambia and Ethiopia 75
VII. HORTICULTURE INEASTERN AND SOUTHERN AFRICA (ESA): ZAMBIA AND ETHIOPIA76
Horticulture in Eastern and Southern Africa(ESA).
76 Private-sector standards and national GAP schemes
kwasha
inputs and equipment used in horticulture production for export can be imported free of duty and
favourable to horticulture production and clean water is abundant (physical infrastructure and skilled
and a company can easily obtain access to land to develop export production (at a price of about
78 Private-sector standards and national GAP schemes
investors to set up companies and there is no need for improved access to credit, particularly for
Horticulture in Eastern and Southern Africa: Zambia and Ethiopia 79
Source:
scope
Conduct for Cut Flowers
Food safety/environmental/worker health and safety
Flowers
Germany
Milieukeer Netherlands
Social United
Max Havelaar
the Dutch member of Netherlands,France
80 Private-sector standards and national GAP schemes
Supermarkets are a critical
Capital costs Capital costs
However, development
82 Private-sector standards and national GAP schemes
89
codes are an effective way to promote socially and environmentally responsible production and
producers must pay for different audits, but do not necessarily obtain a better price if the product is
89
Horticulture in Eastern and Southern Africa: Zambia and Ethiopia 83
From an environmental perspective, the case study indicates that increased production will put
Conclusions and recommendations 85
VIII. CONCLUSIONS AND RECOMMENDATIONS
90
92
and technical assistance from the donor community, which other countries in SSA of less importance
90
92
86 Private-sector standards and national GAP schemes
Governments, the private sector and donors could help smallholders
WorldDevelopment Report 2008
partnership efforts to promote collective action and build the technical capacity of farmers to meet
Ghana
there is no or only a very weak link between food safety, health and environmental requirements of
practices which focus only or predominantly on export production as the prime development aim
Annex 89
ANNEX: SOME DEVELOPMENTS IN FFV EXPORTS FROMOTHER SELECTED SSA COUNTRIES
Burundi97
Cameroon
98
Côte d’Ivoire
Madagascar
98
90 Private-sector standards and national GAP schemes
Malawi99
Mali100
Strategyto increase capacity to comply with SPS and retailers’ agri-food protocols to facilitate exports
,
99
Annex 91
Namibia
Rwanda104
the sector is the small scale of operations of most farmers, which constrains the dissemination and
94 Private-sector standards and national GAP schemes
REFERENCES
/
ACP-EU fruit-and-vegetable sector relations: highlights and issues. no. 2; at:
/
Regoverning Markets– A Place for Small-Scale Producers in Modern Agrifood Chains?
The European Journal of Development
Research
The European
Journal of Development Research
The European Journal
of Development Research
Food Safety in Food Security and Food Trade
PIP Magazine
Africa Region
Working Paper Series
Global Agricultural Trade and Developing Countries
Journal of Development Studi
FAO Commodities and Trade Technical Paper
f
References 95
Crossroads
f
FreshInsights,
Fresh Insights,
Acta Horticulturae,
The European Journal of
Development Research
The European Journal of Development Research
It becomes more important than ever for ACP countries to strategicallyposition themselves PIP Magazine
Marketing Africa’s High Value Foods
PIP Magazine No
Fresh Insights,
Fresh Insights,
Global Supply Chains, Standards and the Poor. How the Globalization of Food Systemsand Standards Affect Rural Development and Poverty
96 Private-sector standards and national GAP schemes
ACODE Policy Research Series
Fresh Insights,
t
Regoverning
Markets: A Place for Small-Scale Producers in Modern Agrifood Chains?
. PIP Newsletter
References 97
World Development Report 2008
SLE PublicationSeries.
Global Supply Chains, Standards and the Poor: How the Globalization of FoodSystems and Standards Affects Rural Development and Poverty.
accessible at:
Regoverning Markets – A Place for Small-Scale Producers in Modern
Agrifood Chains?
IDS
Bulletin
World Development Report 2008: Agriculture for Development
Statistical annex 99
STATISTICAL ANNEX
Totalcapita
($) of GDP (%)
Total
of total (%)
SSA
SSA*
29 899
Source
2 088
Total SSA
SSA
Source
100 Private-sector standards and national GAP schemes
FF
VR
oots
As
a
of
tota
l
SS
A
Nam
ibia
Zim
bab
we
Zam
bia
Mala
wi
So
urc
e
Statistical annex 101
mush
room
s, c
arro
ts
Can
ned
pin
eapple
s, b
eans,
pin
eapple
Cas
hew
nuts
, co
conuts
Yam
s
Nam
ibia
Zim
bab
we
Zam
bia
Rep
. of
Cas
hew
nuts
Cas
hew
nuts
Cas
hew
nuts
Mala
wi
Cas
hew
nuts
, al
monds
Alm
onds,
,ca
shew
, nuts
So
urc
e
Statistical annex 103
Vol.
FFV
F
V
South Africa FFV
F
V
SSA excl South Africa
FFV
F
V
FFV
F
Cameroon FFV
F
Ghana FFV
F
V
Yams**
FFV
F
V
FFV
F
V
FFV
V
FFV
F
V
FFV
F
FFV
F
V
Namibia FFV
F
the United Republic of
FFV
V
FFV
F
V
countriesFFV
F
V
Source
104 Private-sector standards and national GAP schemes
FF
V
2 0
20
92
298
200
202
28
2 0
08
Roots
29
So
urc
e
108 Private-sector standards and national GAP schemes
$ m
Tota
l
Cost
a R
ica
$ m
Tota
l
29090
88
$ m
Tota
l
Colo
mb
ia
Cost
a R
ica
So
urc
e