K-Farm Carambola GAP Program · Supply chain, Policy - infrastructure investment, farm aid, ......
Transcript of K-Farm Carambola GAP Program · Supply chain, Policy - infrastructure investment, farm aid, ......
Kit Chan
National, Regional, and International GAP Standards in Asia
- An Overview
APO/NPO Pakistan: Training Course on Training of Trainers in
The GLOBALGAP Standard for Greater Market Access
5th – 10th December 2016, Lahore Pakistan
Concerns of the Asia Pacific Food Economy
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Concerns Classic Interventions
Food Insecurity Protectionism, expand cultivation acreage
Cost of Food Fiscal approaches
Farm Productivity Crop yield, Crop fertilization, P&D management, Post-harvest handling technology
Market Access Promotion, price competitiveness
Economics of small farms, rural poverty, length of food chain, etc
Supply chain, Policy - infrastructure investment, farm aid, subsidy, shortening the food distribution chain
Food Safety Food safety regulations
Environmental concerns on farming Environmental regulations
Climate Change No consensus in resolving problem
Concerns of the Asia Pacific Food Economy
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Concerns Next Interventions
Food Insecurity Save food loss and save food waste
Cost of Food Prices independent of production costs, From supply chain to value chain, Value addition in food – quality, brands
Farm Productivity Technology and efficiency - gadgets, process and systems management, Farm sustainability (physical and financial)
Market Access Demand > supply, Larger & wealthier population, Post-harvest and distribution management
Economics of small farms, rural poverty, length of food chain, etc
Value chain, 2- tiers of food producers, Policy - building climate resilience in farming sector (farmers adaptive capacity)
Food Safety Intrinsic assurance
Environmental concerns on farming Environmental pollution credits on food production (e.g. carbon value and carbon trade, food miles)
Climate Change Food produced in factories or environment shelters, farmers must harmonize their cultivation with the environment
Major changes and trends in the agrifood system
Monitoring system of food safety has changed
Food safety regulators traditionally use enforcement mechanisms to remove
unsafe food from the market
Exporters are now warned to take prevention of hazard contaminations at every
critical control point of the food chain
In the past, regulators are responsible to monitor & control food safety
Now the adoption of food chain framework facilitates a consumer driven, monitor
& control approach in production and food safety system
The agrifood system operates in a globalize market now
Food supply chains making cross border destinations
Sources of production comes from all corners
Survival in the business rests on supply chain competitiveness
Meeting New Demands of Changing Markets
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1. Consumption trends and patterns
Food destination not just to hungry stomachs
Food destination to consumers willing and able to pay
Consumers place a high priority to value of the product
Consumers demand for choice
Consumers demand for food safety standards
2. Communications with the customers
The social media is important in reaching out to the customers
Customers trust the word-of-mouth and their social media friends
Market diversion: new, healthy, tasty and easy
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Supermarketization
Global urban phenomenon of shopping in supermarkets
• Supermarkets target the growing middle class consumers in urban areas
• Supermarkets project pricing with value
• Supermarkets provide the full range of convenient shopping
Supermarkets are such very large retail chains
• Increasing market share as strategies
• Have purchasing advantage over local producers
• Low costs and low margins
• Intense competition among supermarket chains
Consolidation of giants
• Horizontal integration
• Building of giants – mergers and takeover
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Drivers of Change in Asian Food Systems
Globalization
Changes in Consumer Demands
Market / trade liberalization
Increased global trade
Increased capital flow; FDI
Global ICT connectivity
Rising Income
Global Food Sector
Supermarkets in Asia
Global logistics management
Global markets and sourcing
Mobile connectivity
Knowledgeable
Differentiated product
Convenience foods
Demand for Value
Concern for environment
Rise of middle class
Falling % food expenditure
Middle class consumption
Consume more meat & dairy and high value food
Young Urban Consumers / Farmers
Educated & informed consumers
Ability to choose
Dual earners, small family
Farmers respond to new demands
The Affluent Consumers
Increased purchasing power
Increase in Consumer Confidence
Changes at Ground Level Changes in the Industry
Drivers of Change in Asian Food Systems - 1
Access to market information
Transparency in production costs and information
Access to advanced ICT tools
Transparency of Information
Farmers access to market info.
Consumers access to production information
Social media marketing
Competitive pricing
Farm production technology
Post harvest technology
Logistics and shelf-life technology
Lower production cost / unit
Increasing urban dwellings
Space and time deficit
More social lifestyle
Food catering sector demands higher quality
Higher Farm Productivity
Access to better seed quality
Effective fertilizer application
Effective P&D control
Irrigation technology
Innovative PHH techniques
Modern Home and Work Lifestyle
Small family units
Home electrical gadgetries
Easy to prepare foods
No extended family members
Information & Communication
Technology &
Innovation
Urbanization
Changes in the Industry Changes at Ground Level
Drivers of Change in Asian Food Systems - 2
Women represents the biggest “emerging market”
More financially independent
Make personal purchasing decisions
More Active Role in Public
More education for women
More women in the work force
Demand more healthy & nutritious food
Less meat, less fats, less portion
Developed economies shrinking population
Emerging economies expanding population
Supermarkets bringing new standards to Asia
Supermarkets demand food quality standards
Private 3rd party certification of food quality standards
Changing Demographic Profile
Developed economies rising number of elderly people
Different consumption trends for the elderly people
Emerging economies with large population of young people
Women in the Workplace
Population Profile
Supermarket brands and serving the needs of consumers
Demands food safety assurance
Demand greater farm production standards and traceabilities
Changes in the Industry Changes at Ground Level
Drivers of Change in Asian Food Systems - 3
Rise of Supermarket Chains
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Government initiatives to
build climate change resilience
of small and rural farmers
New policy approach to land,
water and energy usage
New policy definition and
directions in dealing with food
security
Farm production
Impact on production system
Impact on yield and quality
Impact on cost and price
consideration
Adaptation of state-of-the-art
production technology
Adaptation on environmental
considerations
Climate Change
Changes in the Industry Changes at Ground Level
Drivers of Change in Asian Food Systems - 4
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GAP and the Emergence of GlobalGAP
Good Agriculture Practice - GAP
GAP is a production pathway that identifies critical control points and
establish compliance standards of varying degrees to eliminate hazards and prevent accidents
in order to progressively promote safe and hygienic fresh produce at the farm
with minimum negative impacts to the environment.
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The good practices proposed in GAP are universally established
science - based rationales and justifications.
The close monitoring and specific control system provides assurances of safety to the consumers of GAP produce.
Conducting a continual risk assessment of farm activities and the farm physical conditions to continually keep check of accidents and upgrade the standard.
Guiding Principles of Good Agriculture Practice
1. Assurance of safe food production
2. Sustainable production
Assurance of food safety is a fundamental responsibility of the producer
Sustainable production ensures that producer must reap economic returns for
his efforts and investments, and able to do so continually
For this to happen, the farmer must recognize the impact of his practices
will have on the environment and to the consumer
Sustainable Agriculture is a farming system
that provide the needs of safe, nutritious and affordable food for the world population,
in a way that progressively conserve the natural environment and natural resources,
by seeking to optimize the skills and technologies to achieve long term productivity and
profitability of the stakeholders of agriculture enterprise,
to ensure that future generations can also experience the same satisfactions
that we enjoy today.
Sustainable Agriculture
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From the definition above, 3 major concerns have emerged
1. Ecological concerns
Soil productivity (Erosion, depletion of top soil)
Water (Depletion, groundwater usage, contamination)
Pest and Disease resistance to pesticides
Greenhouse effect and Climate Change
2. Economic and social concerns
Price of food
Income of the small and rural farmers
3. Impacts on human health
Food safety and food hygiene for consumers
Farm workers health and welfare
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Sustainable Agriculture
Voluntary Standards
versus
Regulations
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Food Safety Voluntary ( Private ) Standards
Initiated and driven by the Consumers ( Clients )
Creates competitiveness out of Producers
Voluntary participation creates self monitoring by the Producers
Derive economic benefits ( profits and market share )
Non-compliance leads to commercial sanctions
Standards designed to provide assurance of food safety to consumers
Technical Regulations ( Mandatory Standards )
Standards designed to enforce food safety conformity
Non-conformity lead to fine, quarantine or rejection
Stakeholders are obliged to conform to the standards
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Stakeholder View of Standards
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Benefits from GAP Compliance
Achieve market access - Getting noticed and recognized by buyers
Enhance food safety - Gain credibility in the industry
Reduce risk and liabilities - Save losses via no recalls, no rejections
Improved productivity - Quality and yield increase via practices of IPM
and ICM
Lower costs - Reduction of input costs
Gain competitive advantage - Costs, market, credibility, price
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GAP Practices in Asia
GAP Practices in Asian Countries - 1
1. Examples of GAP systems in Asian Countries
SALM (MyGAP) – Initiated by authorities to advance competitiveness
JGAP – Inspired by growers supplying to supermarkets
ChinaGAP – Concern for food safety / Concern for export markets
ThaiGAP – Initiated by regulators / Adopted from research cluster
ASEANGAP – Harmonizes ASEAN countries GAP systems
2. What drives these countries to develop GAP systems?
Governments want to develop, expand and sustained export sector
Consumers want assurance of food safety in their purchases
Exporters want to move from domestic to export trade, from wholesale buyers to
niche and to more developed and sophisticated retail markets
3. Developing GAP systems in Asian Countries
2 - prong, 2 - tier approach
Develop National GAP Schemes, and Benchmark with GlobalGAP
More progressive farmers moved independently with GlobalGAP
4. Cautions and lessons learnt from these country’s practices
Communication - clear, defined, committed
Raise awareness - to all stakeholders
Transparency - accreditation and certification process
Institutional support - in farm extension is strong & effective
Mandatory GAP standard is ineffective and costly to monitor
GAP standard must include export AND domestic consumers
GAP Practices in Asian Countries - 2
5. GAP development for Asian Pacific – Way forward
Shift of global trade from South – North to South – South
Trade competition among countries will increase
There is No reversal for high standards and high quality
Trading countries will demand reciprocal standards and qualities
Eventual harmonization of international GAP standard of a high level
Slow reformers will be left behind
GAP Practices in Asian Countries - 3
MyGAP
Certification program to recognize farms that adopt Good Agricultural Practices
Developed by DOA
Launched in 2002, by 2011 only about 280 certified
Protocol include food safety control, environment management, handling hygiene,
traceability and workers welfare
Strengths - MyGAP allows producers the freedom to decide how they want to
achieve the targets
Weakness - Weak communication dialogue with stakeholders
- Inadequate capacity of field extension officers
MyGAP Malaysia
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Q Mark and ThaiGAP
Q Mark GAP Standard
Objectives of the Q Mark GAP Standard - Ensure safe food production
Guiding principles - Safe food production
Scheme developer and owner - Ministry of Agriculture and Cooperatives
Q mark GAP scheme certifies the production process of the crop and not the farm
Certification bodies
Private and public certification bodies (CB) approved by the National Bureau of
Agricultural Commodity and Food Standards (ACFS)
3rd party certification process
Types of certifications
GREEN Q Mark – quality & safety conformation with international standards
GOLDEN Q Mark – safety at international level and quality at premium level.
ThaiGAP Objectives
1. Thai safety / quality systems and standards of production at world standards, and
ensure compliance of consumer requirements
2. Educate small growers to enable them to comply with the trade requirements and
regulations
3. Develop competitiveness and ability of SMEs producers
4. Create systems of production, according to the quality, safety and legal requirement
at world standard
5. Increase grower income and ensure long term sustainability
6. Support the nation’s “Kitchen to the World” project
7. Ensure effective traceability from producer to consumer
ThaiGAP Certification Scheme - 1
Partners in ThaiGAP Development
1. National Bureau of Agricultural Commodity and Food Standards (ACFS)
2. Department of Agriculture and Department of Agricultural Extension
3. The Thai Chamber of Commerce
4. Western Cluster : Kasetsart University, Kamphaengsaen Campus
5. The Fruit and Vegetable Producer Association / SME growers
6. Provincial Chamber of Commerce
Features of ThaiGAP
ThaiGAP was home grown that expanded into international level.
Initiatives allow the farmers to develop naturally into the GlobalGAP benchmark
scheme, as farmers become more confident.
ThaiGAP model encourages formation of cluster groups of small farms with
adoption of the GAP practice.
ThaiGAP Certification Scheme - 2
JGAP
AEON supermarket started develop their store GAP system in 2002.
Groups of Japanese farmers also work on GAP programs in their farms.
The Japan Good Agricultural Initiatives (JGAI) formed 2005 to develop a system to
ensure the safety of agriculture produce, and establish common standard of GAP.
The Japanese Ministry of Agriculture announced 2006 that JGAP (as nonprofit
organization) would become national standard to harmonize the several private retailers
GAP scheme and the GAP scheme of the Ministry.
The activities of JGAP are:
- Develop voluntary standards for certification of farms / farm groups
- Train the JGAP trainers
Certification is carried out by qualified 3rd Party private sector auditors.
JGAP benchmark against GlobalGAP (2007) to strengthen recognition of scheme.
JGAP - JapanGAP
ASEANGAP
ASEAN GAP is a voluntary standard for GAP practices for the ASEAN region.
Purpose is to harmonize GAP programs within ASEAN - to facilitate trade
regionally and globally
ASEAN GAP scope covers production to post harvest handling of F&V.
ASEAN GAP consists of 4 modules:
Food safety
Environmental management
Worker health, safety and welfare
Produce quality
Module can be used alone or in combination with the others. This enables
progressive implementation of ASEAN GAP, based on individual priorities.
ASEANGAP
ChinaGAP
China developed two programs of food safety:
Green Food Standard – develop GAP standards for the domestic market
ChinaGAP – developed jointly by the Chinese Government and GlobalGAP.
The programs are intended to:
Stimulate agriculture ,
Reduce the risks linked to food safety,
Stimulate the development of international good agricultural practices and
relevant certification and accreditation activities.
ChinaGAP
GlobalGAP
GlobalGAP is a private standard. The GAP scheme ownership belongs to a private sector
body that sets voluntary certification standards and procedures for good agriculture
practices
GlobalGAP, started as EurepGAP, by a group of European retailers, who were concern
with growing incidents of food contamination, and intention to raise quality of food
supplied into their supermarkets.
GlobalGAP aims to increase consumer confidence in food safety by developing good
agriculture practices to be adopted by the producers.
GlobalGAP is a pre-farm gate standard. The certificate covers the process of the certified
product before the seed is planted until it leaves the farm.
GlobalGAP has developed GAP standards for fruits and vegetables, combinable crops,
flowers and ornamentals, green coffee, tea, pigs, poultry, cattle and sheep, dairy and
aquaculture (salmon).
GlobalGAP - 1
Requirements of GlobalGAP
The GlobalGAP standard requires that the producers establish a complete
monitoring and control system.
Products are registered and can be traced back to the specific farm unit
where it was grown.
Some rules are flexible (encouraged) but some other regulations are strictly
controlled (major must), e.g. pesticide applications and storage, fertilizer
usage.
Detail records of farm practices are required to show justification how the
crop was produced
GlobalGAP - 2
Certification process
GlobalGAP does not issue certificates but authorized registered certification bodies to
All documents relating to the certification processes and validity are available online
Farmer would first select from a list of available CB and sign a contract for the audit
process. Costs are paid by farmers.
There are 4 categories of certificates:
Option 1 - certification of individual farms / producers
Option2 - certification for producer groups
Option 3 & 4 - benchmarking other schemes (schemes belonging to individual
producers or producer groups), and is assessed for equivalence by
comparing content and performance criteria against GlobalGAP
General Regulations
GlobalGAP - 3
Opportunities of GlobalGAP
GlobalGAP certified producers have the opportunity to sell to supermarkets that may
have a requisite for GlobalGAP certification.
The certification is a minimum standard focused on business-to-business relationships.
GlobalGAP certification is a premium award because the retailers testify to it.
Challenges of GlobalGAP
The process of GlobalGAP certification requires the producer or producer group to
organize a complete administrative system to keep track of all the farm activities.
This exercise requires a substantial amount of financial and administrative capacity
and could only be made by large scale producers
There are no special price premiums or product label associated with GlobalGAP.
GlobalGAP - 4
PakistanGAP
Developing the PakistanGAP
What are rationales for Pakistan to have its own GAP scheme ?
Does PakistanGAP needs to be market oriented ?
Will the GAP standard be mandatory or voluntary ?
Who shall own and manage the scheme ?
Who should develop the GAP standard for Pakistan ?
Who should be in the GAP NTWG team ?
Will it be a generic production standard or crop specific GAP standard ?
How to ensure that PakistanGAP could be sustainable on its own ?
Capacity Development and Business Orientation
Formulating a GAP Strategy for Pakistan - 1
Implementing PakistanGAP
How to convince the stakeholders to adopt and comply to GAP standards?
What are the existing infrastructure that can support GAP compliance?
What will be the fundamental guiding principles in GAP?
Do stakeholders have knowledge, physical and financial capacity to comply?
What will be the role of the extension services?
What level of compliance should be set for the standard?
Does the GAP scheme owner have the capacity to train GAP trainers?
How would the GAP scheme be promoted to all the stakeholders?
Formulating a GAP Strategy for Pakistan - 2
Certification of GAP
1st ,2nd or 3rd Party certification scheme?
Certification costs and who should bear?
After a farmer achieved the Pakistan GAP certificate, what happens?
It must be marketed / promoted to the domestic and export consumers.
The certificate has a commercial recognition and validation.
Certificate scheme must be serviced and managed as a business entity.
There will be secondary spin-off development from the certification.
Spin-off developments must increase farms and farmers productivity.
Food safety awareness must be promoted.
When should PakistanGAP benchmark to GlobalGAP?
Formulating a GAP Strategy for Pakistan - 3
Marketing Pakistan GAP
GAP certified produce will gain market access in exclusive market place.
Products without GAP certification would only entertain the fringe markets,
where the suppliers have low bargaining position.
Formulating a GAP Strategy for Pakistan - 4
FAO (FAOGAP), EISA (Common CODEX for Integrated Farming),
CIES Retailer Business Forum (Global Food Safety Initiative, GFSI)
Australia (AFFA, Farm Food Safety Guidelines), NZ (Approved Supplier Program)
England (Assured Produce Scheme)
TESCO (Natures Pride), CAPESPAN, Unilever (Growing for the Future), FreshCare
Issues covered in the GAP Schemes:
Food safety criteria , Quality, Quarantine, Environment, Sustainability, Workers
Health and Safety, Food Security (Bio-Terrorism), Allergens
Guidelines, Standards, Marketing Schemes, Company Missions, Company Labels,
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Other International Initiatives of GAP
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Debate on GAP - 1
1. If agriculture export-led is a strategy of economic growth.
What enabling environment should the Government put in place for the sector to
carry out commercial exportation efficiently? Is GAP the answer?
2. The returns to horticultural cultivation for the small farmers is low, at least that is the
view of the small farmers.
What are some of the possible reasons for this dissatisfaction?
3. The country may have a product that is highly regarded in the domestic market.
Why is it that exporters have not found sustained buyers overseas to appreciate this
product?
4. The extension department has a very important role in the development of farm
productivity via transfer of knowledge and information to the small farmers.
If this TOT is not effective, what are some of the plausible solutions to it?
5. In developed markets, consumers demand very high food safety and hygiene standards
on the importation of food produce, particularly on fresh F&V.
Should these standards be confined for consumers who can afford or should it be
universal? Can GAP certified products be universal?
6. If the benefits of implementing GAP on farm are clear-cut;
Why do stakeholders; producers, service / logistic providers take the easy way, cut
corners, bend on standards and have a tacit reluctance to follow the rules?
7. The majority of small farmers in Asia are not literate, do not understand how market
operates, and do not have sufficient knowledge and instructions how to improve their
productivity. If they are to accept any changes in their farm practices, they want to
know what benefits are gotten for their participation.
What will drive producers and farmers to change and to accept GAP?
Debate on GAP - 2