WTO Headquarters, Geneva 25 th June 2007 By Christie F. Robert qa plus asia-pacific sdn. bhd...
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Transcript of WTO Headquarters, Geneva 25 th June 2007 By Christie F. Robert qa plus asia-pacific sdn. bhd...
Joint UNCTAD / WTO Informal Joint UNCTAD / WTO Informal Information Session on Private StandardsInformation Session on Private Standards
WTO Headquarters, Geneva25th June 2007
By Christie F. Robert
qa plus asia-pacific sdn. bhdqa plus asia-pacific sdn. bhd
Experiences in South East Asia
Scope of presentationScope of presentation
To provide an overview of the experience in South East Asia on adjustment to private standards in key
export markets and the National GAP programs based on the UNCTAD monograph synthesizing the
country case studies on Malaysia, Thailand and Vietnam
““Major Tropical Fruits” – global Major Tropical Fruits” – global production & tradeproduction & trade
• World production and trade of “major fresh tropical fruit” (mango, pineapples, papaya and avocado) is expected to expand over the next decade
• Expected to increase from 46.5 million tonnes (1998-2000 average) to 62 million tonnes by 2010
• Developing countries should continue to account for 98% of global production, developed countries 2%
• Asia and Pacific region –should account for more than 56%
• Global imports are forecast to reach 4.3 million tonnes by 2010 with 87% or 3.8 million tonnes destined for developed country markets. EC is expected to remain world’s largest import market, followed by USA, together accounting for 70% of import demand
Source: FAO Corporate Document Repository
www.fao.org
Changing structure of global FFV trade
Consumer
Demographic growth
Changing lifestyle/Shopping habits
Increased income /educated consumers
Concentration Of suppliers and
retailers
Stricter quality & Safety market requirements
Developing highvalue /added
value and new products
Market
Global supermarket sector
• Supermarkets now dominate food sales and are rapidly expanding their global presence
• Increased presence in South East Asia• International consolidation and aggressive
pricing strategies• Increased market power on global power
chains• ‘Global sourcing companies’-more exacting
demands on quality
Fundamental shift in the role of standards today
Standards are strategic tools for : Market penetration Management system coordination Quality and Safety assurance Addressing Social and Environmental issues Product niche definition Basis for continuous improvement
Standards and agri-food tradeStandards and agri-food trade
Standards are becoming ‘mandatory’ requirements for market access
Has lead to the development of a plethora of standards:
Retailer Standards Private Label Standards National Standards International Standards Have to be addressed by the producers for
whom they are becoming increasingly essential for business
Growth of Private sector standards Growth of Private sector standards
Pre-farm gate Post farm gate Retail outlets & Supermarkets
SQF 1000EurepGAP
Freshcare Code of Practice (Australia)
Tesco (Nature’s choice)
Marks & SpencerAuchan
Carrefour
SQF 2000BRC Global Std.Dutch HACCP
International Food Standard (IFS)
ISO 22000
SQF 3000
Increasing number of private sector standards Compliance is not mandatory However retailers and suppliers often require
certification Private sector standards often act as ‘defacto’
mandatory requirements Has a profound influence on the development of
National and regional schemes on GAP in ASEAN Malaysia, Thailand and other ASEAN countries have
developed national GAP schemes, mainly through government driven initiatives
Malaysia-SALM (National Farm Accreditation Scheme)
Thailand- ‘Q-GAP’ Vietnam – GAP initiatives underway e.g. Ho Chi Minh
City (HCMC) GAP Program, Tien Giang GAP Program Asian initiatives based on EurepGAP
Private sector standard & National GAP Schemes
EurepGAP & National GAP SchemesEurepGAP & National GAP SchemesEurepGAP
SALMThai ‘Q’ GAP Vietnam GAP
Generic Control points and compliance criteria for all
fruits and vegetables
Generic in nature-Control points addressed but not
specific in compliance criteria.
ACFS under the NACFSC has established general GAP control points for
foods which cover FFV.DOA has established specific
criteria for each crop
Legal framework for horticultural practices is
enacted by Standing Committee of the National Assembly-in the form of a
series of Ordinances
Strong on record keeping, documentation, self-audit
Farms must keep up-to-date records. Internal audit
to be conducted yearly.
Place little emphasis on documentation. Not
detailed as in EurepGAP
Framework does not address Record-Keeping
and self inspection-which is not a legal obligation of the
producer
Recommended pre-harvest & re-entry intervals must
be observed.
Requirements for PHI are addressed but not REI
Food safety is the core concept
Requirement for Risk assessment on produce
handling e.g. food hygiene
Hygiene is encouraged but does not require a risk
assessment
Worker Health, Welfare & Safety-requires to undertake a risk
assessment and action plan
No risk assessment but encourages action plan for safe working conditions.
Relies on government regulations
Does not have control points on these issues.
Depends on government regulations
Certification is independent. Carried out by accredited certification
bodies
Certification is carried out by auditors from
Department of Agriculture whose extension officers provide advisory services
to farms
Certification by ACFS which is part of the Ministry of
Agriculture & Cooperatives (MOAC)
EurepGAP & National GAP SchemesEurepGAP & National GAP Schemes
A notable omission in the Asean GAP Schemes is the lack of independent third party auditing
- In Malaysia the Department of Agriculture provides training and advisory services and also conducts audit and certification.
FFV-intra regional trade FFV ExportsFFV-intra regional trade FFV Exports
Malaysia’s share in EU imports of FFV is small while Thailand’s and Vietnam’s share of exports to EU is much bigger. Exports from Vietnam largely comprises fresh vegetables
Malaysia (2005) Singapore 52%
Indonesia 13%
Thailand 9%
EU-15 5%
Thailand (2005) Japan 20%
China 20%
EU-15 13%
Indonesia 5.3%
Malaysia 2.3
Singapore 1.8%
Vietnam (2003)excluding nuts China 26.3%
USA 25.0%
EU-15 7.9%
Singapore 1.5%
ASEAN FFV ExportsASEAN FFV Exports
Directed principally at regional markets –particularly ASEAN, China, Japan Hong Kong, China, Taiwan and Republic of Korea.
In value terms they absorb Fresh Fruits – 81.5% Fresh Vegetables – 76.5% EU market only takes Fresh Fruits – 3% Fresh vegetables – 12.8%
Implications of EurepGAP and other private sector standards which are relevant in EU on GAP initiatives for ASEAN Fresh Fruits & Vegetables
•There is increasing role for GAP certification in regional trade
•Government regulations to food safety becoming increasingly stringent e.g. Thailand, Malaysia
•Countries like Singapore (net importer of FFV)-arrangements with key suppliers e.g. Malaysia, Indonesia, Thailand)-Quality and Food safety standards needed
•Asean governments- Malaysia, Thailand: increased interest in good farming practices
•Active promotion of National GAP schemes in Malaysia, Thailand, and Vietnam
Common obstacles to GAP Common obstacles to GAP implementationimplementation
Low levels of awareness – farmers/consumers Poor understanding of GAP requirements Small farms and rural locations Lack of direct link with the market place- trade
through middlemen Lack of incentives to implement GAP-normally
does not result in price premiums Problem of land ownerships & tenure-e.g.
Thailand-discourage investments required by GAP schemes
General unwillingness for supermarket chains in providing bridging finance
Potential and real gains/opportunities from Potential and real gains/opportunities from GAP implementationGAP implementation
Reforming agricultural production systems – has significant socio-economic implications
Science-based use of fertilizer and application
of crop protection chemicals – improved productivity & cost savings Emphasis on worker welfare & safety – safe healthy environment, improved morale Assured produce thru’ GAP Certification – consumer confidence and market acceptability
Need for supportive government policies for Need for supportive government policies for
linking smallholders to global supply chainslinking smallholders to global supply chains Common feature of National GAP schemes in Malaysia & Thailand -it is government driven -Dept of Agriculture, Ministry of Agriculture and Agro-based Industries in Malaysia. -In Thailand the development of a national GAP schemes has been largely
driven by the Government, in particular through the Ministry of Agriculture and Cooperatives (MOAC).
Both in Malaysia and Thailand the Government supports GAP certification costs by providing
-training free of charge to farmers -free chemical residue analyses There is little support for other private sector standards
In Vietnam, development of national GAP schemes, government has adopted a public-private participatory approach
-Donor funded projects and initiatives
Linking smallholders to the supply Linking smallholders to the supply chain (Malaysia)-Role of FAMAchain (Malaysia)-Role of FAMA
Federal Agricultural Marketing Authority (FAMA) in Malaysia is an independent subsidiary of the Ministry of Agriculture & Agro-based Industries
-supervise, coordinate and regulate marketing of agricultural produce
-to improve market access-to improve effectiveness and efficiency of supply
chain management -to supervise and coordinate agricultural marketing
activities-to promote market access through branding
‘Malaysia Best’
Core of the adjustment strategies in Malaysia and Thailand Core of the adjustment strategies in Malaysia and Thailand to comply with private sector standard and / or National to comply with private sector standard and / or National
GAP SchemesGAP Schemes
GAP development is a national agenda Gradual, step-wise approach-SALM in
Malaysia and QGAP in Thailand Reduced stringency on the specific control
points and compliance criteria Government provides extension services Government support is provided to cover
certification costs, laboratory, testing of pesticide residues
Recommendations Recommendations We suggest that regular Multi-
stakeholder dialogues be conducted at national and regional levels
- to enable exchange of experiences which would be useful in policy adjustments at National level
- to facilitate a common “benchmark” in GAP standards to accommodate intra-regional trade
- to harmonize local interpretations of GAP elements
- to provide a forum to discuss implementation problems and
solutions
- to encourage realistic GAP standards and stepwise approach
- to achieve consensus in ultimate target : EurepGAP
RecommendationsRecommendationsGAP DocumentationGAP Documentation
Documentation and record-keeping continues to be a major obstacle.
-Suggest development of standard formats to aid farmers
-Development of generic software platform for GAP documentation
-Additionally, the generic software will assist in the conduct of audits and simplify the process
RecommendationsRecommendationsCapacity building on WTO’s SPS andTBT Agreements It is suggested that nationwide
workshops to explain and elaborate on SPS and TBT Agreements.
- Protocols and mechanisms are still not fully appreciated, especially with the trading community.
-Knowledge restricted to certain government levels
RecommendationsRecommendations
Auditing Suggest that regional workshops
be organized for agricultural auditors
-consistent auditing procedures -correct interpretations on
compliance -eliminate ‘soft’ auditing -provides confidence in certification
RecommendationsRecommendations
Maximum Residue Levels (MRLs) A forum should be established to
address issues on chemical residues
- harmonize requirements on MRLs - sampling and testing procedures - regional reference laboratory
Thank YouThank You
qa plus asia pacific sdn. bhd.qa plus asia pacific sdn. bhd.No. 132 A, Jalan Kasah, Medan Damansara,No. 132 A, Jalan Kasah, Medan Damansara,50490 Kuala Lumpur, MALAYSIA50490 Kuala Lumpur, MALAYSIAEmail:[email protected]:[email protected]