EUREPGAP The Global Partnership for Safe and Sustainable

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture An Introduction to Eurep. GAP and other Private Sector Standards: Facilitating Trade through Safe and Sustainable Agriculture Nigel Garbutt, Chairman, Eurep. GAP WTO SPS Seminar, Geneva, 25 June 2007 © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Today’s Presentation 1. Overview Eurep. GAP 2. Standard Scope , Development and Consultation process 3. Global Standard , Local Implementation 4. Equivalence and Benchmarking 5. Public Private Partnerships 6. Catalyst for Poverty Reduction : “Smallholder Ambassador” © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Eurep. GAP is…… • • • Good Agricultural Practice (GAP) standard Voluntary not regulatory Not Official EU…. . despite the name! Private sector led organisation (Not for profit) Harmonizing B 2 B Scheme- no consumer labels Certification process uses International Norms ISO 65 • Supported in Private and Public sector © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Drivers Ø Food Safety Crisis (Alar, BSE, Dioxin, E. coli, Salmonella, etc. ) Ø Retailers legal responsibility - regulatory shift to “enforced self regulation” and due diligence Ø Governments “Name and Shame” policy increasing Ø Retailers are the direct link to the consumers in the Food Chain. Increasing retailer own Brands Ø Consumers have increasing expectations of retailers Ø Globalisation of retailing and production: Need to harmonise © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Guiding Principles • Open Access for producers anywhere • Generic HACCP and GAPs provide technical basis • Consistency of certification process • Stakeholder Consultation / Participation / Communication • Trusted Equivalence System – “ Eurep. GAP Benchmarking “ • Commitment to continuous improvement © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Whole Chain Assurance REQUIREMENTS PRE- POST FARM GATE Growers Farmers Food Packing and Processing Retail Stores Consumers Key components Pre-Farm and Post Farm Gate Standards o ISO Guide 65 o Traceability o © 2005 www. eurep. org o Risk Assessment o Residue Monitoring

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Introduction COSTS REDUCTION FOR PRODUCERS Retailer 1 Retailer 2 > = National Scheme © 2005 www. eurep. org Retailer 3 Retailer 4 Retailer 5 < = National Scheme

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Certification - Global Spread Certificates

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture 2005 © 2005 www. eurep.

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture IFA Structure © 2005 www.

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Consultation © 2005 www. eurep.

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture EUREPGAP CERTIFICATION OPTIONS OPTION 1 Individual Certification EUREPGAP OPTION 3 Individual Certification Benchmarked scheme © 2005 www. eurep. org OPTION 2 Group Certification EUREPGAP OPTION 4 Group Certification Benchmarked Scheme

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture CBs Accredited Certification Bodies ©

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Equivalence Origins of Eurep. GAP Benchmarking: Ø 3. Recognition of best practice and compliance with Framework of Benchmarking National/International Legislation Ø Interpretation of Technical Criteria e. g relevance to small scale farmers Ø Preserve cultural and regional identity Ø Route for market differentiation/ national branding Ø Local ownership enhances local adoption and implementation Ø Buyers understand what a National scheme delivers Think Global But Act Local! © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Equivalence BENCHMARKING • Transparent procedure and rules (Benchmarking Extranet) • Independent external evaluation • Document evaluation and witness assessment • Peer review • Appeals procedure =Robust tool of recognition üInternational Buyer Recognition © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture National Technical Working Groups NL Jan 2002 UK Sep 2002 Germany May 2005 Switzerland July 2002 Belgium Feb 2002 Italy July 2002 France June 2002 Greece Sep 2004 Malaysia Feb 2003 Spain May 2002 New Zealand May 2004 Chile March 2003 Argentina March 2004 © 2005 www. eurep. org S. Africa March 2002 Kenya March 2005 Australia/ Tasmania July 2002

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture NTWG Role National Technical Working Groups: “Think Global, Act Local” • NTWGs assure local Multi stakeholder representation (Producers, Retailers, Exporters , GOs, NGOs, other organisations) • Trust building: P. P. P best model for implementation NTWGs assure local applicability of the Standard: • Commercial drivers ; Public support • Customisation of the Control Points • Reference to local legislation • Definition of non-applicable CPs (water-management) • Translation • Considering the common business practice in the country (tradition) © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Kenya. GAP © 2005 www.

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Kenya. GAP IS PRIVATE-PUBLIC SECTOR INITIATIVE Direction, mobilizeation, coordination NGOs Technical assistance, group training. Experts Technical assistance, training, research, writing © 2005 www. eurep. org Exporters Government Kenya. GAP Technical Committee Investment, problem solving, technical inputs, marketing Farmers Investment, adoption of new techniques, group cooperation Donors Funding, technical backstopping, training

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Benefits- Kenya. GAP • Minimises costs, enables continued market access, gives Kenya competitive edge • Provides Food safety confidence to retailers • Helps in meeting EU legal requirements e. g. MRLS • Sound scientific approach • Risk assessment approach to soil and water analysis • Focus on internal auditing and monitoring • QMS template provided to ease interpretation • Equivalence with international standards © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Production Trend © 2005 www.

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Smallholders-Kenya Case • Smallholder income highest ever recorded • Group certification (Option 2) potential to bring compliance costs down further • Upto 40% savings on pesticide costs • Public/Private Investment has been needed to improve standards Source : Horticultural Development Centre. USAID , Kenya. Oct 2005 © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Mexico. GAP © 2005 www.

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture China. GAP © 2005 www.

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture CONCLUSIONS Eurep. GAP Step by Step…not withstanding adjustment issues: • Contributes to sustainable agricultural production on a Global level • Harmonises the main buyer requirements • Leads to Management Improvement of Farms • Opens new markets : Value Added for Products • Embraces small scale farming to market access • Voluntary, Open and Inclusive : Cost effective solution for a global industry • Eurep. GAP system transparency complements Official Controls © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Africa Observer © 2005 www.

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Objectives 1. To identify specific ways that Eurep. GAP standards can be more inclusive of smallholder farmers from developing countries and assist Eurep. GAP members to develop/adjust appropriate technical standards 2. To raise awareness amongst stakeholders about the Eurep. GAP decision making process © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Tasks 1. Review of existing research and case study evidence about Eurep. GAP standards 2. Use this evidence and stakeholder consultation to identify issues of key relevance to poor farmers in developing countries and opportunities for influencing Eurep. GAP standards © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Tasks 3. Develop an informal network of key stakeholders 4. Support developing country members of the Eurep. GAP committees board e. g. raising awareness of how standards impact on smallholder farmers, compiling evidence to support particular issues raised in [2] and subsequently by developing country producers © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Tasks 5. Observe and contribute to the fruit and vegetable (FV) and flower and ornament (FO) technical standard committee meetings of Eurep. GAP 6. Feedback to other interested parties e. g. producer organisations, NGOs, Governments and other donor agencies that have expressed an interest in Eurep. GAP standards © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture World Bank Stricter standards can provide a stimulus for investments in supply-chain modernization, provide increased incentives for the adoption of better safety and quality control practices in agriculture and food manufacturing, and help clarify the appropriate and necessary roles of government in food safety and agricultural health management. Rather than degrading the comparative advantage of developing countries, the compliance process can result in new forms of competitive advantage and contribute to more sustainable and profitable trade over the long term. Worldbank, Report No. 31207 Food Safety and Agricultural Health Standards: Challenges and Opportunities for Developing Country Exports Poverty Reduction & Economic Management Trade Unit and Agriculture and Rural Development Department January 10, 2005 © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Impact on poverty reduction An emerging literature on standards, global supply chains, and development argues that enhanced quality and safety standards could be major trade barriers for developing country exports and cause the marginalization of small businesses and poor households in developing countries. The paper of Maertens and Swinnen is the first to quantify income and poverty effects of such high-standards trade and to integrate labor market effects, by using company and household survey data from the vegetable export chain in Senegal. Trade, Standards, and Poverty: Evidence from Senegal, December 4, 2006 |New paper by Miet Maertens and Johan F. M. Swinnen © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Key findings Senegal 1. Horticultural exports from Senegal (but also Kenya, Mozambique and others) to the EU have grown sharply despite increasing food standards in the EU. 2. These exports have strong positive effects on poor households' income. We estimate that these exports reduced (in Senegal) regional poverty by around 12 percentage points and reduced extreme poverty by half. 3. Tightening food standards induced structural changes in the supply chain including a shift from smallholder contractbased farming to large-scale integrated estate production. These changes mainly altered the mechanism through which poor households benefit: through labor markets instead of product markets. 4. The impact on poverty reduction is strongest through labor markets as the poorest benefit relatively more from working on large-scale farms than from contract farming. © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Perception of benefits Kenya ©

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Strategy smallholders EUREPGAP A CATALYST • to reduce poverty • to reduce negative impacts on the biosphere • to support good governance and application of social principles in trading partner societies © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Strategy smallholders APPROACH Smallholders will be globally involved (incl. EU 27) in all sectors of agricultural production • Creation and involvement of national smallholder groups in standard setting processes (smallholder guideline, example German smallholder practitioners with seat in national standard comittee) • Continuation of a collective learning process for the optimization/reduction of the costs for smallholder producers (meeting of option 2 practitioners at GTZ) © 2005 www. eurep. org

EUREPGAP The Global Partnership for Safe and Sustainable Agriculture Strategy smallholders Strengthening the demand on high price markets • Identification and support of existing and new high quality smallholder produce (Babycorn? Green Beans? Lytchies? ) • Creation of a specific market segment for high quality smallholder produce? © 2005 www. eurep. org