Transcript Current Pastoral Legal Issues and Statutory Reforms

Food safety standards and
fresh vegetable exports
from Tanzania
K. R. Mnenwa, G. Ashimogo, E A. Lazaro, F. Kilima
and J. Makindara
Bagamoyo SAFE Workshop 9th Jan. 2007
OUTLINE OF THE PAPER
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Introduction and background
Value chain structure
Value chain institutional arrangements
Value chain governance
Value chain constraints, opportunities and challenges
Conclusions and policy implications
1. 0. INTRODUCTION AND BACKGROPUND
1.1
Structure
of
vegetable
production
-Dominated by smallholders
-Tanzania exploits 5% of the suitable land
- Tanzania consumes 80% of its production of
approx. 2.8 million tons of horticultural products
- Tanzania exports 20% of its production to
neighboring countries, Middle East and Europe
- Exports to Europe are still low compared to other
countries like Kenya
- Tanzania has only two companies that export to
Europe approx 2500 tons of vegetables in 2005.
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1. INTRODUCTION AND BACKGROPUND
1.2
Food safety
and quality
standards
-Exporters to European markets are obliged to
meet food safety and quality standards under
special labeling schemes (e.g. EurepGAP
protocol);
-Labeling schemes emerged and developed in
the wake of deregulated trading network.
-Came to rescue markets from collapsing due
to deteriorating confidence of consumers.
- Labeling schemes (Setting standards) has
consequently evolved as an instrument for
shaping market access.
-A split has emerged between those supporting
standards as catalyst to trade and those who
consider standards as barriers to trade.
1. 0. INTRODUCTION AND BACKGROPUND
cont’d
1.3
Subsect
or
institutio
nal set
up
For effective compliance with food and safety standards
protocols, exporting countries needs to have institutional
capacity for:
-Food safety and quality testing;
- Verification and certification;
- Scientific analysis of hazards and outbreaks;
- Establishing and maintaining the identity of products;
- Registration of activities
In Tanzania there are two types of institutions, namely:
-Regulatory bodies: (TBS, THS, TPRI, TFDA, BRELA) and their
regulations (Plant Protection Act No.13 of 1997, The Tropical
Pesticides Research Institute Act No. 18 of 1979. The
Cooperative act No 15 of 1991, The Food (Control of Quality)
Act No. 10 of 1978, The Seeds Act, 1973; The Tanzania Bureau
of Standards Act No.1 of 1979; and the Land Act No. 4 of
1999).
-Development institutions: MAFSC, TAHA.
1. INTRODUCTION AND
BACKGROPUND
1.4
Objectives
of the
paper
-This paper attempts to shade light on
the implementation of EurepGAP
schemes in Tanzania
-More specifically the paper highlights
on how the integration of smallholder
farmers into the EurepGAP schemes is
implemented i.e. institutional setting,
value chain structure; and value chain
governance .
1. INTRODUCTION AND
BACKGROPUND
1.5
Approach and
methodology
-The information used in this paper is based on
literature search and preliminary survey of
vegetable exporters and producers conducted in
June 2006, December 2006 and July 2007 in
Arusha and Kilimanjaro regions.
- The paper used Global Value Chain Analysis as
its overall analytical approach focusing on value
chain structure, institutional setting and value
chain governance.
2. 0.VALUE CHAIN STRUCTURE
2.1
Export
markets
-Export destinations for vegetables from Tanzania
include neighboring countries, the Middle East and
Europe.
-The Middle East offers some export market
opportunities because of its proximity and is less
strict than the other markets on SPS requirements.
-Penetration of the European markets is confined
mainly to off-season
-Tanzania has to compete with other world
producers whose systems are much more efficient.
-Access to these markets the country needs to
tackle the constraints and stringent demands on
standards by the European customers.
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2.0.VALUE CHAIN STRUCTURE
2.2
Characterization of
export markets
-Emergence of retailers in Europe and
America, increased concentration in the
global market value chains, and the
emergence of global standards.
-Change in consumption pattern.
-Growing consumer awareness and
concern for food safety throughout
Western Europe
-Emergence of strict value chain
governance structures
2.0.VALUE CHAIN STRUCTURE
2.3
Players in
the value
chain
-Vegetable out-growers= 3 types,
large scale; medium and
smallholder farmers
-Vegetable exporters= Serengeti
ifresh and Gomba estate/Wimbo
exports
-Vegetable retailers=Sainsbury,
Tesco, Flamingo and Bom Foods
in the UK and Exofi in the
Belgium
3.0. INSTITUTIONAL ARRANGEMENTS
-The analysis of institutional arrangements is aimed at determining the
conditions set by key (or “lead”) agents for incorporating subordinate
agents through their control of market access and information
-At the global level, the main market for the Tanzania’s export market
is Europe. This market is mainly controlled by supermarkets in Europe.
-Most of the UK buyers require the export companies in Tanzania to
meet food safety, plant health, environment and social standards as set
by EurepGAP, Natures Choice and British Retailers Consortium
(BRC).
-At national level the exporters provide technical back-up to their
suppliers including supply of planting materials, training on GAP,
transport of produce,
-Farmers supply labour for all farm operations including management
of farm activities, and land for production.
-Product prices are set by the estate based on the overhead costs,
cost of processing, transportation and selling prices in the foreign
(export) market.
4.0.VALUE CHAIN GOVERNANCE
-The value chain is characterized by high level of monitoring of the
exporters by buyers and of out-growers by the exporters
-Vegetable value chain governance in Tanzania is organized in form of
out-grower schemes.
-The Tanzania’s vegetable export sector consists of exporters who
form the nucleus of vegetable production for export in the country. --The export companies have engaged some vegetable producers
through contracts to produce vegetables for them.
-The exporters have formal contacts with their buyers in Europe.
Most of these contractual conditions are passed to the company’s
out-growers.
-To ensure that these contractual obligations are fulfilled, all the
products and processes are regularly monitored or audited by
international third parties and national regulatory bodies.
5.0 CONSTRAINTS, AND OPPORTUNITIES
CHALLENGES IN THE VALUE CHAIN
5.1
Constraints and
opportunities
-High costs of compliance and inadequate
technical know have been highlighted as
the most important bottlenecks facing the
exporters in Tanzania, with respect to
standards compliance.
-There are also constraints that are
associated with incorporation of
smallholder farmers in the production for
export.
-Opportunities emanating from
EurepGAP production schemes include
human capacity building. .
-The second opportunity is an
opportunity for small holder farmers to
produce for the export market.
5.0 CONSTRAINTS, AND OPPORTUNITIES
CHALLENGES IN THE VALUE CHAIN
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Quality and
traceability
challenges
-Proliferation of standards (BRC,
GAP, TNC)
-Inadequate technology
development
-Export/import operations:
Laboratory and logistics
-Quality control and assurance
under smallholder outgrower
schemes
6.0 CONCLUSIONS AND
POLICY IMPLICATIONS
-The implementation of EurepGAP schemes provides an opportunity
for transforming vegetable production in Tanzania.
- Effective vegetable production transformation requires human
development in terms of improving farmers’ skills and knowledge,
financial services especially credit facilities, improved technology, and
natural resource and environmental management.
-Linking small holder farmers to large and medium scale farmers
provides an opportunity for access to these essential pre-requisites
for agricultural transformation.
- Special training for farmers on contractual agreements that link them
with exporters or laree/medium scale farmers to meet quality and
traceability challenges.
-Specifically they need training on the legal issues, negotiation
techniques, and dispute management.
THANK YOU