Certification in Developing Countries – Reducing Costs, Enhancing Value and Options for Compliance Presentation to Standards and Technical Development Facility - 26 June 2008 David Richardson Managing Director – International, Certification and Risk Services 26 June 2008
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Certification in Developing Countries – Reducing Costs, Enhancing Value and Options for Compliance Presentation to Standards and Technical Development.
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Certification in Developing Countries – Reducing Costs, Enhancing Value and
Options for Compliance
Presentation to Standards and Technical Development Facility - 26 June 2008
David RichardsonManaging Director – International, Certification and
Supporting recognised quality marks and labelling claims; providing consumer assurance on product safety, integrity, authenticity, methods of production
Provides business focus for delivery of assurance and aids redeployment of company resources
Scheme architecture – admin, assessors, IT – provides vehicle for improved communication and management of supply chain
Enhanced ability to monitor, analyse and pre-empt new risks or areas of consumer concern. Support for Global brands
Documented systems and procedures supporting product quality and consistency
Development of food safety standards targeting supply chain safety and legality
Retailers require food safety, due diligence and assurance on consumer concerns
This position is driven by legislation, Government policy, NGO pressure, brand protection/shareholder value concerns, media attention and consumer concerns
Certification has developed as a systematic approach to supplier conformity assessment
Certification favours large-scale producers in relatively developed countries.
Certification may disadvantage small-scale producers:
• Scope and content of standards• Certification fees may be relatively expensive• Compliance costs may be prohibitive
Standards - are activity specific and intervention based with compliance criteria linked to specific risk avoidance
Risk based surveillance - producers segmented according to exposure to risk. Assessment resources and costs targeted accordingly
Risk assessment – evaluation of sources of risk and measurement of assurance outcomes:
• Index of compliance measures assurance outcomes in disparate systems• Risk reports identify and prioritise where producers can achieve the greatest risk
improvement for investment • Compliance costs focused on areas with greatest potential for risk reduction
Compliance strategy – optimum combination of:• Assessment to drive compliance • Training & education to facilitate continuous improvement
Coregulation – utilisation of both public and private sector mechanisms to enhance compliance
Private standards continue to evolve in response to changing assurance priorities
Certification is a means of assessing and demonstrating compliance in their supply chains and transferring compliance costs
Industry standards have reduced multiple assessments but:• They cannot cater for all purchasers’ requirements• As global standards become larger and more complex fragmentation may occur
Certification and compliance costs may be relatively high for emerging farmers but some cost is in meeting purchasers’ requirements is inevitable
A more risk-based approach to measuring compliance in emerging farmers could yield benefits but needs to:
• Deliver equivalent assurance outcomes to certification• Be equally scaleable and efficient to operate
“Thank You”
David RichardsonManaging DirectorInternational, Certification and Risk ServicesNSF-CMiLong Hanborough, Oxford, England, OX29 8SJ [email protected]