Luz B. Díaz Ríos-FAO, Rome. Government institutions responsible for public policies and agricultural services. ( Ministries, Secretaries, Heads of.

Luz B. Díaz Ríos-FAO, RomeLuz B. Díaz Ríos-FAO, Rome

• Government institutions responsible for public policies and agricultural services. ( Ministries, Secretaries, Heads of Horticultural Departments, Inspection Services, etc)• Private sector• Universities/Academia• Ministries of Trade• Research institutions• Agricultural Extension officers• Food and Nutrition officers• Standards setting bodies

• Training and technology transfer (agricultural instructors, extension workers, etc) • Policy makers- policies and strategies for the sector• Assessment of FFV markets and promoting market linkages• Implementation of quality standards and introduction of quality standards and safety regulations• Nutrition education• Promoting farmer proactive awareness and certification against quality and safety standards specially for smallholders. • Conducting inspections and issuing phytosanitary Certificates

• Design and implementation of programmes to promote developments in the horticultural sector.• Plant protection and quarantine services• Evaluate, compile and amend product quality standards.• Coordination of horticultural development programmes

THE APPROACH TO QUALITY AND SAFETYISSUES….

INTEGRATION OF PUBLIC AND PRIVATE EFFORTS

• well skilled in main principles and practices on food safety and quality of FFV• to have valuable information regarding the latest food safety and quality developments with regard to agricultural produce. • knowledge gained will assist in the organization and implementation of strategies to ensure proper food safety and quality for the FFV• enhance knowledge of food safety and quality assurance and acquisition of information that will be shared with producers and other food chain actors.

• organize and conduct training sessions for extension staff and communities on the practices that will meet the quality and safe standards.• in collaboration with the relevant institutions to participate in enforcing compliance to the food safety standards by producers, processors, etc.• better understanding of Q & S standards in the regional and world economy.• a practical approach to food Q & S adaptable to small-scale farmers. • sharing of experiences among the countries in the region regarding quality and safety standards and how other countries have adjusted to the new EU Regulations.

• better understanding of the food safety concept.

• increase knowledge and skills in how to manage the horticultural sector with specific reference to food safety issues and trade.

• A training module or training aid that could be used to conduct training to farmers in the topic.

• Be able to apply the result of the workshop- put knowledge in practice.

• Knowledge of certain polices/rules and regulation relating to the subject practices in other countries.

• A more integrated program for the safety, quality and trade of FFV applicable to the country setting.

• Since the 1970s, annual growth rates for vegetable supplies have surpassed cereals by 200 percent to 800 percent, with much of this acceleration occurring in the 1990s

• production has occurred through increases in land areas devoted to these crops and greater investment in inputs (irrigation and fertilization), but there has still been only marginal improvement in yields for most

species (Weinberger and Lumpkin 2005).

Reported in Global Horticultural Assessment 2005

Reported in Global Horticultural Assessment 2005

• Although horticultural production has risen steadily in most regions of the world over the past few decades, the average annual growth in per capita supply of horticultural produce was negative in sub-Saharan Africa between 1971 and 2000

(Weinberger and Lumpkin 2004).

Reported in Global Horticultural Assessment 2005

• Developing countries account for roughly 98% of the total production of tropical fruits. Africa concentrates 11% of the global production (2010).

• China as the biggest world producer of FFV/ India the second one.

• India, China, Brazil, Mexico, Thailand, the Philippines, Indonesia and Nigeria remain the world's largest producers of the four major tropical fruits (mango, pineapple, papaya and avocado)- 4 major TF account for 75% of the global production of tropical fruits.

Dichotomy- commercial versus traditional Dichotomy- commercial versus traditional horticulturehorticulture

Traditional horticultureTraditional horticulture• involves rural and family agriculture, involves rural and family agriculture,

concentrating poverty significantly concentrating poverty significantly • high geographic dispersionhigh geographic dispersion• low productivity, small scales of production low productivity, small scales of production • low levels of technologylow levels of technology and difficulties in difficulties in

access to credit, to markets and to information access to credit, to markets and to information sources sources

• in general, articulates poorly with the end in general, articulates poorly with the end consumerconsumer

Commercial horticulture• high incorporation of technologies and high incorporation of technologies and

innovations, close coordinating mechanisms, innovations, close coordinating mechanisms, high integration.high integration.

Family subsistence Family subsistence horticulture, horticulture, contributes contributes

significantly to food significantly to food security and to security and to improving the improving the

nutritional conditions nutritional conditions of rural populations of rural populations

in manyin manydeveloping countries.developing countries.

- For 15 vegetables studied between 1981-2001 consumption rose on a per capita basis worldwide for all 15 categories by double digits, cabbage the lowest (21%) and eggplant the highest (148%).

- The 15 categories of fruits studied had doubled digit consumption growth, except plantain 0.66% and pineapples (-21%).

- FAO/WHO recommendation of FFV consumption 146 kg/capita/year. In sub-Saharan Africa 27-114 kg/capita/year.

- 400 g/day minimum- Ethiopians consume on average 97 g/day. The new USDA guidelines recommend 700-1200 g/day

Consumption trends….promoted, among other factors, by:Consumption trends….promoted, among other factors, by:

CONSUMERCONSUMER

UrbanizationUrbanization Demographic growth

Out-of-the-house female employment

Increased income/educated

consumers

Segmentation/ Massive Market to Individual One

Developing new Developing new productsproducts

Diversity /produce supply

Added-Value Added-Value productsproducts Stricter quality & Stricter quality &

Safety market Safety market requirementsrequirements

• high value and added-value products.high value and added-value products.• massive expansion of supermarkets (e.g. massive expansion of supermarkets (e.g.

Shoprite in South Africa, East and Shoprite in South Africa, East and Southern Africa, Ghana, Egypt and India)Southern Africa, Ghana, Egypt and India)

• close relations with the suppliers.close relations with the suppliers.• concentration of suppliers and retailersconcentration of suppliers and retailers..• prices, following the competitive leader.prices, following the competitive leader.• higher competence, more demanding higher competence, more demanding

market requirements in terms of quality & market requirements in terms of quality & safety. safety.

• New coordination and communication New coordination and communication practices between retailers and suppliers.practices between retailers and suppliers.

Higher prices than for basic products

Higher incomes demand elasticity (0.64 to 0.99)

Result of processes involving multiple and sequential investment in order to supply production on time, in form and place as required by the consumer (specialized transport and packaging, conservation, taxes and insurance, promotion, marketing, etc)

World Supply of Fruits and Vegetables Kg /per capita/year

Countries 1961 1965 1970 1975 1980 1990 1995 1998

Low Income 78 78 79 81 80 81 86 86

Medium Income

120 127 132 140 154 161 164 170

High Income 147 156 178 184 193 214 222 223

Source: FAO (From: Changing Structure of Global Food Consumption and Trade, USDA, 2001)

1999/2001- market share of export value:

fresh fruit 30.6%fresh fruit 30.6% fresh vegetable 20.3%fresh vegetable 20.3% processed fruit and vegetables 30.3% fruits and vegetable juices 9.0%, tree nuts 6.1%, and pulses 3.6%.

High-income regions dominate the world commerce:- Largest importers : EU, U.S., Japan- Largest exporters: EU and U.S.

Kenya, Egypt, Morocco among the 30 top exporters of fresh vegetables.

South Africa, Cote d’Ivoire and Morocco among the 30 top importers of fresh fruits.

Product Leading suppliers

Joint share of world exports

(value)avocados Chile & Mexico 53%

mangoes

Mexico, Philippines and Brazil 62%

pineapplesCosta Rica & Ĉote d'Ivoire 61%

bananasEcuador, Costa Rica, Colombia 60%

Concentration of suppliers in the main Concentration of suppliers in the main FFV importing marketsFFV importing markets

Top 30 exporters of FFV represent 92-95% of global trade.

Product Leading suppliers Total share DC of the imports (year 2000)

Peas, beas

Kenya 38%, Morocco 25%, Egypt 12%, Guatemala 6%, Senegal 5% 55%

Sweet maizeThailand 73%, Morocco 11%, Zambia 6%, Zimbawe 5% 51%

Eggplants

Turkey 83%;Thailand 8%, Kenya 2%

5%

Concentration of suppliers in the main Concentration of suppliers in the main FFV importing markets/EU MARKETFFV importing markets/EU MARKET

Source: Center for the promotion of imports from Developing countries(CBI)

Concentration of Retail Trade

USA CANADA EUROPE42% - 7 chains 60% - 6 chains 44% - 9 chains

• Kroger & Co. • Loblaws • Carrefour • Winn Dixie • Sobeys • Metro AG • Albertson´s • Safeway • Rewe • Safeway • Metro Richelieu • Auchan • Publix • A & P Canada • ITM • DelHaize America • Overwaitea • Sainsbury • Ahold • Edeka

• Aldi • Leclerc

Reported by CCI-2002

• product appearance • “SAFETY” produce• quality process attributes such as: environmental sustainability of the production, social responsibility, etc.• traceability

As result, different quality and safety schemes have arisen As result, different quality and safety schemes have arisen (regulations, standards, certifications, brands, labels, etc.). (regulations, standards, certifications, brands, labels, etc.).

• importing markets adopting stricter importing markets adopting stricter safety standards for the importation of safety standards for the importation of FFV.FFV.

• between 1995-2000 nearly 270 sanitary between 1995-2000 nearly 270 sanitary and phytosanitary regulations were and phytosanitary regulations were introduced on imports of FFV worldwide. introduced on imports of FFV worldwide.

• new scenario has effects on production new scenario has effects on production practices and cost in producing FF& V.practices and cost in producing FF& V.

• tropical and sub-tropical products-(Developed countries 80% of the imports- Expected annual growth of demand of 3,0-4,5%) • commercial windows for off-season products such as: asparagus, strawberries, etc. • F & V Organically produced ( market growth in the last decade 20-30%) and fair trade.• Intra-Regional trade, expanding local markets• increase in the domestic consumption

• in Kenya supermarkets are already buying three times more produce from local farmers than Kenya exports to the rest of the world

• In South Africa 40% of the marketed fruits and vegetables go directly through the supermarket procurement system, 7% go to the fresh markets and then to supermarkets and 53% are sold through the fresh markets

• Sub-Saharan Africa exports 1.6 million tons and imports 1.3 million tons of FFV-but produces 60 million tons

Source Reardon and Weatherspoon, 2003

• Overall agricultural and horticultural sector’s contribution to the GDP

South Africa: South Africa: 3.4 % (2002), agro-industrial sector 15% 3.4 % (2002), agro-industrial sector 15% GDP GDP Eritrea: Eritrea: 16 %16 %Mozambique: Mozambique: 23 %23 %Ethiopia: Ethiopia: 43%43%Malawi: Malawi: 36 %36 % Uganda: Uganda: 0.6% of GDP is horticulture0.6% of GDP is horticultureGambia: Gambia: 20-25 % . 20-25 % . Horticulture 13%Horticulture 13%Lesotho: Lesotho: 16.5-18.5% 16.5-18.5% Kenya: Kenya: horticulture contribution to GDP 13%horticulture contribution to GDP 13%

• Agriculture/horticulture key in generating national employment e.g. horticulture employs at least two million Kenyans, of whom 250,000 are primary producers (80% small scale farmers); Ethiopia farmers employed under FFV development and marketing business are nearly 8 million; Gambia 60% of women farmers are actively engaged in horticultural activities; in Uganda horticulture employs about 10% of those in agriculture);

• Involves high participation of small scale farmers- e.g. in Malawi the average land

holding size for farmers is usually less than 0.1ha, In Kenya 80% of total agriculture production is by small scale farmers on free hold holdings;

Employment generation: horticultural production creates more than twice the number of jobs that cereal production generates (Ali et al.2002)

• Expansion in horticultural production in some countries:

- Kenya: 1968 less than 500 ha, today more than 250,000 ha in horticultural crops.

• Wide variety of horticultural products- given by climatic conditions. However most important crops in SSA are: tomato, mango, cabbage, onion, banana, potato, pineapple, citrus, french bean, carrot.

Dynamism of the export sector in the region:• South Africa: estimated value of horticultural

exports R16000 million 2002 to R22 667 million 2004.

• Kenya: in 2004 only 4% of horticultural produce was exported, 13% increase over 2003.

Only few countries have been able to over come the

constraints e.g. lack of market infrastructure, SSA’s marine

freight capacity is 11% percent of the world’s total, air freight

Less than 1% (NEPAD, 2003)

• Main destination markets- EU and Middle East Countries.

Kenya: 75% of exports to EU

South Africa: main trading partners UK,

Netherlands, Mozambique, Germany and

Zimbabwe.

Expansion of multi-regional supermarket chains in Africa(Kenya and South Africa)- Tremendous developments in the supply chain.

shorten the distribution chain and promoting close relationships with the suppliers (verbal agreements, contracts, etc.)

Centralized procurement systems and impacts in the intra-regional trade (import-exports). Farmers competing in at the regional level.

• Stringent quality and safety standards (convergence with global ones)

Challenge: to create opportunities for small-scalefarmers in this highly integrated production and

procurement systems

• Traditional markets still being the main distributionchannel for FFV in the African countries, even in SouthAfrica (leading the supermarket revolution).

- Improvements are required: security, efficiency, grades and standards and priceinformation by grade, hygiene, etc.

Regional and Global trade are receiving most of the attention!

SWOT ANALYSISSWOT ANALYSIS

• Government in some countries is very concerned with production of safe and quality products- Promotion of Exports• Initiatives to improve Q & S under implementation in the Region (high private sector involvement)- FPEAK-Kenya- EHPEA- Ethiopia- Zambian National Farming • Programs for the promotion of the horticultural sector under implementation in the region. e.g. commercial agriculture, community gardens, etc.• Climate conditions/wide variety of horticultural crops

• initiatives on contract farming• developments in the retail sector• EurepGap Certification• International funding organizations like FAO,USDAI, GTZ and NGOs are supporting initiatives for the sector• IPM programs under implementation• Countries working in strengthening food control systems/ re-building, empowering or creating public structures: KEPHIS, PPECB, MBS, TBS, etc.• improvements regulatory framework for food safety (legislation, inspection, etc)

• projects to improve infrastructure• projects to improve the quality of the planting materials• improve irrigation facilities• training programs and curricula in horticulture• projects to improve laboratory capacities in food quality and safety.

  low/lack of inter-institutional

coordination/food safety system is fragmented

lack of technical knowledge in production, processing, and quality control

infrastructural bottlenecks (transport, electricity, water supply, communications, etc.)

high post-harvest loses, lack of post-harvest facilities (cold chain?)

need for more interaction and collaboration between researches and extension workers.

poor market linkages.

  instruments to support Q & S

systems need to be established. e.g. competent authority responsible for control and inspection.

inconsistency in audits, inspection and lack of competency of some certification/inspection bodies.

low domestic consumption domestic standards poorly

developed and not operational.

  difficult to face regional

competition inefficient distribution systems Small farms, poor and low

education of the farmers/constraint to the implementation of Q & S programmes

Illegal use of agrochemicals/lack of appropriate registration of pesticides

lack of capacity to enforce regulations

lack or limited possibilities to perform laboratory analysis (infrastructure/Personnel)

financial constraints at all levels

good market opportunities huge potential for growth and modernization of the horticultural sector. expansion into value-added products. Q & S horticultural produce- increase in exports supplying retail and domestic markets increasing domestic consumption

adaptation of GAP (Challenge) vulnerability to nature/climate failure to comply with market requirements market share and loss of earnings

AfterthoughtAfterthought

• How deeply is your institution How deeply is your institution involved in quality and safety systems involved in quality and safety systems for fresh fruits and vegetables to take for fresh fruits and vegetables to take advantage of the opportunities and to advantage of the opportunities and to overcome the difficulties illustrated?overcome the difficulties illustrated?