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REPUBLIC OF RW ND
MINISTRY OF AGRICULTURE AND ANIMAL RESOURCES
PO Box 621- Kigali; Tl/Fax: 584644-585008
STRATEGIC PLAN OF AGRICULTURE TRANSFORMATION
VALUE ADDING THROUGH FOOD PROCESSING,
FOOD SAFETY AND QUALITY MANAGEMENT
By Ms BYANYIMA MARTHA, Consultant
Under coordination of Groupe dExpertise, de Conseil et dAppui auDveloppement (GECAD).
Kigali, October 2004
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TABLE OF CONTENTS
ACRONYMS ..................................................................................................................II
EXECUTIVE SUMMARY..............................................................................................IIII. INTRODUCTION ..................................................................................................1
II. STUDY OBJECTIVE.............................................................................................2
III. APPROACH TO THE STUDY ..............................................................................2
IV. DIAGNOSIS OF THE RWANDA SITUATION: FOOD PROCESSING ANDMARKETING.........................................................................................................2
4.1. CONSTRAINTS RELATED TO FOOD PROCESSING AND MARKETING..........................3
4.2. OPPORTUNITIES RELATED TO FOOD PROCESSING ................................................4
V. DIAGNOSIS OF THE RWANDA SITUATION: FOOD SAFETY AND QUALITY
MANAGEMENT....................................................................................................5
5.1. FOOD SAFETY AND QUALITY MANAGEMENT IN INTERNAL MARKETS ........................5
5.2. CONSTRAINTS RELATED TO FOOD SAFETY AND QUALITY MANAGEMENT IN INTERNALMARKETS .....................................................................................................................5
5.3. OPPORTUNITIES CREATED BY IMPROVED FOOD SAFETY AND QUALITYMANAGEMENT IN INTERNAL MARKETS ...........................................................................5
5.4. FOOD SAFETY AND QUALITY MANAGEMENT IN EXTERNAL (EXPORT) MARKETS .......65.4.1. Significance of international standards in external (or export) markets......65.4.2. Hazard Analysis Critical Control Point (HACCP) system............................65.4.3. EUREPGAP.................................................................................................7
5.5. CONSTRAINTS RELATED TO INTERNATIONAL STANDARDS AND EXPORT MARKETS ..8
5.6. OPPORTUNITIES RELATED TO COMPLIANCE WITH THE WTO SPSAGREEMENT(INCLUDING USE OF INTERNATIONAL STANDARDS) ......................................................10
VI. RECOMMENDED STRATEGY: THE VALUE ADDING STRATEGY................11
REFERENCES ............................................................................................................15
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ACRONYMS
ADAR: Agribusiness Development Assistance in RwandaAGOA African Growth Opportunity Act
CAC: Codex Alimentarius CommissionCIAT: International Centre for Tropical AgricultureCITT: Centre for Innovation and Technology TransferCOMESA: Common Market for East and Southern AfricaEAC: East African CommunityEU: European UnionEUREPGAP: Euro Retailer Producer Group (EUREP) GAP standardFAO: Food and Agricultural OrganisationGAP: Good Agricultural PracticeHACCP: Hazard Analysis and Critical Control PointIOE: International Office of EpizooticsISAR : Institut des Sciences Agronomiques du Rwanda
KIST: Kigali Institute of Science, Technology and ManagementMINAGRI: Minister of Agriculture and LivestockMINICOM: Minister of Commerce, Industry and TourismPRSP: Poverty Reduction Strategy PaperRBS: Rwanda Bureau of StandardsSADAC Southern African Development CooperationSPS: Agreement on sanitary and phytosanitary measuresTBT: Technical Barriers to Trade agreementUSAID: United States Agency for International DevelopmentWHO: World Health OrganisationWTO: World Trade Organisation
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EXECUTIVE SUMMARY
One of the most critical challenges faced by Rwandas agricultural sector is orientingproduction and marketing to the consumer. Consumers demand a diverse range of
high quality safe products. Product diversification through food processing, improvedquality and safety supported by relevant market studies is one of the means throughwhich to create a market oriented agricultural sector.
Whilst Rwanda Governments poverty reduction strategy recognises that under theWorld Trade Organisation (WTO), quotas will be eliminated and tariffs will continue todecline, a trend that will in the long run enable access of developing countriesagricultural products into world markets, it fails to recognise that countries still haveto overcome the stringent food safety and quality standards (non tariff barriers) indeveloped countries markets.
A study was commissioned by the Ministry of Agriculture and Livestock (MINAGRI) to
develop a strategy that would enhance the competitiveness of Rwandan foodproducts in domestic, regional and international markets. Study methodologyincluded participatory field studies to assess constraints at production/enterprise,institutional and policy levels complimented with review of relevant literature.
The food processing sector is constrained by: inadequate processing methods, lackof access to equipment and packaging, weak linkages with producers and poormarketing skills. The sector remains largely unexploited, allowing imported foods todominate internal markets.
The study recommends the establishment of value added food chains that areconsumer oriented and therefore competitive by carrying out the following actions:
! Establishing a centre of excellence in food process and product developmentto provide training and technical support in improved processing methods,new product development, food safety/quality management (includingtraceability) and marketing skills.
! Carrying out market studies in internal markets to identify niche markets,market requirements and consumer expectations.
! Establishing producer owned food processing enterprises.! Strengthening producer/processor relationships.! Establishing the association of food processors, suppliers of ingredients, and
packaging, equipment manufacturers and business service providers.! Collaboration with technology research and development centres to develop
and disseminate appropriate technologies.
Whilst governments mid and long term strategy is to develop agricultural exports,there is no strategy in place to address non-tariff barriers. Use of internationalstandards is often misunderstood to mean replication of state of the art northernstandards. Overcoming non-tariff barriers requires translation of internationalstandards into Good Agricultural Practices (GAP) and systematic integration of goodpractices into food production, processing and distribution. The following actions arerecommended:
! Reviewing existing food safety infrastructure and problems to establishnational priorities with regard to food safety management on domestic andexport supply chains.
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! Translating international standards (EURPGAP and HACCP) intoproducer/processor codes of practice and adopting them into nationalstandards through a bottom up approach and stakeholder participation.
! Developing GAP and HACCP training programs for small scale producersand processors and incorporating this into MINAGRIs extension programs.
! Develop a national organic certification program.
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I. INTRODUCTION
Pillars of Rwandas Vision 2020 include: (i) transformation of agriculture into a
productive, high value, market oriented sector; and (ii) development of an efficientprivate sector spearheaded by competitiveness and entrepreneurship.
Whilst developing countries enjoy comparative advantage in the abundance of rawmaterials and inexpensive labor, fertile soils etc, it is important to note that all thesefactors are easily imitated and therefore impossible to sustain in a competitiveenvironment, especially as technological advances shrink distance betweencountries. Reliance on natural resources alone cannot create competitiveness.Orienting production, marketing and distribution towards the consumer remains theonly means by which a country can become competitive.
One of the most critical challenges faced by Rwandas agricultural sector is orientingproduction and marketing to the consumer, both internally and externally. Consumersdemand a diverse range of high quality safe products. Product diversification throughfood processing, new product development, improved quality and safety supportedby market studies is one of the ways through which to create new products andexpand market opportunities.
Integrating food processing, new product development, food safety and quality in themanagement of food supply chains increases competitiveness and contributesignificantly to the establishment of sustainable food supply chains that are consumeroriented and therefore competitive.
Both the PRSP and the National Investment Strategy emphasise and prioritiseagriculture as the primary engine for growth of the Rwandan economy and povertyreduction. With respect to exports, the PRSP recognises that under the World TradeOrganisation (WTO), quotas will be eliminated and tariffs will continue to decline, atrend that will in the long run enable access of developing countries agriculturalproducts into world markets. The eventual phasing out of preferences is mentionedaslikely to have negative impacts on African countries currently benefiting from the USand EU preferential trade arrangements.
However, the PRSP fails to recognise that preferences such as AGOA are based ontariff reductions and that while tariffs are falling, non-tariff barriers seem to be
increasing and countries still have to overcome the stringent food safety and qualitystandards (non-tariff barriers) in major export markets of developed countries.
Whilst the medium and long term goals of Rwanda are targeted towards sustainableexport of value added food and agricultural products, there is no strategy in place toestablish appropriate food safety / quality management systems, designed to meetfood safety requirements in importing countries in order to overcome potential non-tariff barriers.
This paper recommends strategic actions by the Government of Rwanda (throughMINAGRI) to achieve value added food supply chains. A strategy that will in the longrun increase the competitiveness of local food products in internal and external
markets.
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II. STUDY OBJECTIVE
The specific objectives of this study was to develop a value adding strategy throughfood processing, new product development, food safety and quality management, forboth internal and export markets.
III. APPROACH TO THE STUDY
The study reviewed literature obtained from development agencies, particularly FAO,USAID and MINAGRI to analyse food processing, food safety and quality issues thatare of relevance to Rwanda.
Interviews were conducted with exporters, MINAGRI and development agencies toassess major constraints in the area of food safety and quality management.
Challenges and constraints faced by Rwandan producers, with respect to foodprocessing, food safety and quality management were assessed through fieldparticipatory studies conducted concurrently with this study.
The study synthesised information obtained to diagnose the situation in Rwanda withrespect to constraints and existing opportunities. The recommended strategy isdemonstrated with maracuja as an example. The result is a value chain model thatcan be applied to other commodities.
IV. DIAGNOSIS OF THE RWANDA SITUATION: FOODPROCESSING AND MARKETING
Increasing production is one approach to improving farm incomes and foodavailability, but an additional strategy with considerable promise is that of addingvalue to agricultural produce. Improved post-harvest handling, processing andmarketing achieves value added products and is perhaps the most viable means bywhich to reduce poverty and improve rural livelihoods (about 90% of the ruralpopulation in Rwanda thrives on the agricultural sector). Food processing, andmarketing is important for the following reasons:
a) It enables effective substitution of imported food products.b) It adds value and increases farmers returns on their producec) It expands market opportunitiesd) It improves shelf life to overcome seasonality and perishabilitye) Food processing enterprises established in rural Rwanda have
potential to generate off farm employment and decrease dependenceon agriculture.
f) Post harvest processing, handling and marketing, increases foodavailability at household and community levels, and thus contributes tofood security.
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4.1. Constraints related to food processing and marketing
Rudimentary technologies. Majority of small scale food enterprises operate with
rudimentary technologies. There is insufficient capacity to acquire or fabricate foodprocessing equipment locally. Capacity to develop prototype food grade equipment isavailable at the Centre for Innovation and Technology Transfer (CITT) at KIST. Thisresource is however not utilised efficiently in terms of transferring skills andtechnology to local artisans.
Inconsistent quality and quantity.The existing medium scale processing plants,lack consistent supply of raw milk in the desired quality and operate well below theinstalled capacity (an average of 25%). An example is drawn from the dairy sector,where in addition to insufficient production, processors also register poor quality andhigh rejection rates during sourcing.
Safety and quality constraints. Safety and quality problems are related toinadequate milk collection infrastructure, poor handling during milk production,collection, processing and distribution. There is little effort to integrate good practicesin milk production and collection. Most processing facilities have not establishedmodern food safety/ quality management systems, unlike similar establishments inthe region, which have full fledged HACCP based food safety/quality managementsystems and efforts are underway to introduce GAP in local food supply chains.
Poor linkages between producers and processors. The major constraint faced bymedium scale processing establishments is the weak linkage between producers andprocessors. An example is drawn from the dairy sector, where milk production islargely by disorganised small scale producers, who have no formal relationship with
the processors, resulting in unreliability of supply in terms of quantity and quality.Ultimately, this translates into high operational costs that processors pass on toconsumers.
Lack of innovativeness and product diversification. There is lack of innovationand product development in the food processing sector. For example, while similardairies in the region turn out at least four dairy products, the current milk processingestablishments have not been able to diverse product range because of lack oftechnical know how and expertise in new product development.
Lack of technical expertise. Sorwatom - a tomato processing plant located inKigali has not been in operation for nearly ten years because of obsolete technologyand lack of technical expertise.
Inadequate artisanal skills. Local artisans are not adequately equipped with toolsand skills to repair or maintain the existing food processing equipment. Someequipment that was originally donated to womens associations has become obsoletebecause no mechanism was put in place to sustain repair and maintenance.
Inadequate supply of appropriate packaging. Local supply of packaging materialsis inconsistent in terms of specifications and quantities. Many small scale processorsrely on imported materials from Kenya and South Africa. This source is howeverunreliable and often small scale processors resort to re-used containers (e.g. whisky
bottles for honey), which is not only illegal but undermines product presentation,quality and safety.
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Poor processing methods. Majority of small scale food enterprises use poorprocessing methods, resulting in food products of inferior quality.
Poor market analysis. Small scale food business operators often do not carry outmarket studies prior to the establishment of the enterprise and think they canproduce and sell as they wish. There is generally little effort to analyse marketrequirements and consumer expectations. As a result, production is not marketoriented and products do not meet consumer expectations.
These findings agreed with a study carried out in Zimbabwe in 2002 :Access toappropriate technologies, skills and market informationremains the most criticalchallenges for the small scale food processors in Rwanda.
4.2. Opportunities related to food processing
Improving food processing methods and developing new products. Local
capacity to process high quality food products is still lacking and the country stillimports large quantities of processed foods. This implies that there is an internalmarket that can be exploited by local food business operators. The food processingsector remains largely unexploited and virgin, which is itself an opportunity. Throughpublic/private sector partnerships, it is possible to establish a sustainable supply oflocally processed food products. One possible action is public investments in a foodprocess and product development centre to support local entrepreneurs with trainingand technical assistance in:
o Improved food processing methods.o Researching and developing new and improved quality products.o Carrying out market studies and consumer tests.o Building consumer preferences and tastes into process and product
development.o Establishing modern food safety/quality management systems.
The result would be a diverse range of locally processed food products that arecompetitive in domestic and regional markets. Support to establish such a centreshould be sought from KIST, where there is an established Food ScienceDepartment. Additional support could be sought through partnerships withinstitutions abroad. The author is well versed with a similar project in Uganda that isbeing established with support from UNIDO.
Establishing producer owned enterprises. Well organised producer organisationshave an opportunity to establish their own food processing enterprises. Producerscould thereafter seek partnerships with private companies that have relevantexpertise, whilst retaining substantial share holding. The most successful foodenterprises worldwide are those where producers have a stake. Well establishedproduction systems, owned and sustained by producer organisations are enoughincentive to attract investments into the food processing sector.
Establishing linkages with centralised food processing units. The alternative tosetting up producer owned enterprises is to forge partnerships with the existing foodcompanies. Central processing plants such as Inyange dairies are not formally linkedto producers. Supply of raw materials is through informal channels and is often not inadequate quantities or quality. Such high operational costs usually force processors
to squeeze producers to the lowest prices. There is an opportunity for small scaleproducers to establish formal business relationships with private companies
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V. DIAGNOSIS OF THE RWANDA SITUATION: FOODSAFETY AND QUALITY MANAGEMENT
5.1. Food safety and quality management in internal markets
Food and water borne diseases are major public health problems worldwide and animportant cause of malnutrition, in infants and young children. Food safety andquality management systems control food safety hazards and ensure safe foodsupplies for a well nourished and healthy nation. In addition, food safety and qualitymanagement often reduce post harvest losses and increase food availability toenhance food security. Integrating food safety and quality in food supply chainsincreases and sustains the supply of quality safe foods in internal markets.
5.2. Constraints related to food safety and quality management in
internal markets
Constraints related to food safety and quality in internal markets is best illustrated bythe case of the tourism industry in Zanzibar. By 2001, the tourism industry inZanzibar was growing at a rate of about 16% per annum. However, much of the foodconsumed by tourists including fresh fruits and vegetables was imported fromKenya and South Africa and sometimes Europe. Anxious to reverse the trend,Zanzibar Tourism Commission conducted a study1to assess constraints to local foodsourcing. One of the major constraints was found to be unreliability in the supplyof quality, safe food in the right quantities.
Similarly, Rwanda tourism industry is expanding and international hotels are beingestablished to accommodate the increasing number of tourists, conference goers andtravellers. Tourists and travellers from developed countries are made aware of foodsafety risks in Rwanda well in advance. Increasingly, the way a country manages itsfood safety problems will determine the benefits derived from tourism. Already, thereare indications that major hotels and restaurants in Rwanda source nearly 50% oftheir meat and fresh produce from Uganda, Kenya and South Africa, because localfoods do not meet the desired safety and quality standards.
5.3. Opportunities created by improved food safety and qualitymanagement in internal markets
Creating niche markets for local food products in major hotels and restaurants.The growing tourism industry in Rwanda has opened new markets for local foodproducts, both fresh and processed. However, small scale producers often fail tocompete against high quality imported foods because they lack skills and informationabout market requirements. Supporting producers with market studies and relevanttraining and technical assistance in food safety and quality would enable them toexploit the existing market opportunities.
1Integrated Tourism Development Project, Ministry of Trade, Industry, Marketing and Tourism,
Zanzibar, 2002.
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5.4. Food safety and quality management in external (export)markets
Obligations on food safety and quality are entrenched in the World Trade
Organisation (WTO) Sanitary and Phytosanitary (SPS) and Technical Barriers toTrade (TBT) agreements2. The agreements place considerable obligations on bothimporting and exporting countries to strengthen their food control systems, toimplement and enforce risk-based food control strategies and to use internationalstandards where appropriate. The WTO SPS agreement refers to the standardsdeveloped by the Codex Alimentarius Commission (CAC), a joint FAO/WHOintergovernmental body and the International Office of Epizootics (IOE, for foodborne diseases of animal origin) as the reference international standards. Theagreement requires member states to harmonise national standards with CAC andIOE standards, guidelines and recommendations.
5.4.1. Significance of international standards in external (or
export) markets
Food safety and quality constraints in external markets are related to implementationof international standards. International standards that are of relevance to Rwandaare food hygiene standards/Hazard Analysis Critical Control Point (HACCP) systems,EUREPGAP and organic certification.
5.4.2. Hazard Analysis Critical Control Point (HACCP) system.
The CACs International Code of Practice on General Principles of Food Hygiene 3,which has adopted the Hazard Analysis Critical Control Point (HACCP) system-A
scientific and structured system which identifies, evaluates, and controls hazards thatare significant for food safety. As a result, HACCP has become law in mostdeveloped countries such as Europe and the United States.
For example, the current EU Hygiene Directive5 specifies that HACCP principlesmust be applied by the responsible persons during preparation, processing,manufacturing, packaging, storing, transportation, distribution, handling or offering forsale or supply of foodstuffs. All food commodities, including coffee are included in thedefinition of foodstuff: any substance or product, whether processed, partiallyprocessed or unprocessed, intended to be, or reasonably expected to be ingested byhumans4.
The regulation initially focused on primary production within the EU. Currently, theEU institutions are involved in a major discussion whether HACCP obligations alsoapply to primary production. The latest view can be summarised as not yet but mostprobably in future. Rwandas exports, including coffee may in future not be able toaccess the EU market unless HACCP systems are established and managed fromproduction through to marketing and consumption.
Because of the importance assumed by HACCP in international trade, manydeveloping countries, including Rwanda have adopted HACCP as a nationalstandard. Other African countries such as Uganda and Kenya have incorporated
2
WTO international trade agreements that apply to food and agricultural exports.3CAC/RCP 1-1969, Rev. 3 (1997), Amended 1999
4Article 2, EU Regulation 178/2002
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HACCP in national food law. However, apart from having it as a written law orstandard, many countries are still far from implementing effective HACCP systems.
Provisions of the SPS agreement provide policy tools that government can use toharmonise national standards with those of key trade partners. Regional traderequires among other things, harmonisation of food standards. EAC and SADACcountries are harmonising national food standards to remove non-tariff barriersimpending regional trade (maize standards were recently established by East Africancountries).
It will not be possible for Rwanda to compete in regional markets like COMESAunless national food systems and standards are harmonised to establish equivalencewith trade partners in the region.
5.4.3. EUREPGAP
New concept such as Good Agricultural Practices (GAP) have evolved in recent
years to become international standards in the context of a rapidly changing andglobalizing food economy and as a result of the concerns and commitments of a widerange of stakeholders about food production, food security, food safety and quality,and the environmental sustainability of agriculture. Stakeholders include consumers,governments, food processing and retailing industries and farmers, who seek to meetspecific objectives of food security, food quality, production efficiency, livelihoods andenvironmental benefits in both the medium and long term. GAP offers a means tohelp reach those objectives. EUREPGAP is a private sector, voluntary standard butmandatory in the sense that it is enforced by the market.
GAP applies available knowledge to address environmental, economic and socialsustainability for on-farm production and post-production processes resulting in safeand healthy food products. Many farmers in developing countries already apply GAPthrough sustainable agricultural methods such as IPM (Integrated PestManagement), integrated nutrient management and conservation agriculture. Thesemethods are facilitated by supportive government policies and programmes.
Farmer associations have to implement a farm assurance scheme, which would bebenchmarked against EUREPGAP standards (existing standards include freshhorticultural produce and green coffee). If the farm assurance scheme is accepted asequivalent, it achieves EUREPGAP certification. It is also possible for a so-called"Produce Marketing Organization" (PMO) to get a group certification. A PMO can bea farmers organisation or other group of growers that have a legal entity that takes
over responsibilities of EUREPGAP implementation through an internal controlsystem. Detected non-compliance of one farmer in the group may lead to de-certification of the whole group.
Organic standards and certification.
Organic production is holistic management of the agro-ecosystem, emphasizingbiological processes and minimizing the use of non-renewable resources. Althoughthe terms "organic", "ecological" or "biological" have developed in Europe and NorthAmerica to dist inguish organic from conventional agriculture, many low-inputtraditional agriculture systems in other parts of the world are also de factoorganicsystems. In this respect the term "organic by default" has been introduced, and even
"organic by neglect". However, these terms do give the false impression that any
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agriculture systems in which no agrochemicals are used would automatically complywith organic standards, which is not necessarily the case.
Organic standards cover all crops and almost all livestock. Standards for fish farming,bee-keeping and harvesting of wild products are increasingly being developed by the
various standard-setting bodies. Organic standards for plant production typicallyinclude: criteria for conversion periods; seeds and propagation material; maintenanceof soil fertility through the use and recycling of organic materials; and pest, diseaseand weed control. The use of synthetic fertilizers and pesticides and of geneticallyengineered organisms is prohibited (the use of GMOs should be restricted incountries that are promoting organic production).There are also criteria for theadmission and use of organic fertilizers and natural pesticides.
Consumer demand for organically grown products has increased the importance anduse of organic standards and certification in international trade. Developing countriesare competing for the ever growing organic market in developed countries. However,various constraints are an impediment to organic certification and market access.
Creating and sustaining demand for Rwandan food products on domestic, regionaland world markets relies on building the trust and confidence of importers andconsumers in the safety and integrity of the national food supply chain, particularlythe way food safety, social and environmental issues are managed. Establishment offood safety/quality management systems based on international standards wouldprovide such assurance. However, several factors at policy, institutional and microlevels are constraints to the achievement of effective food safety and qualitymanagement in national food systems.
5.5. Constraints related to international standards and exportmarkets
Constraints at policy level
National food safety strategy with respect to domestic and export requirements is notclear. Food safety interventions seem to be based on mere perceptions or what isassumed to be the risk; there is no scientific approach to risk management. Yet, it isimportant that public resources are directed at risks that have been scientifically andobjectively determined. For example there is no need to enforce internationalstandards when clean water and basic sanitary facilities are still lacking. In somesituations, it may be that public resources are better spent targeting sanitationinvestments to improve food handling and processing.
!
The main constraint faced by developing countries is when the use ofinternational standards is interpreted to imply blanket imposition of state ofthe art northern standards on developing countries economies. This is a verysimplistic interpretation of the WTO SPS agreement. The agreementrecognises countries sovereignty in establishing standards that will achievethe chosen level of health protection for its population as long as there isscientific evidence relating the standards to the desired public health output. Italso provides a framework that prohibits or limits the use of standards as nontariff barriers.
! It is therefore possible to develop national standards that are compliant withinternational standards and implement them within the SPS framework.However, developing countries are largely constrained in their capacity tointerpret provisions of the agreement, to develop scientifically derivedstandards integrate them in national food safety systems and support them
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with scientific risk assessment. Secondly, standards have to be implementedthrough an appropriate legal and regulatory framework. Establishing such aframework is a prerequisite for public action. However, the existing legalframework is still deficient and does not comply with international traderequirements stipulated in the WTO SPS requirements.
! Food control activities are fragmented between the Ministry of Health, theMinistry of Agriculture and the Ministry of Commerce without any clearcoordination mechanism. The result is scattered interventions that are notharmonised and prioritised on the basis of scientific risk assessment,duplication of efforts and sometimes conflicts during implementation.
Constraints at institutional level
! The administrative arrangement of food control activities is not clear. Forexample what is the role of districts and provinces and what is theirrelationship with the central authority? There does not appear to be any
linkage between laboratory work and inspection systems, there are no clearlinkage between activities at central and decentralised levels. Yet, one of therequirements of an effective food safety system is to have a clear line ofcommand between the central authority and decentralised units, particularlyin inspection management.
! Rwanda Bureau of Standards (RBS) laboratories and other laboratories in thecountry are carrying out food analysis work but this work is not linked to riskmanagement. Results of such analysis cannot be basis for taking riskmanagement decisions and are not credible outside Rwanda becausemajority of them have not established Good Laboratory Practices (GLP) asrequired by international standards (e.g. ISO 17025).
! Attempts have been made by Rwanda Bureau of Standards (RBS) to develop
national standards that are harmonised with CAC standards. However, lack oftechnical and institutional capacity to control and ensure compliance,essentially makes the standards ineffective.The bureau has an enforcementrole which seems to be in conflict with the role of the Ministry of Healthenforcement arm
! There is general lack of human resources to undertake risk assessmentstudies, to develop harmonised national standards and to conduct inspectionsor audits of international standards such as HACCP or EUREPGAP.
! There is limited human resource and physical infrastructure e.g. laboratoriesto support the development of national organic certification programs and
have them internationally accredited.
! Food safety research is still inadequate, resulting in absence of data uponwhich to base informed policy decisions.
! Weak disease surveillance programs, leading to rampant food borne andzoonotic diseases (animal diseases that are hazardous to human health).
Constraints at micro level
! Production systems are comprised of small scale producers and informalmarkets that are not informed of food safety and quality standards.
! There is lack of information and awareness about food safety.
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! Consumers are more concerned about the access side of food and have noconcern about food safety, though lack of food safety can seriouslycompromise nutrition and food availability.
! Inadequate infrastructure and support systems such as portable water,cooling and storage facilities in rural areas.
! Unregulated use of pesticides, fungicides and herbicides.
! Unregulated use of fertilisers.
! EUREPGAP is a costly venture because of third party certification andtraining costs. Individually small scale producers cannot even make a start. Astudy by ADAR/USAID agricultural project assessed food safety, quality andenvironmental constraints to various export oriented agribusiness companiessupported by the project5noted that:
a. The ability of ADAR clients to enter and remain competitive in exportmarkets are increasingly determined by their familiarity with and
application of international standards for quality, safety and environmentalresponsibility (for organic products).
b. Specialty and high-value markets are particularly sensitive to consumerand business -to business demands for products that are safe and healthy(food safety and quality standards), and are produced in a socially andenvironmentally responsible manner (social and environmentalstandards).
c. There is shortage of basic enterprise consulting in Rwanda, as well asalmost complete absence of quality and environmental managementsystems that respond to international standards (e.g., ISO 9002/14001).
Dependency on expensive offshore auditors and implementationconsultants is a serious cost barrier for many exporters.
5.6. Opportunities related to compliance with the WTO SPSagreement (including use of international standards)
EUREPGAP has had huge impact on the African continent, opening high valueexport markets for fresh produce. This trend may create incentives for the adoption ofGAP by farmers as long as they have the capacity to respond. Developing andimplementing a GAP program would help to build the necessary capacity.
Translation of international standards (HACCP and EUREPGAP) into producer codesof practice and integrating good practices in national food systems enables thedevelopment of national standards through a bottom up approach and stakeholderparticipation.
Compliance with the SPS agreement opens regional and international tradeopportunities, supports tourism and enhances the competitiveness of local foodproducts on internal and external markets. By commissioning this study, MINAGRIhas prioritised food safety, creating an opportunity to mobilise national resourcetowards building national SPS capabilities.
5Rwanda: Quality and Environmental Management Incentives for Agricultural Trade Chemonics
International Inc, 2002.
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By addressing food safety problems from the source (production), Rwanda willestablish risk based approaches to food chain management and will in future nothave to address food safety as a corrective measure like was the case in East Africawhen the EU placed a ban on fish from Lake Victoria because of inadequate foodsafety controls. The three East African countries had to work backwards and bringnational food safety systems up to date with SPS requirements in order to have theban lifted. Meanwhile, countries lost export revenue and thousands of fisherfolk losttheir sole source of livelihood.
VI. RECOMMENDED STRATEGY: THE VALUE ADDINGSTRATEGY
The strategy envisaged is one that will enhance the competitiveness of Rwandan
food products on local, regional and international markets by incorporating valueadding operations in commodity supply chains. Recommended strategies mayinclude:
1. Formation of strong producer groups.Specific actions may include:a) Establishing producer owned enterprises or establishing linkages with
centralised food processing units.b) Establishing an association of food processors food ingredients,
packaging and equipment suppliers as well as business serviceproviders for information sharing and access to services.
2. Addressing potential non- tariff barriers in external marketsby complying
with the WTO SPS requirements. Specific actions may include:a) Developing food safety policy. Reviewing food safety infrastructure
and problems to establish national strategy with regard to domesticfood safety and food safety for export markets.
b) Updating the existing legal and regulatory frameworkto reflectnew and emerging food safety concerns in internal and externalmarkets, to define roles and responsibilities of various governmentagencies with food safety responsibilities, to establish the nationalfood safety agency as a coordinating body.
c) Translating international standards(EURPGAP and HACCP) intoproducer/processor codes of practice.
d) Developing and implementing GAP and HACCPtraining programsthrough producer groups and associations.
3. Developing national capacity in organic food production and exportsby:a) Promoting organic production.
b) Developing a national organic certification programc) Obtaining international accreditation for the national organic
certification program.
4. Diversifying processed foods through new product development, foodsafety and quality management. Specific actions may include:
a) Establishing a centre of excellence in food process and product
development to provide training and technical support in improvedprocessing methods, new product development, packaging and
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product diversification, food safety/quality management systems,including traceability requirements.
b) Carrying out market studies to identify market requirements andconsumer expectations.
5. Developing local capacity to develop appropriate technologiese.g. agro-processing equipment, tricycles/trolleys to ease rural transport. Specificactions include:
a) Collaboration and support to technology research and developmentcentres and local artisans to facilitate the dissemination of appropriatetechnologies.
6. Establishing appropriate food safety/ quality management in nationalfood systems. Specific actions may include:
a) Translating international standards into producer/processor codes ofpractice and adopting them into national standards through a bottomup approach and stakeholder participation.
b) Developing and implementing GAP and HACCP training programs forsmall scale produces and processors.
The recommended strategy is demonstrated with maracuja as an example.ANNEX 1 is a graphic illustration of the maracuja value chain, which is furtherelaborated below. The concept can be applied to other commodities.
PROCESS 1: Formation of strong producer groups at village levelThis should be the first step in the process of developing a value chain. Maracujaproducers are identified and organised into groups. Producers are trained in groupformation and business management. The training program may also include:
a) Record keeping, simple business transactions, pesticide applications,
storage practices etcb) Pooling production and community resources.c) Negotiating contractsd) Production planninge) Supplying quick alert information on crop performance.
Training should be provided by agri business trainers, provided by MINAGRI or otherinstitutions with appropriate training programs. The output should be strong producerorganisations capable of engaging in formal business transactions.
PROCESS 2: Integrating GAP in production, harvesting and storageMINAGRI supported by KIST, ISAR and CIAT should develop a GAP trainingprogram drawn from EUREPGAP protocols. The idea is not to replicate the standard
but to translate it into a training program that is simple to implement and hasmeasurable outputs. Through MINAGRI extension arm, producers should be trainedto integrate GAP in the production, harvesting and storage of produce. The result is apool of trainers in the community who can be drawn upon as resource personswhenever need arises. Other inputs such as credit and improved seed varieties couldbe provided by micro finance institutions and ISAR respectively.
PROCESS 3: Transportation of maracuja fruit to a centralised processing unitFree movement of goods is usually constrained by poor roads and lack of efficientmeans of transport. MINAGRI should support the development and dissemination ofappropriate technologies such as push carts or tri cycles and trolleys to facilitate ruraltransport. However, it is important to note that all equipment should be designed toenhance the desired standards of quality and safety. Specifications for this and otherrequirements should be designed into the technology with support from CITT/KIST -
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the centre for technology research and development. The technology design shouldbe availed to local workshops and the private sector for replication and furtherdissemination to producers.
PROCESS 4: Sorting and gradingSorting and grading is necessary to ensure that good quality fruit does not go for thesame price as low quality fruit. At this stage, it should be possible to separate highvalue fruit for export from low value fruit for the domestic and regional markets.
PROCESS 5: Packaging Grade A maracuja fruit for exportPackaging for export is a major constraint and one way to go about it is to establishformal linkages with local exporters. The local exporter provides the packaging andhandles all documentation and shipping logistics. The benefits derived fromorganised and consistent production in the right quantities and quality provideincentives for local exporters to sustain business operations and offer competitiveprices.
PROCESS 6: Processing Grade B maracuja fruit into fruit concentrate forlocal and regional marketsMaracuja concentrate is popular on domestic and regional markets. However,processing methods are in most cases rudimentary, resulting in products of inferiorquality. MINAGRI in collaboration with technical institutions such as KIST and ISARshould establish the Process and Product Development Centre to provide trainingand technical assistance in food processing, new product development andpackaging.
PROCESS 7: Cutting and deseeding maracuja fruit by handIn small scale operations, this is usually a manual operation and care must be takento ensure that contamination with potential hazards is controlled. Training in food
hygiene and HACCP principles is very essential and should be a provided to all smallscale food processors. MINAGRI should facilitate the development of food hygieneand HACCP training programs. Support for this could be provided by KIST FoodScience department.
PROCESS 8: PulpingIn small scale operations, pulping is usually a mechanical process. The design of fruitpulpers must meet the desired food safety standards. Locally fabricated pulpers areoften fabricated from aluminium and are defective in design. Surfaces that get incontact with food must be made out of stainless steel. MINAGRI should collaboratewith CITT/KIST technology research and development centre to develop anddisseminate appropriate designs.
PROCESS 9: PasteurisationPasteurisation is a heat treatment process at pre determined temperatures and time.The heat treatment process is designed to render the product safe and extend shelflife. It is therefore a critical step, without which processing is incomplete. However,rural set ups are usually constrained by lack of conventional energy sources such ashydro powered electricity to run pasteurising equipment. Alternative energy sourceslike solar energy and micro hydro should be explored and appropriate pasteurisingtechnologies designed and adopted for use in rural Rwanda. Support for this shouldbe provided by CITT/KIST where renewable energies have already been exploitedfor other applications such as lighting and cooking.
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PROCESS 10: Sourcing preservatives, packaging and other raw materialsSmall scale processors are usually constrained in sourcing packaging, foodpreservatives, and other ingredients. A viable option that has been tried in othercountries would be to support small scale processors to establish formal relationshipswith local importers, who would then be provided with packaging specifications andencouraged to import packaging and other inputs in bulk.
PROCESS 11: Packaging and fillingSmall scale packaging machinery is available and can be imported. The associationof small scale processors should maintain a data base of equipment providers.Centralised packaging units should be explored as a mid-term strategy forprocessors who may wish to pull resources and share processing facilities.
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REFERENCES
1. Chemonics Int., Diagnostic mission to determine constraints to production
and exportation of high quality fruit from Rwanda. March-April 2002.
2. Chemonics Int., Rwanda: Quality and Environmental Management Incentivesfor Agricultural Trade.2002.
3. Mhazo Norman, Benjamin Hnayani-Mlambo, Sharon Proctor, Mupanda andRaymond Nazare. Constraints to small scale production and marketing ofprocessed food products in Zimbabwe the case of fruits and vegetables.2002.
4. MINAGRI. Evaluation of: Achievement of the Agricultural Rural MarketDevelopment Project (ARMD). 2003.
5. Natural Resources Institute (NRI), Small Producers in Export Horticulture: AGuide to Best Practice. 2003.
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Producers'
organisations
Local transport
to centralised
storage/processing unit
Sorting &
grading
Grade A for
export
Grade B for
processing/
internal &
regional
markets
Packaging
Export
documentatio
n
Shipping
Cutting,
desseding
by hand
Pulping
Pastuerisati
on
Preservative
Stabiliser &
Mixing
Filling,
bottling &
packaging
Training in group
formation &
businessmanagement
PROCESS &
PRODUCT
DEVPT
CENTRE
Portable
water
Knives,
spoons,
utensils
Pulper, Solar
pastueriser
Polypropylene
bottles
Paper
cartons
Credit/Lease
purchase
Export market Local
market
Agri
business
trainers
MINAGRI &
other
organisations
MINAGRI ISAR
MINAGRI KIST/ Food
Science Dept
Producer
owned credit
facility
Selected
seeds,
imporved
varieties
Revolving
fund/credit
Micro finance
institutions
Local market
Local supply
Locally
manufactured
food
processing
equipment
Local importer
preservative,
stabiliser, sugar,
citric acid
CITT/KIST
with technical
support
MINAGRI
Developing
GAP program
MINAGRI,
KIST, ISAR &
CIAT
Production,
harvesting,
storage
Local exporter
EUREPGAP
CODEX
Rural transport
cycle trolleys
meeting GAPrequirements
CITT/KIST &
technical
support
Local
artisans
Local
exporter
TOT on GAP MINAGRI KIST,ISAR &
CIAT
Local
artisans
RHS systemdesigned by
CITT/KIST
Alternative energy
sources e.g.solar,
microhydro