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Private Standards, small farmers and donor policy: EurepGAP in Kenya John Humphrey

Private Standards, small farmers and donor policy: EurepGAP in Kenya John Humphrey 13 November 2008. BFS, Farm Assured. EUREPGAP. LeafMarque. BRC. SQF 1000. EUREPGAP — GLOBALGAP. Collective private standard: no legal force But market force through big buyers

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Private Standards, small farmers and donor policy: EurepGAP in Kenya John Humphrey

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  1. Private Standards, small farmers and donor policy: EurepGAP in Kenya John Humphrey 13 November 2008

  2. BFS, Farm Assured EUREPGAP LeafMarque BRC SQF 1000

  3. EUREPGAP — GLOBALGAP • Collective private standard: no legal force • But market force through big buyers • Particularly Northern European supermarkets • Pre farm gate standard • Process controls, traceability • Proof of compliance — paper trails • Third-party certification

  4. 3 4 5, 6 7 & 8 Seed, Nursery Site Selection Crop Production Stages in Production of Produce Covered by EUREPGAP CPCC N/A answers allowed when no Produce Handled Produce Crop 9 10 Harvest and Transport Storage, Washing, Treatment Environment, Waste & Pollution, Operator Health, Safety and Welfare 11. 12 & 13 Documentation, Traceability and Quality System Requirements 1. 2 & 14 Additional Quality Management Systems required for Farmer Groups (see General Regulations) Production Process Flow Control Points Additional Requirements 1. 2 & 14

  5. Common Donor Perspective • A big problem for small farmers • Cost and capability challenges • Do something and do it quickly “We were panicking about January 1st, of course. Everyone was doing some activity. All of us were running around, panicking. We did understand that there was going to be a deadline. We did understand that this was going to be an important thing.”

  6. The small farmer model • Training in EUREPGAP • Capital expenditure: chemical stores, spraying equipment, disposal pits, grading sheds • Cost of certification – first certification • Farmer group formation • Manual for Quality Management System • Local service providers • Linkage programmes

  7. Where do the big GLOBALGAP costs lie?

  8. Who needs to buy GLOBALGAP produce?

  9. What cost calculations do exporters make?

  10. Exporter Options in face of increased smallholder outgrower costs • Switch to large farms. • Is land available? • Are smallholders non-competitive? • Switch to countries with lower compliance costs • Abandon segments of the business • Absorb the costs to the extent that supply remain attractive to farmers • Cost increase relative to total fob costs • Some elements of costs applicable pre-GLOBALGAP

  11. What should we do next time? • Analyse value chain linkages • Consider not intervening at all • Exporters will make business decisions • Recurrent costs an issue • Look carefully at numbers • Export outgrower schemes may not be significant in employment terms

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