Building Competitiveness Through the use of Common Agricultural Standards

1. Building Competitiveness Through the use of Common Agricultural Standards David J Holliday May 2004

2. Objectives of the talk • What are common agricultural standards? • How can using them help? • Examples of some of the benefits of using standards to build competitiveness. • Other important aspects of marketing.

3. What are the Common Agricultural Standards? • The UN/ECE has been involved in the development of agricultural standards to help facilitate trade for many years. • Standards have been agreed for Fresh Fruit and Vegetables, Dry and Dried products, Meat, Potatoes, Eggs and Flowers. • Regular meetings to develop these standards and keep them in line with trade requirements. • The standards are widely used and of particular significance is the fact that the EU standards for fresh fruits and vegetables are closely harmonised with the UN/ECE standards. • The UN/ECE also worked closely with the OECD and CODEX on quality standards.

4. Elements of a Typical Standard • Minimum quality requirements. • Quality classes. • Sizing requirements. • Tolerances. • Uniformity and Presentation • Labelling

5. How can using quality standards help?

6. How can using quality standards help?

7. How can using quality standards help?

8. How can using quality standards help?

9. How can using quality standards help? • Facilitates trade between buyer and seller. • Both use the same quality standard. • Buy by description. • Easier comparison of prices • Keeps produce of unsatisfactory standard off the market. • Less waste. • Improves returns to the grower. • Directs trade to meet consumer requirements. • Provides consumer information. • Can break down trade barriers – market transparency

10. Factors in better marketing • Understand the specific market you wish to target. • How is it different to what you are accustomed too? • Move from face to face selling to selling at a distance. • Change in marketing skills , build up trust. • Awareness of what will sell and will not sell. • What will the produce look like when it arrives. • How will it compete with the same product from another supplier / another country. • What are the costs involved, know what returns are required to make a profit.

11. Characteristics of Bad Marketing • Send produce that is not of the standard required. • Good produce on the top, poor produce underneath • Market in wrong stage of maturity too ripe , too immature. • Packaging not suitable • No account taken of time to get to your customer or of storage conditions required.

12. Bad Marketing?

13. Bad Marketing?

14. Benefits • More money to invest in improvements. • Better husbandry/ cultivation techniques to produce a greater proportion of high quality produce. • Better grading facilities. • Storage giving better continuity of supply. • Become more competitive • Look for more markets.

15. Other Factors to Consider • Quality standards are only the starting point. • Specific extra requirements from supermarkets. • Food safety and hygiene guarantees. • Traceability. • Quality management systems. • Drive by large retailers /supermarkets for a competitive advantage make them demanding customers.

16. Summary Marketing Know what your customers requirements are. Know what the competition is like. Get the packing and transport right. Standards Better understanding of what these are and how they can help facilitate trade with others in the external market. Success Quality Get the quality right by training grading staff, quality control and improving cultivation harvesting and storage techniques. Eye For The future Safety, good record keeping traceability, quality/ farm assurance schemes and accreditation.