74 | Sub-Saharan Africa (SSA) Report

3.5.3.3 International standards for agricultural production
The global rise of supermarkets is an important driver of change in agricultural production. Foreign direct investment in supermarkets and breakthroughs in retail procurement logistics, technology and inventory management have changed the way that agricultural products are marketed in many developing countries. The impact is currently felt mostly in relation to international trade, although there are some implications for local and regional trade. While few countries in sub-Saharan Africa (except for South Africa) host thriving supermarket chains at this time, this trend is likely to spread throughout the region over the coming decades as knowledge transfer makes the cost savings realized
elsewhere possible in sub-Saharan Africa, and in response to increasing urbanization.

Currently, the far more significant effect of this trend is on producers in the region who are selling into supermarket chains in global markets. With such a diverse supply base, retailers find it increasingly critical that minimum standards be in place to protect consumers and ensure quality. Consequently, developing-country producers of all sizes must ensure a steady supply of commodities that conform to international quality standards covering everything from variety, color, size and maturity, to odor, cleanliness, packing, mechanical damage and temperature maintenance. International food safety and quality standards can function both to facilitate producers’ entry into regional and global markets and to exclude them from those markets, depending on a range of conditions.

 A number of public and private food safety and quality standards regulate not only food safety but also environmental impact, occupational health, worker safety and welfare, and animal welfare. Hazard Analysis and Critical Control Point (HACCP) is a collection of food safety standards promulgated internationally by the Codex Alimentarius Commission (FAO/WHO, 1999) and aimed at reducing health risks in production. Other international standards govern classification categories such as organics and fair trade products. Organic and fair trade certification has proved invaluable for producers seeking, and able, to occupy niche markets, for example in origin-branded coffee.

 For many sub-Saharan African producers, for whom European markets represent the most accessible export opportunity, EurepGAP (Euro-Retailer Produce Good Agricultural Practices) is the relevant set of sector-specific standards for farm certification for producers wishing to sell fruits and vegetables, flowers and ornamentals, livestock, aquacultural commodities and green coffee into European community markets. EurepGAP’s stated aim is to ensure integrity, transparency and harmonization of global agricultural standards of food safety (including maximum residue levels from pesticides), traceability, worker health, safety and welfare, environmental preservation and animal welfare. Certification requirements have spawned private sector certification bodies (EurepGAP maintains its neutrality by empowering other bodies to conduct the actual certification). Currently, EurepGAP is working with over 100 certification bodies in more than 70 countries. It also recognizes other international standard regimes to reduce the burden on agricultural
producers of multiple audits (EurepGAP, 2007).

 

       The impact of such standards on the horticulture industry in sub-Saharan Africa is complex. In some countries, increasing adoption of practices required to meet these requirements has resulted in spillover into domestic markets of technology, quality assurance and management of supply chains. Proponents argue that by applying the recommended protocols on good agricultural practice, small-scale farmers not only enjoy a premium market outlet but experience increased income through gains in productivity and yields as well. In Zambia, for example, farmers have embraced EurepGAP standards as good business in terms of tracking inputs (which reduces theft), improving farm management (which results in higher yields), and increasing group bargaining power (which brings better prices). Improvements in worker safety and food safety vis-à-vis pesticides are also reported (Graffham, 2006). In this sense, the requirements producers must meet to enter the market have generated new agricultural technologies and practices, as well as more favorable market conditions for certain products.

 Despite the spinoff benefits of the market-driven requirements and technologies, these increasingly rigid standards may have negative effects as well, serving as a form of import protection for domestic industry, particularly when restrictive measures raise the cost of imported produce. Proposed controls on carbon footprints can compromise the competitiveness of African products in European markets, or exclude them from those markets altogether. Moreover, smaller producers sometimes find certification requirements prohibitively costly and are unable to comply because they lack the resources and expertise to maintain the requisite quality management system. They are also sometimes unable to afford the certification charges (including the fees charged by local certification bodies—in Zambia, for example, fees have been as high as those charged by international certifiers). In fact, at present, the costs associated with training, infrastructural development, testing and analysis, pre-audit inspections, and certification are largely funded by donors. It is unlikely that the private sector will assume these costs in the near term. Some international development agencies (funded by multilateral and bilateral donors) now work with producer associations to help integrate food safety standards into their projects, not only to prepare producers to enter global markets but also to ensure that those not yet ready will adjust their practices in such a way as to avoid exclusion later when they prepare for export (Hobart, 2004). Producers without access to such assistance, however, may find their margins are insufficient to cover the costs of certification and maintenance. In this way, certification requirements to enter export markets may further segment small-scale producers, with new opportunities for the wealthier and reduced competitiveness for the poor.

 For countries such as Kenya, however, EurepGAP cannot be ignored, as the EU represents up to 80% of Kenya’s market share in horticultural commodities. Comprehensive data on the impact of standards regimes on African agricultural producers are lacking.

 While globalization of markets has the potential to open up new export markets for African agricultural products, this potential is conditioned by policies implemented in industrialized-country markets, including agricultural and export subsidies and dumping, and market barriers.