k-farm carambola gap program · supply chain, policy - infrastructure investment, farm aid, ......

Kit Chan

National, Regional, and International GAP Standards in Asia

- An Overview

APO/NPO Pakistan: Training Course on Training of Trainers in

The GLOBALGAP Standard for Greater Market Access

5th – 10th December 2016, Lahore Pakistan

Concerns of the Asia Pacific Food Economy

2

Concerns Classic Interventions

Food Insecurity Protectionism, expand cultivation acreage

Cost of Food Fiscal approaches

Farm Productivity Crop yield, Crop fertilization, P&D management, Post-harvest handling technology

Market Access Promotion, price competitiveness

Economics of small farms, rural poverty, length of food chain, etc

Supply chain, Policy - infrastructure investment, farm aid, subsidy, shortening the food distribution chain

Food Safety Food safety regulations

Environmental concerns on farming Environmental regulations

Climate Change No consensus in resolving problem

Concerns of the Asia Pacific Food Economy

3

Concerns Next Interventions

Food Insecurity Save food loss and save food waste

Cost of Food Prices independent of production costs, From supply chain to value chain, Value addition in food – quality, brands

Farm Productivity Technology and efficiency - gadgets, process and systems management, Farm sustainability (physical and financial)

Market Access Demand > supply, Larger & wealthier population, Post-harvest and distribution management

Economics of small farms, rural poverty, length of food chain, etc

Value chain, 2- tiers of food producers, Policy - building climate resilience in farming sector (farmers adaptive capacity)

Food Safety Intrinsic assurance

Environmental concerns on farming Environmental pollution credits on food production (e.g. carbon value and carbon trade, food miles)

Climate Change Food produced in factories or environment shelters, farmers must harmonize their cultivation with the environment

Major changes and trends in the agrifood system

Monitoring system of food safety has changed

Food safety regulators traditionally use enforcement mechanisms to remove

unsafe food from the market

Exporters are now warned to take prevention of hazard contaminations at every

critical control point of the food chain

In the past, regulators are responsible to monitor & control food safety

Now the adoption of food chain framework facilitates a consumer driven, monitor

& control approach in production and food safety system

The agrifood system operates in a globalize market now

Food supply chains making cross border destinations

Sources of production comes from all corners

Survival in the business rests on supply chain competitiveness

Meeting New Demands of Changing Markets

5

1. Consumption trends and patterns

Food destination not just to hungry stomachs

Food destination to consumers willing and able to pay

Consumers place a high priority to value of the product

Consumers demand for choice

Consumers demand for food safety standards

2. Communications with the customers

The social media is important in reaching out to the customers

Customers trust the word-of-mouth and their social media friends

Market diversion: new, healthy, tasty and easy

6

Supermarketization

Global urban phenomenon of shopping in supermarkets

• Supermarkets target the growing middle class consumers in urban areas

• Supermarkets project pricing with value

• Supermarkets provide the full range of convenient shopping

Supermarkets are such very large retail chains

• Increasing market share as strategies

• Have purchasing advantage over local producers

• Low costs and low margins

• Intense competition among supermarket chains

Consolidation of giants

• Horizontal integration

• Building of giants – mergers and takeover

7

Drivers of Change in Asian Food Systems

Globalization

Changes in Consumer Demands

Market / trade liberalization

Increased global trade

Increased capital flow; FDI

Global ICT connectivity

Rising Income

Global Food Sector

Supermarkets in Asia

Global logistics management

Global markets and sourcing

Mobile connectivity

Knowledgeable

Differentiated product

Convenience foods

Demand for Value

Concern for environment

Rise of middle class

Falling % food expenditure

Middle class consumption

Consume more meat & dairy and high value food

Young Urban Consumers / Farmers

Educated & informed consumers

Ability to choose

Dual earners, small family

Farmers respond to new demands

The Affluent Consumers

Increased purchasing power

Increase in Consumer Confidence

Changes at Ground Level Changes in the Industry

Drivers of Change in Asian Food Systems - 1

Access to market information

Transparency in production costs and information

Access to advanced ICT tools

Transparency of Information

Farmers access to market info.

Consumers access to production information

Social media marketing

Competitive pricing

Farm production technology

Post harvest technology

Logistics and shelf-life technology

Lower production cost / unit

Increasing urban dwellings

Space and time deficit

More social lifestyle

Food catering sector demands higher quality

Higher Farm Productivity

Access to better seed quality

Effective fertilizer application

Effective P&D control

Irrigation technology

Innovative PHH techniques

Modern Home and Work Lifestyle

Small family units

Home electrical gadgetries

Easy to prepare foods

No extended family members

Information & Communication

Technology &

Innovation

Urbanization

Changes in the Industry Changes at Ground Level


Women represents the biggest “emerging market”

More financially independent

Make personal purchasing decisions

More Active Role in Public

More education for women

More women in the work force

Demand more healthy & nutritious food

Less meat, less fats, less portion

Developed economies shrinking population

Emerging economies expanding population

Supermarkets bringing new standards to Asia

Supermarkets demand food quality standards

Private 3rd party certification of food quality standards

Changing Demographic Profile

Developed economies rising number of elderly people

Different consumption trends for the elderly people

Emerging economies with large population of young people

Women in the Workplace

Population Profile

Supermarket brands and serving the needs of consumers

Demands food safety assurance

Demand greater farm production standards and traceabilities



Rise of Supermarket Chains

11

Government initiatives to

build climate change resilience

of small and rural farmers

New policy approach to land,

water and energy usage

New policy definition and

directions in dealing with food

security

Farm production

Impact on production system

Impact on yield and quality

Impact on cost and price

consideration

Adaptation of state-of-the-art

production technology

Adaptation on environmental

considerations

Climate Change



12

GAP and the Emergence of GlobalGAP

Good Agriculture Practice - GAP

GAP is a production pathway that identifies critical control points and

establish compliance standards of varying degrees to eliminate hazards and prevent accidents

in order to progressively promote safe and hygienic fresh produce at the farm

with minimum negative impacts to the environment.

13

The good practices proposed in GAP are universally established

science - based rationales and justifications.

The close monitoring and specific control system provides assurances of safety to the consumers of GAP produce.

Conducting a continual risk assessment of farm activities and the farm physical conditions to continually keep check of accidents and upgrade the standard.

Guiding Principles of Good Agriculture Practice

1. Assurance of safe food production

2. Sustainable production

Assurance of food safety is a fundamental responsibility of the producer

Sustainable production ensures that producer must reap economic returns for

his efforts and investments, and able to do so continually

For this to happen, the farmer must recognize the impact of his practices

will have on the environment and to the consumer

Sustainable Agriculture is a farming system

that provide the needs of safe, nutritious and affordable food for the world population,

in a way that progressively conserve the natural environment and natural resources,

by seeking to optimize the skills and technologies to achieve long term productivity and

profitability of the stakeholders of agriculture enterprise,

to ensure that future generations can also experience the same satisfactions

that we enjoy today.

Sustainable Agriculture

15

From the definition above, 3 major concerns have emerged

1. Ecological concerns

Soil productivity (Erosion, depletion of top soil)

Water (Depletion, groundwater usage, contamination)

Pest and Disease resistance to pesticides

Greenhouse effect and Climate Change

2. Economic and social concerns

Price of food

Income of the small and rural farmers

3. Impacts on human health

Food safety and food hygiene for consumers

Farm workers health and welfare

16

Sustainable Agriculture

Voluntary Standards

versus

Regulations

17

Food Safety Voluntary ( Private ) Standards

Initiated and driven by the Consumers ( Clients )

Creates competitiveness out of Producers

Voluntary participation creates self monitoring by the Producers

Derive economic benefits ( profits and market share )

Non-compliance leads to commercial sanctions

Standards designed to provide assurance of food safety to consumers

Technical Regulations ( Mandatory Standards )

Standards designed to enforce food safety conformity

Non-conformity lead to fine, quarantine or rejection

Stakeholders are obliged to conform to the standards

18

Stakeholder View of Standards

19

Benefits from GAP Compliance

Achieve market access - Getting noticed and recognized by buyers

Enhance food safety - Gain credibility in the industry

Reduce risk and liabilities - Save losses via no recalls, no rejections

Improved productivity - Quality and yield increase via practices of IPM

and ICM

Lower costs - Reduction of input costs

Gain competitive advantage - Costs, market, credibility, price

20

GAP Practices in Asia

GAP Practices in Asian Countries - 1

1. Examples of GAP systems in Asian Countries

SALM (MyGAP) – Initiated by authorities to advance competitiveness

JGAP – Inspired by growers supplying to supermarkets

ChinaGAP – Concern for food safety / Concern for export markets

ThaiGAP – Initiated by regulators / Adopted from research cluster

ASEANGAP – Harmonizes ASEAN countries GAP systems

2. What drives these countries to develop GAP systems?

Governments want to develop, expand and sustained export sector

Consumers want assurance of food safety in their purchases

Exporters want to move from domestic to export trade, from wholesale buyers to

niche and to more developed and sophisticated retail markets

3. Developing GAP systems in Asian Countries

2 - prong, 2 - tier approach

Develop National GAP Schemes, and Benchmark with GlobalGAP

More progressive farmers moved independently with GlobalGAP

4. Cautions and lessons learnt from these country’s practices

Communication - clear, defined, committed

Raise awareness - to all stakeholders

Transparency - accreditation and certification process

Institutional support - in farm extension is strong & effective

Mandatory GAP standard is ineffective and costly to monitor

GAP standard must include export AND domestic consumers


5. GAP development for Asian Pacific – Way forward

Shift of global trade from South – North to South – South

Trade competition among countries will increase

There is No reversal for high standards and high quality

Trading countries will demand reciprocal standards and qualities

Eventual harmonization of international GAP standard of a high level

Slow reformers will be left behind


Certification program to recognize farms that adopt Good Agricultural Practices

Developed by DOA

Launched in 2002, by 2011 only about 280 certified

Protocol include food safety control, environment management, handling hygiene,

traceability and workers welfare

Strengths - MyGAP allows producers the freedom to decide how they want to

achieve the targets

Weakness - Weak communication dialogue with stakeholders

- Inadequate capacity of field extension officers

MyGAP Malaysia

25

Q Mark and ThaiGAP

Q Mark GAP Standard

Objectives of the Q Mark GAP Standard - Ensure safe food production

Guiding principles - Safe food production

Scheme developer and owner - Ministry of Agriculture and Cooperatives

Q mark GAP scheme certifies the production process of the crop and not the farm

Certification bodies

Private and public certification bodies (CB) approved by the National Bureau of

Agricultural Commodity and Food Standards (ACFS)

3rd party certification process

Types of certifications

GREEN Q Mark – quality & safety conformation with international standards

GOLDEN Q Mark – safety at international level and quality at premium level.

ThaiGAP Objectives

1. Thai safety / quality systems and standards of production at world standards, and

ensure compliance of consumer requirements

2. Educate small growers to enable them to comply with the trade requirements and

regulations

3. Develop competitiveness and ability of SMEs producers

4. Create systems of production, according to the quality, safety and legal requirement

at world standard

5. Increase grower income and ensure long term sustainability

6. Support the nation’s “Kitchen to the World” project

7. Ensure effective traceability from producer to consumer

ThaiGAP Certification Scheme - 1

Partners in ThaiGAP Development

1. National Bureau of Agricultural Commodity and Food Standards (ACFS)

2. Department of Agriculture and Department of Agricultural Extension

3. The Thai Chamber of Commerce

4. Western Cluster : Kasetsart University, Kamphaengsaen Campus

5. The Fruit and Vegetable Producer Association / SME growers

6. Provincial Chamber of Commerce

Features of ThaiGAP

ThaiGAP was home grown that expanded into international level.

Initiatives allow the farmers to develop naturally into the GlobalGAP benchmark

scheme, as farmers become more confident.

ThaiGAP model encourages formation of cluster groups of small farms with

adoption of the GAP practice.

ThaiGAP Certification Scheme - 2

AEON supermarket started develop their store GAP system in 2002.

Groups of Japanese farmers also work on GAP programs in their farms.

The Japan Good Agricultural Initiatives (JGAI) formed 2005 to develop a system to

ensure the safety of agriculture produce, and establish common standard of GAP.

The Japanese Ministry of Agriculture announced 2006 that JGAP (as nonprofit

organization) would become national standard to harmonize the several private retailers

GAP scheme and the GAP scheme of the Ministry.

The activities of JGAP are:

- Develop voluntary standards for certification of farms / farm groups

- Train the JGAP trainers

Certification is carried out by qualified 3rd Party private sector auditors.

JGAP benchmark against GlobalGAP (2007) to strengthen recognition of scheme.

JGAP - JapanGAP

ASEANGAP

ASEAN GAP is a voluntary standard for GAP practices for the ASEAN region.

Purpose is to harmonize GAP programs within ASEAN - to facilitate trade

regionally and globally

ASEAN GAP scope covers production to post harvest handling of F&V.

ASEAN GAP consists of 4 modules:

Food safety

Environmental management

Worker health, safety and welfare

Produce quality

Module can be used alone or in combination with the others. This enables

progressive implementation of ASEAN GAP, based on individual priorities.

ASEANGAP

ChinaGAP

China developed two programs of food safety:

Green Food Standard – develop GAP standards for the domestic market

ChinaGAP – developed jointly by the Chinese Government and GlobalGAP.

The programs are intended to:

Stimulate agriculture ,

Reduce the risks linked to food safety,

Stimulate the development of international good agricultural practices and

relevant certification and accreditation activities.

ChinaGAP

GlobalGAP

GlobalGAP is a private standard. The GAP scheme ownership belongs to a private sector

body that sets voluntary certification standards and procedures for good agriculture

practices

GlobalGAP, started as EurepGAP, by a group of European retailers, who were concern

with growing incidents of food contamination, and intention to raise quality of food

supplied into their supermarkets.

GlobalGAP aims to increase consumer confidence in food safety by developing good

agriculture practices to be adopted by the producers.

GlobalGAP is a pre-farm gate standard. The certificate covers the process of the certified

product before the seed is planted until it leaves the farm.

GlobalGAP has developed GAP standards for fruits and vegetables, combinable crops,

flowers and ornamentals, green coffee, tea, pigs, poultry, cattle and sheep, dairy and

aquaculture (salmon).

GlobalGAP - 1

Requirements of GlobalGAP

The GlobalGAP standard requires that the producers establish a complete

monitoring and control system.

Products are registered and can be traced back to the specific farm unit

where it was grown.

Some rules are flexible (encouraged) but some other regulations are strictly

controlled (major must), e.g. pesticide applications and storage, fertilizer

usage.

Detail records of farm practices are required to show justification how the

crop was produced

GlobalGAP - 2

Certification process

GlobalGAP does not issue certificates but authorized registered certification bodies to

All documents relating to the certification processes and validity are available online

Farmer would first select from a list of available CB and sign a contract for the audit

process. Costs are paid by farmers.

There are 4 categories of certificates:

Option 1 - certification of individual farms / producers

Option2 - certification for producer groups

Option 3 & 4 - benchmarking other schemes (schemes belonging to individual

producers or producer groups), and is assessed for equivalence by

comparing content and performance criteria against GlobalGAP

General Regulations

GlobalGAP - 3

Opportunities of GlobalGAP

GlobalGAP certified producers have the opportunity to sell to supermarkets that may

have a requisite for GlobalGAP certification.

The certification is a minimum standard focused on business-to-business relationships.

GlobalGAP certification is a premium award because the retailers testify to it.

Challenges of GlobalGAP

The process of GlobalGAP certification requires the producer or producer group to

organize a complete administrative system to keep track of all the farm activities.

This exercise requires a substantial amount of financial and administrative capacity

and could only be made by large scale producers

There are no special price premiums or product label associated with GlobalGAP.

GlobalGAP - 4

PakistanGAP

Developing the PakistanGAP

What are rationales for Pakistan to have its own GAP scheme ?

Does PakistanGAP needs to be market oriented ?

Will the GAP standard be mandatory or voluntary ?

Who shall own and manage the scheme ?

Who should develop the GAP standard for Pakistan ?

Who should be in the GAP NTWG team ?

Will it be a generic production standard or crop specific GAP standard ?

How to ensure that PakistanGAP could be sustainable on its own ?

Capacity Development and Business Orientation

Formulating a GAP Strategy for Pakistan - 1

Implementing PakistanGAP

How to convince the stakeholders to adopt and comply to GAP standards?

What are the existing infrastructure that can support GAP compliance?

What will be the fundamental guiding principles in GAP?

Do stakeholders have knowledge, physical and financial capacity to comply?

What will be the role of the extension services?

What level of compliance should be set for the standard?

Does the GAP scheme owner have the capacity to train GAP trainers?

How would the GAP scheme be promoted to all the stakeholders?


Certification of GAP

1st ,2nd or 3rd Party certification scheme?

Certification costs and who should bear?

After a farmer achieved the Pakistan GAP certificate, what happens?

It must be marketed / promoted to the domestic and export consumers.

The certificate has a commercial recognition and validation.

Certificate scheme must be serviced and managed as a business entity.

There will be secondary spin-off development from the certification.

Spin-off developments must increase farms and farmers productivity.

Food safety awareness must be promoted.

When should PakistanGAP benchmark to GlobalGAP?


Marketing Pakistan GAP

GAP certified produce will gain market access in exclusive market place.

Products without GAP certification would only entertain the fringe markets,

where the suppliers have low bargaining position.


FAO (FAOGAP), EISA (Common CODEX for Integrated Farming),

CIES Retailer Business Forum (Global Food Safety Initiative, GFSI)

Australia (AFFA, Farm Food Safety Guidelines), NZ (Approved Supplier Program)

England (Assured Produce Scheme)

TESCO (Natures Pride), CAPESPAN, Unilever (Growing for the Future), FreshCare

Issues covered in the GAP Schemes:

Food safety criteria , Quality, Quarantine, Environment, Sustainability, Workers

Health and Safety, Food Security (Bio-Terrorism), Allergens

Guidelines, Standards, Marketing Schemes, Company Missions, Company Labels,

46

Other International Initiatives of GAP

Thank you

For more enquiries, please write to

[email protected]

or visit us @

www.kfarm.com

mailto:[email protected]

Debate on GAP - 1

1. If agriculture export-led is a strategy of economic growth.

What enabling environment should the Government put in place for the sector to

carry out commercial exportation efficiently? Is GAP the answer?

2. The returns to horticultural cultivation for the small farmers is low, at least that is the

view of the small farmers.

What are some of the possible reasons for this dissatisfaction?

3. The country may have a product that is highly regarded in the domestic market.

Why is it that exporters have not found sustained buyers overseas to appreciate this

product?

4. The extension department has a very important role in the development of farm

productivity via transfer of knowledge and information to the small farmers.

If this TOT is not effective, what are some of the plausible solutions to it?

5. In developed markets, consumers demand very high food safety and hygiene standards

on the importation of food produce, particularly on fresh F&V.

Should these standards be confined for consumers who can afford or should it be

universal? Can GAP certified products be universal?

6. If the benefits of implementing GAP on farm are clear-cut;

Why do stakeholders; producers, service / logistic providers take the easy way, cut

corners, bend on standards and have a tacit reluctance to follow the rules?

7. The majority of small farmers in Asia are not literate, do not understand how market

operates, and do not have sufficient knowledge and instructions how to improve their

productivity. If they are to accept any changes in their farm practices, they want to

know what benefits are gotten for their participation.

What will drive producers and farmers to change and to accept GAP?

Debate on GAP - 2

k-farm carambola gap program · supply chain, policy - infrastructure investment, farm aid, ......

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