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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 5 th – 10th December 2016, Lahore Pakistan

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  • 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

    Drivers of Change in Asian Food Systems - 2

  • 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

    Changes in the Industry Changes at Ground Level

    Drivers of Change in Asian Food Systems - 3

    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

    Changes in the Industry Changes at Ground Level

    Drivers of Change in Asian Food Systems - 4

  • 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

    GAP Practices in Asian Countries - 2

  • 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

    GAP Practices in Asian Countries - 3

  • MyGAP

  • 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

  • JGAP

  • 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?

    Formulating a GAP Strategy for Pakistan - 2

  • 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?

    Formulating a GAP Strategy for Pakistan - 3

  • 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.

    Formulating a GAP Strategy for Pakistan - 4

  • 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