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The IPPC ePhyto Solution and Business Model Considerations Tom Butterly TDAF Consulting

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Page 1: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

The IPPC ePhyto Solution and

Business Model Considerations

Tom Butterly TDAF Consulting

Page 2: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

Phytosanitary Certificates

Phytosanitary Certificates cover the export and import of plants, seeds, fruits and vegetables, cut flowers, grains, etc

Plant and Plant Products Market worth hundreds of $billions annually

Page 3: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

Extra-EU trade in agricultural products, category vegetables, EU-28, 2002 2016 (EUR million)

Source: http://ec.europa.eu/eurostat/statistics-explained/index.php?title=File:Extra-EU_trade_in_agricultural_products,_category_vegetables,_EU-28,_2002_2016_(EUR_million).png

Page 4: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

Phytosanitary Certificates

Covers plants, seeds, fruits and vegetables, cut flowers, grains, etc

Plant and Plant Products Market worth hundreds of $billions annually

Issued by the National Plant Protection Organization (NPPO) of the exporting country to the NPPO of the importing country, to indicate that consignments of plants, plant products meet the specified phytosanitary requirements by the importing country

Under the FAO’s International Plant Protection Convention (IPPC)

Page 5: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

ePhyto Verses Paper Phytosanitary Certificate Flow

Page 6: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

National electronic phytosanitary certification – bilateral

Page 7: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

National System

GeNS

The IPPC ePhyto Solution -One to Many

ePhyto hub

GeNS

NPPOwithout

national system

NPPOwithout

national system

NPPO Country Awith national system

NPPO Dwith national system

National System

NPPO Country Bwith national system

National System

NPPO Cwith national system

National System

Page 8: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

So the essentials of the IPPC ePhyto Solution are …

ePhyto SchemaConsistent (harmonized) message structure and

content

HubSystem to facilitate

exchange of ePhytosbetween NPPOs

GeNSGeneric ePhyto National

System

Page 9: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

Pilot Countries, 2018-2019Hub Argentina Australia Chile China Ecuador Kenya KoreaNetherlandsNew ZealandUSA

GeNSGhana Samoa Sri Lanka

Page 10: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

ePhyto and Single Window• ePhyto is a classic opportunity for SW implementors

• Ghana considering integrating ePhyto within SW (they will initially use the GeNS)

• Morocco (potential) project to implement ePhyto will consider SW implementation

• Major enhancement of benefits when integrated with Customs

• …… and other related document – as per this conference!

Page 11: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

ePhyto Business Model

Page 12: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

38

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0 10 20 30 40 50 60 70

A single fixed annual membership fee paid by all participating NPPOs to IPPC –same fee level for all NPPOs

Variable annual membership fee paid by NPPOs to IPPC – based on the income level of the country, volume of ePhytos transmitted etc.

Voluntary contributions to IPPC – from leading NPPOs, industry, etc

Donor funding model – IPPC should seek international donors to fund the whole project

Donor funding model – IPPC should seek international donors to fund parts of the project such as capacity building

Fee per ePhyto Cert issued - collected by NPPO and transferred to IPPC

NPPO’s Preferred funding model

1- least preferred 2 3 4 5- most preferred

Page 13: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

Business Model - Funding Options Considered

Funding by FAO

Funding by Lead NPPOs, Key Phytosanitary Certificate Users

Funding by “External” Donors

Participant Based Funding

Combined Approach

Capacity Building and Technical Assistance – separate Trust Fund

Page 14: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

Most Likely Approach to be adopted …

“Donor” based model for first 5 years – for operating costs

Participant Based Funding thereafter??

Capacity Building Trust Fund separate

Final Business Model 2020 – after results of Pilot and other research concluded

Possible FAO wide approach – other certificates

Page 15: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors
Page 16: The ePhyto Solution - UNECE · Business Model - Funding Options Considered Funding by FAO Funding by Lead NPPOs, Key Phytosanitary Certificate Users Funding by “External” Donors

Further Information:

IPPC ePhyto Website: https://www.ippc.int/en/ephyto/IPPC ePhyto Project Manager: Shane Sela – Email: [email protected] Email: Tom Butterly: [email protected]