1 ValueLinks Module 9 Introducing quality & safety standards Introducing product norms and standards

2 ValueLinks Types and importance of norms and quality standards Contents Approaches to introduce safety norms and quality standards 1 2 Introducing product norms and standards

3 ValueLinks Food safety / product safety  Hygienic harmlessness  Free of harmful substances or content below thresholds  Disease free  Traceability required Product quality and safety Food quality  Freshness  Taste … variety  Homogeneity  Nutrient content  Processing methods  Origin and traceability  … Non-food product quality  Fitness for use  Design  Uniqueness of product  … 1 Motivation of norms & standards Non-food product safety  Safe for use  Free of harmful substances or content below thresholds  …

4 ValueLinks Environmental sustainability  “Good practice”  Sustainability of production (especially in case of products from gathering or hunting)  Recycling (of waste, used product)  Reduced CO 2 emission in transport and logistics Social sustainability / ethic standards  no child labour  Fair labour conditions  Decent workplace  timely payment of producers  … 1 Motivation of norms & standards Social and ecological criteria

5 ValueLinks Obliging norms - regulated by laws  safety of food  effectiveness of inputs  avoid dissemination of diseases and pests  formal precondition for access to (export) markets Voluntary standards  Satisfaction of clients  Competitiveness on domestic markets (imported products)  Competitiveness at / access to export markets Nature of standards 1

6 ValueLinks issued by Government Product quality standards Safety standards issued by Industry - Grades - Codes of Conduct Overview of types of standards Social and ecological standards - Food laws - Liability laws - Social laws - Environ- ment laws - Industry standards - FSC - Flower label - Rugmark 1 Types of quality norms & standards

7 ValueLinks issued by Government Product quality standards Safety standards issued by Industry or Civil society Overview of types of standards Social and ecological standards 1 Types of quality norms & standards

8 ValueLinks  Market transparency: Standards simplify communication between market participants and assist marketing  Competition policy: Standards create a more level “playing field” and support fairness  Transaction cost: Standards enhance the security and reduce cost of market transactions  Incentive for continuous quality improvement  Contribution to equity and sustainability: Standards impose limits on resource use, use of inputs and labour conditions Value chains and standards 1

9 ValueLinks Types and importance of norms and quality standards Contents Approaches to introduce safety norms and quality standards 1 2 Introducing product norms and standards

10 ValueLinks Developing codes and standards 2 Which standard? – a decision tree Do target markets require the observation of standards? …or would a standard improve market access? Yes No Does this standard exist already? Are there any important safety, social and/or ecological concerns? No Yes - Develop and agree on a specific private code of conduct Is there scope for adjustment? Yes No - Agree on VC / country-specific adaptations - Introduce standard Is there a standard / law that regulates the issue at stake? Yes No - Support legal reform & enforcement Is it binding? Yes No - Amend standard

11 ValueLinks Implementing codes and standards 2 Assessment of target market access requirements: Who sets the standards for the new markets – and how are they enforced? Assessment of capacities: Can small producers meet the standards of these new markets? Which capacities need to be strengthened along the chain to meet the standards – and at what cost? Which institutions or innovative companies are capable of supporting chain operators to implement the standards? Identification of leverage points and investment: Which constraints are critical - impeding or promoting the necessary change in production technology and organisation? Which technical or financial assistance is necessary to initiate and strengthen the implementation and long-term application of the standards? Lead questions and considerations

12 ValueLinks Conformity control (risk analysis, control of food production / processing, of markets and shops Gather information Development of QM-systems Adaptation of legal framework Public-Private Partner-ships Preparation of laboratories + certification bodies for ISO-Certification  on regulatory framework / norms / laws on food safety, input standards, sanctions (international trade!)  on existence / effectiveness of control bodies Use information Identify needs for adaptation of framework Process introducing safety standards Identify upgrading needs of control bodies Identify up- grading needs of enterprises Capacity development Organize/ implement upgrading Macro Meso Micro Technologies, management 2

13 ValueLinks Gather information  Quality requirements of the buyers  Involved price differences or willingness to pay for better quality Use information Sensitize / raise awareness of suppliers on quality / safety needs and related economic potentials If interest and willingness to contribute are manifest Develop / agree on measures to achieve the required qualities and benefits Implement & evaluate  Implement agreed measures  Evaluate with suppliers and buyers  Learn from experience Use experience + momentum Disseminate success stories Scale-up Process introducing quality standards Exit? Meso Micro ( ) 2

14 ValueLinks Production Trans- formation Distribution Primary producers Traders, Retailers Con- sumers Processing Industry Con- sumption GAPGMPGTP GDP GHP Operational prerequisites: GAP = good agricultural practice GMP = good manufacturing practice GTP = good trade practice GDP = good distribution practice GHP = good hygiene practice Quality Management System e.g. - HACCP - Product traceability Based on laws and norms General: - ISO 9000pp Specific to food safety, e.g.: - ISO EU Regulation 178/2002 Quality & Safety Management System 2

15 ValueLinks ISO 65 accredi- tation Standard Guidelines certifi- cation Third party audit 2 Verifying standard application Customer Certification body Operator (producer, processor, Exporter) First party audit Second party audit Accreditation body