Fruit and Vegetables for the Fresh Market Trade Rules, Regulations and Standards: Implementation of Agricultural Standards This presentation is part of the UNECE workshop on „International Standardsd in the Multilateral Trading System“ and addresses especially the field of international marketing standards for fresh fruit and vegetables intended for the fresh market. Fruit and Vegetables for the Fresh Market

Section Marketing Standards and Inspection Ulrike Bickelmann Trade Rules, Regulations and Standards: Implementation of Agricultural Standards German Federal Agency for Agriculture and Food Section Marketing Standards and Inspection Ulrike Bickelmann The Federal Agency for Food and Agriculture is in Germany the governmental body responsible for the import inspection of fresh fruit and vegetables intended for the fresh market and the governmental body responsible for the co-ordination of the different regional and local inspection bodies competent for the inspection at production, wholesale, retail and export. The inspection mentioned above is restricted to check the conformity of the produce with the marketing standards in force. Ulrike Bickelmann is the head of the section marketing standards and inspection and responsible for the training of inspector and harmonisation of interpretation and application of standards and inspection regulations in Germany. Since 2007, she is chair-person of the UNECE Specialised Section on Standardisation of Fresh Fruit and Vegetables.

Why marketing standards for fruit and vegetables? Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Why marketing standards for fruit and vegetables? f & v grow naturally quality is influenced by cultivation, harvest, storage, handling and transport conditions trading volume & price influenced by quality Producers have started to develop standards for their produce since they have started to sell their produce. They felt the necessity for standards at least when they left the local market. The naturally grown produce is graded to eliminate the produce that do not meet the expectations of the producer, buyer or consumer. Additionally, the produce is grade to different quality levels to serve the clients expectations best and to get better prices for better produce. Eventually, the produce is sized to give the package a better presentation and to offer a uniform looking produce to a better price. With the increasing distance between producer and client, both needed the standard as a trading language. producers & traders grade their produce to best serve the market standards serve as a trading language

Positive effects of standards Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Positive effects of standards technical definition of quality parameters labelling as a reference (address, country of origin, quality class ) reliability & credibility & profitability increased The standards define the quality parameters of the produce. Usually they define a minimum standard for the produce or each single category. In most cases, they include provisions concerning labelling and thus give information on address of the packer or dispatcher, the country of origin and the quality class. Therefore, standards increase the reliability and credibility of the producer or trader and thus increase their profit. The positive effect of standards as trading language became more and more important when the clients made contracts by telephone without inspecting the produce beforehand. The system works and shows that there is more transparency in the market. contract without personal inspection by the buyer transparency in the market

Multiplication of positive effects Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Multiplication of positive effects company (producer, trader) region (producer association) country (national standard) Standards, originally developed by single producers become more importance and value when they were developed and implemented by all producers of a region. The effect of market transparency is multiplied by the standards becoming national standards. As soon as the trade crosses the borders of two countries this positive effect is again multiplied. two countries or more (international standard)

Negative effects of national standards Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Negative effects of national standards valid for one country only exporters have to meet the national standards of the different importing countries importing countries should accept multiple export standards National standards have their value on the domestic market. But they have their restrictions for exporters of different countries that have to meet the expectations and national standards of the different importing countries. Vice versa, importing countries can be faced with the different standards of the different exporting countries. On the one hand, they should accept these standards of their sellers on the other hand they should protect their national standard and/or their consumers’ expectations. The number of national standards complicate trade and give rise to international conflicts as national standards can be understood as technical barriers to trade – the more as these marketing standards do not deal with health issues but with market requirements and expectations. trade is complicated and paved with conflicting regulations barriers to trade established in national law

Negative effects of national standards National standards for potatoes Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Negative effects of national standards National standards for potatoes Class I Class II Out of grade Germany 31 % 8 % 51 % Germany (disc) 6 % 32 % 62 % Austria 72 % 11 % 17 % The following example may illustrate the difficulties raised by national standards. In Germany a national standard for early and ware potatoes is applied obligatory since the early 1960ies. A revision of this standard has been discussed in 2005. 169 lots of potatoes have been graded against the existing German national standard, the draft to amend the German national standard and the Austrian standard for early and ware potatoes. It is clearly visible that the content of a standard clearly influences the quality on the market and it is clearly visible that these differences between national standards could be the basis for trade conflicts. In addition, the more sub-standard produce is on the market, the lower the prices will be – even for the higher quality. In general, the Class I produce should have the biggest market share.

Positive effects of international standards Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Positive effects of international standards developed and agreed by exporting and importing countries technical barriers to trade avoided market transparency increased International standards as developed and adopted by the UNECE avoid these trade conflicts. These standards are developed and adopted by exporting and importing countries and thus reflect the common line and requirements of producers and consumers. The UNECE standards are minimum standards and guarantee not only market transparency but also edibility of the produce. competition based on uniform minimum standards

United Nations - Economic Commission for Europe Trade Rules, Regulations and Standards: Implementation of Agricultural Standards UN/ECE United Nations - Economic Commission for Europe Committee on Trade Working Party on Agricultural Quality Standards The Committee on Agricultural Problems of the UNECE decided at its first session in October 1949 to set up a Working Party on Standardization of Perishable Produce (sine 2003 the Working Party on Agricultural Quality Standards). In 1958 the Working Party adopted the Geneva Protocol on Standardization of Fresh Fruit and Vegetables and Dry and Dried Fruit. The general provisions contained in the protocol served as the basis for the standards layouts for UNECE standards for fresh fruit and vegetables and for dry and dried produce. Work on the standardisation of meat, eggs, seed potatoes, pulses and cut flowers was carried out according to the same principles. The responsibilities of the Working Party include. Elaborating internationally agreed commercial quality standards for agricultural produce based on existing national standards, industry or trade practices for fresh fruit and vegetables (including early and ware potatoes), Dry and Dried Produce, Seed Potatoes, Eggs, Cut Flowers and Meat. Amending existing standards based on practical experience, technical developments and the economic evolution of the market. Monitoring the application of the standards through reports from participating/international public administrations, other organisations and the private sector. Cooperating with the WTO secretariat to ensure that the standard setting process is consistent with WTO rules. Cooperating with other standard setting bodies to avoid duplication of work and divergence of standards (e. g. Codex Alimentarius Commission). Cooperating with governmental and inter-governmental organisations that implement standards to achieve uniformity of methods and results (e. g. the European Union and the OECD Scheme for the Application of International Standards for Fruit and Vegetables). Promoting the application of standards and offering assistance to countries interested in implementing UNECE Standards (e. g. by organising workshops on the harmonisation of national standards with international commercial standards). Assist in activities of other UN bodies and Specialized Agencies having an impact on trade in agricultural produce (e. g. Cooperation with WHO on the Global Strategy on Diet, Physical Activity and Health). Ensuring that all parties interested in the work (members and non-members of UNECE, international governmental and non-governmental organisations) are informed and may participate, to ensure the widest possible input to the standards development process. Dry and Dried Fruit Seed Potatoes Meat Fresh Fruit and Vegetables

to define a common trading language Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Why UNECE Standards? to define a common trading language to fill the gap between food safety regulations and marketing to define commercial quality for foodstuffs The UNECE standards are based on the Geneva Protocol. The Geneva Protocol establishes a framework for the development of internationally agreed commercial quality standards for agriculture and their application in order to: Facilitate fair trade, prevent technical barriers to trade and provide a common trading language Promote sustainable quality production Keep unsatisfactory produce from the market Create market transparency for consumers The signatories have notified the Executive Secretary of the Economic Commission for Europe of their acceptance of this Protocol: Agree to the standard setting process in the Working Party on Agricultural Quality Standards Agree to inform the Secretariat of the UNECE on an annual basis about the status of implementation of UNECE Standards in their area of competence. to encourage high quality production to protect consumer’s interests

Process of elaborating a standard Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Process of elaborating a standard Specialized Section and Working Party agree to create/amend a standard Rapporteur prepares/amends text Specialized Section discusses text in detail Working Party discusses text in general The Working Party and its Specialised Sections meet annually unless otherwise agreed. The meetings are held in Geneva or at the invitation of a host country. All meeting of the Working Party and its Specialised Sections are open to all UN members, regional economic integration organisations, specialised agencies of the UN and other Intergovernmental Organisations, invited or accredited non-governmental organisations. Non-governmental organisations having an interest in the standardisation activities can apply for permission to attend the meetings. All decisions are taken by unanimous consensus. UN/ECE Standard UN/ECE Recommendation for a 2+1 year trial period http://www.unece.org/trade/agr/welcome.htm

UNECE Standards enshrined in EU legislation Trade Rules, Regulations and Standards: Implementation of Agricultural Standards UNECE Standards enshrined in EU legislation Council Regulation (EC) No 2200/96 on the common organisation of the market in fruit and vegetables classification using common obligatory standards provides a reference framework that encourages fair trading and market transparency eliminates products of unsatisfactory quality from the market helps to improve the profitability of production The market organisation of the EU is based on Regulation (EC) No 2200/1996. standards take into account UNECE standards standardisation can only be fully effective when applied, subject to exemption, at all marketing stages and on departure from the production region

European Union Marketing Standards Trade Rules, Regulations and Standards: Implementation of Agricultural Standards European Union Marketing Standards Apples Avocados Cherries Citrus fruit (oranges, lemons, mandarins) Hazelnuts in shell Kiwifruit Melons Peaches and Nectarines Pears Plums Strawberries Table grapes Watermelons Walnuts in shell In the EU, the regulations putting the marketing standards for fresh fruit and vegetables into force are published in the European Journal. The marketing standards are obligatory at all levels of distribution (production, export, import, wholesale and retail). The EU has marketing standards for the 36 most important (production and trade) fruit and vegetables. The marketing standards are obligatory at all levels of distribution (production, export, import, wholesale and retail). For fruit these are: Apples, Avocados, Cherries, Citrus fruit (oranges, lemons, mandarins), Hazelnuts in shell, Kiwifruit, Melons, Peaches and Nectarines, Pears, Plums, Strawberries, Table grapes ,Watermelons, Walnuts in shell. The standards are available in German, English and French at www.ble.de.

European Union Marketing Standards Trade Rules, Regulations and Standards: Implementation of Agricultural Standards European Union Marketing Standards Artichokes Asparagus Aubergines Beans Brussels Sprouts Carrots Cauliflower Courgettes Cucumbers Cultivated Mushrooms Garlic Headed Cabbages Leeks Lettuces and Endives Onions Ribbed Celery Peas Spinach Sweet Peppers Tomatoes Witloof Chicory For the following vegetables, the EU has marketing standards: Artichokes , Asparagus, Aubergines, Beans, Brussels Sprouts, Carrots, Cauliflower, Courgettes, Cucumbers, Cultivated Mushrooms, Garlic, Headed Cabbages, Leeks, Lettuces and Endives, Onions, Ribbed Celery, Peas, Spinach, Sweet Peppers, Tomatoes, Witloof Chicory. The standards are available in German, English and French at www.ble.de.

European Union Marketing Standards Trade Rules, Regulations and Standards: Implementation of Agricultural Standards European Union Marketing Standards I. Definition of produce II. Provisions concerning quality - Minimum requirements - Maturity requirements - Classification III. Provisions concerning sizing IV. Provisions concerning tolerances V. Provisions concerning presentation VI. Provisions concerning marking The EU marketing standards follow strictly the UNECE standard layout. Moreover, they are harmonised – with few exceptions – with the special UNECE standards.

European Union Marketing Standards Trade Rules, Regulations and Standards: Implementation of Agricultural Standards European Union Marketing Standards Class Extra Class I Class II

European Union Marketing Standards Trade Rules, Regulations and Standards: Implementation of Agricultural Standards European Union Marketing Standards packer/dispatcher name of produce - variety/commercial type country of origin quality class size

European marketing standards Trade Rules, Regulations and Standards: Implementation of Agricultural Standards European marketing standards obligatory in all member states obligatory at all marketing stages (including import and export) conformity checks in accordance with Regulation (EC) no. 1148/2001 at all levels of distribution based on risk analysis and sampling resentment based on national law of the member states The EU marketing standards are obligatory in all member states and at all levels of distribution (production, export, import, wholesale and retail). The EU member states are responsible for inspection at all levels of distribution. The inspection is carried out according to Regulation (EC) No 1148/2001. The inspection is based on risk analysis and sampling. The fees for inspection and the resentment are based on national law of the member states.

Import Inspection in Germany - 2006 physiological defects Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Import Inspection in Germany - 2006 32,848 lots = 131,719 tons notified 10,652 lots = 100,191 tons inspected of which 5 % rejections because of labelling deterioration physiological defects skin defects cleanliness The import inspection in Germany (for non-EU produce only) revealed in 2005, a rejection of not more than 3 % out of 35,062 lots or 129,376 tons. The main problems are that the packages are not labelled correctly followed by deterioration, physiological defects, skin defects and lack of cleanliness. The percentage of non-conform produce clearly shows that national standards based on international UNECE Standards help to prevent technical barriers to trade and to meet the possibilities and expectations of all parties concerned.

Thank you for attention! Trade Rules, Regulations and Standards: Implementation of Agricultural Standards Thank you for attention!