1. EU private standards (GLOBALGAP, EUREPGAP) as substitutes for missing public standards: the case of fresh fruit and vegetables
Seminar Presentation:
“Marketing and Trade of Fresh Fruit and Vegetables“
Tatjana Schmolke
May, 30th, 2008

2. Outline EU Public legislations for FFV Marketing
Private Standards for FFV
GLOBALGAP
Benefits and challenges of Private Standards
Comparison of Public and Private Standards
Conclusion

3. EU legislations for FFV Marketing
Codex Alimentarius and UN/ECE Standards:
Consumers’ health
Fair trade practices
Promotion/ coordination of uniform food standards
Food Law (EC) No. 178/2002
Commercial Law (EC) 2200/96

4. EU legislations for FFV Marketing
Principles, requirements, procedures and matters of food safety
Risk analysis, precaution and traceability
Mandatory for all FFV marketed in the EU
Food Law (EC) No. 178/2002

5. EU legislations for FFV Marketing
Common organization of the market in FFV
Fair trading and market transparency
Elimination of unsatisfactory or harmful quality
Improvement of production profitability
Minimum requirements for all FFV marketed in the EU
EU Marketing Standards for all market important FFV species
Commercial Law (EC) 2200/96

6. Minimum Requirements for FFV
FFV marketed in the EU must be:
Intact
Sound
Clean
Practically free from pests and damages caused by pests
Free of abnormal external moisture
Free of any foreign smell and/or taste
Source: EC; 2001

7. Marketing Standard for Citrus Fruit
For Lemons, Mandarins and Oranges:
Quality
Minimum Requirements
Maturity Requirements
Classification
Sizing
Tolerances
Presentation
Marking
Minimum Size
Size scales
Minimum differences
Quality
Size
Uniformity in:
Origin
Type
Class
Ripeness
Packer Ident.
Nature and Origin of Produce
Lot-Number
Maturity Requirements
For Mandarins:
Minimum juice content
Mandarins excluding Clementines: 33%
Clementines: 40%
Coloring
Must be typical of the variety on at least
one third of the surface of the fruit
Source: EC; 2001

8. Why Private Standards? GLOBALGAP: Internationally harmonized standard
Substitutes for missing public regulations
Product standardization and differentiation
Competitiveness and access to international markets
Satisfaction of consumers’ demand for
Safe, high quality and traceable food
social, animal and environmental standards
GLOBALGAP:
Internationally harmonized standard

9. GLOBALGAP Integrated Farm Assurance Standard All Farm Base Crops Base
Livestock Base
Aquaculture Base
Fruit and Vegetables
Flowers and Ornamentals
Combinable Crops
Green Coffee
Tea
Cotton
Cattle and Sheep
Dairy
Pigs
Poultry
Salmonids
Shrimps
Pangasius
Tilapia
Source: Globalgap; 2007

10. FFV Certification
General Control Points and Compliance Criteria (CPCC):
Production according to GAP
Food hygiene/ safety/ traceability
Environmental and Labour standards
Quality management standards
Special CPCC for FFV:
Propagation Material
Soil and Substrate Management
Irrigation and Fertigation
Harvesting
Produce Handling
Source: Globalgap; 2007

11. Benefits from Private Standards
Producer:
Market Access
Retailer:
Competition on global markets
Product differentiation (quality and safety)
Transaction cost and acquisition risk reduction
Standards are at no cost
Consumer:
Trust
Safety, Quality
Traceability
Sources: Gay and Schneider; 2007/ Peris and Juliá; 2007/ Henson and Reardon; 2005

12. Challenges of Private Standards
Producer
Pressure from retailers
Risk of loosing market share / market access
Extra costs without price premium
Difficulties for small scale farmers from developing countries
Retailer
Traceability linkages
Hygiene, Food Safety and Quality
Consumer
Added value not visible
Branding
Sources: Gay and Schneider; 2007/ Chemnitz; 2007/ Vermeulen et al.; 2006

13. Comparison of Public and Private Standards
Legally binding
Voluntary
Product Quality
Process Quality
Traceability and Risk management
Scarce controls
Frequent controls
Food safety and quality assured
Product differentiation NOT possible
Product differentiation possible

14. Conclusion 1 Public Standards fully cover: Food safety Quality
Traceability
Practically no missing standards exist
Private Standards make product differentiation possible

15. Conclusion 2 GLOBALGAP Effects of Private Standards
internationally harmonized standard
Focusing on process quality
Effects of Private Standards
Producers can gain market access but at high costs
Retailers put pressure on producers
Retailers receive certified FFV at no cost
Consumers gain indirectly as the added value is not visible to them

16. Conclusion 3 Remaining questions: Does required quality reach POS?
Do Private Standards act as barriers to trade?
Are developing countries disadvantaged?

17. Thank you for your attention!

18. References
EC; 2001: Commission Regulation laying down the marketing standard for citrus fruit. (EC) No 1799/ September Consolidated version
Globalgap; 2007: Integrated farm assurances. General regulations. Global G.A.P (Eurepgap). Globalgap and Food Plus. Available at: Accessed: 15/05/2008
Globalgap; 2007a: Checklist Fruit and Vegetables. Available at: Accessed: 29/05/2008
Gay, S.H. and Schneider, A.; 2007: A comparative analysis of food quality assurance schemes:The case of neuland and eurepgap. 47th annual conference of the German Association of Agricultural Economists (GEWISOLA) and 17th annual conference of the Austrian Association of Agricultural Economists (ÖGA) September Freising/ Weihenstephan
Henson, S.J. and Reardon, T.; 2005: Private Agri-Food Standards: Implications for Food Policy and the Agri-Food System. Food Policy, 30 (3):
Peris Moll; E-M. and Juliá Igual, J.F.; 2007: Production costs of citrus growing in the Communidad Valencia (Spain): EurepGAP protocol versus standard production. In: Theuvsen, L/ Spiller, A./ Peupert, M. and Jahn, G. (eds.): Quality management in the food chains. Wageningen Academic Publishers. Wagneingen: 69-78
Chemnitz, C.; 2007: The compliance decision with food quality standards on primary producer level. A case study of EUREPGAP Standard in the Moroccan Tomato Sector. 1st Mediterranean Conference of Agro-Food Social Scientists. 103rd EAAE Seminar Adding Value to the Agro-Food Supply Chain in the Future Euromediterranean Space. 23rd-25th April Barcelona
Vermeulen, H./ Jordaan, D./ Kortsen, L. and Kirsten, J.; 2006: Private Standards. Handling and Hygiene in Fruit Export Sypply Chains: A Preliminary Evaluation of the Economic Impact of Parallel Standards. Contributed Paper IAAE Conference. Gold Cost. Australia. August Available at: Accessed: 20/03/2008