1. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Donor interventions on agro-food standards: Policy lessons from the SAFE programme Peter Gibbon

2. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Outline 1 Donor interventions on agro-food standards 2 The existing literature on donor interventions 3 Central findings of the SAFE programme 4 Lessons for development assistance

3. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Donor interventions on agro-food standards I Phase 1, 1970s to late 1990s  Support to public systems for food safety conformity (government departments and agencies, public labs, national standards bureaus) (IGOs + bilaterals)  One-off support to certification of private exporters via bilateral B2B programmes Phase 2, late 1990s to ca. 2005  Ongoing support to public systems  Dedicated bilateral programmes supporting certification of private operators (EPOPA, EU-PIP)  PPPs – bilateral support to large international traders for quality upgrading of export sectors (GTZ, ???)

4. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Donor interventions on agro-food standards II Phase 3, ca. 2005 to present  Ongoing support to public systems  Proliferation of dedicated bilateral programmes supporting certification of private operators  Proliferation of ‘linking farmers to markets’ programmes, where PO/exporter certification supported alongside e.g., credit and/or input provision  PPPs replaced by participation in multi-stakeholder standard-setting (GTZ, SECO, IFC, DFID) – aimed at enhancing Southern participation, promoting group certification, expanding issues covered and brokering NGO-MNC relations

5. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES The literature on donor interventions I Support to public systems for food safety conformity Van der Meer (2007)  Impact limited, due to absence of centralised host government policy and planning  Uncoordinated donor sponsorship of ’favourite’ departments or agencies reproduces system of divided and overlapping authority between  National conformity capacity often present, but dispersed, inefficient and by-passed by private operators

6. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES The literature on donor interventions II Programmes supporting certification of POs/exporters (either free-standing or with other ‘linking farmers to markets’ components) Humphrey (2006, 2008), Rios et al (2008), Henson et al (2008) -Impacts on supply capacity and welfare poorly monitored but probably limited (esp. for GlobalGAP certification) -PO/exporter commitment restricted by non- involvement of buyers -Supply/managerial capacity rarely targetted -Entry barriers frequently set too low

7. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Findings from the SAFE programme I Three SAFE research questions  How did E. African countries succeed in maintaining EU market access for artisanally-sourced fish from Lake Victoria since 2001, and did this success have wider impacts on national systems of conformity?  To what extent has smallholder conformity to sustainability standards brought about measurable household benefits, and what factors other than certification make such benefits likely?  Under what circumstances have initiatives by standard- setters and interested NGOs to improve implementation of ‘enabling’ labour standards succeeded or failed?

8. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Findings from the SAFE programme II Reforming the fish conformity system and the relation of this to national conformity systems Fish conformity system reform involved centralisation of authority in FDs,harmonization of standard operating procedures via LVFO and exporter financing of public inspection & monitoring Fish conformity systems de facto separated from national conformity systems – no spillover effects  National systems still fragmented, lack coordinated policy/planning.  Functions and laboratory infrastructure duplicated.  Public services underutilised.  Private sector rarely consulted, by-passes the public system

9. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Findings from the SAFE programme III Smallholder conformity with sustainability standards Surveys conducted of 8 donor-supported contract farming schemes certified to organic, GlobalGAP, Fairtrade and UTZ (all with control groups) Measurable benefits from participation in 3 (organic). For other schemes no consistent participation benefits found ‘Successful’ schemes characterised by  Marketing guarantees and premiums for ‘organic +’ quality requirements  Crops whose uncertified markets have large quality-based price spreads  Larger companies with experience and contacts in conventional markets  Focused, coherent but time-limited donor support

10. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Findings from the SAFE programme IV Success factors in implementing ‘enabling’ labour standards (standards to increase union density and adoption of farm-level CBAs) -Unions have to actively engage with the standard -The standard-setter has to create a role for unions in farm certification -Donor support for unions to conduct training and other activity at farm level accelerates the process

11. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Lessons for donors I Conformity with private standards only generates welfare benefits under specific circumstances. Thus, in multi-stakeholder standards contexts, donor priorities should be:  Ensuring economic impact assessments are undertaken (using different compliance scenarios) before rules are agreed and support to certification provided.  Restraint in establishing new standards, unless (as in the case of mainstream labour standards) existing ones are known to have failed in their objectives

12. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Lessons for donors II Support to public systems of conformity should respond only to coherent national, or failing this sectoral, public-private policy making and planning. Where this is absent, support is likely to generate only increased inter-agency competition and duplication of resources. To safeguard against this, improved donor coordination is another priority.

13. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Lessons for donors III Reserve support for smallholder certification to private standards to schemes with guarantees that all product will be sold as certified, or ones where the exporter has a strategy assuring viability when certified markets are in surplus Target support at established exporters familiar with conventional markets Target support at certification to standards where conformity requirements do not entail exposure of smallholders to investment risks. Don’t overload schemes with non-operational objectives and actors

14. DIIS ∙ DANISH INSTITUTE FOR INTERNATIONAL STUDIES Lessons for donors IV Support to implementation of the new generation of labour standards should be targeted at circumstances where there is -Buy-in from national unions and -Willingness by standard-setters to directly involve unions in farm-level implementation and certification.