Conclusions and recommendations |
| Project PFL/INT/857 objectives were fully achieved. The development of the training programme in the region allowed the training of key resource persons in the national institutions involved in food safety and quality activities. In addition to the current achievements in the implementation of the National Action Plans, it is expected that the trainers trained through subregional and national courses will continue organizing and giving shortened versions of the training in universities, industries, etc. As it is presented in Annex 4 (NAP’s final reports), in some countries the national teams have already received several requests from companies, farmers associations, etc., to provide further training regarding quality and safety issues. The training materials prepared by FAO/ESNS, and available on the Internet, are currently used to deliver training courses throughout Latin America and the Caribbean, and requests have been received to post those training materials in important Web Sites of governmental institutions all over the world. Those materials have also been used by FAO/ESNS to support the training activities at the subregional and national level, in Asia and African countries. For example, the training tools will be validated in Asian countries through a FAO/ESNS subregional workshop on improving the quality and safety of fresh fruit and vegetables, to be held in Bangkok, Thailand from 28 Febrary-4 March, 2005. Similarly, the training tools are currently being used in specific national projects regarding FFV safety issues, implemented under the Technical Cooperation Programme in Benin, Thailand, Senegal and China. PFL/INT/857 project’s activities have promoted the integration between public and private institutions at the Regional and National level, as well as the exchange of information and experiences on FFV quality and safety issues. Certainly, as it is presented in section 3 of this report, there is a clear need for FAO technical assistance in the Region in issues regarding quality and safety for fresh produce and to ensure the continuity of the training activities started through project PFL/INT/857. However, in order to address some recommendations for FAO/ESNS future activities in the region, it is important to illustrate, in general terms, the current situation of the implementation of quality and safety initiatives in the horticultural sector in the region. Findings - Progress in the implementation of quality and safety programmes in the fresh produce industry in Latin America and the Caribbean Region
Latin American and the Caribbean countries are key players in the production and global trade of fresh fruits and vegetables (FFV). In terms of production, the Region contributes to 4.1 percent of the world production of vegetables and 21 percent of the global production of fruit. The region accounts for 32 percent of the world production of tropical fruits.In terms of exports, Latin America and the Caribbean share an important part of the total value of FFV from developing countries’ exports, which has grown strongly, by US$ 4.5 billions from 1992 to 2002, representing an increase of 5 percent. Particularly for the Latin American and Caribbean Region, the increase in FFV exports in the last decade reached 4.5 percent, with key exporting countries being Chile, Mexico, Brazil, Costa Rica, Colombia, Ecuador, Argentina, and Peru, which is illustrated by the following data:
The participation of Latin American and Caribbean countries in the value chain of FFV varies widely among countries in the Region. Some countries have successfully implemented a policy of diversification of traditional exports by increasing their participation in the global and regional trade of FFV. Guatemala, for example, is one of the most dynamic economies taking part in the value chain of FFV, with growth of horticultural exports during the last decade of 12 percent in volume and 10 percent in value. In 1986 exports of traditional products (sugar, coffee, banana, cotton and meat) accounted for 70 percent of the total agricultural exports, and 29.5 percent were represented by non-traditional products. In the year 2000, that trend reversed and 60 percent of total agricultural exports were represented by non-traditional products (peas, broccoli, small size vegetables, berries, pitahaya, mango, melon) and only 40 percent by traditional ones. This export dynamism has involved a high number of producers, according to non-official data (AGEXPRONT) 15 percent of the 819162 individual Guatemalan horticultural producers supplied produce to the export markets in 2004. Furthermore, traditional exporting countries of fresh produce in the region are implementing a policy attempting to diversify their horticultural exports- (e.g. Chile is currently exporting avocados, citrus, etc, in an effort to diversify its traditional exports of temperate fruits). Countries such as Brazil, Chile and Mexico are currently taking part in the global value chain of several horticultural products, while other countries in the region are involved in very few (e.g. Paraguay, Venezuela, Colombia, Bolivia, with one or two key export horticultural commodities). According to Wood (2001), once a country has developed economies of scale in the supply of infrastructure, skilled labor, support services, information etc, for the sector, it will have advantages to move into the value chain of new products, as it has been demonstrated by the diversification of the horticultural exports in countries like Chile and Mexico. Many governments in the region are promoting an export strategy for horticultural products as a source of export earnings and to enhance economic growth, however several constraints remain in terms of proper infrastructure and the services required to support the development of the horticultural sector. Limitations at the level of post-harvest infrastructure, transport and information, remain as serious bottlenecks for improving the participation of some Latin American countries in the value chain of FFV at the global and regional level.
In general terms, it could be said that there is a dichotomy in the horticultural sector in the majority of the countries in Latin America. The absence of specialization in smallholder horticulture contrasts with the incorporation of technological advances and specific assets in the horticulture that supplies export markets. In several countries in Latin America, horticulture production involves rural and family agriculture, concentrating poverty significantly. It has a high geographic dispersion, fragmented land property, low productivity, small scales of production, low levels of technology, difficulties in access to credit, to markets and to information sources, and in general articulates poorly with the market and consumers. In the last decades, continued efforts have been made by the international agencies, NGOs and rural development institutions to address strategies to deal with the bottlenecks faced by small-scale farmers to take part of the value chain of FFV, by increasing market participation of small-scale farmers-Linking farmers to markets. Developing managerial skills, improving production and post-harvest infrastructure, promoting contract farming, strengthening information systems, access to credit, are some of the issues addressed through those initiatives. In the same way, as markets become more concentrated and competitive, in terms of supply and demands , the comparative advantages from, for example, geographical or climatic conditions, are less relevant for developing countries. Consequently, some initiatives carried out in the region, with local or international funds, are promoting the development of lasting competitive advantages, by for example, adding value through innovations. However, as many countries in the region are making big efforts to develop competitive advantages to participate in the value chain of FFV, new market developments related to consumer demands for better quality and safety assurance of FFV, have been translated into stricter quality and safety requirements imposed by the importing markets. Countries in the region, willing or currently taking part in the value chain for FFV, need to comply with these emerging market requirements, which imply administrative, technical and scientific capacities to do so.
The main global markets for fresh fruit and vegetables from Latin America and the Caribbean are the European Union and the Unites States. According to Fresh Trends, Latin America and the Caribbean share of the total U.S. imports of FFV reached 63 percent in 2002 (South America 48%, Central America 12% and The Caribbean 3%). Geographical proximity is particularly important for Latin American and Caribbean countries to access global markets. Mexico for example, is the biggest supplier of FFV to the U.S. market (33% share of the U.S. imports of FFV).The above can also be illustrated by the data presented by the participants to the subregional workshops: 39.6% of the Chilean FFV exports supplied the U.S. market and 23.2% the EU market (2000-2001). FFV exports from Peru to the U.S. market in 2003 represented 55% of the FFV FOB exports value. 82% of the total FFV exports from Uruguay supply the EU market. The EU and the U.S. markets are continuously updating their requirements in terms of quality and safety issues for the FFV sector. Safety initiatives for fresh produce led by the public and the private sectors, with relevance for the horticultural sector in the Latin America and Caribbean Region include, among others, the following: Public initiatives Public safety efforts in developed markets have covered a wide range of options (e.g. reorganizing the standards and regulatory framework, regulating for both, locally produced and imported products, etc.). Some examples are the United Kingdom Act from 1990 to assure safety of foods, whereby all importers must take all necessary precautions and enforce due diligence to avoid any failures in developing, producing, distributing, or selling product to the consumers. Later on, the European Commission launched the White Paper on Food Safety, under which food operators through out the food chain will bear primary responsibility for food safety. In 2002, the EC Regulation No 178/2002 (applicable from January 2005) lays down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety, including the development of legislative actions to ensure effective control systems and evaluate compliance with EU standards within the EU and in third countries in relation to their exports to the EU. In terms of food hygiene, new rules have been adopted in April 2004 and will be applicable from January 2006, such as the Regulation (EC) 852/2004 on hygiene of foodstuffs, which applied to all food businesses, including those operating at the level of primary production. In the U.S., the Public initiatives related to safety of FFV imported to the USA are led by the Food and Drug Administration (FDA) through the National Food Safety Programme (Produce and Import Safety Initiative), which is implemented in coordination with the U.S. Department of Agriculture (USDA), and the Centre for Food Safety and Applied Nutrition (CFSAN). These agencies are promoting the application of Good Agricultural Practices and Good Manufacturing Practices (GAPs and GMPs) to fresh produce production using the “Guide to minimize microbial food safety hazards for fresh fruit and vegetables”, launched by FDA in 1998. This voluntary guide is intended to assist growers, packers, and other operators in continuing to improve the safety of domestic and imported fresh produce. FDA has carried out training activities in Latin America and Caribbean Countries, based on the recommendations highlighted in this guideline, for example, the Central American Training Programme implemented in 2001. More recently FDA published “Produce Safety from Production to Consumption: 2004 Action Plan to Minimize Food-borne Illness Associated with Fresh Produce Consumption”, which relies on the implementation of GAPs and GMPs at the primary production and also involves measures to be applied throughout the fresh produce chain (e.g. better preparation practices in the retail environment). Similarly, changes in legislation regarding traceability issues are reflecting the increasing attention that the U.S. and European markets are paying to chain management and labeling systems so that products can be traced back to producers. For example, the EU Regulation EC/178/2002 -Article 18 on traceability issues applying from January 2005, and most recently the U.S. food safety regulations issued by FDA placing new requirements on both domestic and foreign food, such as the Final Regulation for the Establishment and Maintenance of Records (as regards to section 306 of Public Health Security and Bioterrorism Preparedness Act of 2002) officially published last December, 2004. Private Initiatives The private FFV safety initiatives implemented in U.S. and EU markets, cover a wide range of options, from voluntary implementation to self certification according to codes of practices/standards that are then certified by third parties. Private safety initiatives for fresh produce in U.S and EU markets, are led by: national trade associations (e.g. UFFVA , IFPA ), universities/colleges (e.g. Cornell GAPs program, Food Safety in Vegetable Production by the University of California, Davis), industry associations/boards (e.g. Quality Assurance Program-California Strawberry Commission), industry company initiatives (e.g. GAP in the field-Dole Fresh Vegetables Inc.), Individual companies (e.g. ProSafe Certified Program, GAP- Primuslab requested for different retailers in the U.S.), retailers (e.g. H-E-B Fresh Code of Practice 2000, EurepGAP in EU). Among the private safety programmes involving auditing and certification, being progressively applied in the Latin American and Caribbean region are: EurepGAP, the Certification by British Retail Consortium (BRC), SQF 1000 Code, the Prosafe certified program, GAP- Primuslab, etc. EurepGAP: The EurepGAP certification system is driven by 22 large-scale retail chains in Europe forming the core members of the Euro-retailer Produce Association (EUREP). It is an assured produce scheme that addresses safety issues through GAP implementation to prevent, mainly microbiological and chemical hazards during production and post-harvest stages, and incorporates environmental aspects of the production practices as well as workers’ health and welfare considerations. Traceability aspects (record keeping) are also key components of the standard. Safe and Quality Food- SQF 1000 Code: The safe and quality management certification programme administrated by the Safe Quality Food Institute (SQFI), a Division of the Food Marketing Association (FMA) in the U.S., is based in SQF 1000 Code, (HACCP-based assurance code) to be applied by the primary producer. BRC Global Standard-packaging: The British Retail Consortium is the leading trade association for the UK retail industry. The Standard developed by BRC attempts to help in the protection of the consumer by providing a common basis for the audit of companies supplying packaging for food products to retailers. It is applied by exporting FFV companies in order to certify the packaging process. The code is based in the application of HACCP. ProSafe Certified Program: Implemented by Davis Fresh, an independent third party auditor. The program is based on the FDA “Guide to Minimize Microbiological Food Safety Hazards for FFV”. USAGAP Certification Program: Implemented by Primuslab, a third party auditor, it is also based on the FDA “Guide to Minimize Microbiological Food Safety Hazards for FFV”. The private sector in E.U. and U.S. markets, is permanently updating the market requirements in terms of quality and safety for the FFV industry. For example, EurepGAP reviewed the 2001 protocol and launched an updated version on September 2003, the BCR has announced plans to publish a new version of the BCR Food Standard in December/January 2005. Therefore, producers and exporters in the Latin American and Caribbean region are facing the challenge to comply with these stricter and very dynamic market requirements, and have responded to it by implementing different mechanisms, as it is illustrated below.
FFV quality and safety initiatives carried out by the Latin American and Caribbean countries have arisen mainly as a response to the importing market requirements. The approach to safety assurance in the FFV sector adopted by most of the countries in the region is based on the implementation of Good Agricultural Practices (under a wider concept that implies good practices in harvesting and post-harvest stages-“On-Farm” activities), as a way to offer a guarantee of the quality and safety of the products reaching the external markets. The standards/protocols that are widely taking over the FFV export sector in the region (Eurep-GAP and third party certification based on FDA guidelines) and currently being used by countries as a reference to address GAP standardization processes in the region, focus on the prevention of FFV hazards in order to ensure the safety of the fresh produce. U.S. requirements emphasizE the prevention of microbiological hazards, whereas EurepGAP emphasis is on the prevention of microbiological and chemical contamination, as well as incorporating environmental and social considerations in the FFV production. The BRC- packaging standard has been implemented, basically, by highly specialized horticultural FFV packagers exporting to the European market. Some of the initiatives taken over by the private and public sector in the Latin American and Caribbean region as response to the export market requirements are: ChileGAP: This programme is managed by the Foundation for the Development of the Fruit Industry in Chile (FDF). A protocol/standard for certification has been developed, integrating the European requirements/EurepGAP, the food safety requirements asked for by the U.S., Codex Standards and the Chilean national legislation in terms of environmental and social considerations. PIPAA Programme: This programme was created by the Guatemalan Ministry of Agriculture (MAGA) in 1991 and is currently implemented by the exporters’ association of Non-traditional Products AGEXPRONT. PIPAA programme offers services of inspection and certification and provides a “Safety Label”. The programme includes a checklist for certification, based mainly on the U.S. market safety requirements. The PIPAA seal has been applied by exporters supplying global and regional export markets, as well as specialized national markets. Other initiatives being led by the public sector regarding quality and safety issues for specific FFV exports in the region are:
Many of the successful experiences in the implementation of quality and safety programmes in the Region have come from the private sector and have consequently received effective support from the public sector (i.e. ChileGAP, PIPAA Safety Seal, are managed by the private sector, but receive financial support from the public sector). Those countries with strong exporter or producer organizations have been more able to structure and implement safety programmes than those with weak or lack of private organizations addressing sector’s needs and priorities. The role of the public sector is quite diverse among the countries in the region (e.g. funding FFV safety initiatives, auditing and certifying, training producers and auditors, etc). However, the coordination of public and private efforts has certainly been a key element to successed in the implementation of safety programmes throughout the region. The main incentive for individual growers to adopt stronger FFV safety programmes in the region has been to ensure market access. In spite of the consequences that an outbreak would have on all growers in the industry (those applying or not safer programmes), this has not been sufficient to entice all growers taking part in the export chain, to upgrade their producing and product-handling practices. In that respect, public and private initiatives oriented to identify and create incentives for farmers to move forward in the application of safety programmes are vital. On the other hand, private and public efforts in FFV safety have been concentrated in providing support for the export sector to comply with the importing market requirements and few efforts have been taken to address initiatives supporting the implementation of quality and safety programmes targeting the production supplying domestic markets. However, the results of the implementation of quality and safety programmes in the FFV export chains, by some countries in the region, are having some impact, though still incipient, on the FFV regional and domestic markets. For example, leading supermarket chains in the Central American region, as well as multinational food chains are demanding suppliers comply with safety requirements. Nevertheless, in general terms, the domestic demand for FFV safety schemes is rare in the Latin American and Caribbean region, therefore it could be interesting to explore, as case studies, the few experiences being led by the specialized retail sector in the region in order to identify strategies to encourage the retail sector in the rest of the Latin American countries to play a more prominent role in the promotion and implementation of safety programmes in the FFV sector. Experiences in safety initiatives addressing domestic markets have also been implemented by some countries in the Caribbean region in order to improve the safety of the fresh produce supplying institutional markets (hotels, resorts, etc). Similarly, SENA in Colombia is implementing the National GAP Programme, by which funding is provided to support projects based on GAP implementation. However, for the countries in the region having few, if any, participation in the global market of FFV, or supplying less developed (in terms of quality and safety requirements) regional markets, the public and private initiatives for the promotion of safety programmes are incipient or rare. Therefore, the challenge will be to identify the strategies to motivate FFV chain actors to apply safety programmes afor the production supplying domestic markets, as a way of protecting national consumers and achieving sustainability of the horticultural production.
In the last decade, the majority of the countries in the Latin American and Caribbean region have been taking over strategies to strengthen their food control systems by, for example, carrying out structural reforms (re-building or creating public structures divisions, secretariats, etc.) dealing with safety issues and consumer protection objectives. HACCP and GMP have been adopted by some countries as part of their regulatory/standards framework for the food industry, but very few initiatives have been carried out regarding safety at the primary production. However, in the last decade, as a consequence of the increasing market demands for high quality and safe FFV, the countries in the region have started to harmonize their FFV regulatory and standards framework with Codex and other international regulatory instruments (including private market protocols/standards), mainly on a voluntary basis. Since 1998, Codex Alimentarius product standards (grade standards) have included a clause regarding “hygiene aspects” (It is recommended that the product covered by the provisions of this Standard be prepared and handled in accordance with the appropriate sections of the Recommended International Code of Practice - General Principles of Food Hygiene (CAC/RCP 1-1969, Rev. 3-1997), and other relevant Codex texts such as Codes of Hygienic Practice and Codes of Practice). Consequently, national grade standards harmonized with Codex standards also include this aspect. Other initiatives in the region, include the elaboration of specific GAP standards (e.g. National GAP standard for fruit, aromatic herbs and vegetables in Colombia, GAP standard for Asparagus in Peru). In the same way, the majority of the countries in the region are also working in strengthening the National Codex Committees and Committees for FFV standards and Food Hygiene. In spite of the above advances, a lot of work needs to be done, at the national level, in order to support the harmonization of national standards with Codex standards and other international regulatory mechanisms. At the policy level, several countries are working in the consolidation of National Commissions to address safety issues at primary production and in developing and applying long term national policies regarding quality and safety issues for FFV and/or initiatives promoting the implementation of quality and safety programmes for specific horticultural products.
The participation of small-scale farmers in the export chain of FFV varies among countries in the region. In Colombia, for example, the production of cape gooseberry- the second major export horticultural commodity- involves a high participation of small-scale farmers (0,25 to 3,0 hectares/producer). In Bolivia, the leading export commodity (banana) is produced mainly for small and middle producers taking part in the programme for the eradication of illegal crops. In contrast, in Chile, according to CIREN-CORFO, in 1998, aproximately 4,9 percent of the fresh fruit producers have less than 5 hectares, while those with 20 to 5000 or above represented 77 percent. Therefore, the extent at which small-scale farmer horticulture is currently involved in the application of safety programmes is closely linked to their participation in the export chain for FFV. As mentioned above, small-scale farmer horticulture faces several constraints and limitations to participate in the high value chain of FFV, however, as result of the new market developments, small-scale farmers already taking part on the export chain of horticultural products must deal with the costs involved in the implementation of quality and safety schemes in order to comply with market requirements (cost of investments, costs of certification, costs of record keeping, etc). But also, to develop managerial skills and knowledge of the production systems, in order to improve the quality and safety of the FFV supply to the market. Therefore, as part of the activities carried out under Project PFL/INT/857, four case studies regarding the application of safety schemes by small-scale farmers in Latin America were identified, and are currently under implementation, in order to analyse how these safety programmes articulate and integrate market/consumer demands, priorities and expectations of small-scale farmers and rural workers, as well as to identify the institutional support required in order to link supply and market demands.
Taking into account the findings described above and Project PFL/INT/857 outcomes and achievements, some key aspects should be considered for future FAO/ESNS activities in the region regarding FFV safety and quality, as follows:
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