There is growing concern about food quality and safety worldwide. In industrialized countries, governments have enacted various protective regulations to control food imports. In parallel, private companies have developed a plethora of standards and codes of practices that have passed down the supply chain to suppliers in developing countries. Food quality is therefore seen as a prerequisite for success in an ever more competitive agri-food market and is becoming a major source of competitive advantage.

Food quality and safety include many factors and have many definitions, such as: taste, aroma, colour, texture, functionality, health, cost, environment, decent work, equity, tradition and culture. Good Agricultural Practices (GAP), Good Manufacturing Practices (GMP) and Hazard Analysis and Critical Control Points (HACCP) are all tools for assuring product quality, and in some countries they have been made compulsory by law. Private standards, for example, EUREPGAP, are required for exporting products to certain retailers in certain markets. Organic standards and procedures, initiated by civil society, have become part of the legal and institutional framework of many countries. There are also voluntary systems for certifying quality assurance programmes, for example the International Standards Organization (ISO) standards.

Studies

Certified organic produce is seen as an alternative for small-scale farmers to take part in high-value product markets. Premium prices for certified products have been one of the incentives that contribute to the growth of the organic sector while improving the livelihood of smallholder families. However, most smallholders are not certified, preventing their access to international or even national niche markets. In this report alternative certification schemes for organic products are analysed in order to draw conclusions regarding the institutional support and technological development required for compliance with organic standards. Download Organic certification schemes: managerial skills and associated costs.

Despite the outstanding growth of organic markets over the last decade, certification costs and standards from the developed world prevent many smallholders in developing countries from entering these markets. Alternative certification schemes are seen as an option for overcoming some of these constraints. FAO selected several case studies to illustrate the implications of certification compliance for small farmers’ organizations in terms of management and costs. Cases that comply with third party certification systems as individuals and groups under Internal Control System as well as Participatory Guarantee System are presented in this report. Download Certification costs and managerial skills under different organic certification schemes.

Marketing strategies and organisational structures under different organic certification schemes. This paper by Pilar Santacoloma compares the organizational structure and marketing strategies in organic supply chains operating under three certification schemes in developing and transition economies. A value chain management approach needs to be considered when analysing the requirements associated with supplying certified organic products. Regardless of the scheme, complying with organic standards and procedures involves making managerial decisions at the production, processing, certifying and marketing levels. A modern and transparent organizational structure should be developed along the chain in order to ensure lasting organic quality.

Institutional strengthening and investments required to comply with EurepGAP standards

Through this study we provide information on standard setting based on rigorous analysis of capacity building and investments required, at both government and farmer level, in order to comply with EurepGAP standards. This work responds to member country demands on FAO as a provider and facilitator of information, with the exchange and sharing of lessons in the continual modernization and reform of institutions and markets through the world. The study does not imply FAO support to private standards (including EurepGAP) but its recognition of the urgent need for information to assist the decision-making of countries targeting European markets. Preliminary results of the study were presented at the regional workshop "GAP for the small-scale farmers in the countries of the Extended MERCOSUR".

(Preliminary results are available in a Powerpoint presentation here)

Costs and managerial skills in organic certified products

The growing demand of organic products, mainly driven by consumer concerns over safe food and environmentally friendly production, is providing new market opportunities and premium prices for producers who comply with organic certification standards. This study illustrates a comparative analysis of the organisational structure, the costs and benefits and the improved managerial skills required at the farm and farmer organization levels in three organic certification schemes: the internationally recognised certification system individually and ingroup and a participatory certification system. (Preliminary results in a short paper here).

Opportunities for improving quality and safety in the honey production chain in Chile

The purpose of this document is to analyze, from the food quality and safety perspective, the state of development of the honey chain. The study focuses on the production activities of small beekeepers in Chile, with the purpose of identifying the stages of production that represent the biggest risks of contamination. (download Spanish version here).

Food Engineering, Quality and Competitiveness in Small Food Industries

FAO investigated factors affecting food quality, safety, and food industry competitiveness, and prepared a bulletin identifying engineering variables intrinsic to the food industries and their environment which, once improved, will make the sector more competitive. The study addressed, applying a systems analysis approach and viewed from the perspective of food engineering and technology, the complex issues faced by small food industries in today's markets where high quality food is demanded by consumers, but still enabling food businesses to maintain their competitiveness. The study examined ways to help small food industries to be sustainable.

The bulletin is intended for a wide audience, including policy-makers, agricultural economists, marketing specialists, managers, researchers, NGOs, extension professionals, food engineers, agroindustrial engineers, food technologists, nutritionists, and food quality and safety systems specialists. The bulletin is written for their use in helping countries achieve safe and high quality food supplies and improve the competitiveness of the food industry. The bulletin can be accessed here.

Projects

Regional cooperation project on organic agriculture and strengthening organic certification in Latin America

In Latin America, the situation of organic production and certification is not homogeneous, because of the absence of national laws or not being able to meet the requirements of importing countries. Therefore, an important marketing opportunity is being lost. The Latin-American countries are, generally, not very aware of organic market characteristics and they lack technical specialized capacity, as well as having poor access to basic structures and no precise national policy.

This regional project called "Support to organic agriculture and institutional strengthening of organic certification" has a two year duration and is being executed in Bolivia, Chile, Paraguay, Peru and Uruguay.

The main objective of the project is to give technical assistance to the countries in order to establish a legal and institutional framework for organic production and certification both for local market and export; to establish pilot experiences in each country of integrated systems between production and marketing which could be repeated in other zones of the region; and to promote organic products for the Latin-American consumer in order to develop local markets.

The main reports of the project can be accessed here.

Training

Distance Training Course on Food Certification in Latin America

A Distance Training Course has been carried out annually since 2003, in Latin America by the FODEPAL project, executed by FAO with funds from the Spanish Cooperation.

The Details of this course can be accessed here.

Events

Round-Table: Organic Agriculture and Market Linkages

FAO-AGS co-organised and chaired the Round Table on Organic Agriculture and Market Linkages as part of the International Farming System Association (IFSA) meeting that took place in Rome on November 1 st, 2005. Papers and summary of the meeting can be found here.