5. PRODUCTION AND MARKETS

National agricultural census data and official import statistics normally do not distinguish between certified and non-certified land and products. Therefore, the figures presented in this chapter are estimates, based on multiple information sources.

Differentiated markets mainly exist for those certified products that are also labelled. Of the programmes discussed in the foregoing chapter, only organic and fair-trade certified products are labelled, together with a small amount of SAN-certified coffee. Markets for these labelled products are initially discussed in general in section 5.1, following which the markets for organic and fair-trade bananas are discussed more in detail in section 5.2 as a case study. Finally, in section 5.3, the less differentiated "markets" for non-labelled SAN, SA8000 and EurepGap certification are discussed.

5.1. MARKETS FOR LABELLED PRODUCTS

Organic production and markets

According to the SÖL-Survey of February 2003^[59], almost 23 million hectares are managed organically worldwide. More than half of this area is extensive grazing land. Leading countries with tropical climates are Brazil (275 500 ha certified), Uganda (122 000 ha) and China (around 100 000 ha). The percentage of agricultural land cultivated under organic management is highest in Costa Rica, at two percent, followed by Uganda (1.4 percent) and Belize (1.3 percent). The main certified organic tropical products are coffee, banana, cocoa, cane sugar, tea, cotton and pineapple^[60].

Local markets for these products are usually very limited, although there are some markets in developing countries, including Argentina, Brazil, People's Republic of China and Egypt. In Latin America, the most popular form of local organic trade is the farmers' market. Most Latin American countries also have specialized stores, and supermarkets are beginning to sell organic products, mainly fresh fruits and vegetables. Also, box schemes and home delivery systems exist. Often there are no price premiums obtained on the local market. Inspired by the Japanese Teikei and American Community Supported Agriculture (CSA), similar CSA systems (la Comunidad Sustenta a la Agricultura) have been set up, e.g. in southern Brazil and around Lima in Peru. In this system, a group of around 40 consumer families supports a farm and shares in the planning, risks and pricing decisions^[61].

In Asia, specialized stores exist in Malaysia and the Philippines. In India, especially in the big cities, the market for organic products is growing^[62]. In Africa, the largest markets are South Africa, with supermarkets starting to sell organic products, and Egypt, where Sekem has developed local markets for organic cotton and tea. Efforts continue towards establishing local markets in Kenya, Malawi and Uganda^[63].

Most certified tropical organic products are produced for export markets. The main markets are Europe, Japan and the United States of America.

The United States of America is the country with the largest market for organic foods and beverages in the world. Organic retail sales were estimated by ITC at close to US$9.5 billion in 2001 and were expected to reach US$12 billion in 2003^[64]. Fresh fruit and vegetables are the leading food category. The United States of America retail food market for organic fresh produce is segmented into two primary sectors. The natural food store segment accounted for US$833 million in organic fresh fruits and vegetables in 1999, whereas the conventional supermarkets accounted for US$618 million. Together they represented US$1.45 billion in organic fresh produce sales in 1999. This was 22 percent of the total organic food sales in the United States of America in 1999^[65]. Additional sales of domestically grown fruits and vegetables takes place through direct marketing channels. A survey by the Organic Farming Research Foundation in 1997 found that organic farmers sold produce from 23 percent of their vegetable acreage direct to consumers^[66]. Probably the relative importance of direct sales has fallen since then due to the growth of sales in natural food stores and supermarkets. According to the Nutrition Business Journal, total sales of organic fruits and vegetables increased to US$2.2 billion in 2000^[67].

In 2001, the size of the organic food market in Europe was estimated to be US$9 billion. Forecasts for 2003 were between US$10 and 11 billion. Most of the sales take place in the countries of the European Economic Area, with Switzerland well in the lead. Switzerland has the highest organic share of total food sales^[68]. The EU market for certified organic fruit and vegetables was estimated to be US$1.3 to 1.5 billion in 2000, accounting for 15-20 percent of total retail sales of organic products. This market enjoyed rapid growth in the late 1990s, but growth had slowed in 2002^[69].

Before the new JAS regulation of April 2000, no clear definition of "organic product" existed in Japan. Both "organic" and "more environmentally friendly grown" products were referred to by one and the same term. It is estimated that the JAS regulation resulted in only one percent of those "green" products qualifying for the organic label. According to ITC^[70], it is estimated that the retail value of genuine certified organic products was around US$400 million in 2003, or less than 0.5 percent of total food sales in Japan. Sales of organic fruit and vegetables have been curtailed by the new JAS regulation. In addition, imports of fresh produce undergo strict phytosanitary controls and many containers are fumigated. Fumigation results in the products loosing their organic label (they are then marketed as "no chemical, fumigated")^[71].

Organic products tend to command impressive premiums at retail level in developed countries. However, premiums in excess of 50 percent usually have underlying supply constraints and are often temporary and unpredictable. In immature markets, prices may be very unstable, with price premiums varying from 0 to 100 percent in a short time. Long-term high premiums often reflect severe production problems related to chronic endemic pests and diseases that cannot be managed effectively by existing biological and cultural techniques. Situations where organic production costs are as low as, or lower than, conventional production costs will frequently see little or no organic price premium received by farmers, especially as the market matures^[72].

Balanced expansion of supply and demand will be one factor in maintaining the organic price premium. Current consumer premiums not only reflect higher producer prices, but also higher post-harvest handling and traceability costs (e.g. segregated transport and storage), and inefficiencies in the chain due to smaller volumes and lack of information.

Rainforest Alliance labelled products

Of the products sold from certified farms by the Rainforest Alliance/SAN, only part of the coffee appears on the United States of America and Japanese market with a Rainforest Alliance label. Central America is the main origin of Rainforest Alliance labelled coffee.

Fair-trade production and markets

The fair-trade initiatives initially aimed to include a wide variety of origins, both to spread benefits and to be able to tell diverse "stories behind the product". The result has been a highly dispersed producer base, with complex logistical procedures and lack of economies of scale.

Total FLO-labelled sales volumes increased 21 percent in 2002, to reach 58 800 tonnes. The income for the national initiatives from trade licences for the use of the label increased to €4.5 million in 2001. Sales diversified, with coffee accounting only for 57 percent of licence income, down from 71 percent in 1997, while total coffee sales increased during the same period.

Because certification costs are paid out of the trade licence fees, the certification of new producer groups has to be carefully coordinated with traders. The supply base for FLO-labelled products can not be expanded ahead of market demand. Sometimes this leads to missed market opportunities, because products can not be delivered immediately after a trader has expressed interest. Especially for products for which a standard still needs to be developed, a longer lead time is needed. The recently developed generic standards should reduce the time required for crop-specific standard development. FLO is also looking for an alternative financing structure for its certification activities, to be able to certify producers independently of market developments.

Markets for selected labelled products

In Table 1, estimates are given of import volumes in major markets for labelled bananas, coffee, tea and citrus juice, representing the bulk of labelled tropical and horticultural products. More information on the markets for organic and fair-trade bananas is given in the next section^[73].

Table 1
Sales and import figures for major markets for selected labelled products

NOTES: (1) Totals do not always add up because part of fair-trade is also organic (percent organic fair-trade estimated and subtracted from total), except for orange juice, for which currently no organic fair-trade juice is available. Thus, for 2001, it is estimated that 15 percent of fair-trade bananas were organic, and 25 percent in 2002 (newly introduced fair-trade bananas are often organic). (2) Market share is calculated as total certified as percentage of total market. (3) EU(15) + Switzerland + Norway, excluding sales in Italy by CTM Altromercato without the FLO/Transfair label. (4) Total including other destinations (mainly New Zealand and eastern Europe). (5) Shade coffee includes Rainforest Alliance, ECO-OK and Smithsonian "Bird Friendly" labels. Smithsonian "Bird Friendly" coffee is also organic and may be double counted. (6) Fair-trade bananas on the Japanese market, imported since 1989 from the Philippines by an ATO, Alter Trade Japan. Balangon bananas were also sold as organic, and it is unknown how these have been affected by the recent JAS regulation.

SOURCES: (7) Industry sources, FLO and some official statistics (Dominican Republic and Aduanas, Peru). (8) Organic: for Europe - SIPPO/FiBL/Naturland (2002); for United States of America and Japan: World Bank (2002) and ITC (2002). Fair-trade: FLO. Shade: Giovannucci (2001). (9) SIPPO/FiBL/Naturland (2002); CFC/FAO (2002); FLO. Note that a lot of organic tea is not exported (e.g. domestic organic market in China). Total organic tea production is estimated to be around 9 000 tonnes. (10) FLO; FAO (2003).

5.2. CASE STUDY: THE MARKET FOR ORGANIC AND FAIR-TRADE BANANAS

Sources of supply

The main supplier of organic bananas is the Dominican Republic. In 2002, its exports topped 60 000 tonnes, exceeding exports of conventional bananas. However, the Dominican Republic exports decreased for the first time since it started exporting organic bananas, due to a drought that curtailed production at the beginning of 2002. The second-largest producer of organic bananas is Ecuador, with about 24 000 tonnes in 2002, after two years of high growth rates.

Peruvian exports have increased dramatically since 2000 and are still growing. Many small-scale growers have completed their conversion periods and Peru exported nearly 19 000 tonnes in 2002, up from less than 1 000 tonnes in 2000. Mexico was for a long time the second-largest exporter of organic bananas, but due to lower growth rates than Ecuador and Peru, it now comes only fourth, with about 14 000 tonnes in 2002.

Other origins of organic bananas are Colombia, Guatemala, Honduras and the Canary Islands (Spain). Growth rates in the Canaries have also been high, albeit from a very low base.

Fair-trade bananas come from Colombia, Costa Rica, the Dominican Republic, Ecuador, Ghana, Peru and the countries in the Windward Islands. There are one or two registered producer groups in each country.

Market situation

Organic

An overview of the growth of the organic banana market during recent years is given in Table 2 and Figure 1. Growth rates have been very high, but organic imports still represent only about 2.5 percent of the total European banana market and just over one percent of the North American market.

Demand has been to a large extent driven by perceived health benefits of organic products relative to conventional products. So far, there has been no scientific proof that eating organically-grown food is healthier than non-organically grown food. However, a study in the United States of America did indicate that children with diets of predominantly organic foods have less pesticide residue intake than children with conventional diets^[74]. Other motives for choosing organic bananas are taste, concerns for the environment and, to a lesser extent, altruistic motives (concerns for health hazards for labourers in banana plantations due to pesticide applications)^[75].

Fair-trade

So far, fair-trade bananas have only been sold in Europe. Total fair-trade banana imports increased from around 12 500 tonnes in 1997 to about 36 600 tonnes in 2002. From 1998 to 2001, this increase has been due mainly to an increase in the number of countries where fair-trade bananas are sold and to a steady increase in fair-trade imports into Switzerland (see Table 3). In many countries, sales declined after initial success. For example, in The Netherlands, fair-trade bananas gained a 10 percent market share within a few months after introduction in November 1996^[76], but now account for only about two percent of the total Dutch banana market. A similar development was observed in Germany, where FLO-labelled bananas have almost disappeared. However, after the successful introduction in the United Kingdom in 2000, fair-trade bananas have continued to prove popular with British consumers. and in Belgium sales recovered in 2001 and are on the rise again. The negative trend has also stopped in Denmark.

Table 2
Estimated fresh organic banana imports per year by region or country.

NOTE: (1) EC(15) + Switzerland + Norway

SOURCES: (2) Based on industry estimates, country surveys and official country statistics, unless stated otherwise. (3) Sauvé, 1998.

Figure 1 Growth of world exports of organic bananas since 1998

Table 3
Imports of fair-trade labelled bananas into Europe

NOTE: (1) In Italy in 2001 the alternative trade organization CTM Altromercato started selling fair-trade bananas from FLO-certified producers complying with FLO trade criteria, but without the label of Transfair Italy. These figures were not available and therefore not included in this table, but are part of the fair-trade demand in Italy.

SOURCE: Data supplied by FLO.

Figure 2 Growth of fair-trade banana sales since 1997

Switzerland is still the largest market for fair-trade bananas and, somewhat surprisingly, this market continues to grow. Fair-trade bananas are distributed and promoted by mainstream supermarket chains and have a market share of about 20 percent. The success is partly attributed to the high consumer awareness of fair-trade issues and the active promotion by the two main supermarket chains. Other factors include no or low consumer price premiums^[77] and a generally open market for imported bananas, without quota restrictions.

In Finland - a small banana market - fair-trade banana sales in the launch year (2001) were very good and reached 2 830 tonnes in 2002, estimated to be 5 percent of the total Finnish banana market.

About 25 percent of fair-trade bananas are estimated to be also certified organic, and this share is growing. In Norway, for example, the recently introduced fair-trade bananas are all organic. Some of the FLO-registered producers (e.g. in Ecuador and Ghana) are converting all or part of their production to organic to be able to supply this demand for "double certified". The strategy followed by Agrofair, the main importer of fair-trade bananas, and 50 percent owned by the producer associations, is to negotiate for package deals for the sale of both fair-trade and "double-certified" bananas. In this way a market is assured for those fair-trade producers who, due to climatic conditions and surrounding conventional production, are unable to convert to organic production methods.

The fair-trade labelling organization Transfair Japan is not involved in the import of bananas However, there have been fair-trade bananas on the Japanese market since 1989, imported from the Philippines by the ATO Alter Trade Japan. Those "balangon" bananas were also sold as organic, and it is unknown how these have been affected by the JAS regulation.

Prices

Organic

Very few data are available on prices for organic bananas. For fresh produce in general, reported consumer price premiums ranged from zero for cauliflower in Italy in January 2002^[78] to 175 percent for a vegetable basket in the United Kingdom^[79]. Reported organic banana consumer prices in Italy ranged from €2.00/kg in February 2002 to €4.71/kg in September of the same year. The average price over the period February to November 2002 was €3.15/kg. Prices varied more in specialized stores compared with supermarkets, but the average price was the same for both types of outlets^[80]. Wholesale prices in Italy ranged from a minimum of €1.40/kg to a maximum of €1.75/kg in 2003^[81]. In North America, Dole entered the market strongly in 2001^[82] and it may be expected that they can keep prices relatively low due to their efficient distribution system and economy of scale.

A trader indicated that FOB and CIF prices have remained quite stable, with CIF prices in Europe at around €17/box. This despite an oversupply at the end of 2002, when too many organic bananas had been imported into Europe and traders had difficulties in selling them on. Centro de Intelligenca sobre Mercados Sostenibles/Sustainable Markets Intelligence Centre (CIMS) reported FOB prices for the first quarter of 2003 of US$5.4 to US$8.5/box, depending on origin, and in general there was an organic premium of US$1/box^[83]. FOB prices for exports from Peru were reported to have been from US$5.5/box in 2001 to US$6/box in 2002. Producer prices for organic bananas in Peru were as low as US$2.3/box in 2002^[84].

Some sources state that producer prices cannot decrease below the current level if organic banana production is to be profitable. Production capacity for organic bananas is much greater than the volume currently sold, especially in Peru, but traders prefer not to flood the market so as to avoid further pressure on retail prices. Producers therefore have to sell bananas from certified plantations on the conventional market. Competition between producers is said to be mainly on quality, with overcapacity giving traders the opportunity for being increasingly demanding.

Fair-trade

FLO fair-trade prices are set on the basis of production costs. FLO has estimated the average production costs per country, and the calculated costs take into account "extra" costs that might arise due to criteria for fair-trade certification, such as the "living wage" for workers. The minimum fair-trade price to be paid by licensed traders is the production price plus a fair-trade premium. Part of this premium may be used by the farmer association or plantation management to improve the organization or product quality, or to make other investments important for long-term economic sustainability. The other part of the premium is to be used for environmental and social improvements.

Market prospects

Organic

Total market share of organic and fair-trade bananas has reached 1.1 percent in North America and 2.9 percent in Western Europe. In Switzerland, the 20 percent share of fair-trade bananas, coupled with non-fair-trade organic bananas, probably brings the total to over 30 percent. An important factor limiting the growth of organic banana sales has been the limited supply. However, in 2001, supply caught up with demand and overcapacity was reported in 2002.

The share of organic fresh fruit and vegetables in conventional supermarkets in the United States of America in 2000 was approximately two percent. Therefore the potential market for organic bananas in North America can be estimated to be at least 2-2.5 percent of the total banana market. This would translate into volumes of 85 00-100 000 tonnes for North America, compared with 48 000 tonnes in 2002. With current growth rates, these volumes would be reached in 2005.

For the longer term, FAO has projected that North American consumption of banana would be approximately 4.6 million tonnes in 2010. Assuming that 5 percent of this volume will be organic, the market potential for organic bananas will be around 230 000 tonnes. This would mean sustained growth rates of close to 25 percent year on year. Such growth rates have been observed for the United States of America organic sector as a whole since 1985.

In western Europe, growth of the organic banana market has slowed down, which is not very surprising after the dramatic growth in 1999 and 2000. Market shares of organic bananas have long been significantly lower compared with other organic fruits. However, the high growth rates have resulted in organic and fair-trade bananas having a current share of close to 3 percent, which is believed to be close to the shares of other organic fruit. Sales are expected to continue to grow at around 10 to 15 percent per year, the growth rate of other organic fruit during the last years. This would result in around 5 percent market share in 2005 and around 8 percent market share in 2010 in western Europe (EC15 + Norway + Switzerland), taking into account projections made by FAO for the total banana market.

It is reported that there are still considerable areas under conversion towards organic certification, especially in Ecuador and Peru. These areas will add to the already existing overcapacity and those producers will consequently have problems in selling their produce on the organic market, and may not find an organic price premium, while still facing the annual certification costs. They may face the difficult decision of whether to exit certification to avoid the certification costs but with the risk that if the market improves in the future they will have to undergo the three-year conversion period once again (unless they can demonstrate that no agrochemical were applied during the non-certified period).

Fair-trade

The fair-trade market will depend greatly on the ability to supply organic fair-trade bananas. Market prospects for fair-trade bananas look positive. High growth can be expected in France, where consumer awareness and recognition of the Fairtrade mark has increased dramatically during the last two years and two supermarket chains started to sell fair-trade products. Other countries where growth can be expected are Austria, Finland, the United Kingdom and Italy, although in the last-named probably without the FLO seal. The market for fair-trade bananas in the Netherlands is expected to shrink even further. The country where fair-trade bananas were so successful introduced for the first time seems to have lost all interest. However, decreased sales in the Netherlands will probably be easily outweighed by increases in other countries. Sales in Germany are expected to stay at current low levels, given the general economic situation in the country and the fierce price competition among supermarkets.

The introduction of a new EC import regime in 2001 did not greatly affect the fair-trade market. The fair-trade organizations are not sure that they will profit from the transition to a tariff-only import system, expected to be implemented in 2006 or 2008. The fair-trade producer groups in ACP countries are likely to face consequences differing from those in non-ACP countries. Much will depend on the new tariff rates for the various origins. For fair-trade and organic importers, that are relatively small-scale enterprises compared to conventional importers, the abolition of the quota licences could be an improvement because they would no longer need to provide bank guarantees, which currently can be three times the expected turnover^[85].

Implications for banana producers

Although supply is currently more than enough to cover demand, some problems remain on the supply side. Industry sources report that organic control of Black Sigatoka disease and crown rot remain major technical constraints for growing and transporting organic bananas. More research on organic control methods for the two diseases would be highly welcome.

Furthermore, strict phytosanitary rules and inspections pose challenges for the organic banana sector, notably in Japan, New Zealand and the United States of America. In addition, the different organic regulations in the main markets, including different standards, but above all different inspection and certification requirements, cost a lot of time and money for producers and traders.

Retail price differentials against conventional bananas might go down as the organic trade is trying to reduce inefficiencies in the distribution. Also, the number of rejects at various points along the supply chain is reported to be high and traders try to reduce this by selecting for higher quality at farmgate level and through better control of post-harvest and transport damage.

For producers, the main commercial risk of conversion to organic production is that they might not be able to find an organic market outlet and might have to sell the organic bananas as conventional, despite higher production costs. Another risk is that farmgate prices might go down. New entrants may only find a buyer if they are able to deliver higher quality for the same price as their competitors. It will be difficult to compete on price, if the higher costs of organic production have to be covered, especially just after a costly conversion period.

To enter the fair-trade market is very difficult. Most registered fair-trade producers are still selling a considerable part of their produce on the conventional market. The growth in this niche market will therefore predominantly come from producers already registered. New producer groups applying for certification have to demonstrate that they will be able to sell into a new fair-trade market, so that they will not have a negative influence on associations already registered. That said, Agrofair, the main importer of fair-trade bananas into continental Europe, recently added another small-scale producers' group to its supplier base, notably to supply organic fair-trade bananas.

5.3. MARKETS FOR CERTIFIED BUT UNLABELLED PRODUCTS

Certification systems like SA8000 and EurepGap, and part of the SAN programme, certify production facilities, but this does not (so far) lead to a label on the product. Therefore consumers can not make a conscious choice for these products. The "market" for these certification systems are much more at wholesale and buyer level.

SAN-certified products

Many SAN-certified products do not carry a label at the consumer level. Only part of the coffee is sold labelled, mainly in the United States of America market. The rest is finding its way into the conventional market. However, this does not mean that no specific market exists. In the case of bananas, SAN convinced managers of Chiquita in Costa Rica to collaborate with them in the Better Banana Project. At that time Chiquita was being heavily criticized by NGOs for poor environmental and social performance. After the first certifications of Chiquita plantations in Costa Rica the Chiquita management in Cincinnati could be convinced that it was possible to collaborate with an NGO on environmental improvements. An additional incentive was probably that this would be good for their public image and could quieten NGO criticisms, which, especially in Europe, had cost Chiquita some negative publicity.

So the "market" for this certification is functioning much more indirectly than in the case of organic and fair-trade certification and labelling. Consequently, there are no figures available for market share. However, with Chiquita's own plantations being 100 percent certified and most of its largest suppliers as well, the market share of SAN-certified bananas coincides more or less with the market share of Chiquita. However, recently, industry sources reported that Chiquita is increasing the share of outsourcing, which in turn may increase the number of non-certified plantations it sources from.

Other independent certified producers who do not sell to Chiquita would add only a little bit to SAN-certified "share". Certified areas of and volumes produced at SAN-certified production units are given in Table 4.

Table 4
Area of SAN-certified production units and volumes produced

NOTES: (1) Colombia, Ecuador and Brazil. (2) Costa Rica, El Salvador, Honduras, Guatemala and Panama. (3) Mexico and United States of America. (4) Cultivated area. Total area certified is 7 050 ha.

SOURCE: Sustainable Agriculture Network/Rainforest Alliance.

SA8000-certified products

The market for SA8000 certification is even more difficult to define. SA8000 reporting can be judged as part of general corporate social responsibility (CSR) initiatives. Indeed, progress on SA8000 implementation is usually reported in the annual CSR reports nowadays issued by many of the bigger companies.

The number of certified agricultural facilities grew from 5 in June 2001 to 15 in December 2002. Of those, 7 were involved in tobacco production or processing, 4 were pineapples and other fruits, two were bananas, one was coffee processing and one was a winery. Certified agricultural facilities were located in Africa, Asia, Europe and Latin America. Apart from the agricultural facilities, there were another 8 certified facilities involved in food trade and distribution, among them two facilities of Coop Italy.

Of the major multinationals in the fresh produce industry, Dole is a SA8000 Signatory Member (Corporate Involvement Programme, Level Two), meaning they have committed themselves to work towards SA8000 certification of their own and supplier facilities, and have to report publicly on progress. Despite its commitment, the number of Dole's certified facilities has fallen from three to two because they sold the Pascual Hermanos facility in Spain, which was, in June 2000, the first agricultural facility to be awarded SA8000 certification. Chiquita also reports on SA8000 implementation progress in its CSR report, but is not a Signatory Member yet (Corporate Involvement Programme, Level 1: Explorer). However, already one of the Chiquita divisions (Costa Rica) has been certified SA8000.

The rather slow uptake of SA8000 in agriculture is said to be due to the difficulties in implementing SA8000 in the agricultural sector, according to SAI. In particular, the maximum working hours provisions seem to be difficult to adhere to for seasonal crops. It might also be that the market pressure for SA8000 is not as high yet as, for example, in the textile industries.

That said, Coop Italy might play a catalytic role for the adoption of SA8000 in agriculture. Coop Italy is actively pursuing the sale of more organic fair-trade products in its shops, as well as products from SA8000-certified facilities. They may therefore stimulate their suppliers to become SA8000 certified. Coop Italy has already exerted pressure on one of its pineapple suppliers in Kenya to improve labour conditions. This was in response to a worker and consumer campaign targeted at that supplier. To increase pressure, the campaign made use of the fact that the buyer - Coop Italy - was SA8000 certified^[86].

In fact, the Signatory Membership system (Corporate Involvement Programme) could potentially stimulate SA8000 implementation through buyer pressure in much the same way as EurepGap, albeit on a much more relaxed time scale as there are no deadlines. The main procedural difference from the EurepGap system is that the standard has not been set by the buyers themselves and that Signatory Members also commit themselves to implementing the standard in their own facilities and administrative offices. This apart from obvious differences in the content of the standards.

EUREPGAP

In the case of EurepGap "the market" is the group of 22 European retailers behind the initiative. EurepGap hardly opens new markets for producers as it is aimed at implementation by existing suppliers of the retailers involved. In 2003, EurepGap declared:^[87]

Achieving global consistency is ambitious and we need to be in it for the long run. Some retailers are saying that all their suppliers must be EurepGap certified by 2004. Others do not have a deadline, but will in time question why preferred suppliers are not EurepGap certified and perhaps review their decision to do business with them.

The suggestion of the possibility of de-listing by a retailer has enough power to convince producers that they should seek certification.

At the time of writing there were 5 European assured producer schemes approved as equivalent to EurepGap. EUREP reported in December 2002 that a total of 3 889 growers were certified, with a total acreage of 61 425 ha. Of those certified growers, 39 were located in Latin America, 316 in Africa (255 in South Africa) and 3 in Asia.