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EU private standards (GLOBALGAP, EUREPGAP) as substitutes for missing public standards: the case of fresh fruit and veg PowerPoint Presentation
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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. Outline. EU Public legislations for FFV Marketing

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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

outline
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
eu legislations for ffv marketing
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

eu legislations for ffv marketing4
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

eu legislations for ffv marketing5
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

minimum requirements for ffv
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

marketing standard for citrus fruit
Marketing Standard for Citrus Fruit

For Lemons, Mandarins and Oranges:

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

why private standards
Why Private Standards?
  • 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

globalgap
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

ffv certification
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

benefits from private standards
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

challenges of private standards
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

conclusion 1
Conclusion 1
  • Public Standards fully cover:
    • Food safety
    • Quality
    • Traceability
  • Practically no missing standards exist

Private Standards make product differentiation possible

conclusion 2
Conclusion 2
  • GLOBALGAP
    • 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
conclusion 3
Conclusion 3

Remaining questions:

  • Does required quality reach POS?
  • Do Private Standards act as barriers to trade?
  • Are developing countries disadvantaged?
references
References
  • EC; 2001: Commission Regulation laying down the marketing standard for citrus fruit. (EC) No 1799/2001. 12 September 2001. Consolidated version
  • Globalgap; 2007: Integrated farm assurances. General regulations. Global G.A.P (Eurepgap). Globalgap and Food Plus. Available at: http://www.globalgap.org/cms/upload/The_Standard/IFA/English/GRs/PartI/GG_EG_IFA_GR_Part_I_ENG_V3_0_2_Sep07.pdf. Accessed: 15/05/2008
  • Globalgap; 2007a: Checklist Fruit and Vegetables. Available at:http://www.globalgap.org/cms/front_content.php?idart=147&idcat=48&lang=1&client=. 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). 26.-28. September 2007. 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): 241-253
  • 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 2007. 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 12-18. Available at: http://agecon.lib.umn.edu/cgi-bin/pdf_view.pl?paperid=22649&ftype=.pdf. Accessed: 20/03/2008