Overview of the SA Fruit Industry Food Safety Systems for Export

1. Overview of the SA Fruit Industry Food Safety Systems for Export KB Liphadzi CEO: Fruit SA

2. Background of Fruit SA • FSA was established in the early 2000’s as an umbrella organisation for the different fruit sectors. • Initially FSA operated without any staffing and as an informal body. • In 2013 Fruit South Africa was formalised as a not for profit company. • In 2014 the first CEO FSA was appointed.

3. Introduction • History of fresh fruit production and export dates back to the mid 17thcentury. • 1st export to England was in the end of the 19th century, made possible with improved plant material from USA and improved refrigeration technology. • Inspection of all export fruit was made compulsory in 1914 through in terms of the Fruit Export Act. • The deregulation of the fresh fruit industry in 1997 ushereda new era of free enterprise marketing. • The Deciduous Fruit Producer’s Trust (now Hortgro) and Citrus Grower’s Association were born.

4. SA fruit industry statistics • Fruit industry is valued at more than R24 billion with more than 4.4 million tons of fruit produced annually. • SA is a major supplier of fresh fruit in the Southern Hemisphere.

5. SA fruit industry statistics

6. SA fruit industry statistics • More than 50% of all agricultural exports from South Africa are fresh fruit. • Majority of SA fresh fruit is exported. • 2.7 million tons of fruit is exported to more than 87 countries in the world annually, earning R19.8 billion in foreign currency. • Major export destinations: EU, UK, Far East, Russia, Middle East, USA/Canada

7. South African fruit export markets (volume in 2013) EU 34% Russia 9% UK 15% 3% 16% 19% 4%

8. Food safety • SA fruit industry has to meet the challenge of increasing demand by consumers for healthy and safe food (especially overseas). • Food safety is not static. • Requires all players involved along the food chain (food producers, processors, retailers and households) to recognize their primary responsibility and to share a common goal: ensure safe food at all steps of the chain

9. From harvest to home: product chain

10. Food safety Guiding principles • Quality standards, product protocols, laws and regulations • Food safety is a shared responsibility between DAFF, DoHand DTI • Transparency • Builds consumer’s confidence in the safety and quality of food supply • Improved communication of food safety information(science based information) • Traceability • Keeping record of all operations/inputs during production • Allows tracing back source of contamination or disease

11. Responsible institutions for food quality and safety Checklist and Compliance criteria Assignee to perform end-point inspection, food safety auditing and export certification

12. Production/producer/harvest • GAP – to meet consumer needs for safe and high quality products, produced in an environmentally friendly and social responsible manner. • Most importing countries have established Maximum Residue Levels (MRLs) for various pesticides used during fruit production. • Compliance to the MRL is a prerequisite to market access. Producers are required to keep all records. • PPECB has been delegated to test MRLs • The ability to trace produce back to origin is an important component of food safety system. • Speed and accuracy is important. • Mandatory marking requirements in terms of Agricultural Products Standards Act 119 of 1990.

13. Packaging / Processing • Good manufacturing practices (GMPs) provide the basic environment and conditions for packaging or processing a safe product. • Include - packhouse sanitation to prevent and eliminate product contamination • Conditions and practices are specified in the Health Act of 1977 • HACCP implementation – systematic approach in identifying, evaluation and control of food hazards in the process flow of the product.

14. Transportation • Basic requirements should be met – i.e. prevent: • mechanical damage to fruit and its packaging, • contamination (odours, pests or bacteria), • damp conditions, • fruit pulp temperature increase (quality and shelf life) • PPECB tests the performance and efficiency of locally build refrigerated vehicles. • Complete and correct documentation should accompany the consignment.

15. Product security/integrity, storage control and traceability • Specific storage conditions depend on the fruit kind, e.g. avocadoes can no be stored with bananas. • Only PPECB certified cold stores can be used. • Special export markets have written government-to-government protocols (only allow for use of certain facilities in the country).

16. Private standards • Private standards in general goes beyond relevant Codex standards. This may lead to unnecessary barriers to trade. • Cost of compliance is high, specifically for first time participants. High costs are associated with auditing multiple private standards. • Multiple standards do affect the profitability of small holder farmers and their ability to comply – resulting in exclusion from export market. • If relevant private standards are demanded, the entire supply chain must meet the standard, including on-farm/ packing and related off-farm packing activities. • Most EU countries require GLOBALGAP, GMP, HACCP and BRC Global Standards - all exporters and growers (suppliers – small, medium, large) exporting products to the EU need to comply.

17. Role of government • DAFF determines whether agricultural produce may be exported from SA or not. • PPECB is the assignee who certify that the produce satisfies the market requirements. • DAFF’s role is essential in ensuring retention of market access. • Government have set a minimum quality standard/ benchmark for every fruit kind. • The exporter may apply to use different standards to those prescribed by government.

18. Challenges • Phytosanitarymeasures are sometimes used as non-tariff barriers to trade. - CBS case (Minister Davies), cold sterilization, etc. • Government policies that can inhibit competitiveness (self-imposed limitations). • Capacity within government to implement the various regulations and effectively monitor throughout the value chain (right people, right skills, right placing, adequate numbers, etc.). • Within the country, relevant and reliable infrastructure in terms of rail, road, ports, pack houses, storage facilities, port facilities etc. are required to support the fruit value chain. • Delays in releasing containers by importing countries – 4 days instead on 1 day.

19. Challenges with Private Standards • Lack of harmonisation/ equivalence between multiple private standards and between private standards and official standards resulting in multiple audit requirements (certification) by suppliers. • Lack of (inadequate/ limited) scientific justification for many private standards requirements (non-regulatory MRL requirements), going beyond regulatory requirements e.g Germany. • Number of private standards are too many and growing, becoming unsustainable for suppliers. • Cost of compliance is high and increasing.

20. Thank you Acknowledgements: Lindi – Hortgro & SATI Schubesco - PPECB Andy – Dole Paul - CGA

21. Fruit SA Contact details Dr Konanani Liphadzi CEO Tel: 012 433 6422 Email: ceo@fruitsa.co.za Website: www.fruitsa.co.za