Sourcing Certified Products from Smallholder Farmers o a od a

Hard and Soft Infrastructure

Opportunities
Categoriesstaple crops, fruits and vegetables, spices, medicinals, sugar, beverages, nonfood crops others crops, Large market potential--organics still small proportion of total food consumed but consumption growing rapidly rapidly 10% to 20% annually in EU and North America Organic production in developing countries primarily aimed at export markets Availability of locally produced organically certified food y yp g y products helps build domestic markets for such products

Benefits
UNCTAD surveys show organic production results in significant increases in developing country smallholder farmer incomes Organic adoption improves smallholder yields and product qualityfostering increased production and quality fostering greater market acceptance of products Achieving organic certification facilitates qualifying for additional certification programs such as GlobalGap for fruits and vegetables in EU, Fair Trade, others Organic production is environmentally sustainable Increased farmer incomes heighten food security

Basic Requirements
Assured access to profitable markets Viable farmer organizations All-weather farm to market roads Adequate collection/storage facilities Efficient logistics system to move crops from producer to end user; separate from systems for non-organic crops Fully functional extension services ll f l Funding to pay for certification services Intermediary between producers and market

Certification Path
Id tif suitable location and farmers--obtain farmer Identify it bl l ti df bt i f agreement Develop comprehensive record keeping systems Train farmers in all aspects of organic production Select certification agency, provide documentation on farmers, farms, crops grown, soil and water conditions, records of chemical use, arrange for preaudit Take corrective measures based on pre-audit findings Invite certification agency final audit; if satisfactory, obtain conversion certificate g p p / ( y y Undergo periodic inspections/audits (normally three year period required for final certification)

Challenges
Farmers failure to adhere to standards; requires close supervision C t i ti from nearby farms using chemicals Contamination f b f i h i l Technical problems/costs/labor involved in production of on-farm on farm inputs Difficulties in meeting stringent quality standards in export markets Cost of certification: 200 farmers with one acre land each, estimated certification cost $1,600 first year, $800 in subsequent years y g/ May be additional costs for testing/internal audits

The Role of Government

P id public infrastructure such as farm to market Provide bli i f t t h f t k t roads, irrigation systems, electricity services, etc. Finance or help finance common use supply chain facilities (collection centers, public markets, cold storage) y Partially subsidize certification costs Conduct planned and ongoing national programs promoting the organic concept and organic products Adopt and enforce organic quality standards d d f l d d Establish legal basis for organic industry P omote local organic products in major export Promote lo l o g ni p od t m jo e po t markets, through trade services attached to country missions

Thank You