Participatory Guarantee Systems

PGS as an option for small holder farmers to build capacity to address market needs for food safety and quality assurance. lit

When the focus of the economy is to drive exports

Can C small h ld along for the ride ? ll holders go l f th id Answer is that some can and some cannot depending on what the produce. (Coffee producers vs local market vegetable suppliers) For those that cannot what are the options for adding value, improving quality etc

Profile of a small-holder small= limited land area = limited volumes of product = risk aversive decision making ik i d ii ki = many produce low value crops with no opportunity to add value dd l = highly competitive selling environment = most farmers selling as individuals and selling same products to similar customers p = debt = high labour input for small return

To establish a competitive advantage

Planned production and coordinated supply Higher value crops - Add value through improved quality and consistency of supply Add value through centralised processing g p g Direct sale Create demand - engage buyers and consumers in THE STORY A logo

PGS The Story

Traditional knowledge Religious beliefs Social controls Building a community centred brand Informal and formal structures Groups manage and p are responsible for their internal control system

Options for the way they organise as groups

Rules from R l f outside, expensive, export, cannot market as individuals, certificate owned by exporter no logo exporter, logo.

Third party group certification

PGS
A community centred approach engaging key supply chain stakeholders in a guarantee system f domestic h i k h ld i for d i markets.

Case study Ecovida Brazil

Began early 90s to help rural poor improve incomes by 90 s accessing markets Group structure with community integration including church, NGO + supermarket chain in Porto Alegre (100 kms) Developed internal guarantee system + logo Investment in banana processing to add value Supermarket guarantee to buy products and fund farmers market in Porto Alegre Ecovida replicated around Brazil Brazils Government recognises PGS in regulations Household incomes secure, farmers happy.

India (Niligris) Keystone PGS (Niligris)

Keystone (NGO) began with small holders in different y ( ) g communities sharing knowledge to improve production skills. Product guarantee evolved when Keystone began marketing products for the groups outside the immediate area. Given the constraints (very poor, remote, low levels of literacy) a people focused guarantee system evolved with a pledge by each farmer to follow basic rules. Now more formalised with internal systems for documentation etc Critical mass of product has enabled Keystone to invest in adding value - coffee roasting and expand as well as a marketing programme for all products throughout India India. Based on Fair Trade principles. For coffee this means an addition of at least $2/kg on top of the raw material value. India now has a national PGS system supported by Government and involves many thousands of producers.

Advantages
New markets Improved overall prices Greater percentage of crop grown for market sold Safety of farmers who use pesticides Environment in relation to amount of p pesticide used and disposal of containers p Consumers confidence C Community i i integrity i

PGS as a tool
Provides communities with a system for gaining market recognition

Follow standards Document farming practices Annual inspection or peer review A li ti i Engage various stakeholders in the review process where possible - consumers, local government, buyers etc not just farmers. Own logo

IFOAM PGS support

The shared experience has created a set of guidelines to help www.ifoam.org

IFOAM PGS Committee

Agriculture applications
Vietnam - local market vegetables tea; vegetables, China - tea and rice wine; Tanzania - hibiscus products New Caledonia - farmers market; New Zealand -most crops, farm inputs and processed products India - wild honey, coffee

Other applications
Safe vegetables Tourism Handicraft groups Nature conservation

Stepping stone to export certification

Wider applications
PGS in regional trade Government policy and regulation Governments role in accreditation and certification

Adopt

Adapt