
Development and Innovation
Contributor : FAO-AGS (2008-02-28 14:59:15)
Meeting Consumer Requirements: quality, safety and emerging concerns
The Proposition
Enterprise managers and public sector policy-makers must implement more coordinated and robust strategies if local agro-industry, particularly the small and medium enterprise, is to meet effectively increasingly rigorous consumer requirements in the areas of food safety, health and quality.
Rationale and Recommended Response (Click here to read)
Update on the debate
Some participants suggest the proposition may be in the wrong direction as it is not possible to generalise consumers´ awareness of food safety issues. In addition, consumers´ awareness of food safety may divert in developing and developed countries. Apparently, the commercial interest of retailers and the satisfaction of the supply chain requirements are more relevant. Although there have been examples of good practices implemented by governments in developing countries, the specific point of the consumer driven requirements needs to be strengthened.
Current focus of the debate:
Therefore, a new question will try to call attention to this point:
What are the quality-related consumer requirements other than safety and health that have the greatest impact on the national and international competitiveness of food producing firms in developing countries?
Which are the real aspects consumers take into account in their buying decisions in terms of food quality?
For summary of previous round of debate and questions click here
12 Comments
Dr. Malachi Abasiodiong , (2008-04-10 20:18:44)
Stringent food safety and quality standards are major defining issues for market access today and will continue to be in the future especially in developed countries.This is a fundamental issue for developing country agro-producers and processors who need these more rewarding developed countries markets for their products.The critical issue is the lack of awareness of these issues by both developing country governments and their agro-SMEs especially in Africa. Given the pivotal role of agriculture and agro-industries in developing countries economic development and growth, poverty reduction and employment generation, I think the starting point should be massive awareness campaigns to governments and agro-SMEs, to drive home the importance of food safety and quality in export driven agricultural development and growth strategy.A second action will be training and capacity building of both government and private sector entities on food safety and quality management,regulation, enforcement and the requisite safety, quality etc standards.Third ,establihment of requisite instituional and regulatory infrastucture and physical facilities to facilitate compliance with the standards.I think government and international development agencies support in providing these facilities (Laboratories,roads and railways etc) at this initial stage will help solve the problem of high cost of these facilities which SMEs can scarcely meet and which thus stands as a barrier to meeting food safety requirements and access to lucrative exports markets.
Kyaw Myint , (2008-03-28 11:50:18)
The title of meeting consumers requirement is not clear regarding consumers in developing countries or consumers in developed countries or consumers in international market ( export market).The reason is that consumers requirements cannot compare developed country and developing country. Consumers in developed countries needs EURP GAP, fair trade, Geographical Indication, traceability, organic product, quality and safety, country of origin are important issue. However, consumers in the least developing country are important issue of safety and price situation. As for export markets, for instance, a particular commodity is traded to consumers in Europe , private standard such as Eurp GAP, GMP, certification of packaging house and product traceability etc. are required and if it is not comply with traders, agricultural products cannot be exported. Moreover, the requirement of Europe consumers are high standard compared to developing countries. Thus , traders in developing country endeavor to meet the requirements of Consumers in Europe.
The second issue is that the title is not clear fresh produce or processed foods or storable commodity. Requirements and private standards are important issues.
For developing countries, the best market mechanism (export market mechanism) is value chain to supply the requirement of consumers in international markets.
Muhammad Hariyadi Setiawan , (2008-03-27 10:33:17)
Are consumers (the real end users, mostly) really aware with the issue of food safety? Or the retailers that act as on behalf of the consumers who do aware due to secure their economic positions?
Sorry to raise a provocative question, because I found limited experiences that major part of consumers aware with the (especially) private driven requirement eg GLOBAL GAP. But I agree to promote a quality and safety production processes for the good of the producers themselves as part of their ethical choice and deliver best services to the customers. From the producers point of view, they can be pragmatic to implement such requirements and or standards while they have already had deals with the buyers, not before that considering the relatively high efforts and expenses to meet those requirements. A real consumers driven requirement need to be strengthen such as involving network of consumer rights association in setting the market mechanism.
Pilar Santacoloma , (2008-03-11 15:16:11)
I concur with Damian, Ian and Divina, that the crucial issue in this debate is how to ensure supply of high quality (or high value)products that respond to market requirements but also how capture its value.
Therefore the following questions become relevant: What are the best market mechanisms for ensuring food quality and safety through the food chain? What negotiation schemes could be used to match the interests of international importers/exporters with those of small and medium agro-industries and agri-businesses in developing countries?
Divina D. Bawalan , (2008-03-11 05:23:15)
Ensuring the production of high quality product at all times is a big challenge to SME’s because establishment of in-house quality assurance system and laboratory entail a lot of expenses. However, the problem is not as insurmountable as it seems. What they can do is to identify critical control points for every process step and standardize their process operation. While they are in the process of standardizing their operation, then they can regularly submit samples for product analysis in a government quality control laboratory. Once they get agreement of quality results within the + or – 0.0005 degree, then they can already develop the confidence that they have standardized their process. Under this condition, submission of samples for quality analysis can already be done on a periodic basis or when a client asks for it. Learning and applying the prerequisites and working principles of HACCP will tremendously help in achieving the goal of quality assurance.
Ian Crawford , (2008-03-11 01:35:15)
The very topic will send you in the wrong direction i.e. Meeting Consumer Requirements. As one who has made his living from marketing for many, many years it will seem like heresy when I say this is not the central issue. It is too narrow and especially with respect to international marketing. The central issue is "How do we meet the requirements of the supply chain and the consumer they serve?"
(1) In the industrialised countries, at least, retailers determine the evoked set of products and brands from which consumers actually make their choices. (2) Efficient consumer response is a critical determinant of supplier selection and this choice is made by the "upstream" members of the supply chain. Producers who increase rather than reduce efficient consumer response will find it difficult, possibly impossible, to penetrate the potentially lucrative western markets. (3) In the field of food products, the Fairtrade brand is gaining phenomenal increases in market volumes for its products in both Europe and North America. Fairtrade strategy mitigates against the penetration levels that non-Fairtrade produce. A counter strategy neds to be developed.
Dr. Damian Ihedioha , (2008-03-10 11:08:07)
By value addition, there is a creative combination of products, bye-products, processing and marketing. Value addition in foods produces specialty and differentiated products, with compliments of nutrients. The overall goal of value addition is to convert food items into products of greater value, better nutrition, increased economic value, increased aesthetics and consumer appeal and acceptability.
Having said the above, it becomes evident that value addition addresses what I call the pillars of food security, namely:
Poverty Reduction,
Employment generation,
Wealth Creation, and
Value Re-orientation.
Specifically on the question in discussion, relevant local/country level certification agencies, whose standards meet international specification can support small scale enterprises in producing/processing foods that meet market standards. In Nigeria for instance, the role of the National Agency for Food, Drug Administration and Control (NAFDAC) has been salutory. A robust public-private partnership (PPP) and collaboration in this area is key.
Dr. Damian Ihedioha , (2008-03-10 11:07:07)
Generally speaking, I am concerned that the concept of value addition and processing were not given prime place in the entire discuss. Food security was not given prominence also, meanwhile the crux of a robust agro-industry is to address food security issues.
In the developing world, the problem with agriculture and food security is not production/cultivation of food. Virtually all development projects in agriculture have concentrated of the production side of agricultural value chain, with limited emphasis on value addition, post-harvest handling and processing.
Value addition is a relatively new concept in food security. It simply means a deliberate attempt by processors, marketers and value chain operators to improve the efficacy, worth and value of food products. Value addition becomes apt in the food value chain because the processing to which most food products have been subjected have not imparted any distinguishing attributes to the commodity.
Value addition also is a form of specialised food processing that increases their overall worth. It refers to a process by which parties in-between farmers and consumers add quality to food products. It is thus the transformation of food products to consumer-ready nutritive products. Value addition is a means to improve quality, income, profit and sustain production. It is also a way to make commodities readily available all year round, to various income groups.
Edgar Smith , (2008-03-08 21:59:12)
The issue of meeting increasingly stringent quality and safety standards is certainly high on the agenda in most countries but the way to achieve it economically remains problematic for all but the largest producers/enterprises.The first step should be the promotion of Good Agricultural Practices (GAPs)for producers and Good Manufacturing Practices (GMPs)for processors...this requires those that have the responsibity to promote these know what they are and have adequate training.
The adoption of international standards(GLOBALGAP)is often promoted but in many cases is an ´over-kill´ for producers/enterprises essentally supplying local or neighbouring markets. What is needed is the creation of a reputation for producing quality and safe products which initially should be compliance with national food standards for quality and safety which requires these standards to exist and to be enforced by an inspectorate which is competent and sufficiently equipped ( analytical labs etc) to enforce the standards.
Rosa Rolle , (2008-03-08 09:55:53)
Many of the factors that will need to be explored by SMEs to maintain competitiveness have been mentioned so far. Do reduced post-harvest losses realized from improved quality and safety management in chains, make a difference at all in helping to offset the cost of investment in laboratories, equipment and training?
Pilar Santacoloma , (2008-03-06 09:29:46)
The implementation of effective and update food control systems plays important rol in facilitating compliance with appropriate food safety laws and regulations. Appropriate legal framework and regulation mechanisms, provision of certification and laboratory infrastructure, and effective food safety control system will enable countries and their SMEs to participate in more demanding markets, either national or international. So, robust and modern food control systems are essential -although not sufficient- to ensure that SME´s can gain access to modern markets.
Bernhilda Shamiso Kalinda , (2008-03-05 13:17:56)
SME are being expected to meet the minimum food quality and safety standards due to increasing consumer awareness locally and increasing demands for traceability of products supplied to the International market.Setting up of inhouse laboratories as tool for Quality Control (QC) is also quite a challenge as equipment is expensive.
An example of an organistation that made some strides in putting up quality system, with a laboratory that also run aflatoxin tests using high-performance liquid chromatography (HPLC), was a paprika agribusiness company that invested in quality and safety management for its exports of paprika flake and powder, this earned it market for paprika powder to the Netherlands. Prior to that the client had performed thorough quality audits.
Lessons learnt were attributed to structures such as buildings, floor plan, and product flow and most of the workers knew what to do but not why.
Partnerships that were in place were with:
1. Suppliers, who were the farmers, that registered and signed contracts with the company, for a known quantity of raw material. This worked through an extension system that was set up.
2. NGO, such as Agriculture Support Programmes, Programme Against Malnutrition, to name a few.These focused on promoting smallscale farmers, diseminating information, inputs, accessing farmers that were remote areas and forming a link with the company.
3. NGOs providing the financial input.