1. CONFERENCE OF MINISTERS OF AGRICULTURE OF WEST AND CENTRAL
AFRICA (CMA/WCA)
CAADP PILLAR II LEAD INSTITUTION
REGIONAL POLICY DIALOGUE ON MEETING REQUIREMENTS RELATING
TO TECHNICAL REGULATIONS AND SANITARY AND PHYTOSANITARY
(SPS) MEASURES ALONG THE AGRICULTURAL VALUE CHAIN IN AFRICA
AU-AIBAR, NAIROBI
20-22 JULY, 2001
Strategies For Prioritizing SPS Investment Along The Value
Chain
Abraham Sarfo-Value Chain Expert
CMA/AOC - Conférence des Ministres de
l'Agriculture de l'Afrique de l'Ouest et du Centre
Lead institution for CAADP-Pilar II
Tel: (221) 33 869 11 90
www.cmaoc.org

2. Principles of CAADP
The principle of agriculture-led
growth
Allocation of 10% of national
budgets to the agricultural sector The implementation
principles, which assign the roles
and responsibilities of program
6% average annual
sector growth rate
at the national level
Exploitation of regional
complementarities and
cooperation The principles of partnerships and
alliances to include
The principles of policy farmers, agribusiness, and civil
efficiency, dialogue, review, and society communities
accountability, shared by all
NEPAD programs

3. CAADP PILLARS
Pillar II: Pillar III Pillar IV:
Pillar I:
Improving rural Increasing food Improving
Extending the
infrastructure supply, reducing agricultural
area under
and trade- hunger and research, techno
sustainable land
related improving logy
and also Water
capacities for responses to dissemination
Management
market access food emergency and adoption
crises

4. Conceptual Framework for Implementing Pillar 2
PILLAR 2 FRAMEW ORK OUTLINE
J
K INFRASTRUCTURE DEVELOPMENT
I
Harmonization, Advocacy, Benchmarking, Impact Evaluation
DEVELOPMENT DOMAINS
ACTION TOOLS: PPP, B2B, Regulatory Measures, Policy
H G
INFRASTRUCT URE AGRIC. GROW TH
CORRIDORS POLES
B
A
• COMME RCIAL PRODUCTS REG. MARKETS
• MARKET OPPORT UNITIES TRAD. EXP. Mkt
• STRATEGIC COMMODITIES EMERGI NG. Mkt
F
VALUE CHAIN
DEVELOPMENT AND FINANCING
E
FO & TA AS CREDIBLE
BUSINESS PARTNERS
C D
SMALL SCALE
LARGE SCALE
FARMERS
FARMERS
4

5. Why Value Chain Approach To SPS
Food safety are affected by events that occur throughout the value
chain -from input supply to consumer. Therefore, the development and
enforcement of SPS standards needs to reflect risk along the whole
Value Chain. FAO acknowledges the relevance of a Value Chain
approach to food safety:
• “…recognition that the responsibility for the supply of food that is safe, healthy and
nutritious is shared along the entire food chain - by all involved with the
production, processing, trade and consumption of food. This approach
encompasses the whole food chain from primary production to final consumption.
Stakeholders include farmers, fishermen, slaughterhouse operators, food
processors, transport operators, distributors (wholesale and retail) and
consumers, as well as governments obliged to protect public health. The holistic
approach to food safety along the food chain differs from previous models in which
responsibility for safe food tended to concentrate on the food processing sector.”

6. Value chain definitions
Definitions….
USAID 2010: “Series of actors and activities needed to bring a product
from production to the final consumer”. “Value chains are a chain of
actors but they operate like a system. … We can’t just focus on
production without ensuring that there is sufficient processing
capacity to absorb increases or w/o ensuring that there is market
demand and access to markets”.
FAO 2007: “we use the term value chain to characterize a system
composed by different actors, activities and institutions, all functioning
interrelatedly, so as to enable the accomplishment of a common goal”.

7. A generic definition of value chain
“Value chain” means….
 the sequence of related business activities (functions) from the
provision of specific inputs for a particular product to primary
production, transformation, marketing and up to final consumption
 the set of enterprises that performs these functions i.e. the
producers, processors, traders and distributors of a particular product

8. The “value chain map”
Basic sequence of functions in an agribusiness value chain
Specific Trans- Final product
Inputs Production formation Trade
Provide Grow, harvest Classify Transport
- equipment Produce the Process Distribute
- inputs primary stage etc. Pack Sell
Categories of operators in value chains and their relations
Specific Farmers, Packers, Consumers of
Input (primary Agro- Traders pineapple juice
providers producers) industry (sales pt.) (the market)

9. Cattle Meat: Generic overview of VC maps
Veterinary Cattle Live animal
Slaughter Meat trade Retail
services rearing trade
Meat
Importers
High-value
Super
Domestic
markets
markets
Vets & Cattle Beef processors & packers /
pharma Ranches High class butcheries
Communal slabs Low-value
Local butchers rural
markets
Meat
Individual Urban Beef traders Low-value
shops
& group Live animal slaughter- urban
pastoralists houses Urban markets
traders Butchers
Trekking &
Trucking Regional
Other cattle Export
rearers (dairy) market
This VC map is a simplified overview map, showing only major actors and their relations

10. Fields of Investment In Value Chain
Overview of investments into VC development
VC Development Strategies Investment Topics Fields of Investment
Improving market efficiency and Market infrastructure Public investment in
market access Village storage, assembly market facilities
reducing marketing cost and Roads Public investment in feeder road rehabilitation along the
enhancing the market access of supply lines and rural focal points
farmers
Business linkages Brokering market linkages
Contract farming
FBO development Support to farmer groups and co-operatives:
Management capacity of business associations
Improving productivity Agricultural input supply Seed value chain development
enhancing use of inputs and Fertilizer value chain development
improving technology Services Public technical research and extension services
Private advisory services
Market information services
Increasing productive capacity and VC finance Warehouse receipt finance
production volumes supporting Prefinancing of production
financing solutions
Facilitating Marketing And Market Grades And Standards
Trade
Introducing Market Regulation
Regulations

11. Evolution Of Marketing Standards And Associated
Conformity Assessment Systems For Agricultural Produce
• Market requirements in the most recent years and going into
the future: (EU/USA Markets, Emerging Markets, Regional
Markets and Domestic Markets)
 Emphasis on GAP implementation in the field
– Correct use of agrochemicals and storage thereof
– Proper recordkeeping
– Personnel hygiene
– Traceability system, etc.
 HACCP in processing plants
 Third party certification (GLOBALGAP, BRC and ISO 22000) also
known as voluntary or private standards
 New, sophisticated method of sampling procedures in food
business operators in order to monitor safety and quality.
 Modern methods of traceability (e.g. e-trace) on cards

12. Value Chain and SPS
• Formal, regulated, complying with SPS
SPS standards, long and vertically integrated,
including an international dimension;
Investment • Formal, regulated, complying with national
in Value standards; vertically integrated national;
concentrated national, e.g. Co-operatives;
Chain are • Informal, unregulated, standards set by
agreement between producer and
typified as consumer
• Many of the poor sell to and buy from
follows: informal markets.

13. Key Challenges in Small Holder Farmer
Competing in Global Markets
Key challenge is compliance with current legal, trade and industry standards in the
US, Europe and some emerging markets.
Unless countries are able to adopt and implement the required standards effectively, their
opportunities for accessing market for the small holder farmer will be increasingly
diminished.
Often, the challenge is to integrate small-scale farmers and micro-entrepreneurs into global
value chains as competitive and reliable partners.
At the same time, quality improvement and certification can be actively used to achieve a
competitive edge. Markets reward high-quality products with better market access and
higher prices. Hence, quality improvement is part of a strategy of product differentiation.

14. Implementing Investment in SPS
Along the Value Chain
• 3 Key Question
What system of Coordination is in Place to meet
commercial objectives relating to Quality, Quantity
and Consistency and ensures compliance to standard
What are the rules of standards both official and
commercial that actors involve in the value chain must
comply before participating
What are the effect of these rules on the poor and
their production activities

15. Prioritization Of Appropriate Food Safety
Standards.
• Setting Appropriate Standards.
– Food safety is linked to food security, is beneficial to
the poor when it is provided at an appropriate level,
and deserves a higher priority on national agendas.
– International agencies can assist, but national
governments ultimately determine their own
priorities
– It is necessary to promote standards that are
appropriate for the risk management situation and
can actually be enforced.
– Risk management measures to create food safety,
including standards, vary with value chains and
situations

16. Tools For Analysis of Investing in SPS
Along the Chain
It is important
that all • To what standards do we wish to protect consumers and
cost?
governments • Do they wish to export/trade?
, Chain • How important is the export market?
Upgraders and • What standards for exports?
Decision Makers • Will it be economically viable to introduce heightened
standards?
use standards • Are they prepared for variable standards?
setting as part • What food safety problems will need to be addressed?
of a risk • What animal diseases need to be tackled?
• Are their current standards appropriate?
management
• Can they meet obligations?
system, by • How can they demonstrate they have met the obligations?
asking • Who will negotiate on their behalf?
questions like:

17. Support To Small Producers And
Processors To Encourage Good Practice
• Assisting small farmers, traders and processors to enter
formal (regulated) or vertically integrated markets will
include, (but not be restricted to) helping them to comply
with standards.
• It may involve quite wide ranging changes to management
practice.
• Involvement of a wide range of players
• Greater input of good science into risk assessment, evaluation
and communication is needed.
• Agricultural Research Institutions other research institutions
have an important role to play.
• Involvement of the private sector can produce beneficial
• Policy change must embrace more than agriculture. It must be
about creating conditions to encourage investment, e.g.
education, information, credit.

18. Concept: Coordinated SPS Management
Along The Chain
Seed Production Trans- Commerce End
provision formation Trade Product
Seed Farmers 1
producers Companies Traders 1
Market
GAP GAP GMP GTP
GDP
GHP GHP
GHP
GAP-Good Agricultural Practices
GMP-Good Manufacturing
Quality Management System Practices
Eg HACCP, Product Traceability etc GTP-Good Trading Practices
GHP-Good Hygiene Practice
GDP-Good Distribution Practice

19. Upgrading Quality System in Value
Chains
This includes interventions at the macro and meso levels in the first place, i.e.
the agreement between operators, public interest groups and government on
standards and legal regulations.
Production and product quality will only improve if chain operators and service
providers are able to actually apply the necessary technology and procedures.
Upgrading is required in the fields of enterprise capacity, quality
infrastructure, quality-related services, and the collaboration along the value
chain.
Finally, it has to be made sure that all parties play by the rules. This is achieved by a
standard verification system. Accordingly, the main tasks of value chain facilitators
relate to ensuring that all parties respect the standards agreed upon.

20. PILLAR 2
THANK YOU FOR YOUR ATTENTION
ME DAASE
MERCI
ASANTE SANA