Upload
joshua-caldwell
View
217
Download
0
Tags:
Embed Size (px)
Citation preview
COSTS AND BENEFITS OF COMPLIANCE WITH FOOD SAFETY STANDARDS IN NILE PERCH
INDUSTRY IN TANZANIA
By
Z. Mpenda, N.S.Y Mdoe, R. Kadigi and E. Senkondo
Introduction High value food products as new opportunity
for developing exporting countries
Fish is a new opportunity worldwide:
net exports from developing countries reached 18.3 billion US$ in 2003, which compares positively to commodities such as coffee, cocoa, rubber, etc. (Josupeit, 2005).
Over the last decade, developing country exports of fish and fishery products have increased at an average rate of 6 percent per annum.
Introduction: Nile Perch in East Africa
Value of Nile perch exports to the EU by the riparian states (000’€)
Introduction: Nile perch in Tanzania
In 2008 the Nile perch exports amounted to US$ 153 million (equivalent to 1.1% of the GDP)
Direct employment to about 80000 fishermen
Seven processing plants in Mwanza in 2006 employed 2825 casual and 1195 fulltime
Nile perch mongers: daily cash flow estimates in 2009 were TSH 600 million
About 119 000 families depend on lake Victoria for their livelihoods
Introduction cont’ed three intermittent EU import bans
referenced to failed compliance with the EU food safety standards
Low volumes were consumed by other markets in Asia (Japan, UEA)
exacerbated pressure for reform adopting EU fishery regulations on food safety and hygiene. At national and processing levels
Literature on compliance Costs:
High production, compliance and transaction costs Non-conformity costs is enormous
Benefits: Market access, Premium price, Firms’ image, competitive edge
Study objectives
General Objective To assess benefits and costs associated with
conformity to food safety standards in the Nile perch export supply chain.
Specific Objectives To assess levels of compliance with standards
at each stage of the Nile perch export supply chain
To identify and assess costs and benefits associated with conformity to food safety standards at various stages in the Nile perch export supply chain
Methodology Both secondary and primary data were used
Primary data were collected from a total of 239 actors including 5 processing plants, 58 traders (ajenti), 109 boat owners (matajiri) 67 fishers (wajeshi)
Data analysis descriptive statistics, accounting method and
Obj. 1: Level of compliance with standards
Fishing : Non compliance with use of mashed ice, boat partitioning, training and license renewal was found amongst small and medium scale boat owners
Trading: non-compliance with keeping the 3 days maximum limit of mashed ice use. Only 45% of traders spent less than 3 days
Processing: complied with standards; continuous improvement due to proliferation of new standards
Remarks Test Parameters Test methods Units Critical limits
Standards Test Methods
Total plate count/g TZS 118:2002 Cuf/g 1 x 105 Old New
Total coli form/g TZS 119:2002 Mpn/g 4 x 102 Old New
Salmonella/shigella sp/25g TZS 122:2002 P,A/25g Absent Old New
Vibrio cholerae/25g FDA-BAM:1995 P,A/25g Absent New -
Staphylococcus aureus/g TZS 125:2002 Cuf/g 1 x 103 Old New
Enterobacteriaceaea/g ISO 21528 (part 2) Cuf/g 1 x 103 New -
Escherichia coli TZS 731:2002 Mpn/g 1 x 101 Old New
Obj. 2: Compliance costs
Capital investment costs(1) Boat owners: Nile perch costs three times
higher than that of dagaa
(2) Traders: Dealers’ costs increased by 45% Trucks traders’ costs increased by 109% Boat traders’ costs increased by 50%
(3) Processors: the costs increased by 16%
Obj. 2: Compliance costs cont’d Recurrent costs
(1) Boat owners: costs increased by 17.4% compared to 0.2% for dagaa Highest cost is in fuel and oil (65%)
(2) Traders:
(3) Processors: high costs on quality supervisors (27.2%), lab testing (25.2%) and training (11.0%)
Cost item Dealer Factory agent
Boat collector
Truck owner
Percentage Increase in quality cost 1.3% 4.0% 2.1% 2.9%
Percentage of Non-conformity cost 0.0% 70.2% 30.8% 32.2%
% increase total Compliance cost 0.0% 77.0% 33.6% 36.0%
Obj. 2: Compliance Benefits
(1) Boat owners Market access Significant in annual net revenue Premium price (67%)
(2) Traders Market access Price premium (84%) Net revenue increased by 153% when compared to dagaa
(3) Processors Market access
0
50
100
150
200
250
300
350
400
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Amount of fish tons) Average real price
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Weight (tons) Value (US$ '000)
Conclusions High levels of compliance have been achieved
by downstream chain actors (processors) who are closely integrated to fish buyers than upstream actors (fishers)
Compliance is constrained not only by the standards but also depletion of fish resources (distance from the shore line, days stayed at landing sites to collect fish)
standards are associated with high costs but also higher benefits
Major recommendations
it is worth supporting the continuation of efforts to maintain compliance
encourage development partners and non-governmental institutions to finance chain improvement trainings to all players in the Nile perch supply chain
Ensure sustainability of fish resources