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Certified sustainability: Only a burden to farmers or a tool to improve sustainability? (Some GIZ experience). Dr. Eberhard Krain & Pelelefanga J.-M. Coulibaly International Certification Conference (ICC) Yamoussoukro, Côte d‘Ivoire 15th-20th September 2014. Overview. GIZ at a glance - PowerPoint PPT Presentation
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Page 119.04.23
Certified sustainability: Only a burden to farmers or a tool to improve sustainability?
(Some GIZ experience)
Dr. Eberhard Krain & Pelelefanga J.-M. Coulibaly
International Certification Conference (ICC)
Yamoussoukro, Côte d‘Ivoire
15th-20th September 2014
Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
Page 204/19/23
• GIZ at a glance
• The sustainability bottleneck
• Role of GIZ in supporting sustainability and certification
• Experience with certified sustainability
Experiences worldwide
GIZ experience with focus on Africa
Alternatives to certified sustainability
• Conclusions
Overview
Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
Page 304/19/23
GIZ at a glance
• GIZ is a not-for-profit enterprise, owned by German Federal Republic
• Mandate: Sustainable development through international cooperation
• Thematic areas: economic development, governance, environment, energy, health, education, agriculture and food, etc.
• Present in about 130 countries, mainly developing countries and emerging economies
• 2012: business volume of € bn 2.1 , mostly development projects, advisory services, dialog platforms and training courses
• Major clients: German Federal Ministry for Economic Cooperation and Development (BMZ), other German ministries, European Commission, foundations and private sector
• Staff members: > 16,000 globally, about 3,100 in Germany
Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
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The sustainability bottleneck
People - lacking capacity and incentives
Planet - limited natural resources
Profit - increasingMarket demands
xda-developers
Page 504/19/23 Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
Components of a Voluntary Sustainability Standards System (VSS)
1. StandardSetting requirements
2. Capacity BuildingKnow-how & skills
To fulfill requirements
3. AssuranceProviding evidence of compliance
4. Accreditation„Controlling the controller“
A standard is like a law, it is just a piece of paper that needs a corresponding system to make it work
Certification is just 1 of 3 assurance optionsThe bottleneck lever!
Page 604/19/23
Secretariat function
Network membership
Standard Systems Development
• African Cashew Initiative• Sustainable Cocoa Business• Competitive African Cotton Initiative• Cotton made in Africa• Better Rice Initiative Asia • …..
Dev. Projects & PPPs
Role of GIZ as international donor organization in supporting sustainability and certification
Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
Page 7
Selected worldwide Experiences (ISEAL)
04/19/23 Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
1. Standard compliant production is increasing dramatically and market penetration is significant in some sectors
2. There is a gap between production and sales for some commodities
3. Sustainable production is skewed towards more developed countries
4. Certified farms are different and excel on numerous social, environmental, and economic characteristics
5. Certified operations do make improvements over time
6. Impact evaluation results are still rare. Recent studies suggest that observed changes cannot always be attributed to standard systems
7. Farmer incomes increase, but not always and more improvement is needed
8. There are some important limits to what certification and standards can do alone
(ISEAL = International Social and Environmental Accreditation and Labelling Association)
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Certified vs. uncertified producers outcomes(% difference in results for important COSA indicators)
(COSA = Committee on Sustainability Assessment)
Certified producers perform better on average
Source: ISEAL presentation taken from the COSA Measuring Sustainability Report 2014
Page 9
Survey methodology
•Survey sent to 48 member projects
•18 filled the questionnaire
For about 40% of the SNRD projects certified sustainability appears to be a matter of interest for their work
04/19/23 Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
Experiences of GIZ-SNRD Africa projects with certified sustainability (SNRD = Sector Network Rural Development Africa)
Page 10
Opinions about sustainability standards
2/3 positive attitude
They are interested in further exchanges on the subject
1/3 sceptical attitude
Concerns: complexity, costs sceptical about benficial impact
Mostly used standards
oUTZ > Rainforest Alliance (in the cocoa production)
oFairtrade, GlobalGAP, Organic (for fruits, vegetables, cashew, cotton, coffee crops)
04/19/23 Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
SNRD Africa Experiences: Key Results
Page 11
SNRD Africa Experiences: Lessons Learnt
Positive impact on productivity and quality
Increasing farmer negotiation power for better margins, growing reputation as export countries, positive environmental impact
Critical issues to pay attention to:
inclusion of smallholder, less organized producers and less competitive export countries
That benefits should also go towards farmers (not only towards buyers/processing industry etc.)
Complexity/ cost for farmers
Standards are one tool in value chain development; other measures need to be undertaken simultaneously
Ex: organizational development of farmer groups, access to founds and markets, road network
19.04.23 Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
Page 12
• PPP projects implemented by GIZ in the cocoa sector between 2010 and 2013 had a big focus on certification
• Project private partners: CEMOI, SACO, KRÜGER, TOUTON
• UTZ : 1 Coop., 735 Prod., 3 900 MT certified
• Rainforest Alliance : 35 Coop., 19 010 Prod., 40 935 MT certified
• Projects objectives
• Support implementation of certification process in the coop. (information, internal management system, audit, …)
• Training of extension staff
• Monitoring and evaluation
04/19/23 Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
GIZ Experience in Côte d’Ivoire
Page 13
• Success
• cooperative organization were strengthened
• increasing rate of adoption of GAP by producers and there incomes
• Challenges
• capacity building of cooperative leaders should be increased
• sustainability beyond the projects
• Lessons learnt
• GIZ CIV is no more working on certification (only in marginal cases) but develops a more comprehensive capacity building for private partners and cooperatives
04/19/23 Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
GIZ Experience in Côte d’Ivoire
Page 1419.04.23 Sector Programme Social and Environmental Standards & Promotion de Filières Agricoles et de Biodiversité (PROFIAB), Sector Network Rural Development (SNRD) Africa
• Assurance types
First party (assessment by producer)
Second party (assessment by buyer)
Third party (assessment/auditing by indpendent body = certification)
• Certification, most credible but most expensive way
• Alternatives
First party: farmer self-assessment on sustainability (SAI Platform) (now called farm sustainability assessment (FSA)
Peer review: MOAP, Ghana; IFOAM Pariticipatory Guarantee System
Smaller samples (e.g. ½ 4C vs. SAN/RA, Utz, FairTrade)
Longer auditing cycles for good performers (e.g. SAN/RA in Code under revision)
Zooming in on Assurance (Certification) 1
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Zooming in on Assurance (Certification) 2
Is certification necessary for sustainability?
NO, however, it increases credibility
What is really important?
Acquisition of know-how & skills
Application of improved practices
Page 1604/19/23 Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
Conclusions (Certified) sustainability has reached significant proportions of markets in
developed economies
Certified sustainability has developed from a niche into the mass market
Certification costs are high, but much lower than the costs that are necessary to build up farmers know-how and skills
The impact of certified sustainability is mixed, however, in the majority of cases the outcomes are positive and small farmers have benefitted, too
Certification is not necessary for sustainability, but helps credibility
The more certified sustainability becomes mainstream, the less will be the opportunity for better prices (premium), nevertheless farmers are well advised to go towards (certified) sustainability in order to ensure market access
Alternatives to certification (1st & 2nd party assurance) should be more explored
Page 1704/19/23
Thank you!
ContactDr. Eberhard [email protected]. +49 6196 79-1467
Pelelefanga J.-M. [email protected]. +225 2243 4392
Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa
Page 18
Aimee Russillo (GIZ consultant): Overview Current State of Impact Measurements of Sustainability Standards Systems, GIZ, Eschborn 2013
COSA: Measuring Sustainability - First global Report on COSA Findings in Agriculture, Draft, 2013
FAO: Impact of international voluntary standards on smallholder market participation in developing countries, Rome 2014
IFC: Building a roadmap to sustainability in agro-commodity production, 2013
KMPG: Improving Smallholder Livelihoods: Effectiveness of Certification in Coffee, Cocoa and Cotton, 2013
Kristin Komives: Entry presentation to the Panel Discussion “Responding to Results”, ISEAL Conference, London, May 2014
NRI: Assessing the Poverty Implication of Sustainability Standards – University of Greenwich, 2013
State of Sustainability Initiatives Review 2014
04/19/23
References
Sector Programme Social and Environmental Standards & Promotion of Agricultural Value Chains and Biodiversity Programme (PROFIAB) - Sector Network Rural Development (SNRD) Africa