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CBI - Ministry of Foreign Affairs
CBIs Natural Ingredients
Leveraging South African Biodiversity: Producing Safe Products for the Market
6 November 2015
Overview of the CBI
CBI was established in 1971 by the Ministry of Foreign Affairs of the Netherlands and has been an agency of this department since 1998
60 employees and worldwide network of 250 experts
CBI - Ministry of Foreign Affairs2
Mission Vision
CBI is THE expert in export development and export promotion from developing countries
Contribute to sustainable economic
development in developing countries
through the expansion of exports from these
countries
CBI Sectors & Target Groups
CBI - Ministry of Foreign Affairs3
Agricultural
Industrial
Consumer
Services
Natural Ingredients for Cosmetic and Health Sectors
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ECP Modules MI ModulesBSOD Modules
BSOs, including government departments and industry associations
Improved sustainable service provision to the sector
Natural Ingredients Programme in South Africa
Company Audit
Export training and coaching
Market Orientation
Market Preparation
Market Entry
SME en BSOs
Effective implementation of the available information
SME en BSOs
Effective implementation of export knowledge and export skills
HRD Modules
Rationale for NI Program in South Africa
Plant biodiversity and developed agricultural sector
Upward trends in natural ingredients for cosmetics and pharmaceuticals in EU and international markets
Natural ingredients is an emerging sector with potential for growth
Significant potential for rural development
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Significant opportunities to leverage South Africa’s biodiversity and biological assets into sustainable
economic development and exports
CBI Tools and Analysis
Company Audits > Action plans and EMP
22 companies covering a range of natural ingredients (indigenous, waste, exotic, wild harvested, cultivated, marine (new))
Training and support of companies in developing Export Marketing Plans (SWOT, market and competitor analysis etc)
Sector Engagement
Regional Strategic Conferences (WC, GTN, KZN)
Engagement with industry and government stakeholders
Corporate Social Responsibility Analysis
Incorporate CSR in sector and company action plans
Market Intelligence
Customized market intelligence for RSA Natural Ingredients
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Developing sustainable supply chains for exports
What do EU buyers want?
SAFE Products!
Safe to process and use
Safety in terms of supply
Safe in terms of sustainability
Safe in terms of proof of efficacy
Safe in terms of transparency
Documented + Communicated + Right Price!
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1. Safe to process and use
Lack of assessment by public and private sector on what is being demanded by the market – lack focus/priority
Legal compliance – composition, toxicity, allergens and documentation (SDS)
Companies are small – lack capacity and export knowledge
What can be done?
Access research funding and findings (ARC, CSIR, SANBI, private companies, universities)
Collaborate on first level of testing where industry can share results
Build knowledge base at sector level
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2. Safety in terms of supply
Buyers in EU perceive SA companies not able to coordinate or develop value chains
Fragmented and insecure supply
Lack of raw material, and capital to expand production or purchase more material
Lack of control in the supply chain (social and environmental)
Not able to upgrade to processing or scale processing capacity due to lack of technical and/or financial resources
What can be done?
Attract investors to supply chains by showing the business case
Partnership with government, communities, private sector and buyers
Development of manuals for production and processing of key products (validated by industry) – guided by GACP and GMP
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3. Safety in terms of sustainability
Buyers concerned about social and environmental conditions of production
Basic compliance with labour and environmental legislation is assumed - BABS
Companies lack documentation and training of employees and suppliers
Lack of information and transparency in the sector
Buyers expect CSR plans and activities beyond compliance
What can be done?
Strengthen support organizations to assist companies with social, economic and environmental risk assessments and development plans
Coordinate industry effort to engage government on regulatory environment
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4. Safe in terms of proof of efficacy
Value addition does not mean moving to finished product
Can develop product through efficacy information - more difficult (and expensive) for Health than for Cosmetics
Key to adding value to the buyer
Are South African Labs able and are their results accepted?
What can be done?
Identifying common issues among companies
Industry & researchers should connect/talk more to identify market trends and needs e.g. natural ingredients for whitening
Realism in terms of scope and return on investment, some research is done by specialized institutions outside South Africa
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5. Safe in terms of traceability
Products need to be traceable to the farms and collectors
Product identification and documentation
Traders should show how they add value
What can be done?
Central database of botanicals
Sector organizations should raise awareness at company level
Companies sharing experiences on traceability systems
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Key questions to consider
What is the demand for the product? Does the market want this?
What are the market (& legal requirements)?
What are local legal requirements?
What is the cost of development and compliance?
What are the additional benefits and impacts?
Is it worth the investment?
Who are the main partners?
What is you action plan?
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More information
+31 (0)88 60 24 300
+31 (0)88 60 24 301
www.cbi.eu
Postal address
P.O. Box 93144, 2509 AC The Hague
the Netherlands
Visiting address
Prinses Beatrixlaan 2
2595 AL The Hague
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