Please be informed that the ComMark programme came to an end on 31 December 2009. Should you have any queries or need further assistance , please contact the relevant sector staff member(s):
- Agribusiness Sector Specialist - Lucille Gavera (+27 83 290 1260) or Mike De Klerk (+27 82 452 7749)
- Textiles & Apparel Sector Specialist - Andy Salm (+353 8623 88523)
- Tourism Sector Specialist - Wouter Schalken (+264 8120 89650) or click here for information on ongoing tourism projects in Southern Africa
The Private Standards Innovation Fund
The Private Standards Innovation Fund assists Southern African agri-business firms meet the range of private standards international buyers require. The Innovation Fund awards grants to regional producer groups, private firms, industry associations and agencies to assist them to overcome specific certification or standards issues that prevent them from supplying high-value, formal markets such as international and regional supermarket chains. The fund aims to identify opportunities to increase exports of specific products where standards compliance can significantly enhance market access and raise producer incomes. By promoting compliance with these increasingly stringent quality and safety requirements the Innovation Fund is hoping to enhance the demand for Southern African products. The Fund also encourages commercial entities to experiment with creative solutions to overcome the barriers associated with standards compliance by providing them with a financial incentive to offset some of the associated risks and costs.
What are private standards?
Private food safety and quality standards in developed countries have become a global phenomenon. These voluntary standards are product and production process requirements set by the buyers of agriculture and food products. They operate alongside compulsory public regulatory systems, but in terms of market access and access to the shelves of leading supermarkets in rich countries, they are virtually mandatory. As a result, countries in southern Africa face increasing constraints in exporting their food products to markets in Europe and the US. To ensure continued access to these important export markets, producers have no alternative but to make the necessary investments to comply with the requirements of private food safety and quality standards. While these standards are a constraint, they also represent an opportunity for Southern African firms to distinguish themselves as high-quality reliable suppliers that are able to meet and exceed the food safety, environmental and social standards set by their buyers.
Why are private standards a problem?
Meeting private standards is a challenge for Southern African firms for a number of reasons. First there are a large number of different standards schemes such as GLOBALGAP, Fair Trade and firm-specific standards such as Tesco's Natures Choice. Second, the scope and stringency of these different schemes change and increase rapidly, which requires producers to have ongoing access to information about private standards requirements and continuously make investments in standards infrastructure and systems. For smallholder producers, these costs are especially prohibitive. Constraints that smallholders face in meeting standards and demonstrating compliance through certification include:
- Low levels of education make it hard to understand and adopt the requirements of private standards
- Technical assistance is needed to improve quality, safety, productivity, management, record keeping and hygiene practices
- Moving from a production to a market-oriented mindset can prove challenging
- The high supervision and monitoring costs of certification are often prohibitive.
