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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
Assisting the Mariveni Emerging Farmer Project to become EurepGap compliant: quick guide
What we do
The Mariveni Emerging Farmer Project (MEFP) consists of three farming communities - Mariveni, Seloane and Mabunda located near Letsitele in the Limpopo Province, South Africa. These communities, consisting of 62 small-scale farmers, acquired their respective farms through the land reform process and collectively have 610 hectares of land under fruit crops. For the 2005/06 season, these three communities exported 130,000 cartons of citrus (1,950 tons), with the remaining produce sold on the local market. Bananas and mangoes were also sold on the local market, but efforts to export mangoes are being considered.
It should be noted that 2005/06 was a poor year for marketing citrus in most international markets. Nonetheless, it is clear that the actual tonnage exported was relatively low in comparison to the potential of these farms, which suggests there is substantial room for improvement. Interventions that will result in better agricultural practices, including the effective management of pests and diseases through the responsible use of pesticides, should have a significant impact on the export output of these farms, as well as compliance to international standards, which is a prerequisite to supply to retail markets.
The minimum requirements for a producer, packhouse and exporter to export products of plant origin are that it has to comply with the South African Export Regulations under the APS ACT and will receive a Perishable Product Export Control Board (PPECB) export certificate when in compliance. This allows exporters to enter the EU market but does not guarantee them access to retail markets. About 70% of all fruit and vegetables are exported to the EU, of which 80% is supplied to supermarkets. Retail markets require additional food safety standards, like EurepGap and HACCP, if food business organisations want to supply them.
EurepGAP, now called GlobalGAP (GAP is an acronym for Good Agricultural Practices), began life in the late 1990s as a common standard of farm management created by technical representatives of several European supermarket chains, with inputs from major suppliers. The standard seeks to eliminate the increasing multiplication of overlapping supplier standards published by different retailers, which was creating problems for farmers. It is now the most widely implemented farm certification scheme worldwide. Most European customers for agricultural products now demand evidence of certification as a prerequisite for doing business.
Apart from the infrastructural requirements to comply with these standards (for example, pesticide stores), the training of personnel on the requirements of EurepGap, development and implementation of the necessary documentation and procedures are of paramount importance before certification against the standard can be considered.
As part of this project, the PPECB is providing the necessary technical support to Mariveni to raise its standards of food safety management.
Why this intervention
Most of the citrus fruit produced by the project is aimed at European supermarkets. Access to high-value export markets is key to the sustainability of projects such as this, as they are typically overburdened by debt. Depending on the season's exchange rate, the net realisation from export sales is 50% to 100% higher than the domestic market equivalent. Achieving and demonstrating that private standards are being met is a costly exercise for developing country farmers. However, without this investment they have no choice but to sell their product locally.
Where rural livelihoods are concerned, the Mariveni Emerging Farmer Project employs around 200 permanent workers, with another 300 people employed during the packing season. Given the accepted dependency ratio of 1:6, the projects sustain and feed at least 1,200 people in the area.
What we achieve
This intervention has been able to provide Mariveni with technical assistance and support to raise the standards of food safety management so that the Mariveni Co-operative now comply with the requirements of EurepGAP and Tesco Nature's Choice, which enables it to market its fruit in the discerning UK and EU markets. Mariveni is also in the process of being accredited by Fair Trade. The implementation of social upliftment projects through the premiums earned in Fair Trade programmes will have a significant impact on the surrounding communities.
In addition, the participating small farmers and the community have seen clear benefits from this project:
- Hugely improved productivity and yields: The 2007 citrus season has been very promising, with total production projected at 300,000 cartons - an excellent production yield.
- Certification and access to supermarkets: Achieving EurepGAP and Tesco Nature's Choice certification means that the improved productivity and yields achieved by the project can be translated into an increase in export sales. This, coupled with an improvement in overall market prices for the season, means that Mariveni will make a substantial profit.
How is this sustainable
Having acquired private standards certification has been a tremendous accomplishment for Mariveni and will have a significant impact on the export potential of these farms. It is estimated that Mariveni, in time, will generate a turnover in excess of R90-million (about £6.5-million) from exports to the EU market.
