Using standards to catalyse market opportunities for the Southern African natural products sector: quick guide

What we do

There is proven potential for natural products to contribute significantly to economic growth and income diversification, particularly in rural economies. The natural products sector has relatively few market entry barriers and offers a unique cash income opportunity to some of the poorest of rural - and often female - individuals and is unmatched in its potential to provide rural areas with a long-term sustainable economic growth opportunity. Global demand for natural products is increasing - and this provides more opportunities for trade from the region.

This sector is, however, threatened by the emergence of official and private standards, which are a major challenge for this sector. A lack of responsiveness in terms of standards and certification compliance could threaten the emergence and sustainability of the sector in key markets. The opportunities that the natural products markets hold can only be realised if the buyer of Southern African natural products have confidence in the integrity of the product and that can only be achieved if the sector is able to demonstrate compliance with standards.

This project demonstrates how standards can be used as a mechanism to catalyse an infant industry and ensure that the benefits of improved market access are captured by the poor.

The Natural Futures Programme of the World Conservation Union (IUCN) makes systemic market development interventions that aim to assist the creation of a pro-poor Southern African natural products sector. The initiative operates at a variety of levels: by intervening at a policy-making level, by promoting an understanding of the economic benefits associated with compliance and by developing the skills necessary for smallholders to participate successfully in the economy.

The project operates at a variety of levels to enhance market opportunities for the natural products sector. Specific standards issues this project addresses include the following:

• Works with large certification organisations to ensure that smaller rural producers are able to meet the requirements, that certification systems are applicable to the sector and that the process is community and small-scale producer friendly.
• Raises awareness of standards and increases certification readiness by documenting best practices and providing individual support.
• Assesses and documents the health and safety risks facing the sector.
• Assists partners with applications and HACCP training and certification.
• Assists natural products enterprises to meet quality testing requirements.
• Identifies safety, sanitary, Fair Trade and health requirements and trains community producers to comply with them.

Why this intervention

Natural products businesses are exceptional, as they yield huge social and environmental returns, but they are not valued in the formal commercial market. The challenge for this intervention is therefore to enable these businesses to compete in that market. The RSP sees this approach as a window for making development sustainable.

What we achieve

To Be Completed

How is this sustainable

This intervention demonstrates a sustainable business model that includes large numbers of poor, isolated rural producers and multinational firms working towards a single economic objective, with both environmental sustainability and the livelihoods of the poor enhanced. The natural products sector offers significant opportunities for poor rural communities with access to natural resources. Sustainable harvesting and adherence to Fair Trade principles can help enterprises to access the growing market for natural products. Growth in the trade of natural products offers economic and employment opportunities for income generation, especially in infertile areas.

Who we work with

IUCN

The World Conservation Union promotes the conservation of ecosystems and biological diversity, and the sustainable use of natural resources. The Natural Futures Programme is an IUCN Southern African and Phytotrade Africa project which seeks to enhance market opportunities to develop community-based small and medium enterprises in the natural products sector.