Exporting Fruit

1
Exporting Fruit Vegetables to the EU
Practical Guidance on the Relevant EU Rules
Ir. Thomas Darmawan
Executive Director of GAPMMI /The Indonesian Food
Beverage Assc
presented at Safety First Seminar How EU food
safety rules can help ASEANs exporters. ICC,
Bangkok, Thailand, 28 29 May 2004
2
International food trade

• Big business
• US 300 billion
• 500 billion metric tons

3
Imported foods

• Complements domestic food supplies
• Provides income and business opportunity
• Stimulates competitive market economy
• Provides unavailable food
• Provides food variety
• Satisfies taste

Exported Food

• Provides foreign exchange earnings
• Promotes domestic products internationally
• Stimulates domestic economy
• Projects country image

4
Why control imported food ??

• Protect the public health
• Prevent dumping unsafe food
• Satisfy consumer demand for quality/safety
• Enhance quality food trade internationally

Imported food control - now

• Sampling and testing upon entry
• Foreign inspection programme
• Agreements between trading partners
• Export certification
• Product registration

Why control export food ??

• Meet the requirements of the importing countries
• Be able to compete on the market
• Establish the countrys reputation as a reliable
  exporter
• Protect national industry
• Prevent unfair trade practices

5
Rejections at the import stage

• The products do not meet the requirements of the
  importing country
• Lack of information and communication knowledge
  (legislation, procedures of the importing
  country)
• No efficient export control
• Certification documents or procedures

Causes of problems in trade

• Labelling
• Decomposition
• Mould
• Microbiological contamination

• Low-acid canned foods
• Pesticide residues
• Additives
• Contaminants
• Toxins

6
Change in progress

• Import - export certification
• Food safety and quality standards
• System equivalence assessment
• Risk analysis verification
• Mutual recognition agreements
• Prioritizing control measures

7
FOOD STANDARD REFERENCES

• Codex Allimentarius Comission (CAC)
• SNI (National Standard)
• Standard Technical
• Standard from Importing Country
• Standard from Importer / Buyer

G A P M M I
8
FOOD SAFETY FROM FARM TO TABLE
HACCP
Production Facilities
PROCESSING
DISTRIBUTION
RETAILERS
CONSUMER
Agriculture Products
HANDLING
GMP
GDP
GRP
GCP
GFP
GHP
Pre Harvest
Harvest
Post Harvest
Mutual Recognation Arrangement (MRA)
Note HACCP HAZARD ANALYSIS CRITICAL
CONTROL POINT GFP Good Farming Practices
GDP Good Distribution Practices GHP Good
Handling Practices GRP Good Retailing
Practices GMP Good Manufacturing Practices GCP
Good Catering Practices
9
ASEAN Population GDP
10
Indonesian Food Business Characteristics

• Food staples remain the most important (Rice,
  Corn, Cassava)
• Continued importance of fresh produce and
  unbranded products (70)
• Rise of modern retail outlets (Supermarket,
  hypermarket, minimarket)

• 215 million people
• 17,500 islands
• 65 rural, 35 urban
• 87 moslem
• 300 ethnics
• 58 live in Java, 21 live in Sumatera
• More than 30 types of food cuisine
• 99 people still consume rice as main food

Competitive Environment
INDONESIAN CONSUMER PROFILE

• Highly fragmented
• Huge consumer base and low cost factors, but low
  education
• Private labels in infancy
• Imported product, MNC take part of the food
  industry

Source Euromonitor 2003 USDA 2003
11
List of key developments in the EU Market

• New EU members Eastern Europe (May 2004)
• Power of the Retailer Organizations
• Less Auction System increase contract farming
• Less farmers, processors, intermediaries, buyers
• Larger companies, alliances, small growers
  groups, chain management

• Information, negotiation, communication,
  efficiency
• Just in Time delivery Distribution Management
• Quality programmes GAP, Eurep Gap, ISO,SQF,
  HACCP, GFSI, ECO (Organic)
• Internationalization

12
EU enlargement on track

• EU expand to up to 25 members ( 100 mn
  consumers) by June 2004.
• Expansion may take place in different stages
  (access of Bulgaria and Romania to EU planned for
  2007)
• EU candidates are mainly from CEEC
• Bulgaria, Cyprus, Czech Republic, Estonia,
  Hungary, Latvia, Lithuania, Malta, Poland,
  Romania, Slovak Republic, Slovenia

13
EU enlargement on track

• CEEC increasingly important for EU trade and
  investment In particular Czech republic, Poland
  and Hungary
• More than 70 of trade of CEEC is with EU (85 of
  which is manufactures)
• Industrial products from CEEC already have free
  access. Restrictions apply to sensitive sectors
  as textiles and agriculture
• Integration in EU is both positive and negative
  for developing countries

14
Public Regulation Legislation
1. Intl public food safety regulations the SPS
Agreement by WTO 2. EU Food safety Legislation 3.
EU legislation on phyto-sanitary issues 4.
GMO 5. Additives
6. EU legislation on pesticides residues 7. EU
legislation on nitrates and heavy metals 8.
Traceability of fruits and vegetables 9. Codex
Alimentarius
15
EU White Paper on Food Safety (1)

• Improving Food Safety Legislation
• From farm to table as its primary thrust
• Establish of product traceability scheme
• Placing primary responsibilities of food safety
• Establish the EFSA (21 Januari 2002)
• Science based, coherent and transparant, EFSA
  assesing food risk and communicating to the
  public
• Improving Food Center Set Up
• Perubahan atas perbedaan dan enforcement
  diantara anggota
• Develop a community framework
• Extend impact control at the border

16
EU White Paper on Food Safety (2)

• 4. Communicating Health Risk Information to
  Consumer (EFSA to public)
• International Dimension
• To preset and explained to training partners
  bisa melalui WTO, FAO, WHO, Codex
• Traceability
• EFSA ? 21 Januari 2002
• Rapid Alert System CD92/59/EEC-1992
• Precautionary Principle
• Other Legitimate Factor Environment,
  Sustainable Agriculture, Animal Welfare, Consumer
  Product Quality

17
Major existing private food safety and quality
standards and their key
18
Fruit Vegetables Canned's Market Development to
EU

• Quality
• Healthy, safety, animal welfare
• Chain management
• Global sourcing/internationalization
• Market Trend
• food safety ? first priority
• Certification Trends
• EUREPGAP (growers), HACCP (packers)

19
EUREP GAP

• Euro-Retailer Working Group on Fresh Produce
• Start 1997, Introduction 1999. Mandatory 1
  January 2004
• EUREP-GAP as a Standar for supply to Retailer
  di EU
• Traceability, record keeping and internal
  self-inspection, varieties
• and rootstocks, site history and site
  management, soil and substrate
• management, fertilizers use, irrigation, crop
  protection, harvesting,
• produce handling, waste and pollution
  management, recycling and
• re-use, worker health, safety and welfare,
  environmental issues,
• complaint form

20
EUREP GAP for Fresh Fruit and Vegetables

• A normative document for international
• Contents
• Describes essential elements and develops best
  practices for global production of fresh produce
• Demonstrates to customers a companys commitment
  and ability to produce safe food under an
  exhaustive system (HACCP) verified by an
  internationally recognized independent third
  party
• Growers receive their EUREP GAP approval via a
  EUREP GAP Certificate, which is issued by a EUREP
  GAP
• A specifically designed approval process, the
  EUREP GAP Benchmarking Option, facilitates
  existing national or regional quality assurance
  schemes to prove equivalence with EUREP GAP
  requirements
• Avoids multiple audits at grower level and
  encourages the development of regionally adjusted
  integrated crop management systems

21
EUREP GAP for Fresh Fruit and
Vegetables(continued)

• Developed from a world - wide group of
  representatives at all stages in the fruit and
  vegetable supply chain
• Started as a initiative by retailers in 1997, in
  response to consumer concerns and the principles
  of certified once and accepted everywhere
• The Euro-Retailer Produce Working Group (EUREP)
  now is steered by an elected committee with equal
  representation from producers and retailers

22
EUREP GAP for Fresh Fruit and
Vegetables(continued)

• Over 600 certificates have been issued and
  operational with qualified staff in over 10
  countries since the start of the program in 2000
• EUREP GAP is now also working for livestock,
  flowers, coffee and combinable crops

23
Thank You