Food Safety and Agricultural Health Action Plans

1
Food Safety and Agricultural Health Action Plans

• STDF Workshop on SPS Capacity Evaluation Tools
• Geneva--March 31, 2008

John E. Lamb, Sr. Agribusiness Specialist, Agricul
ture and Rural Development Department World Bank,
Washington, DC
2
The context

• Changes in effective demand

3
The context

• Changes in effective demand
• Rise of efficient consumer response

4
The context

• Changes in effective demand
• Rise of efficient consumer response
• Shifting channels of distribution

5
The context

• Changes in effective demand
• Rise of efficient consumer response
• Shifting channels of distribution
• Industry consolidation

6
The context

• Changes in effective demand
• Rise of efficient consumer response
• Shifting channels of distribution
• Industry consolidation
• Globalization of sourcing and marketing

7
The context

• Changes in effective demand
• Rise of efficient consumer response
• Shifting channels of distribution
• Industry consolidation
• Globalization of sourcing and marketing
• Competition between value/supply chains

8
The context

• Changes in effective demand
• Rise of efficient consumer response
• Shifting channels of distribution
• Industry consolidation
• Globalization of sourcing and marketing
• Competition between value/supply chains
• Changes in procurement systems

9
The context

• Changes in effective demand
• Rise of efficient consumer response
• Shifting channels of distribution
• Industry consolidation
• Globalization of sourcing and marketing
• Competition between value/supply chains
• Changes in procurement systems
• Reversal of decline in real food prices

10
Why should the World Bank and other donors worry
about standards?

• Protection of the food supply, plant and animal
  health, and environment

11
Why should the World Bank and other donors worry
about standards?

• Protection of the food supply, plant and animal
  health, and environment
• Regulation of internal commerce

12
Why should the World Bank and other donors worry
about standards?

• Protection of the food supply, plant and animal
  health, and environment
• Regulation of internal commerce
• Facilitation of orderly, arms-length trade

13
Why should the World Bank and other donors worry
about standards?

• Protection of the food supply, plant and animal
  health, and environment
• Regulation of internal commerce
• Facilitation of orderly, arms-length trade
• Contribution to economic growth

14
Why should the World Bank and other donors worry
about standards?

• Protection of the food supply, plant and animal
  health, and environment
• Regulation of internal commerce
• Facilitation of orderly, arms-length trade
• Contribution to economic growth
• Danger of crowding out, especially small
  producers and SMEs, but sometimes entire
  industries

15
What functions do public standards play in this
scenario?

• They determine the official rules of the game

16
What functions do public standards play in this
scenario?

• They determine the official rules of the game
• They give primacy to good science

17
What functions do public standards play in this
scenario?

• They determine the official rules of the game
• They give primacy to good science
• They strive to ensure transparency

18
What functions do public standards play in this
scenario?

• They determine the official rules of the game
• They give primacy to good science
• They strive to ensure transparency
• They control entry to foreign markets

19
What functions do public standards play in this
scenario?

• They determine the official rules of the game
• They give primacy to good science
• They strive to ensure transparency
• They control entry to foreign markets
• They serve to limit the spread of pests, disease,
  invasive species

20
What functions do public standards play in this
scenario?

• They determine the official rules of the game
• They give primacy to good science
• They strive to ensure transparency
• They control entry to foreign markets
• They serve to limit the spread of pests, disease,
  invasive species
• They protect consumers, agriculture and the
  environment

21
What functions do public standards play in this
scenario?

• They determine the official rules of the game
• They give primacy to good science
• They strive to ensure transparency
• They control entry to foreign markets
• They serve to limit the spread of pests, disease,
  invasive species
• They protect consumers, agriculture and the
  environment
• They are designed mainly to mitigate health risk,
  but also serve to limit risks to the economy

22
What functions do private standards (i.e.
requirements) play?

• They determine the commercial rules of the game

23
What functions do private standards (i.e.
requirements) play?

• They determine the commercial rules of the game
• They convey information on the requirements and
  expectations of particular end-markets (consumer
  segments and those who serve)

24
What functions do private standards (i.e.
requirements) play?

• They determine the commercial rules of the game
• They convey information on the requirements and
  expectations of particular end-markets (consumer
  segments and those who serve)
• They do recognize good science, but give primacy
  to the consumer and business

25
What functions do private standards (i.e.
requirements) play?

• They determine the commercial rules of the game
• They convey information on the requirements and
  expectations of particular end-markets (consumer
  segments and those who serve)
• They do recognize good science, but give primacy
  to the consumer and business
• They control access to domestic and foreign
  channels of distribution and end-markets, not
  always transparently

26
What functions do private standards (i.e.
requirements) play?

• They determine the commercial rules of the game
• They convey information on the requirements and
  expectations of particular end-markets (consumer
  segments and those who serve)
• They do recognize good science, but give primacy
  to the consumer and business
• They control access to domestic and foreign
  channels of distribution and end-markets, not
  always transparently
• They are mainly a private good, enhancing profits
  to supply/value chain participants, while
  reducing commercial, reputational and legal risk

27
What functions do private standards (i.e.
requirements) play?

• They determine the commercial rules of the game
• They convey information on the requirements and
  expectations of particular end-markets (consumer
  segments and those who serve)
• They do recognize good science, but give primacy
  to the consumer and business
• They control access to domestic and foreign
  channels of distribution and end-markets, not
  always transparently
• They are mainly a private good, enhancing profits
  to supply/value chain participants, while
  reducing commercial, reputational and legal risk
• Yet they do serve public purposes by helping to
  mitigate the spread of pests and diseases

28
A hierarchy of standards has emerged
Service
Supply Chain Management
Environ. Standards
Social Standards
Food safety and Agricultural Health Standards
Technical and Commercial Requirements (identity,
quality, condition, presentation, etc)
29
What has the World Bank been doing in this
area?

• Serious WB engagement began about 5 years back,
  with the launch of the Initiative to Mainstream
  Standards in Bank Operations

http//web.worldbank.org/WBSITE/EXTERNAL/TOPICS/
TRADE/0,,contentMDK20629901menuPK222955pagePK
148956piPK216618theSitePK239071,00.html
30
What has the World Bank been doing in this
area?

• Serious WB engagement began about 5 years back,
  with the launch of the Initiative to Mainstream
  Standards in Bank Operations
• This arose within the trade department (PREM),
  which was charged with trade capacity-building

31
What has the World Bank been doing in this
area?

• Serious WB engagement began about 5 years back,
  with the launch of the Initiative to Mainstream
  Standards in Bank Operations
• This arose within the trade department (PREM),
  which was charged with trade capacity-building
• More recently the initiative has been mostly
  taken over by the agriculture and rural
  development department (ARD) and the Regions

32
What has the World Bank been doing in this
area?

• Serious WB engagement began about 5 years back,
  with the launch of the Initiative to Mainstream
  Standards in Bank Operations
• This arose within the trade department (PREM),
  which was charged with trade capacity-building
• More recently the initiative has been mostly
  taken over by the agriculture and rural
  development department (ARD) and the Regions
• IBRD/IDA provides about 170 million in annual
  loan and grant funding for agri-food standards

http//web.worldbank.org/WBSITE/EXTERNAL/TOPICS/
TRADE/0,,contentMDK20629901menuPK222955pagePK
148956piPK216618theSitePK239071,00.html
33
IFC is also involved

• IFC is also involved in environmental, health,
  safety, and social standards
• IFC activities cut across sectors, but include
  agribusiness
• Closely tied to what private sector calls CSR, or
  the triple bottom line of financial, social and
  environmental sustainability

http//www.ifc.org/ifcext/enviro.nsf/Content/EnvS
ocStandards
34
Bank involvement in mainstreaming standards takes
various forms

• Support for Global Public Partnerships
  (GPPs),e.g. STDF

35
Bank involvement in mainstreaming standards takes
various forms

• Support for Global Public Partnerships
  (GPPs),e.g. STDF
• Economic and Sector Work (ESW), e.g. Food
  Safety and Agricultural Health Standards
  Challenges and Opportunities for Developing
  Countries

36
Bank involvement in mainstreaming standards takes
various forms

• Support for Global Public Partnerships
  (GPPs),e.g. STDF
• Economic and Sector Work (ESW), e.g. Food
  Safety and Agricultural Health Standards
  Challenges and Opportunities for Developing
  Countries
• Knowledge Products (KP),e.g. Guide for
  Assessing and Responding to Needs for National
  Agrifood Laboratory Improvement (late FY08)

37
Bank involvement in mainstreaming standards takes
various forms

• Support for Global Public Partnerships
  (GPPs),e.g. STDF
• Economic and Sector Work (ESW), e.g. Food
  Safety and Agricultural Health Standards
  Challenges and Opportunities for Developing
  Countries
• Knowledge Products (KP),e.g. Guide for
  Assessing and Responding to Needs for National
  Agrifood Laboratory Improvement (late FY08)
• Analytical and Advisory Assistance (AAA),e.g.
  technical assistance to Malaysias MAFC and EPU

38
Bank involvement in mainstreaming standards takes
various forms

• Support for Global Public Partnerships
  (GPPs),e.g. STDF
• Economic and Sector Work (ESW), e.g. Food
  Safety and Agricultural Health Standards
  Challenges and Opportunities for Developing
  Countries
• Knowledge Products (KP),e.g. Guide for
  Assessing and Responding to Needs for National
  Agrifood Laboratory Improvement (late FY08)
• Analytical and Advisory Assistance (AAA),e.g.
  technical assistance to Malaysias MAFC and EPU
• Support for Public Private Partnerships (PPP),
  e.g. Trade Standards Practitioners Network

39
Considerable research has been supported as well

• Studies on specific challenges relating to
  standards in general and food/agricultural health
  in particular

40
Considerable research has been supported as well

• Studies on specific challenges relating to
  standards in general and food/agricultural health
  in particular
• Cost of compliance

41
Considerable research has been supported as well

• Studies on specific challenges relating to
  standards in general and food/agricultural health
  in particular
• Cost of compliance
• Strategies for maintaining or restoring
  smallholder participation in profitable
  value/supply chains

42
Considerable research has been supported as well

• Studies on specific challenges relating to
  standards in general and food/agricultural health
  in particular
• Cost of compliance
• Strategies for maintaining or restoring
  smallholder participation in profitable
  value/supply chains
• Best practices in assessing investment needs in
  national agri-food laboratory systems for food
  safety and for plant/animal health

43
Considerable research has been supported as well

• Studies on specific challenges relating to
  standards in general and food/agricultural health
  in particular
• Cost of compliance
• Strategies for maintaining or restoring
  smallholder participation in profitable
  value/supply chains
• Best practices in assessing investment needs in
  national agri-food laboratory systems for food
  safety and for plant/animal health
• Comparison of responses from different source
  countries to changes in EU aflatoxin tolerances

44
Other types of research

• Value-chain studies groundnuts from Senegal
  shrimp from Nicaragua Nile perch from Kenya
  shrimp, asparagus and edamame from Thailand

45
Other types of research

• Value-chain studies groundnuts from Senegal
  shrimp from Nicaragua Nile perch from Kenya
  shrimp, asparagus and edamame from Thailand
• Subsector studies fresh vegetables from
  Kenyafisheries from Senegal ethnic foods from
  Jamaica horticultural products from India

46
What about SPS Action Planning?

• Country-level SPS assessments
• 5 countries (Zambia, Kenya, Niger, Uganda,
  Pakistan)
• 1 region (Commonwealth of Independent States)

47
What about SPS Action Planning?

• Country-level SPS assessments
• 5 countries (Zambia, Kenya, Niger, Uganda,
  Pakistan)
• 1 region (Commonwealth of Independent States)
• Five SPS Country Action Plans to date
• Vietnam
• Laos
• Armenia
• Moldova
• Tanzania

48
What about SPS Action Planning?

• Country-level SPS assessments
• 5 countries (Zambia, Kenya, Niger, Uganda,
  Pakistan)
• 1 region (Commonwealth of Independent States)
• Five SPS Country Action Plans to date
• Vietnam
• Laos
• Armenia
• Moldova
• Tanzania
• One Regional SPS Action Plan
• CIS countries

49
Typical content of an SPS Action Plan
50
Lessons Learned

1. No one size fits all

51
Lessons Learned

1. No one size fits all
2. Each country has a unique SPS risk profile

52
Lessons Learned

1. No one size fits all
2. Each country has a unique SPS risk profile
3. Countries also have different risk preferences

53
Lessons Learned

1. No one size fits all
2. Each country has a unique SPS risk profile
3. Countries also have different risk preferences
4. The history of the SPS infrastructure matters

54
Lessons Learned

1. No one size fits all
2. Each country has a unique SPS risk profile
3. Countries also have different risk preferences
4. The history of the SPS infrastructure matters
5. Resource endowments and political leverage among
   and within Ministries vary greatly

55
Lessons Learned

1. No one size fits all
2. Each country has a unique SPS risk profile
3. Countries also have different risk preferences
4. The history of the SPS infrastructure matters
5. Resource endowments and political leverage among
   and within Ministries vary greatly
6. Donor preferenceseven fadscan distort

56
Lessons Learned

1. No one size fits all
2. Each country has a unique SPS risk profile
3. Countries also have different risk preferences
4. The history of the SPS infrastructure matters
5. Resource endowments and political leverage among
   and within Ministries vary greatly
6. Donor preferenceseven fadscan distort
7. Buy-in for the analytics, the recommendations,
   and follow-through is very important

57
Lessons Learned

1. No one size fits all
2. Each country has a unique SPS risk profile
3. Countries also have different risk preferences
4. The history of the SPS infrastructure matters
5. Resource endowments and political leverage among
   and within Ministries vary greatly
6. Donor preferenceseven fadscan distort
7. Buy-in for the analytics, the recommendations,
   and follow-through is very important
8. Market-orientation, business-like operations, and
   a plan for sustainability are all critical too

58
Questions requiring further work

• How to strike the proper balance between global,
  regional and domestic challenges and
  opportunities?

59
Questions requiring further work

• How to strike the proper balance between global,
  regional and domestic challenges and
  opportunities?
• How to use risk assessment in a methodical way to
  make SPS decisions, not just for agri-food
  trade, but also for domestic food safety,
  agricultural health and environmental protection?

60
Questions requiring further work

• How to strike the proper balance between global,
  regional and domestic challenges and
  opportunities?
• How to use risk assessment in a methodical way to
  make SPS decisions, not just for agri-food
  trade, but also for domestic food safety,
  agricultural health and environmental protection?
• How to define, disseminate and encourage
  application of best practices in cost/benefit,
  cost effectiveness and cost utility analysis for
  and across developing countries?

61
Questions requiring further work

• How to strike the proper balance between global,
  regional and domestic challenges and
  opportunities?
• How to use risk assessment in a methodical way to
  make SPS decisions, not just for agri-food
  trade, but also for domestic food safety,
  agricultural health and environmental protection?
• How to define, disseminate and encourage
  application of best practices in cost/benefit,
  cost effectiveness and cost utility analysis for
  and across developing countries?
• How to balance the desire for better technical
  analysis with the twin realities of limited
  resources and strong pressure groups that might
  distort decisions?

62
Questions requiring further work

• How to strike the proper balance between global,
  regional and domestic challenges and
  opportunities?
• How to use risk assessment in a methodical way to
  make SPS decisions, not just for agri-food
  trade, but also for domestic food safety,
  agricultural health and envrionmental protection?
• How to define, disseminate and encourage
  application of best practices in cost/benefit,
  cost effectiveness and cost utility analysis for
  and across developing countries?
• How to balance the desire for better technical
  analysis with the twin realities of limited
  resources and strong pressure groups that might
  distort decisions?
• How to improve the policy dialogue and
  rule-making process in client countries?

63
Where is this going within the Bank?

• Not going away soon

64
Where is this going within the Bank?

• Not going away soon
• Discussions around agri-food standards currently
  center on Aid for Trade, Regulatory Management,
  Doing Business in Agriculture

65
Where is this going within the Bank?

• Not going away soon
• Discussions around agri-food standards currently
  center on Aid for Trade, Regulatory Management,
  Doing Business in Agriculture
• Perceived need to maintain a balance between
  public and private, improve understanding of
  respective roles, improve coordination

66
Where is this going within the Bank?

• Not going away soon
• Discussions around agri-food standards currently
  center on Aid for Trade, Regulatory Management,
  Doing Business in Agriculture
• Perceived need to maintain a balance between
  public and private, improve understanding of
  respective roles, improve coordination
• Desire to increase attention to domestic quality,
  food safety, agricultural health, and
  environmental protection

67
Where is this going within the Bank?

• Not going away soon
• Discussions around agri-food standards currently
  center on Aid for Trade, Regulatory Management,
  Doing Business in Agriculture
• Perceived need to maintain a balance between
  public and private, improve understanding of
  respective roles, improve coordination
• Desire to increase attention to domestic quality,
  food safety, agricultural health, and
  environmental protection
• Felt need to improve methods of dealing with
  multiple risks, identifying tradeoffs, and
  improving regulatory mgt.

68
Where is this going within the Bank?

• Not going away soon
• Discussions around agri-food standards currently
  center on Aid for Trade, Regulatory Management,
  Doing Business in Agriculture
• Perceived need to maintain a balance between
  public and private, improve understanding of
  respective roles, improve coordination
• Desire to increase attention to domestic quality,
  food safety, agricultural health, and
  environmental protection
• Felt need to improve methods of dealing with
  multiple risks, identifying tradeoffs, and
  improving regulatory mgt.
• Next major ESW likely to be Guide for Investment
  Analysis, Planning and Implementation in National
  Agri-food Analytical and Control Infrastructure
  (FY09)

69
Summing up our future directions

1. Risk analysis

70
Summing up our future directions

1. Risk analysis
2. Regulatory management (RIA, stakeholder
   consultation, rule-making)

71
Summing up our future directions

1. Risk analysis
2. Regulatory management (RIA, stakeholder
   consultation, rule-making)
3. Improving food and agricultural health policies,
   regulations and their application in domestic
   markets

72
Summing up our future directions

1. Risk analysis
2. Regulatory management (RIA, stakeholder
   consultation, rule-making)
3. Improving food and agricultural health policies,
   regulations and their application in domestic
   markets
4. Private sector involvement

73
Summing up our future directions

1. Risk analysis
2. Regulatory management (RIA, stakeholder
   consultation, rule-making)
3. Improving food and agricultural health policies,
   regulations and their application in domestic
   markets
4. Private sector involvement