BENEFITS

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BENEFITS COSTS OF HACCP IMPLMENTATION
Madan Mohan Dey Mahfuzuddin Ahmed Khonder-Murshed
Jahan
In collaboration with Research partners from
Asian countries
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• Benefit of Implementing SPS/HACCP Standard in
  Developing Countries
• Better market access
• Higher price in world market
• Healthier food

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Average price (US/Kg) of frozen shrimp imported
into U.S., Japan and EU (Headless Black Tiger
Shrimp, Size 16/20)
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• COST
• Cost of Compliance
• Cost that are necessarily incurred by a
  business/firm/country in complying with
  technical standards
• Production Cost
• Economies of scale may be reduced
• Less efficiency at producing in local
  conditions
• Cost of Compliance with SPS / HACCP requirement
  can be very high (particularly during the initial
  stage of implementation)

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Table Cost of HACCP/SPS Compliance in Different
Asian Countries
Country Total investment of a plant (US) Cost per year of a plant (US/year) Cost per kg of fish processed (US/kg)
Bangladesh India Malaysia Thailand 277,155 309,278 795,756 380,952 404,762 34,875 41,237 113,679 47,619 71,429 0.0327 0.0899 0.21 0.28 0.01 0.014
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Problems faced by developing countries in
implementing SPS/HACCP standard

• Access to compliance resources
• Nature of marketing chain (longer and
  fragmented)
• Production Systems esp. small-scale
• Impact of importer bans
• Logistics Airfreight for perishable products
• Internal regulatory structures

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Status of HACCP Implementation in Selected Asian
Countries
Country Legal Status/ National Regulations Implementing Agency
Bangladesh Fish and Fish Products (inspection on quality control) Ordinance 83/89/97 Govt. (Directorate of Fisheries)
China Yet to implement
Indonesia Ministerial decree 41/1998 DGF decree 4128/1998 Ministry of Fisheries Provincial laboratories
Philippines Philippines Fisheries Code, 98 (and various FAOs) Bureau of Fisheries Aquatic Resources
Malaysia Voluntary Department of Health on request
Thailand Voluntary Department of Fisheries Food Drug Administration National Food Institute Private Labs
Sri Lanka Fish Product (export) regulations, 1998 Department of Fisheries Sri Lanka Standard Institution (SIS)
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Recommendations

• Regional Cooperation
• Technical Assistance
• Financial Assistance
• Improved Private/Public Sector Cooperation