Food Safety and Agricultural Health Action Plans

John E. Lamb, Sr. Agribusiness Specialist,John E. Lamb, Sr. Agribusiness Specialist,Agriculture and Rural Development DepartmentAgriculture and Rural Development Department

World Bank, Washington, DCWorld Bank, Washington, DC

Food Safety and Agricultural Food Safety and Agricultural Health Action PlansHealth Action Plans

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

The contextThe context

Changes in effective demand Changes in effective demand

Changes in effective demand Rise of “efficient consumer response”Rise of “efficient consumer response”

Changes in effective demand Rise of “efficient consumer response” Shifting channels of distributionShifting channels of distribution

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

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

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

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 Changes in procurement systems

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 pricesReversal of decline in real food prices

Why should the World Bank and Why should the World Bank and other donors worry about standards?other donors worry about standards? Protection of the food supply, plant and Protection of the food supply, plant and

animal health, and environmentanimal health, and environment

Why should the World Bank and Why should the World Bank and other donors worry about standards?other donors worry about standards? Protection of the food supply, plant and

animal health, and environment Regulation of internal commerceRegulation of internal commerce

animal health, and environment Regulation of internal commerce Facilitation of orderly, arms-length tradeFacilitation of orderly, arms-length trade

animal health, and environment Regulation of internal commerce Facilitation of orderly, arms-length trade Contribution to economic growthContribution to economic growth

animal health, and environment Regulation of internal commerce Facilitation of orderly, arms-length trade Contribution to economic growth Danger of crowding out, especially small Danger of crowding out, especially small

producers and SMEs, but sometimes entire producers and SMEs, but sometimes entire industriesindustries

What functions do public standards What functions do public standards play in this scenario? play in this scenario?

They determine the official rules of the They determine the official rules of the gamegame

They determine the official rules of the game

They give primacy to good scienceThey give primacy to good science

They give primacy to good science They strive to ensure transparencyThey strive to ensure transparency

They give primacy to good science They strive to ensure transparency They control entry to foreign marketsThey control entry to foreign markets

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, They serve to limit the spread of pests,

disease, invasive species disease, invasive species

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 They protect consumers, agriculture and the

environmentenvironment

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, They are designed mainly to mitigate health risk,

but also serve to limit risks to the economybut also serve to limit risks to the economy

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

They determine the commercial rules of the They determine the commercial rules of the gamegame

They determine the commercial rules of the game

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

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 They do recognize good science, but give primacy to the consumer and businessprimacy to the consumer and business

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 They control access to domestic and foreign channels of distribution and end-markets, not channels of distribution and end-markets, not always transparentlyalways transparently

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 They are mainly a private good, enhancing profits to supply/value chain participants, while reducing to supply/value chain participants, while reducing commercial, reputational and legal risk commercial, reputational and legal risk

They determine the commercial rules of the gameThey determine the commercial rules of the game They convey information on the requirements and They convey information on the requirements and

expectations of particular end-markets (consumer expectations of particular end-markets (consumer segments and those who serve)segments and those who serve)

They do recognize good science, but give primacy to the They do recognize good science, but give primacy to the consumer and businessconsumer and business

They control access to domestic and foreign channels of They control access to domestic and foreign channels of distribution and end-markets, not always transparentlydistribution and end-markets, not always transparently

They are mainly a private good, enhancing profits to They are mainly a private good, enhancing profits to supply/value chain participants, while reducing supply/value chain participants, while reducing commercial, reputational and legal risk commercial, reputational and legal risk

Yet they do serve public purposes by helping to mitigate Yet they do serve public purposes by helping to mitigate the spread of pests and diseasesthe spread of pests and diseases

Food safety and Agricultural Health Standards

Technical and Commercial Requirements

(identity, quality, condition, presentation, etc)

Environ. Standards

Social Standards

Supply Chain Management

A hierarchy of standards has emergedA hierarchy of standards has emerged

Service

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

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

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/TRADE/0,,contentMDK:20629901~menuPK:222955~pagePK:148956~piPK:216618~theSitePK:239071,00.html

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), This arose within the trade department (PREM), which was charged with trade capacity-buildingwhich was charged with trade capacity-building

This arose within the trade department (PREM), which was charged with trade capacity-building

More recently the initiative has been mostly taken More recently the initiative has been mostly taken over by the agriculture and rural development over by the agriculture and rural development department (ARD) and the Regionsdepartment (ARD) and the Regions

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 IBRD/IDA provides about $170 million in annual loan and grant funding for agri-food standards grant funding for agri-food standards

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/TRADE/0,,contentMDK:20629901~menuPK:222955~pagePK:148956~piPK:216618~theSitePK:239071,00.html

IFC is also involved IFC is also involved

IFC is also involved in IFC is also involved in environmental, health, safety, environmental, health, safety, and social standards and social standards

IFC activities cut across IFC activities cut across sectors, but include sectors, but include agribusinessagribusiness

Closely tied to what private Closely tied to what private sector calls CSR, or the “triple sector calls CSR, or the “triple bottom line” of financial, social bottom line” of financial, social and environmental and environmental sustainabilitysustainability

http://www.ifc.org/ifcext/enviro.nsf/Content/EnvSocStandards

Bank involvement in mainstreaming Bank involvement in mainstreaming standards takes various formsstandards takes various forms

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

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

Economic and Sector Work (ESW),Economic and Sector Work (ESW), e.g. “Food Safety and Agricultural Health e.g. “Food Safety and Agricultural Health Standards: Challenges and Opportunities for Standards: Challenges and Opportunities for Developing Countries”Developing Countries”

Economic and Sector Work (ESW), e.g. “Food Safety and Agricultural Health Standards: Challenges and Opportunities for Developing Countries”

Knowledge Products (KP),Knowledge Products (KP),e.g. “Guide for Assessing and Responding to e.g. “Guide for Assessing and Responding to Needs for National Agrifood Laboratory Needs for National Agrifood Laboratory Improvement” (late FY08)Improvement” (late FY08)

Knowledge Products (KP),e.g. “Guide for Assessing and Responding to Needs for National Agrifood Laboratory Improvement” (late FY08)

Analytical and Advisory Assistance (AAA),Analytical and Advisory Assistance (AAA),e.g. technical assistance to Malaysia’s MAFC and EPUe.g. technical assistance to Malaysia’s MAFC and EPU

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 Malaysia’s MAFC and EPU

Support for Public Private Partnerships (PPP),Support for Public Private Partnerships (PPP), e.g. e.g. “Trade Standards Practitioners Network”“Trade Standards Practitioners Network”

Considerable research has been Considerable research has been supported as wellsupported as well

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

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

Studies on specific challengesStudies on specific challenges relating to standards relating to standards in general and food/agricultural health in particularin general and food/agricultural health in particular Cost of compliance Strategies for maintaining or restoring smallholder Strategies for maintaining or restoring smallholder

participation in profitable value/supply chainsparticipation in profitable value/supply chains

Studies on specific challengesStudies on specific challenges relating to standards relating to standards in general and food/agricultural health in particularin 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 Best practices in assessing investment needs in national

agri-food laboratory systems for food safety and for agri-food laboratory systems for food safety and for plant/animal healthplant/animal health

Studies on specific challengesStudies on specific challenges relating to standards relating to standards in general and food/agricultural health in particularin 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 Comparison of responses from different source countries to changes in EU aflatoxin tolerancesto changes in EU aflatoxin tolerances

Other types of researchOther types of research

Value-chain studiesValue-chain studies: groundnuts from Senegal; : groundnuts from Senegal; shrimp from Nicaragua; Nile perch from Kenya; shrimp from Nicaragua; Nile perch from Kenya; shrimp, asparagus and edamame from Thailandshrimp, asparagus and edamame from Thailand

Other types of researchOther types of research

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

Subsector studiesSubsector studies: fresh vegetables from Kenya;: fresh vegetables from Kenya;fisheries from Senegal; ethnic foods from Jamaica; fisheries from Senegal; ethnic foods from Jamaica; horticultural products from Indiahorticultural products from India

What about SPS Action Planning?What about SPS Action Planning?

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

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

Five SPS Country Action Plans to dateFive SPS Country Action Plans to date VietnamVietnam LaosLaos ArmeniaArmenia MoldovaMoldova TanzaniaTanzania

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 PlanOne Regional SPS Action Plan CIS countriesCIS countries

Typical content Typical content of an SPS of an SPS

Action PlanAction Plan

Lessons LearnedLessons Learned

1.1. No one size fits allNo one size fits all

1. No one size fits all

2.2. Each country has a unique SPS risk Each country has a unique SPS risk profileprofile

1.1. No one size fits allNo one size fits all

2. Each country has a unique SPS risk profile

3.3. Countries also have different risk Countries also have different risk preferencespreferences

3. Countries also have different risk preferences

4.4. The history of the SPS infrastructure The history of the SPS infrastructure mattersmatters

4. The history of the SPS infrastructure matters

5.5. Resource endowments and political leverage Resource endowments and political leverage among and within Ministries vary greatly among and within Ministries vary greatly

5. Resource endowments and political leverage among and within Ministries vary greatly

6.6. Donor preferences—even fads—can distortDonor preferences—even fads—can distort

5. Resource endowments and political leverage among and within Ministries vary greatly

6. Donor preferences—even fads—can distort

7.7. Buy-in for the analytics, the recommendations, Buy-in for the analytics, the recommendations, and follow-through is very importantand follow-through is very important

1. No one size fits all2. Each country has a unique SPS risk profile3. Countries also have different risk preferences4. The history of the SPS infrastructure matters5. Resource endowments and political leverage

among and within Ministries vary greatly 6. Donor preferences—even fads—can distort7. Buy-in for the analytics, the recommendations,

and follow-through is very important8.8. Market-orientation, business-like operations, Market-orientation, business-like operations,

and a plan for sustainability are all critical tooand a plan for sustainability are all critical too

Questions requiring further work Questions requiring further work

How to strike the proper balance between How to strike the proper balance between global, regional and domestic global, regional and domestic challengeschallenges and and opportunitiesopportunities??

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

How to use risk assessment in a How to use risk assessment in a methodical way to make SPS decisions, methodical way to make SPS decisions, not just for agri-food trade, but also for not just for agri-food trade, but also for domestic food safety, agricultural health domestic food safety, agricultural health and environmental protection?and environmental protection?

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 How to define, disseminate and encourage application of best practices in cost/benefit, cost application of best practices in cost/benefit, cost effectiveness and cost utility analysis for and effectiveness and cost utility analysis for and across developing countries?across developing countries?

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 How to balance the desire for better technical analysis with the twin realities of limited resources and strong with the twin realities of limited resources and strong pressure groups that might distort decisions?pressure groups that might distort decisions?

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 How to improve the policy dialogue and rule-making process in client countries? process in client countries?

Where is this going within the Bank? Where is this going within the Bank?

Not going away soonNot going away soon

Not going away soon Discussions around agri-food standards Discussions around agri-food standards

currently center on Aid for Trade, currently center on Aid for Trade, Regulatory Management, Doing Business Regulatory Management, Doing Business in Agriculturein Agriculture

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 Perceived need to maintain a balance between public and private, improve between public and private, improve understanding of respective roles, improve understanding of respective roles, improve coordinationcoordination

Not going away soonNot going away soon Discussions around agri-food standards Discussions around agri-food standards

currently center on Aid for Trade, Regulatory currently center on Aid for Trade, Regulatory Management, Doing Business in AgricultureManagement, Doing Business in Agriculture

Perceived need to maintain a balance between Perceived need to maintain a balance between public and private, improve understanding of public and private, improve understanding of respective roles, improve coordinationrespective roles, improve coordination

Desire to increase attention to domestic quality, Desire to increase attention to domestic quality, food safety, agricultural health, and food safety, agricultural health, and environmental protectionenvironmental protection

Not going away soonNot going away soon Discussions around agri-food standards Discussions around agri-food standards

currently center on Aid for Trade, Regulatory currently center on Aid for Trade, Regulatory Management, Doing Business in AgricultureManagement, Doing Business in Agriculture

Perceived need to maintain a balance between Perceived need to maintain a balance between public and private, improve understanding of public and private, improve understanding of respective roles, improve coordinationrespective roles, improve coordination

Desire to increase attention to domestic quality, Desire to increase attention to domestic quality, food safety, agricultural health, and food safety, agricultural health, and environmental protectionenvironmental protection

Felt need to improve methods of dealing with Felt need to improve methods of dealing with multiple risks, identifying tradeoffs, and multiple risks, identifying tradeoffs, and improving regulatory mgt.improving regulatory mgt.

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 Next major ESW likely to be “Guide for Investment Analysis, Planning and Implementation in National Agri-Analysis, Planning and Implementation in National Agri-food Analytical and Control Infrastructure” (FY09) food Analytical and Control Infrastructure” (FY09)

Summing up our future directionsSumming up our future directions

1)1) Risk analysisRisk analysis

1) Risk analysis

2)2) Regulatory Regulatory management (RIA, management (RIA, stakeholder stakeholder consultation, rule-consultation, rule-making)making)

1) Risk analysis

2) Regulatory management (RIA, stakeholder consultation, rule-making)

3)3) Improving food and Improving food and agricultural health agricultural health policies, regulations policies, regulations and their application and their application in domestic marketsin domestic markets

Summing up our future directionsSumming up our future directions1) 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)4) Private sector Private sector involvementinvolvement

Summing up our future directionsSumming up our future directions1)1) Risk analysisRisk analysis

2)2) Regulatory Regulatory management (RIA, management (RIA, stakeholder stakeholder consultation, rule-consultation, rule-making)making)

3)3) Improving food and Improving food and agricultural health agricultural health policies, regulations policies, regulations and their application and their application in domestic marketsin domestic markets

4)4) Private sector Private sector involvementinvolvement

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