EUREPGAP Possible for Small Farmers

The adoption of good agricultural practices by all suppliers to the EU market is a major component of EUREPGAP certification, a requirement growing in importance among most European supermarkets. There are over two hundred components covered in the protocol including record-keeping, food safety, pesticide use and control, integrated crop management, workers' health and environmental adherence requirements.

The initial reaction of trade and governments in developing countries was that EUREPGAP threatened the livelihood of small out growers by requiring they meet the same stringent certifications required of the larger, more vertically integrated export companies.

However, Fintrac and its public and private sector partners in Africa and Central America now perceive EUREPGAP as an opportunity for smallholders to increase market share while, at the same time, reducing poverty.

In Kenya

The majority of Kenyan fresh fruit and vegetable exports are sold to the EU, with annual exports growing from $50 million annually in the early 1980s to more than $300 million today. In May, the USAID-financed Fintrac/HDC project began testing modalities for EUREPGAP certification of smallholders by partnering with a major exporter that relies on smallholder groups for more than 50 percent of its export volume. A similar HDC partnership with another exporter was launched in August, and three more are planned to begin within the next three months. The first wave of out growers achieved certification in December, and results are being shared with the industry as a whole to formulate a nationwide methodology for smallholder certification activities. Costs for certifying smallholders can be reduced through coordinated efforts to design low-cost alternatives that still meet requirements of various EUREPGAP "musts." Developing these lower cost alternatives is one of the goals of the HDC partnerships with exporters.

Three approved certification agencies are now present in Kenya, including Africert, the first Kenyan-owned company to receive accreditation from EUREP. Production and extension staff of the major exporters buying from smallholders are highly trained in EUREPGAP requirements, and are further complemented by a growing specialized service sector with a complementary knowledge base. These groups are working together with Fintrac/HDC, government and other donor program extension staff to enable the certification of tens of thousands of smallholders over the next two years, an ambitious goal but one that almost all participants believe will be achieved, increasing Kenya's already competitive position in the marketplace, and further reducing poverty levels.

In Honduras

Most clients of the USAID-funded Fintrac/CDA project are selling produce into the local, regional and North American markets, so while Europe is a potential destination, EUREPGAP certification is not a requirement of current buyers. Still, Fintrac/CDA and selected grower clients chose to organize EUREPGAP training and certification on a pilot basis simply because it is the most stringent protocol available and, therefore, the best assurance to both present and future buyers that their produce meets all consumer safety concerns.

The implementation process started in February 2003 with CDA staff providing technical assistance and field training to participating producers of jalapeño peppers, sweet (bell) peppers, onions and sweet corn. In July 2004, the first eight Fintrac client growers achieved EUREGAP certification in Honduras. More than 110 other Fintrac clients are in different stages of EUREPGAP implementation, including 60 growers that have just began with the program and five exporters.

The process is already starting to pay off. Local buyers (supermarkets and processors) view participating growers as their preferred partners for long-term business. And while certification will not result in producers receiving premium prices in their target markets, it will help them obtain more business through expanded and larger contracts due to enhanced quality and business management capabilities.

Fintrac CDA expects to increase the number of certified growers to more than 150 in 2005, expanding certification among mango producers and sweet potato and cucumber exporters.