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Supporting Better Management Practices in Agribusiness
Catherine Cassagne, Program Manager
&
Dave Gibson,Senior Projects Officer
Biodiversity Markets
SDN Week 2008
Emerging Agro-Food StandardsSDN Week 2008
The Biodiversity Markets Unit in CES/IFC
Biodiversity Markets Practice - Sustainability Business Innovation Group, Environment and Social Development Department of the IFCMoving beyond compliance to IFC’s Performance Standards Risk/cost reduction or new business opportunitiesCreate or transform biodiversity-inclusive business models and markets4 product lines in a typical R&D cycle:– Eco-standards and sustainable supply chains– Nature-based products and services– Biodiversity Offsets– Biodiversity-based finance
Emerging Agro-Food StandardsSDN Week 2008
Driving Forces for Private Sector Concerns
Regulatory Failure
Market Distortions
Consumers Concerns
Private Sector Imperatives
Emerging Agro-Food StandardsSDN Week 2008
Industry Response: Measurable Risk Reduction
Industry Consumer
Pre-
Gat
ePo
st-G
ate
ISO 22000
ISO 22000
Nature’s Choice
FairTrad
eSQF 2000
GlobalGAP
IFSBRC
Govt. RegulationsGAP
SQF 1000
Organic
CODEXSAN
Safety & traceability
Environmental & social values
Improves workplace & workflow
Interoperability & scaleability
Cost of finance
Improves value chain confidence
Emerging Agro-Food StandardsSDN Week 2008
Standards Often “Theme” not Commodity
Food SafetyHACCP- CODEX – ISO 22000
Social AccountabilitySA 8000 – AA1000 - ILO
Workplace SafetyOHSAS 18001 – BSI 880 - ILO
Organic LabelsNOP – EU - JAS
EnvironmentISO 14001, EMAS
QUALITY
Emerging Agro-Food StandardsSDN Week 2008
Commodity Standard Elements Similar
Multi-stakeholder processIndustry well representedISEAL & ISO Standard guidesCompliance with regulationsAddress most egregious risksProduct traceabilityDispute resolution enablingObjective & verifiable progressContinuous improvement
Emerging Agro-Food StandardsSDN Week 2008
Agro-Food Commodity Growth & Biodiversity
Emerging Agro-Food StandardsSDN Week 2008
Why Did Roundtables Evolve?
Need to reduce risk
Coherent value chain approach needed
Food chain integration & consolidation
Forum for pre-commercial thinking
Importance of financial institutions growing
Metaforces increasing (e.g. biofuels & carbon)
Emerging Agro-Food StandardsSDN Week 2008
Common Steps in Roundtable Effectiveness
Roundtable & steering groups formed
Principles & Criteria developed
Technical working groups organized
Supporting BMP research conducted
Verification systems established
Certifying bodies accredited
Emerging Agro-Food StandardsSDN Week 2008
Commodity Places Impacted Partnering CorporationsCotton India, Pakistan, Brazil, China, West
AfricaWWF, Adidas, GAP, IKEA, H & M, Nike, Wal-Mart, Rabobank, ABN-AMRO
Sugarcane Brazil, India, Central America, East Africa, South Africa, Vietnam, Australia, US
WWF, Cadbury, Cargill, Coca-Cola, Tate & Lyle, Ethical Sugar, BP, Shell, British Sugar, ILRF, SAB Miller, IFC,…
Palm Oil Indonesia, Malaysia, Honduras, Brazil, PNG
Initially Unilever, WWF, Cadbury-Schweppes, The Body Shop, IFC, now close to 200 ordinary members (7 investors) and close to 70 affiliates
Bananas Honduras, Belize, Guatemala Chiquita, Dole, WWF, Favorita, Fyffes, Costco, Croplife,…
Soy Brazil, Argentina, Paraguay, US, China Unilever, WWF, Bunge, COOP, Cargill, Grupo AMaggi, IFC, HSBC, Rabobank, ABN-Amro, Nutreco, Solidaridad, Nestle Oil (now > 40)
Shrimp Belize, Indonesia, Madagascar, Mexico WWF, Ahold, Carrefour, Costco, IKEA, Sysco, ABN-Amro, Marks & Spencers, Wal-Mart ,…
Early Entrants (today a lot more companies involved…)
Emerging Agro-Food StandardsSDN Week 2008
The Biodiversity & Agricultural Commodities Program
Why biodiversity? Agricommodity expansion is the preeminent threat with irreversable impactBecause there are no easy metrics/standards in biodiversity
Focuses on market transformation & biodiversity Palm oil, soy, sugarcane, cocoa
Works with/supports existing initiatives such as roundtables10 year, two phased project funded by GEF, Japan and IFCImplemented by IFC with two contractors: Chemonics (management); EP (M&E)Global program with field operations in key countries
Indonesia, Malaysia, Côte d’Ivoire, Ghana and Brazil (+ more possible)
Emerging Agro-Food StandardsSDN Week 2008
BACP – Impacts & Outcomes
A grant making facility which will support technical assistance projects that study, test or implement biodiversity related BMPs in 4 categories:
To support production level risk reductionTo increase transformed product demandTo improve FIs ability to support the adoption of BMPsTo improve the enabling environment and the dialogue between RTs and Govts
Emerging Agro-Food StandardsSDN Week 2008
Key Lessons
Roundtables provide dialogue space for the supply chain and other relevant stakeholdersSufficient and balanced membership is critical to achieve impact + for credibilityGovernments tend to delay voluntary processesGovernance issue should not prevent actionDemand-side traction / leadership keyFinancial institutions now key partnersStandards necessary but not sufficient
Emerging Agro-Food StandardsSDN Week 2008
Remaining Challenges
Application by commercial verificationBetter distribution of certification costs and benefits Defining the role of “metastandards” roundtables
Harmonizing key concepts (e.g. HCVF, CO2)Development of viable small producer schemesImprovement in governance
