Helping smallholders to supply European markets

The future of small-scale farmers exporting horticultural products from African, Caribbean and Pacific countries to Europe is frequently considered in doubt, due to much stricter food safety legislation, including pesticide residues. Exporters also need to comply with supermarket criteria for worker health and safety and environmental practices. Seth Gogoe reports on progress in Ghana with meeting new production standards. 

Member of Farmapine Cooperative growing pineapple for export, Nsawam, Ghana, 2001. Photo: Stephanie Williamson

Food scares in the 1990s led to European governments putting in new legislation to safeguard and protect the interest of consumers. Recent phase-outs of many pesticide products from European markets and harmonisation of maximum residue levels (MRLs) mean that for many active ingredients, MRLs are set at zero. This situation hits developing country producers of fruit and vegetables particularly hard and fears have been expressed for the livelihoods of 45 million people earning a living from export horticulture in Africa, Caribbean and Pacific countries [PN 50, pages 12-13].
    The retail industry has also responded to food safety and quality concerns by insisting on stricter production practices and traceability of produce along the supply chain. Since 2000, the Euro Retailer Working Group (EUREP) of major European supermarkets has been implementing its harmonised protocol on Good Agriculture Practice (EUREPGAP) for worldwide application by all its suppliers. Around 30% of European supermarkets are members of EUREPGAP.
    The EUREPGAP protocol, updated for 2004(1), describes the essential and best practice for horticultural products. EUREPGAP acts as a framework for verification in which Integrated Crop/Pest Management (ICM/IPM) can be included. It also supports hazard analysis critical control points (HACCP) principles in food safety issues. Members have set a target by which date all trading partners will need to be EUREPGAP compliant. It is therefore vital for exporters supplying the mainstream European market to meet these standards. For the purposes of transparency, an independent internationally recognised third party verifies this protocol.
    The scope of the EUREPGAP benchmarking process includes:

It is important to note that this is a business-to-business tool and not a customer assurance scheme. More than 50% of the protocol criteria apply to the correct use of chemicals during crop production and its post harvest treatment.

Pineapple production in Ghana and EUREPGAP
Pineapple has been Ghana’s biggest contributor to non-traditional export figures over the last 10 years. The pineapple sector is made up of 60 registered exporters, with nine of them supplying 72% of the total exports. Most fruits for export come directly from commercial farms, however, about 45% of total exports are obtained from smallholders’ farms, made up of over 600 farm families. Most of the commercial farms are themselves grower/exporters with average farm holdings of 120 ha. 
    Smallholders’ pineapple farms average 1.2 ha and comprise three categories, all selling their fruit to export companies. Outgrowers enjoy close relationships with exporters in terms of marketing and sometimes input supplies, mostly on credit. Co-operatives are groups of farmers who have voluntarily come together for the purposes of gaining market access, inputs and technical support. Independent growers have no alliance with any exporter and they decide where to sell their fruits. Independent growers are the largest in number and also the most vulnerable when it comes to changes in market requirements. They are the last to receive the right technical information for production. These smallholders are confused by the different export requirements and may misapply agrochemicals as they do not have the right technical information nor receive any form of training(2). Most of the women who are in the pineapple business fall into this category. 
    Organic production is starting with the help of Ghana Organic Agricultural Network (GOAN) assisting Technoserve Inc, which has organised smallscale growers, to obtain organic certification for a pineapple juice plant. Three companies are exporting certified organic fruit, some sourced from smallholders, while five companies have been successfully audited by the Fairtrade Labelling Organisation in the horticultural sector. 
    In 2001, residue levels of ethephon, used to de-green fruit before harvest, were found on some pineapples from Ghana to exceed European Union (EU) MRLs. This incident [see PN54, pp4-5] kick-started the sector’s engagement with EUREPGAP and later the EU-funded Pesticide Initiative Programme, from which at least seven growers are receiving assistance in Ghana. Various groups are engaged in taking EUREPGAP into the field in Ghana, including the government Plant Protection and Regulatory Services Department, German Technical Co-operation (GTZ), US-funded agencies Technoserve Inc. and Amex International and Natural Resources Institute in UK, which have been involved in interpreting the protocol to growers. SGS Ghana conducts the certification audit. 
    By late 2003 around one third of pineapple exporters in Ghana had obtained the EUREPGAP Compliance Certificate, either as individual companies (5 of 15 certified) or as a grower group under the Produce Marketing Organisation (PMO) scheme (2 out of 5 groups certified). EUREPGAP-certified crops are pineapple, banana, papaya, mangoes and vegetables.

Table 1: Growers’ perceptions of overall benefits of the EUREPGAP protocol 
Topic 
Spent longer and more quality time on farm than previously 39%
Farm is hygienic and clean  67%
Guaranteed market with Blue Skies  72%
Savings on agrochemicals  100%
Increased awareness in agrochemical handling by workers  100%
Drinking water available on farm  22%
EUREPGAP is generally beneficial  67%
High initial cost of compliance  67%
Increased moral amongst workers  39%
Overall score  63.4%
% = respondents indicating ‘Benefit of EUREPGAP’ without prompting

Costs and benefits of EUREPGAP compliance
A study on the costs and benefits of farmer involvement with EUREPGAP protocols was conducted during 2002-03 to find out the views of 18 medium and small-scale outgrowers supplying Blue Skies export company, one of the pioneers of IPM and EUREPGAP standards in Ghana. Table 1 describes the main benefits perceived. Farmers were unanimous in highlighting the benefits concerning agrochemicals. Smallholder farmers and their workers admitted that their knowledge on issues concerning agrochemical handling was scant prior to the introduction of EUREPGAP. Most of the small growers had once worked with commercial farms and therefore practised or copied what the bigger farms did. These they passed on to their own workers. Storage of agrochemicals by the smallholders was done ‘safely’ in their bedrooms for security reasons and also away from children. On the commercial farms, where a store existed, agrochemicals were kept without regard for worker health and safety. Stock sheets were unavailable or where available, not updated. It was common to see workers handling agrochemicals without adequate and appropriate protective clothing.
    To address these problems, Blue Skies engaged a consultant to work with its agronomists to train its growers appropriately. Growers are now aware of the hazardous chemicals and their effects on health and the environment, they now apply the right quantity at the right time through the practice of IPM and ICM. Workers readily said they felt protected and that management is now serious about their welfare. Agrochemicals are now stored in well ventilated and properly secured chemical stores. Only trained people have access to the store.
    Savings on agrochemicals were another important benefit. Table 2 details the savings made by one particular grower, equivalent to 8.75% of total production costs. Growers emphasised the importance of training in order to comply with residue levels. 
    Growers appreciated highly that by being part of the selected group to go through the EUREPGAP programme, they were assured of ready markets with Blue Skies, which offered the best price in the pineapple industry as well as weekly and timely payments. With this assurance they were prepared to invest in their business in order to maintain their regular market. This benefit was realised when after achieving EUREPGAP compliance, Blue Skies increased the orders for each grower.
    EUREPGAP was considered generally beneficial, despite the high initial costs. To be compliant, 80% of growers used their own resources to finance the improvements needed on their farms, specifically infrastructure and provision of protective clothing. This was a real financial burden for the smallholders. In special cases, Blue Skies increased the orders for some of the least well-off growers in order to improve their financial position to enable them to meet certain infrastructure costs. The company kept faith by ensuring that these growers did not go bankrupt, although it could have acted as a collective guarantor for bank loans.
    Provision of disposal pits for farm rubbish, clean toilets and hand-washing facilities had clearly brought about better hygienic conditions on the farm. Growers were proud about how neat their farms looked when compared to before. Linked to improved farm conditions is the ability of growers to spend longer and more quality time on the farm. Smallholders used to arrive on farm very early and leave before it became too hot. With the protocol requirement to provide decent working conditions, shelter and offices were acquired and those in management are now able to stay on longer to supervise activities on the farm properly. It was indicated that workers no longer rush to finish a piece of work or rush back home.
    Most workers now enjoy permanent status with the provision of pension and felt secure with the appointment letters stating the conditions under which they are to work. Managers confirmed that the morale of workers had been boosted. Workers found provision of potable water very important and claimed they now carry fewer loads to the farms since they have access to clean water. Managers are now quite happy to discuss issues concerning hygiene and water.
    In terms of costs, investments in infrastructure were significant and cancelled out the savings from reduction in agrochemicals. Growers, especially smallholders, struggled to afford putting up a toilet and chemical store. Changes in total cost of production and incremental benefits in profits and income were not significant during the period under investigation. Yields would have to be monitored over a longer period to determine the influence of EUREPGAP on quality and quantity of fruits produced and sold. Other costs in achieving compliance, such as training, analysis (soil, water and blood) and certification audit were borne by Blue Skies.
    The Produce Marketing Organisation scheme enabled most growers to achieve EUREPGAP status despite the large differences among them. Several were young and poorly resourced smallholders, but the important factor was their positive attitude and willingness to change. The benefits listed were a great motivation, without which the system would have difficulty in ensuring compliance. Growers also expressed their sense of accomplishment in belonging to a group which had become EUREPGAP compliant, a feat noted to be quite arduous to achieve. As one grower said: ‘I feel really proud about this achievement, knowing that it is internationally recognised. I feel I am now a real farmer and hope to concentrate and do better things. With record keeping I know what I am doing now.’

Table 2: Savings on agrochemicals per 0.41 ha (1 acre) per cycle of pineapple production (US$)
Inputs  Pre-
EUREPGAP 
Under EUREPGAP
Herbicides        
HyvarX  500g  69.44  0
Diuron  500g  22.22  500g  22.22
Fusilade  0.5l  33.33
Fertiliser  600kg  250.00  300kg  125.00
Ethephon  200ml  36.11  45ml  10.63
Total cost    377.77    191.18

Supporting more smallholders 
The study showed what can be achieved when a company is prepared to invest time and money in training and organisational skills for smallholders. 
    One particular group who would easily lose out, however, are women, as initial investment for growers in achieving compliance poses a barrier for women who have less access to finance than men. Policy makers and the horticulture industry concerned to produce safe food for the consumer must therefore also ensure that this food is sourced ethically and under environmentally sound conditions.
    A long-term strategy for supporting smallholder livelihoods in supplying European markets requires:

1. Global Partnership for Safe and Sustainable Agriculture, www.eurep.org/
2. Williamson S, The Dependency Syndrome: Pesticide use by African small holders, 2003.

Seth Gogoe is a consultant on post-harvest technology, ethical trade and auditing. He can be contacted at PO Box KN 3819, Kaneshie, Accra, Ghana or email Seth_Gogoe@sgs.com

[This article first appeared in Pesticides News No. 64, June 2004, pages 12-13]