STDF Workshop on SPS Capacity Evaluation Tools
Geneva--March 31, 2008
Food Safety and Agricultural
Health Action Plans
John E. Lamb, Sr. Agribusiness Specialist,
Agriculture and Rural Development Department
World Bank, Washington, DC
1
The context
 Changes
in effective demand
2
The context
 Changes
in effective demand
 Rise of “efficient consumer response”
3
The context
 Changes
in effective demand
 Rise of “efficient consumer response”
 Shifting channels of distribution
4
The context
 Changes
in effective demand
 Rise of “efficient consumer response”
 Shifting channels of distribution
 Industry consolidation
5
The context
 Changes
in effective demand
 Rise of “efficient consumer response”
 Shifting channels of distribution
 Industry consolidation
 Globalization of sourcing and marketing
6
The context
 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
7
The context
 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
8
The context
 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 prices
9
Why should the World Bank and
other donors worry about standards?
 Protection
of the food supply, plant and
animal health, and environment
10
Why should the World Bank and
other donors worry about standards?
 Protection
of the food supply, plant and
animal health, and environment
 Regulation of internal commerce
11
Why should the World Bank and
other donors worry about standards?
 Protection
of the food supply, plant and
animal health, and environment
 Regulation of internal commerce
 Facilitation of orderly, arms-length trade
12
Why should the World Bank and
other donors worry about standards?
 Protection
of the food supply, plant and
animal health, and environment
 Regulation of internal commerce
 Facilitation of orderly, arms-length trade
 Contribution to economic growth
13
Why should the World Bank and
other donors worry about standards?
 Protection
of the food supply, plant and
animal health, and environment
 Regulation of internal commerce
 Facilitation of orderly, arms-length trade
 Contribution to economic growth
 Danger of crowding out, especially small
producers and SMEs, but sometimes entire
industries
14
What functions do public standards
play in this scenario?
 They
determine the official rules of the
game
15
What functions do public standards
play in this scenario?
 They
determine the official rules of the
game
 They give primacy to good science
16
What functions do public standards
play in this scenario?
 They
determine the official rules of the
game
 They give primacy to good science
 They strive to ensure transparency
17
What functions do public standards
play in this scenario?
 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
18
What functions do public standards
play in this scenario?
 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
19
What functions do public standards
play in this scenario?
 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
20
What functions do public standards
play in this scenario?
 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,
but also serve to limit risks to the economy
21
What functions do private
standards (i.e. requirements) play?
 They
determine the commercial rules of the
game
22
What functions do private
standards (i.e. requirements) play?
 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)
23
What functions do private
standards (i.e. requirements) play?
 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
24
What functions do private
standards (i.e. requirements) play?
 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
25
What functions do private
standards (i.e. requirements) play?
 They
 They
determine the commercial rules of the game
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
to supply/value chain participants, while reducing
commercial, reputational and legal risk
26
What functions do private
standards (i.e. requirements) play?


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 to
supply/value chain participants, while reducing
commercial, reputational and legal risk
 Yet they do serve public purposes by helping to mitigate
the spread of pests and diseases
27
A hierarchy of standards has emerged
Service
Supply Chain
Management
Environ.
Standards
Social
Standards
Food safety and
Agricultural Health Standards
Technical and Commercial Requirements
(identity, quality, condition, presentation, etc)
28
What has the World Bank
been doing in this area?

Serious WB engagement began about 5 years
back, with the launch of the Initiative to Mainstream
Standards in Bank Operations
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/TRADE/0,,contentMDK:20629901~menuP
K:222955~pagePK:148956~piPK:216618~theSitePK:239071,00.html
29
What has the World Bank
been doing in this area?

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),
which was charged with trade capacity-building
30
What has the World Bank
been doing in this area?

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),
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
31
What has the World Bank
been doing in this area?

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),
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 grant funding for agri-food standards
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/TRADE/0,,contentMDK:20629901~menuP
K:222955~pagePK:148956~piPK:216618~theSitePK:239071,00.html
32
IFC is also involved

IFC is also involved in
environmental, health,
safety, and social
standards
 IFC activities cut across
sectors, but include
agribusiness
 Closely tied to what
private sector calls CSR,
or the “triple bottom line”
of financial, social and
environmental
sustainability
http://www.ifc.org/ifcext/enviro.nsf/Content/EnvSocStandards
33
Bank involvement in mainstreaming
standards takes various forms

Support for Global Public Partnerships (GPPs),
e.g. STDF
34
Bank involvement in mainstreaming
standards takes various forms


Support for Global Public Partnerships (GPPs),
e.g. STDF
Economic and Sector Work (ESW),
e.g. “Food Safety and Agricultural Health
Standards: Challenges and Opportunities for
Developing Countries”
35
Bank involvement in mainstreaming
standards takes various forms



Support for Global Public Partnerships (GPPs),
e.g. STDF
Economic and Sector Work (ESW),
e.g. “Food Safety and Agricultural Health
Standards: Challenges and Opportunities for
Developing Countries”
Knowledge Products (KP),
e.g. “Guide for Assessing and Responding to
Needs for National Agrifood Laboratory
Improvement” (late FY08)
36
Bank involvement in mainstreaming
standards takes various forms




Support for Global Public Partnerships (GPPs),
e.g. STDF
Economic and Sector Work (ESW),
e.g. “Food Safety and Agricultural Health Standards:
Challenges and Opportunities for Developing Countries”
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
37
Bank involvement in mainstreaming
standards takes various forms





Support for Global Public Partnerships (GPPs),
e.g. STDF
Economic and Sector Work (ESW),
e.g. “Food Safety and Agricultural Health Standards:
Challenges and Opportunities for Developing Countries”
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), e.g.
“Trade Standards Practitioners Network”
38
Considerable research has been
supported as well

Studies on specific challenges relating to standards
in general and food/agricultural health in particular
39
Considerable research has been
supported as well

Studies on specific challenges relating to standards
in general and food/agricultural health in particular

Cost of compliance
40
Considerable research has been
supported as well

Studies on specific challenges relating to standards
in general and food/agricultural health in particular


Cost of compliance
Strategies for maintaining or restoring smallholder
participation in profitable value/supply chains
41
Considerable research has been
supported as well

Studies on specific challenges relating to standards
in 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
42
Considerable research has been
supported as well

Studies on specific challenges relating to standards
in 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
to changes in EU aflatoxin tolerances
43
Other types of research

Value-chain studies: groundnuts from Senegal;
shrimp from Nicaragua; Nile perch from Kenya;
shrimp, asparagus and edamame from Thailand
44
Other types of research

Value-chain studies: groundnuts from Senegal;
shrimp from Nicaragua; Nile perch from Kenya;
shrimp, asparagus and edamame from Thailand

Subsector studies: fresh vegetables from Kenya;
fisheries from Senegal; ethnic foods from Jamaica;
horticultural products from India
45
What about SPS Action Planning?

Country-level SPS assessments:


5 countries (Zambia, Kenya, Niger, Uganda, Pakistan)
1 region (Commonwealth of Independent States)
46
What about SPS Action Planning?

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
47
What about SPS Action Planning?

Country-level SPS assessments:



Five SPS Country Action Plans to date






5 countries (Zambia, Kenya, Niger, Uganda, Pakistan)
1 region (Commonwealth of Independent States)
Vietnam
Laos
Armenia
Moldova
Tanzania
One Regional SPS Action Plan

CIS countries
48
Typical content
of an SPS
Action Plan
49
Lessons Learned
1.
No one size fits all
50
Lessons Learned
1.
2.
No one size fits all
Each country has a unique SPS risk
profile
51
Lessons Learned
1.
2.
3.
No one size fits all
Each country has a unique SPS risk
profile
Countries also have different risk
preferences
52
Lessons Learned
1.
2.
3.
4.
No one size fits all
Each country has a unique SPS risk
profile
Countries also have different risk
preferences
The history of the SPS infrastructure
matters
53
Lessons Learned
1.
2.
3.
4.
5.
No one size fits all
Each country has a unique SPS risk profile
Countries also have different risk preferences
The history of the SPS infrastructure matters
Resource endowments and political leverage
among and within Ministries vary greatly
54
Lessons Learned
1.
2.
3.
4.
5.
6.
No one size fits all
Each country has a unique SPS risk profile
Countries also have different risk preferences
The history of the SPS infrastructure matters
Resource endowments and political leverage
among and within Ministries vary greatly
Donor preferences—even fads—can distort
55
Lessons Learned
1.
2.
3.
4.
5.
6.
7.
No one size fits all
Each country has a unique SPS risk profile
Countries also have different risk preferences
The history of the SPS infrastructure matters
Resource endowments and political leverage
among and within Ministries vary greatly
Donor preferences—even fads—can distort
Buy-in for the analytics, the recommendations,
and follow-through is very important
56
Lessons Learned
1.
2.
3.
4.
5.
6.
7.
8.
No one size fits all
Each country has a unique SPS risk profile
Countries also have different risk preferences
The history of the SPS infrastructure matters
Resource endowments and political leverage
among and within Ministries vary greatly
Donor preferences—even fads—can distort
Buy-in for the analytics, the recommendations,
and follow-through is very important
Market-orientation, business-like operations,
and a plan for sustainability are all critical too
57
Questions requiring further work
 How
to strike the proper balance between
global, regional and domestic challenges
and opportunities?
58
Questions requiring further work
 How
to strike the proper balance between
global, regional and domestic challenges
and opportunities?
 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?
59
Questions requiring further work
 How
to strike the proper balance between
global, regional and domestic challenges and
opportunities?
 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?
60
Questions requiring further work




How to strike the proper balance between global,
regional and domestic challenges and opportunities?
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
with the twin realities of limited resources and strong
pressure groups that might distort decisions?
61
Questions requiring further work





How to strike the proper balance between global,
regional and domestic challenges and opportunities?
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
process in client countries?
62
Where is this going within the Bank?
 Not
going away soon
63
Where is this going within the Bank?
 Not
going away soon
 Discussions around agri-food standards
currently center on Aid for Trade,
Regulatory Management, Doing Business
in Agriculture
64
Where is this going within the Bank?
 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
65
Where is this going within the Bank?

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
66
Where is this going within the Bank?


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.
67
Where is this going within the Bank?


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
Analysis, Planning and Implementation in National Agrifood Analytical and Control Infrastructure” (FY09)
68
Summing up our future directions
1) Risk analysis
69
Summing up our future directions
1) Risk analysis
2) Regulatory
management (RIA,
stakeholder
consultation, rulemaking)
70
Summing up our future directions
1) Risk analysis
2) Regulatory
management (RIA,
stakeholder
consultation, rulemaking)
3) Improving food and
agricultural health
policies, regulations
and their application in
domestic markets
71
Summing up our future directions
1) Risk analysis
2) Regulatory
management (RIA,
stakeholder
consultation, rulemaking)
3) Improving food and
agricultural health
policies, regulations
and their application in
domestic markets
4) Private sector
involvement
72
Summing up our future directions
1) Risk analysis
2) Regulatory
management (RIA,
stakeholder
consultation, rulemaking)
3) Improving food and
agricultural health
policies, regulations
and their application in
domestic markets
4) Private sector
involvement
73