EU Pesticide Rules May Force Out Small African Farmers

http://www.ipsnews.net/news.asp?idnews=38370
IPS Inter Press Service News Agency (IPS).

http://allafrica.com/stories/200706290877.html
http://www.industrywatch.com/pages/iw2/Story.nsp?story_id=107914403&ID=iw&scategory=Food%3AProduce&P=&F=&R=&VNC=hnall
Industry Watch
All Africa Global Media, 2007-06-29

EU Pesticide Rules May Force Out Small African Farmers
Inter Press Service News (Johannesburg)
29 June 2007

Sue Scott

YORK, UK, Jun 29 (IPS) - African farmers could soon find themselves forced out of the lucrative European market for agricultural products as retailers and government move towards a zero tolerance policy on chemical residues in food.
Lack of investment by chemical companies and poor consultation with exporters has been blamed for creating a situation described by the horticultural trade network Coleacp as a "big concern" for African, Caribbean and Pacific (ACP) countries and "unfair" on smaller, independent producers, many of whom will struggle to meet tough new laws on residues next year.

Already there are signs that those growing for retailer-led certification schemes, which set their own gold-plated standards for good agricultural practice, including crop protection measures, are pulling out of the premium export market because the additional costs of compliance are not reflected in the price of their crops.

As many as 50 percent of Ugandan growers and 15 percent of Zambian farmers have fallen out of the largest retailer-backed scheme, according to a new study conducted by the London-based International Institute for Environment and Development.

Pressure will only increase as Sainsbury, the third largest food chain in the UK, moves towards a "residue-free" policy, while Germany's biggest grocers, following an embarrassing name-and-shame campaign by Friends of the Earth, have already banned food with any traces of pesticides or herbicides.

Now, the European Commission (EC) is close to completing a new set of maximum residue limits (MRLs) for all products imported into the EU, with those limits for some minor exotic crops likely to be pegged at "theoretical zero" -- or so low as to be undetectable -- leading to what one UK importer termed as an inevitable "reshuffling" of the supply base.

"I'm sure that during 2008 importers will be reviewing sources of supply and finding out what MRLs are likely to apply. It could mean they don't use certain sources or modify the seasons (when they buy from them). Tropical fruit will be the worst affected," said Gary Bradbury of W Bailey & Sons Ltd, who chairs the UK's Fresh Produce Consortium pesticide group.

"There are going to be significant issues. It depends whether exporting countries will have got their acts together sufficiently quickly to have alternative methods and materials in place," he told IPS.

MRLs are not set at the limit of safe human consumption, but several thousand times lower. Nevertheless, exceeding them carries heavy penalties for the importer and usually immediate delisting of the supplier -- a risk that many might prefer to avoid by switching to markets where less onerous rules apply, notably the United Arab Emirates and South Africa.

Establishing a MRL is a costly process, which, according to Roland Levy of the Coleacp-implemented Pesticide Initiative Programme, many plant protection companies have sought to avoid.

"The African market for pesticide manufacturers is 0.5 percent of their annual turnover. It's peanuts and they do not expect a return from it. So we have no MRLs on mangos, papaya, passion fruit or okra," he claimed.

Insiders admit that the current review of MRLs, part of the EC's holy grail of harmonisation between member states, is, as one major exporter put it, "a mess", but with the EC sticking to its timetable for a "one nation" approach by early 2008, it's unclear just how much of the 332,000 metric tonnes of produce exported annually by ACP countries will find its way into the EU after next year.

"MRLs are a nightmare. The EU has effectively ducked harmonisation and are waiting for member states or transnational retailers to unilaterally declare the 0.01 (theoretical zero) level," the exporter told IPS on condition of anonymity. "In a few years' time, the EU can wade in and 'harmonise' after the blood has been shed by the retailers."

He said that German retailers' "knee-jerk" reaction had an immediate impact on rural poverty in third countries. "It's a mess and no one comes out well."

Key to producers' ability to meet the new limits was access to affordable testing laboratories, he said. Some exporters reported they were under pressure from retailers to bear the cost of testing in the west, where it can work out 14 times more expensive.

"Many laboratories cannot test to 0.01 and in third countries this is worse. Where is the investment in suitably qualified labs, locally accessible, at a price that can be accepted?" the exporter continued.

"I wholly support the drive towards less pesticides, more integrated pest management and a cleaner product, but the whole process at the moment is highly charged and has elements of WTO, anti-corporate, anti-global, food miles and natural resources," he said.

The recent Institute of International Development study into the impact of EurepGap, the biggest, European retailer-backed certification scheme, which works with 100,000 producers in 80 countries on holdings as small as one hectare, showed that while growers and their communities benefited from "soft technology", such as training in biological pest control, the cost of compliance was still a major issue.

Senior researcher James MacGregor said the surprisingly high drop-out rates in Uganda and Zambia showed that "if you continue to increase the costs that are being borne within Africa, they will increasingly innovate away from these markets, even though from a reputation point of view you want to be seen as someone who supplies Tesco."

Nigel Garbutt, the UK-based chairman of EurepGap, which represents 31 global retailers, said promoting adoption of more environmentally friendly farming had to be good for developing countries.

"With fewer active ingredients, it's important that producers are less reliant on active chemicals and more aware of the alternatives. So in the future they are not faced with problems of resistance. That's not really something the regulators can do. That's something that has to be trained in," he continued.

"We work very much with the public and private sectors to develop a multi-stakeholder approach. It may lead to certification, but sometimes not. What's interesting is the support we are getting from national governments in developing countries to develop public-private partnerships for their own home markets," said Garbutt. (END/2007)


Thomas R. DeGregori, Ph.D.
Professor of Economics
University of Houston
Department of Economics
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