A PRESENTATION AT THE NIGERIAN INVESTMENT PROMOTION COMMISSION - - PowerPoint PPT Presentation

3RD PARTY CONFORMITY ASSSESSMENT AND CERTIFICATION IN NIGERIA IS THE KEY TO INCREASED PRODUCTIVITY AND REVENUES

A PRESENTATION AT THE NIGERIAN INVESTMENT PROMOTION COMMISSION (NIPC) AUGUST 2018 BY

IN PARTNERSHIP WITH

IN PARTNERSHIP WITH

• OFFERING SECURITY FROM DUMPING OF TOXIC

AND HARMFUL PRODUCTS THROUGH ADOPTION IN NIGERIA OF INTERNATIONAL STANDARDS.

• INCREASED LOCAL PRODUCTION OF GOODS IN

ACCORDANCE WITH INTERNATIONAL STANDARDS.

• INCREASED MARKET SHARE IN GLOBAL MARKETS

FOR NIGERIAN GOODS, PRODUCTS AND SERVICES

TOOK THE 1ST STEP OF CREATING THE LOCAL CAPACITY IN NIGERIA TO CARRY OUT CONFORMITY ASSESSMENT AND CERTIFICATION SERVICES

IN PARTNERSHIP WITH

IN PARTNERSHIP WITH

• ADVOCACY AND EXHIBITIONS
• COLLABORATIONS AND PARTNESHIPS
• FREE ADVISORY SERVICES TO POTENTIAL

CLIENTS

• CONSULTANCY
• TRAINING
• INSPECTION/AUDIT
• CERTIFICATION

IN PARTNERSHIP WITH

• IS ENCOURAGING FMARD TO TAKE UP THE PRIMARY RESPONSIBILITY OF

SETTING STANDARDS THAT WILL ENHANCE GROWTH IN THE NIGERIAN AGRICULTURAL ECONOMY.

• IMPLEMENTATION OF INTERNATIONAL FOOD STANDARDS WILL INCREASE NIGERIA’S PARTICIPATION

IN INTERNATIONAL FOOD TRADE.

• THE FAO/WHO/WTO COLLABORATION ON THE CODEX ALIMENTARIUS, TECHNICAL BARRIERS TO

TRADE AND SANITARY PHYTOSANITARY MEASURES COMMITTEES AS A BASIS FOR SETTING HARMONIOUS AND UNIFORM STANDARDS ACROSS THE WORLD..

• GLOBAL GAP AND NIGERIAN GAP – UNIDO/SON/NAFDAC TAKING OVER – COMPARE WITH THE

USDA COLABORATION WITH THE FDA TO PRODUCE THE FSMA

• EU 2019 REGULATION ON PLANT LIFE
• TRADE IS BASED ON RECIPROCITY AND NIGERIA SHOULD RESPOND
• ORGANIC PRODUCTION STANDARDS WILL IMPROVE THE QUALITY OF AGRICULTURAL PRODUCE

GENERALLY BY SETTING THE HIGHEST STANDARDS FOR AGRICULTURE AVAILABLE IN THE WORLD TODAY FOR SAFEST PRODUCTS FOR HUMAN CONSUMPTION/USE AND FOR PROTECTION OF THE ENVIRONMENT.

• NICERT IN PARTNERSHIP WITH ECOCERT WILLING TO ASSIST THE FMARD TO DEVELOP THE

ORGANIC STANDARDS IN COLLABORATION WITH NOAN.

IST POSITIVE EFFECT OF 3RD PARTY CONFORMITY ASSESSMENT AND CERTIFICATION: INCREASED MARKET SHARE FOR NIGERIAN AGRICULTURAL EXPORTS IN LUCRATIVE INTERNATIONAL MARKETS

• CONFORMITY ASSESSMENT AND CERTIFICATION OPENS

UP MARKET SPACE

• International markets set standards to protect consumers

and to enforce integrity of the products.

• AN ACCREDITED 3RD PARTY CERTIFICATION BODY REQUIRED

TO CONFIRM CONFORMITY WITH CERTAIN SET STANDARDS.

• Any entity conducting a business for which a standard

exists may ask to have its products or services certified by a certification body, such as NICERT-Ecocert.

• THESE STANDARDS CAN BE QUALITY OR ETHICAL

STANDARDS

• SUCH CERTIFICATION IS USUALLY PRECEEDED BY A PROCESS

OF CONSULTANCY (TO SET UP THE NECESSARY QMP & QMS THAT GUARANTEE CONSISTENT ONFORMITY WITH THOSE STANDARDS) AND ASSESSMENT BY INSPECTORS/AUDITORS.

• Certification is awarded for a limited period,

during which the certifying body carries out monitoring.

COMMERCIAL STANDARDS

CERTIFIABLE COMMODITIES

• `
• These commercial standards contain quality and ethical requirements.
• Nigerian products may CONFORM WITH THE QUALITY REQUIREMENTS AND

FAIL on the ethical requirements.

STANDARDS SET BY INTERNATIONAL MARKETS FOR IMPORTS MAY BE COMMERCIAL OR LEGAL

Legal Standards

• The statutory/LEGAL standards often major on quality requirements but progressively incorporate

ethical standards too.

• The Statutory Standards are often prescribed by statutory bodies such as the USDA (Ministry of

Agric), the FDA (NAFDAC) & The European commission. The USDA has quality standards for each and every commodity that apply equally to locally produced and imported agricultural products into the USA.

• Food Safety Modernization Act (FSMA)
• Eu plant regulation 2019

IN PARTNERSHIP WITH

• RECOMMENDS THAT THE NIPC INCORPORATE A COMMERCIAL

APPROACH TO ITS STRATEGY BY SHOWING PRACTITIONERS HOW TO DEVELOP THE PRACTICE INTO THRIVING SUSTAINABLE AGRI- BUSINESSES.

• THIS REQUIRES A PARTNERSHIP WITH A 3RD PARTY CERTIFICATION

BODY LIKE US TO REVIEW THE ASSESSMENT AND CERTIFICATION PROCESS TO HARMONISE IT WITH THE REQUIREMENTS OF INTERNATIONAL MARKETS SO THAT WE CAN ADD OUR CERTIFICATE WHICH OPENS UP THOSE MARKETS TO EXPORTERS & INTENDING IVESTORS INNIGERIAN AGRICULTURE

• WE CAN THEN MAKE OUR MARKET LINKAGE AND DEAL ROOM

SERVICES AVAILABLE TO COMPLIANT MEMBERS OF NOAN

CASE STUDY 1: GINGER

PRICES IN THE MARKET

From the 2017 reports on ginger In the international market, a tonne of ginger generated between $6,000 and $7,000 dollars. In Nigeria however, a tonne stood at $3,500. Ginger has gained a permanent place in many kitchens, thus boosting the demand. For the Nigerian exporters, transport is a challenge. Moreover, the country’s production is not well known

• r

recognized (www.freshplaza.com/170078/OVERVIEW-GLOBAL-GINGER-MARKET). This is attributable to its not conforming with the required standard and certification.

WORLD MARKET FOR GINGER

World top exporters of ginger include: China, India, Nigeria, Jamaica and Sierra Leone. Thus ginger is an important Nigerian export crop. The major market destinations are the UK, USA, Japan, Canada, Belgium, Germany and the Middle East.

Nigerian ginger however is only formally exported to China, Chad, Sudan and Ghana while the remaining is sold mainly in the northern states, especially to Sokoto, Borno, Kebbi, Kano and Zamfara states. According to Daily Trust Newspspaper Mar 3 2016 THUS GINGER FROM NIGERIA IS YET TO ENTER THE LUCRATIVE MARKETS LISTED ABOVE.

RECOMMENDATION

• THE NIGERIAN GINGER PRODUCERS WILL

BENEFIT MORE FROM GLOBAL GAP CERTIFICATION, BECAUSE IN THE LUCRATIVE INTERNATIONAL MARKET, THERE IS A HUGE AND GROWING DEMAND FOR GINGER CERTIFIED FOR CONFORMITY WITH GLOBAL G.A.P. OR ORGANIC PRODUCTION STANDARDS.

CASE STUDY 2: CASHEW

“Out of the 220,000 tonnes of exported raw cashew nuts, Vietnam accounted for 181,753 tonnes, while 38,247 tonnes went to India, China and other countries in the last 11 months.”

Mr Sotonye Anga - President of The National Cashew Association of Nigeria (NCAN) in 2017.

European markets offers opportunities for exporters

• f cashew nuts

The Netherlands, Germany and the United Kingdom are currently the largest import markets and they offer good

• pportunities for developing countries exporters of cashew

nuts. European imports of cashew nuts into Europe increased annually by an average rate of 17% in value in the last five years and reached €1.3 billion. The leading developing country supplier of cashew nuts to Europe is Vietnam, followed by India. The Netherlands is the third largest supplier of re-exported cashews.

Market Segment for Organic Cashew Nut

Organic Cashew nut is in high demand in the following countries; North America, Latin America, and Eastern Europe, Western Europe, and Asia- Pacific region, Japan and the Middle East. The current market price for raw organic cashew nuts is $4000 per ton while the conventional cashew nuts is sold for $2400.0-2400.0 / Tons. Grade: W320

Credit: Alibaba.com Note: The general certifications needed for export of cashew nuts to Europe and North America are Organic certification for organic products or Fair Trade certification for conventional products.

PROTECTING AND INCREASING ORGANIC IN THE WILD HARVESTS FOR EXPORT

“Wild collected products are mainly products with a food, cosmetic or medicinal use that are collected in the wild. There is no final and appropriate definition of the term, and many other terms are used for similar kind of products, like for instance “biodiversity products”, “natural products” or “non-wood forest products”. Such products may be used as, for example ;

• Ingredients for cosmetics and pharmaceuticals.
• Food and food additives (e.g. edible nuts, mushrooms, fruits, game, herbs, spices, fish,

sweeteners).

• Fibres(alternative wood sources like rattan and bamboo, e.g. used in furniture,

clothing, construction or utensils), detergents and other industry product ingredients. A wide diversity of wild plant species are used and traded for medicinal purposes. About 440,000 t of medicinal and aromatic plants were traded internationally in 1996, with a reported value of USD 1.3 billion. More than 2,000 medicinal and aromatic plant species are used commercially in Europe. Approximately 90% of all medicinal and aromatic plants harvested in Europe are collected from the wild, with Eastern Europe and the Mediterranean region being the main suppliers1. Concern about sustainability of collection has arisen with increased trade in wild collected

• products. As demand for wild collected products increase, harvesting may increasingly

become unsustainable. Organic certification has the potential to contribute to increased sustainability of collection as well as offering many producers new marketing opportunities and higher prices. The demand for organic wild collected products is significant. Products for direct food consumption, such as berries, nuts, mushrooms and a large number of herbs are the main

• items. There is also a growing interest for organic products in the body care and medicinal

herb sectors. However, statistics on the production and marketing of organic wild collected products are very scarce.”

OVERVIEW OF WORLD PRODUCTION AND MARKETING OF ORGANIC WILD COLLECTED PRODUCTS Organic

Reported certified organic wild collection projects world-wide per region, Continent Certified organic wild

Collection projects Registered area (ha) Harvested quantity (t)

Africa 25 27,439,963 4,785 Asia 145 6,261,176 138,42 Europe 127 26,715,956 33,365 Latin America 25 1,346,420 26,876 North America648 180,000 102 Oceania 9 16,090 20,200 Total 979 61,959,605 223,754

RECOMMENDATION

ENCOURAGE PRODUCTION AND PROCESSING OF EXPORT CROPS IN ACCORDANCE WITH STANDARDS IN THE LUCRATIVE FORMAL MARKETS BY MAKING CONFORMITY ASSESSMENT AND CERTIFICATION FOR THOSE STANDARDS AVAILABLE TO PROCESSORS. “With the globalization of production, and supply and retailer chains, ensuring the safety and quality of products is

• vital. Recent health concerns arising from bovine diseases, bird flu and various toxins entering the food chain have

led to stringent standards and conformity procedures, particularly in the area of agro-food exports. Exporting countries must acquire the capability to conform to requirements in terms of quality, safety, health and the environment if they are to participate fully in global markets.” ITC QUARTERLY MAGAZINE “Challenges in agri-food exports”

• DEMONSTRATING A CAPACITY TO CONFORM TO STANDARDS REQUIRES THE ESTABLISHMENT OF EFFICIENT

TESTING, CERTIFICATION AND ACCREDITATION MECHANISMS TO MEET THE REQUIREMENTS OF THE SPS AND TBT AGREEMENTS.

• COMPLIANCE SERVICES ARE COSTLY BUT SHOULD BE CONSIDERED A PUBLIC GOOD.
• PARTNERSHIP WITH NIPC TO SENTISE AND ADVISE INVESTORS ABOUT THE IMPORTANCE OF CONFOMRITY

ASSESSMENT & CERTIFICATION AND HOW CERTIFICATION THROUGH NICERT/ECOCERT CAN OPEN THE INTERNATIONAL LUCRATIVE MARKETS THAT CAN GUARANTEE A RETURN ON INVESTMENTS.

• PARTNERSHIP WITH NIPC TO ATTEND EVENTS AND TRADE SHOWS / SUMIT TO CREATE MORE AWARENEES ON THE

NEED FOR NIGERIAN EXPORTERS TO PRODUCE IN ACCORDANCE TO INTERNATIONAL STANDARDS.