Challenges in Meeting Quality Standards, Post-harvest and Food Safety Requirements for Export of Fresh Fruits

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1 Challenges in Meeting Quality Standards, Post-harvest and Food Safety Requirements for Export of Fresh Fruits Royal Government of Bhutan Ministry of Agriculture & Forests Workshop on Promoting Cross-border Agricultural Trade for Sustainable Development November 2016 Bangkok, Thailand

2 Presentation Outline A. Agriculture Sector B. Production of main Fruits and Vegetables for export B. Export of fruits and vegetables D. Key Challenges in Export of Fruits & Vegetables E. Way forward

3 A. Agriculture Sector Agriculture production has been centered on subsistence level integrated farming systems 2.9% of the total land area (1,125 sq. km) is under agricultural cultivation

4 Agriculture - Plans /Programs Guided by RNR (Renewable Natural Resources) Policies and the Five Year Plans (FYP) Key Strategy of the 11 th FYP: - To transform the RNR sector into a commercially viable sector that provides higher returns to the farmers, improves rural livelihood, reduces imports and promotes exports, and offers attractive employment opportunities to youth

5 Main crops cultivated Rice, maize, buckwheat, barley and millet Main horticultural produce Fruits and vegetables Livestock rearing - an integral part of the farming system in Bhutan Diversity of food items enhanced by: - wild vegetables - medicinal plants - Non Wood Forest Products (NWFPs) collected from nature.

6 B. Production of main Fruits & vegetables for exports Apple: - Grown mostly in western Bhutan (approx. at altitude of 2100 to 2500 m) - Varieties/cultivars (Royal Delicious, Red Delicious) Mandarin (Orange): - Grown in southern mid & foothills of Bhutan - Production in decline due to Citrus Greening disease Potato, Cabbage, Carrot, Asparagus: -

7 Production of selected fruits & vegetables in MT ( ) Horticultural Crops Apple 8,032 7,051 3,488 Mandarin 33,469 45,226 17,819 Potato 50,390 53,612 19,907 Cabbage 3,961 4,364 1,194 Carrot Asparagus

8 C. Export of fruits and vegetables Exports mainly to Bangladesh and India as fresh produce Certification Issuance of Phyto-sanitary Certificate (PSC) based on requirements of ISPM Guidelines 7 and 12 In accordance with the IPPC requirements Laboratory test results based on importer s requirements (for for Bangladesh Radioactivity free certificate and formalin and for India - no requirements for exports)

9 Export of fruits for last three years Year Bangladesh India Total (MT) Apple (Aug - Sept , , Qty exported is negligible 1, , , , , , Mandarin (Nov - Feb) , , , , , On-going

10 Export of vegetables for last three years Year India Bangladesh Total (MT) ,871-21,871 Potato , , , , Asparagus

11 Export of vegetables for last three years Year India Bangladesh Total (MT) ,384-1,384 Cabbage ,557-1, , Carrot

12 D. Key Challenges in Export of Fruits Bhutanese certification not accepted by importing countries Poor quality because of no full time/ professional growers, inferior varieties, high production cost because of topography High post harvest damage Difficulty to get labour and high cost of labour

13 D. Key Challenges in Export of Fruits High transportation cost and lack of proper freshproduce transport vehicles Cross border transit issues, trade issues related to land locked countries, lack of sea and dry ports Need to tranship between borders

14 PPP in the establishment and operation of dry ports Contract farming in partnership with reputed firms from importing countries Promote FDI in commercial agriculture with a focus on international markets E. Way forward: Accreditation of local certifying agencies to more widely accepted certifying agencies Bilateral/Trilateral transport agreements to permit free movement of trucks Expedite the establishment of dry ports Harmonization through recognition of Good Agriculture Practices (GAP) implemented by the exporting countries Mutual Recognition Arrangements between the National Protection Organizations (NPOs) of trading countries

15 Thank you for your kind attention!