UNCTAD Expert Meeting. "Enabling small commodity producers in developing countries to reach global markets"

Transcription

1 UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT UNCTAD Expert Meeting "Enabling small commodity producers in developing countries to reach global markets" Organized by UNCTAD Commodities Branch Web: December 2006 The Sustainable Commodity Initiative: Private Public Partnerships to promote Sustainability in Commodities by Mr. Christopher Wunderlich Assistant Co-ordinator, Sustainable Commodity Initiative The views expressed are those of the author and do not necessarily reflect the views of the UNCTAD Secretariat, nor do they imply the expression of any opinion whatsoever on the part of the secretariat of UNCTAD concerning the legal status of any country, territory, city or area, or of this authorities or concerning the definition of its frontiers or boundaries.

2 The Sustainable Commodity Initiative: Private Public Partnership to promote Sustainability in Commodities Facilitated by: The United Nations Conference on Trade and Development (UNCTAD) and The International Institute for Sustainable Development (IISD) December 13th 2006 Expert Meeting- Enabling Smallholder Access to Markets- UNCTAD

3 Outline: Background Structure of relationship Results (specific projects- 4) Response to question on potential role of PPPs Expert Meeting- Enabling Smallholder Access to Markets- UNCTAD

4 Background (SCI): Drivers: A. Importance of commodities on sustainability (Rio Summit Agenda 21) B. Market success of voluntary/market-based sustainability programs (20-30% volume/annually). C. Expansion into mainstream: Consumer demand; Maintaining supply; Viable business/competition. Problematic: CHALLENGE: From 3-7% niche markets to entire market. Potential benefits but potential threats to farmers- particularly smallholders. (Market access?) Insufficient international coordination. But similar goals and support needs to role out to mainstream. Action: A. Global conferences (UNCTAD-Geneva): Flagship sector= Coffee. Objective: Present problem; discuss strategies B.One result: call for multi-stakeholder approach for coffee sector»» Sustainable Coffee Partnership: Neutral platform facilitated by UNCTAD and IISD. Transparent/inclusive. Find efficient and viable implementation strategies, Work with actors along entire supplychain

5 SCP Steering Committee: Stakeholder group Centre de Coopération Internationale en Recherche Agronomique pour le Développement (CIRAD) Research (C) Commission for Environmental Cooperation (CEC) Intergovernmental Common Code for the Coffee Community Initiative (CCCC) G/SC/P Eastern Africa Fine Coffees Association (EAFCA) Producer Empresa Brasileira de Pesquisa Agropecuária ( EMBRAPA- Brazil) Research (P) European Coffee Federation (ECF) Industry FEDECOCAGUA/ ANACAFE (Guatemala) Producer Federación Nacional de Cafeteros (FNC-Colombia) Producer Global Alliance on Coffee and Commodities (GLACC) Producer Inter-African Coffee Organization (IACO) IGO International Coffee Organization (ICO) IGO Junta Nacional de Cafe ( Peru) Producer Katarnaka Growers Federation (India) Producer OXFAM NGO Technoserve NGO Specialty Coffee Association of America (SCAA) Industry (C&P) State Secretariat for Economic Affairs, Switzerland (SECO) Government Sustainable Agriculture Initiative Platform Industry Sustainable Agriculture Network (SAN) NGO United Nations Conference on Trade and Development (UNCTAD) IGO United Stated Agency for International Development (USAID) Government

6 Task Forces (Project based approach) : Thematic areas Priority Activities Improved Efficiency in Implementation of Sustainable Practices Information Exchange on Sustainability Programmes, Practices and Markets Financing for Sustainable Practices GAP Analysis project Cost Benefit Analysis (COSA- Committee on Sustainability Assessment) Sustainable Agriculture Forum Financing Alliance for Sustainable Trade Policy Development Component of projects International Coffee Organization Expert Meeting- Enabling Smallholder Access to Markets- UNCTAD

7 I.A GAP Analysis : Project: Identify gaps in achieving compliance: Smallholder groups: Uganda, Brazil, El Salvador. Partnership: Nuemann Kaffee Gruppe (EDE); SCP; USAID Some Key Results: Capacity building essential and costly: Organizational development (esp. smallholder-prohibitive) and Implementation of standards. Locally applicable indicators need to be developed (clearer and practical). Motivation of farmers must be considered and respected- identifying social, environmental and economic benefits (as well as costs). Environmental and social services being provided by farmers must be understood and compensation strategies developed (in particular related to public goods). Methods to reduce costs must be sought (harmonization, cross-certification, local applicability, local auditing capacity). Affordable financing and support mechanisms for the implementation of sustainabl processes are fundamental. For viability of program and business costs and benefits must be shared equitably across the entire supplychain. Full report available early 2007

8 I.B Committee on Sustainability Assessment (COSA): Impetus: No clear information nor assessment tool for measuring the C/Bs of implementing standard based programs. BUSINESS TOOL NEEDED. Project: Full Implementation: 3 years; 9 countries in L.A, Africa and Asia; over 500 farms. Economic/Social and Environmental C/Bs. Programs: Utz Kapeh, FLO, IFOAM, Starbuck s (CAFÉ Practices), RA, 4Cs 3 primary outputs: A. 3 year time-based data on costs and benefits. B. Comprehensive farmer and extensionist participation and training on development and use of tool. C. Farmer Friendly accounting and assessment tool Status: Council of ICO approved unanimously in May 06 Testing began last month in Central America and East Africa. Vetting tool/making it locally applicable. Developing networks with local institutions and farmer groups (for integration of tool into local sector). Expert Meeting- Enabling Smallholder Access to Markets- UNCTAD

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10 II. Financing Alliance for Sustainable Trade (FAST) Objectives: Expand the capital base supporting sustainable production and trade among SMEs in developing countries Reduce transaction costs in the delivery of financial services to Southern clients Improve access to financial services through improved access to information Improve access to and delivery of financial literacy assistance Generate political and private sector support for financing of sustainable SMEs based in the South Participants in the FAST process include: Activities: Toolbox for Financial Literacy Training Generic Impact Assessment Tool Consolidated Information Access Point Guarantee Facility for Social Lending Official Launch April 2007* Forestrade Rabobank Conservation International Eco-Logic Cordaid Calvert Starbucks Green Development Foundation OXFAM Solidaridad World Bank Just Works Consulting Green Mountain Coffees Shared Interest Technoserve IISD

11 III. Sustainable Agriculture Forum: Comprehensive/Integrated training program: V. Policy Linkages Module Topic I. Sustainable Production and Processing Practices II. Internal Quality Control and Traceability Systems III. Financial Literacy and Risk Management IV. Market Information and Marketing Partial List of Relevant International Expertise Rainforest Alliance; Fair Trade Labelling Organisations International; Utz Kapeh; CCCC; IFOAM; CATIE; CIRAD; SNV; Chemonics Green Development Foundation; HIVOS; CRECER Financing; World Bank; Twin Trading through relationship with EcoLogic Financing); Green Development Foundation; Shared Interest; Rabobank; (FAST) CIMS; ICO; Technoserve IISD; UNCTAD; IIED; ICTSD; ICO Pilot Project in 4 countries: Can be rolled out to other countries and other commodities.

12 B. Work with ICO on the International Coffee Agreement. Providing options paper on Sustainability Aspects IV. Policy Development A. Each project has policy component: Project Policy Linkage COSA Advisory Panel Building from ICO economic tool ICO Council Approval (1 year process) Update through Partnership ICO) FAST Leverage policy support SAF Policy Briefs (national level) Final ICO event

13 Response to question: HowPPPscanbuild capacity and institutions? Jointly identify needs; focus efforts (prioritize); and create strategies (enhance buy-in). Address entire supplychain Identify nexus between public and private supportleverage support. Create financing mechanisms that address standards uptake needs. Including capacity building. Develop internationally accepted and locally applicable standards and processes. Link to internationally accepted goals (MDGs); and market trends. 2 «Brick walls»: a. Removal of local support systems b. retail chains control

14 Contact Information: Jason Potts Coordinator: SCI International Institute for Sustainable Development Chris Wunderlich- Assistant Coordinator: SCI UNCTAD Olle Ostensson Chief: Commodities Branch UNCTAD