Competitiveness

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Standards and Quality as a
Vehicle for integrating Value Chains
Mr. Bernardo Calzadilla-Sarmiento
Director, Trade Capacity Building
6 May 2014
Integration into Global Trade
UNIDO’s 3 C-Approach
Develop
Productive
Capacity
2
COMPETE
CONFORM
CONNECT
Develop
competitive
manufacturing
capability
Prove
conformity
with market
requirements
Connect
to the
market
Enhance
capacity to
meet
standards
Upgrade
conformity
assessment
capacities
Strengthen
export promotion
activities
Promote
business
partnership
and trade
agreements
Streamline
custom
procedures
and
mechanisms
Introducing Trade Capacity Building
BUILDING QUALITY
INFRASTRUCTURE FOR
COMPETITIVENESS
The West Africa
success story
STANDARDS AND
CONFORMITY
ASSESSMENT ALONG
THE VALUE CHAIN
Quality for Coffee
in Burundi
3
SAFE FOOD FOR
BETTER BUSINESS
Partnering with GFSI
and the China
case story
ENHANCING TRADE
OPPORTUNITIES THROUGH
PARTNERSHIPS
South-South Centers
for Excellence
Standardization Process – UNIDO’s approach
Launching a
Standardization
Process
Bringing SMEs’
needs to the
standardization
process
Collect and
disseminate
information
Organize Expert
Group Meetings
(EGMs)
Organize
background
documents
Awareness
4
Stakeholder
Engagement
Helping SMEs to
engage in
standardization
Provide
substantive inputs
in the
standardization
process
Facilitate and
promote SME
participation
Make sure that
SMEs views are
represented in the
Advocacy
standardization
process
Implementation of Standards
Making standards
work for SMEs
Promote and
provide technical
assistance in the
implementation of
standards
Organize
awareness raising
work shops
Support
dissemination of
standards
Implementatio
n
Assessing
Conformity to
Standards
Certification
Testing
Inspection
Conformity
Assessment
Sectoral Approach
Standards along the Coffee Value Chain
Energy Management Standards Development
Food Safety – UNIDO partnering with the GFSI
Enhancing sustainable Tourism in Lao
The Aeronautic Industry in Morocco
Telecommunication – UNIDO partnering with the ITU
5
Standards along the Value Chain – Coffee in Burundi
Cultivation
Processing
Pulping/
Washing
Drying
Roasting
Export
In any value chain, actors must always consider end-market requirements in terms of the
process, product, quality and safety (TBT and SPS measures).
UNIDO Approach
TCB provides support for the development of a sustainable and targeted quality
infrastructure that ensures competent institutions and guarantees that all processes and
products along the value chain conform to international standards and regulations.
UNIDO’s quality value chain approach ensures that all stakeholders benefit from value
chain development at each stage of the chain. The best examples of successful programmes
addressing the issue of quality and standards in value chains are the cases of Burundi, Ghana
and Côte d'Ivoire.
6
Coffee Value Chain – Challenges
Cultivation





Pulping/
Washing
Processing
Access to inputs (high cost)
Failure of plants (seeds)
Not suitable fertilizers
Soil analysis
Pollination of coffee





Drying
Technical waste
management
Using contaminated water
Incorrect sorting cherries
Lack of equipment
Water treatment
Roasting




Chemistry analysis OTA
Physics analysis
Sensory analysis
Packaging








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Low production and cyclical
Low productivity
Cramped storage warehouses
Lack of appropriate knowledge
Access to finance
Clear policy on cooperatives
Traceability





Insufficient drying
Inappropriate hulling
equipment
Unsuitable packagingtransportation
High machining costs
Export



Lack of knowledge on
international standards
Lack of marketing
knowledge
Too many intermediaries
Local and international
marketing
Quality certifications
Coffee Value Chain – Standards
Cultivation
Processing
Pulping/
Washing
Drying
Standards in Pulping and Washing
ISO 6666:2011
Fair Trade
Utz Kapeh
Organic
ISO 22000:2005
CAC/RCP 69-2009
HACCP
ISO 9001:2008
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Coffee sampling
Work conditions, Environmental protection
Environmental protection, Work conditions
Organic production
Food safety management
Prevention of Ochratoxin-A contamination
Food Safety
Quality management
Roasting
Export
Safe Food for Better Business – Partnering with the GFSI



GFSI was launched as a non-profit making foundation
in 2000, to achieve harmonisation of food safety
standards that would drive reduce audit duplication
throughout the supply chain. GFSI therefore chose to go
down the route of benchmarking, developing a model
that determines equivalency between existing food
safety scheme.
In 2008, the GFSI recognised that small and/or less
developed businesses would benefit significantly from a
programme that would assist them through a continuous
improvement process to develop to the point where the
implementation of a GFSI recognised food safety
management scheme could be considered.
Global Market Programme was designed as a noncertification assessment process to assist less
developed businesses.
9
Safe Food for Better Business – Partnering with the GFSI
Institutional Level


UNIDO membership at the GFSI Advisory Board
UNIDO membership at GFSI Technical committee
(AB)
Pilot Trails
(3-6 months)


Egypt, India and Russia (with METRO Group)
Collaboration with the IFC in Ukraine
Capacity Building
Projects


AEON project in Malaysia
CGCSA in Africa
10
Energy Management Standards
Relevance





Increased competitiveness for industry
Policy-driven market based tool
Voluntary nature
Facilitates international trade
Improves market access
ISO 50001 as a tool for policymakers promoting EE
measures
Flagship
Example
11

Market tool: ISO 50001 expected to achieve longterm increases in energy efficiency > 20% or more
in industrial, commercial, and institutional
facilities

Competitiveness: US Superior Energy Performance
experience in industrial facilities achieved
energy performance improvements between 6.5 - 17 %
percent over a period 2-3 years

Voluntary: The Dutch Long-Term Agreements observed
energy savings, which was a 50% increase over
historical autonomous energy efficiency rates in
the Netherlands prior to the agreements
Enhancing sustainable tourism in Lao PDR
Establishment of the “Luang Prabang Safe and
Green Tourism” Scheme
 Promote sustainable tourism principles and
maintain a conformity system
 Food Safety, Tourist Health and Safety and
Environmental Safety requirements have been
developed following international standards
and best practices.
 Local hotels and restaurants will be
assessed against these requirements.
Localization of a scheme developed by the
Chartered Institute of Environmental Health
(CIEH) to comply with food standards
requirements
Local partner: National Institute for Tourism
and Hospitality (LANITH)
12
The Aerospace Industry in Morocco
In Morocco, the Aerospace sector consists of true centers of excellence for production,
services, maintenance and engineering.
60 enterprises (nearly 70% under 5 years of existence)
7000 employees
€ 580 million revenue
UNIDO’s support:
→Support SMEs to integrate into the global value chains
→Connect SMEs to large enterprises by developing supplier networks and clusters
→Strengthening the interface between business, academia and industry support institutions
→Training on productivity, quality enhancement and lean manufacturing techniques
→Training in resource efficiency and cleaner production techniques
→Help SMEs overcome challenges in relation to compliance with international standards
13
Telecommunication - UNIDO partnering with the ITU
ITU (International Telecommunication Union) is the United Nations specialized
agency for information and communication technologies.
Member of the Network on Metrology, Accreditation and Standardization for Developing
Countries (DCMAS)
UNIDO/ITU cooperation in Conformity & Interoperability
World Standards Cooperation (WSC)
The World Standards Cooperation (WSC) was established in 2001 by the International
Electrotechnical Commission (IEC), the International Organization for Standardization (ISO)
and the International Telecommunication Union (ITU) in order to strengthen and advance the
voluntary consensus-based international standards systems of IEC, ISO and ITU.
The role of SMEs
in standardization
 Integrate into the standardization process
 Represent views of SMEs in standardization
 SME participation through techno parks
14
Thank you.
Mr. Bernardo Calzadilla-Sarmiento
Director, Trade Capacity Building
United Nations Industrial Development Organization
B.Calzadilla@unido.org
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Trading through Quality Chains
July 2013: UNIDO supported the 4th Global Review
of Aid for Trade “Connecting to Value Chains”,
which took place in Geneva. UNIDO has
supported the initiative since its
early days, and is now one of the
major implementing agencies of AFTrelated trade capacity-building
activities.
Trading through Quality Chains
From Compliance to shared Value
The publication presents UNIDO’s
value chain approach and highlights
several trade capacity building
projects:
7 global projects
15 national projects
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Value of Conformity Assessment
 Posters
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