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 7 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 8 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 15 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 16 Value of Conformity Assessment Posters 17