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International food safety regulation and processed food exports from developing countries: A comparative study of India and Thailand
Project ID
ADP/2000/004
Commissioned Organisation
Australian National University, Australia
Project Leader
Professor Prema-Chandra Athukorala
prema-chandra.athukorala@anu.edu.au
Project Website:
Phone:
02 6125 8259
Fax:
02 6125 3700
Project Budget
$621,895.00
Start Date
01/01/2002
Finish Date
31/12/2004
Extension Start Date
01/01/2006
Extension Finish Date
31/12/2007
ACIAR Research Program Manager
Dr Simon Hearn
Overview Objectives
This study examined the policy, institutional and technical problems faced by processed food exporters in developing countries in meeting SPS requirements, and sought to identify appropriate policy measures to minimise their negative impacts on exports and enhance their capacity to meet SPS standards while recognising the legitimate concerns in importing countries about safety and quality.
Project Background and Objectives
India and Thailand, like a number of other agricultural resource rich developing nations, have experienced significant expansion of processed food exports. In recent years Thailand has exported over US$10 billion worth of processed food (4 per cent of GDP) and India over US$3 billion worth (2 per cent of GDP). However, both India and Thailand, and other developing countries, have experienced significant problems in exporting processed food to lucrative markets in developed countries. These trade conflicts often relate to food safety standards and their inability to meet the WTO Sanitary and Phytosanitary (SPS) Agreement. For example in 1999-2000 there were 860 shipments of fishery, vegetables and fruit products from India placed in detention in the US and 684 cases of products from Thailand.
SPS issues have become a significant source of international trade friction and dispute. While the development of food processing export industries offers enormous potential for rural development and economic growth in developing countries, problems with meeting these standards are considered a major constraint to achieving this growth. There is particularly a lack of adequate information on the problems that constrain firms' ability to meet international standards.
Progress Reports (Year 1, 2, 3 etc)
Year 1:
Implementation of the project commenced on 1 April 2002. Despite the delayed start, the proposed work program for the first five quarters of the three-year implementation period (See Flow Chart, Project proposal, p 8) have already been completed successfully. The main tasks undertaken are:
(1) Survey of literature
(2) Collection and processing of data on processed food trade (from the UN trade data tapes) and on causes and incidence of detention of food imports in the U.S.A. (using administrative records of the Food and Drugs Administration of the US).
(3) Setting up of research advisory committees in Thailand and India in order to provide a forum for interaction with the key stakeholders in public and private sectors in the process of project implementation.
(4) Finalising the questionnaire after processing the draft through preliminary field visits and obtaining feedback from RACs
(5) Writing a comprehensive issues paper (using inputs from (1) and (2) above) and producing nine other working papers incorporating work in the first four quarters.
(6) Creation of a project website for the speedy dissemination of research output on an ongoing basis. (http://economics.anu.edu.au/aciar)
The Indian collaborating institution, Research Information Systems (RIS), held an in-country workshop on 29th June 2002, in preparation for the project-launching workshop in Bangkok. About 30 participants, representing food processing industry and relevant government organizations in India attended the workshop. The workshop was instrumental in providing valuable inputs to the project implementationworkshop subsequently held in Bangkok (see below). The proceedings of the workshop have been issued as a RIS working paper and it is available at http:/www.ris.org.in.
A project implementation workshop (a full day conference followed by a full day group work session of the research team) was held on 2-3 October 2002 in Bangkok to formally launch the project. In addition to the project research team, over twenty government officials and private sector representatives participated in the conference. The Rector of Thammasat University, Dr Naris Chaiyasoot, delivered the keynote address. Four papers were presented at the conference:
'International Food Safety Regulation and Processed Food Exports from Developing Countries: The Policy Context, and the Purpose and Scope of the Research Project', by Prema-chandra Athukorala, Ashok Gulat, Sisira Jayasuriya, Rajesh Mehta and Bhanupong Nidhiprabha.
'Processed Food Products Exports from India: An Exploration with SPS Regime', by Rajesh Mehta and Jacob George
'SPS and Thailand's Exports of Processed Food', by Bhanupong Nidhiprabha,
'Trade Barriers and Food-Safety standards', by Donald MacLaren, Department of Economics, The University of Melbourne (invited paper).
The key tasks undertaken in the group work session included finalising the first version of the questionnaire for pre-testing, and revising/restructuring of the hypotheses and research methodology in the light of the comments received from the conference participants.
The first interim workshop was held in New Delhi, 26-27 March 2003. In addition to the members of the research team and ACIAR representatives, over 50 government officials and private sector representatives participated the public conference held on the first day of the workshop. Sri Sompal, member of the Indian Planning Commission and former Minister of Agriculture delivered the keynote address. The conference program contained four papers arising from the work of the first four quarters of the project, six short presentations by invited speakers representing relevant government bodies (3) and representatives from leading processed food exporting firms. (Visit http:/www.ris.org.in/ for a complete listing of these papers). A full day group work session was held during the second day. The activities of the work session included finalising the questionnaire, discussion/finalisation of arrangements for the field survey and reviewing the implementation program for the rest of the period in the light of feedback received at the conference.
A project website was created in April 2002 at the Australian National University (with links to the websites of ACIAR and the three collaborating institutions (University of Melbourne, Research Information Systems (India) and Thammasat University (Thailand). The revised papers arising from the Bangkok workshop have already been posted on the website. The papers presented at the Delhi workshop are being edited for posting.
Year 2:
Year 2 (01/01/2003-31/12/2003)
The main tasks accomplished during the first year of the implementation period included:
the literature survey;
analysis of trends and patterns of processed food exports from developing countries and the WTO mechanism for monitoring food safety standards;
the institutional mechanisms and procedures for meeting food safety standards in India and Thailand;
case studies of the selected food industries in the two countries, and finalising the questionnaire for the firm-level survey.
The prime focus of the Indian and Thai research teams was on conducting the firm-level survey. The Indian team has completed surveying 23 firms. These include firms in the following industries: shrimp (12) mango pulp (4), egg powder (3) and mushroom (3) industries in the states of Kerala, Tamilnadu, Andra Pradesh Chandigar and Maharashtra. The Thai team has surveyed 24 Shrimp exporting firms and 3 caned tuna exporting firms.
The Australian team was mainly involved in finalising the two background chapters on the relative export performance of India and Thailand in world food trade, and the experience of developing countries in participating in WTO mechanism for monitoring international food safety, in addition to monitoring and coordinating field research in the two countries.
The Indian collaborating institution, Research Information Systems (RIS), held an in-country workshop in March 2004, to discuss the preliminary findings of the field survey and to provide inputs into the on-going policy debate in India on international food safety standards and the related WTO procedures. About 40 participants, representing food processing industry and relevant government organizations in India attended the workshop.
The second interim workshop was held in Bangkok during March 2004. In addition to the members of the research tem and ACIAR representatives, 23 government officials and private sector representatives in Thailand and four observers involved in an ongoing ACIAR project in Vietnam attended the public sessions on the first day of the workshop. The conference presentations included two country papers based on the preliminary results of the firm-level surveys in India and in Thailand, an overview paper on lessons of experience and new issues relating to international food safety standards and processed food exports from developing countries.
In addition, two invited papers were presented, one on the implications of Avian Influenza-a major new development that affected many Asian countries including Thailand in recent months-for world food trade and WTO issues, and the other on methodological issues involved in firm-level analysis of trade implications of food safety standards.
Year 3:
Implementation of the project commenced on 1 April 2002. Despite the delayed start, the proposed work program for the three-year implementation period has been successfully completed (See Flow Chart, Project proposal, p 8). The main tasks accomplished so far included: (a) the literature survey; (b) analysis of trends and patterns of process food exports from developing countries and the WTO mechanism for monitoring food safety standards; (c) and the institutional mechanisms and procedures for meeting food safety standards in India and Thailand; (d) case studies of the selected food industries and firm-level surveys in the two countries; (e) preliminary drafts of the country reports.
The main focus of the Indian and Thai research teams during the period under review (April 2003 - March 2004) was on analysing data gathered from the firm-level survey and drafting the country reports. The team leader and the main co-researcher of each team visited ANU during the year to discuss the preliminary draft of the report with the Australian team and the complete draft is to be submitted by the first week of June 2005. The Indian team has surveyed 71 firms. These include firms in the following industries: shrimp (57) mango pulp (7), egg powder (3) and mushroom (4) industries in the states of Kerala, Tamilnadu, Andra Pradesh, Chandigar and Maharashtra. The Thai team has surveyed 55 firms - Shrimp (40), canned tuna (8) and vegetable (7). (Note that our aim was to survey a minimum of 50 firms in each country.)
The Australian team was involved in writing/finalizing the background chapter for the synthesis volume, which contains three main sections: (1) international food safety regulation and process food exports from developing countries, (2) causes and incidence of detention of processed food imports (based on data compiled from administrative records of the US Food and Drugs Administration), and (3) economics of food safety regulation and trade. The project leader (Athukorala) and the leader of the Melbourne University team (Jayasuriya) made field visits to Thailand (one week) and India (two weeks) in September 2004 to monitor fieldwork and data processing.
Year 4:
Implementation of the project commenced on 1 April 2002. Implementation of the project commenced on 1 April 2002. The proposed work program for the three-year implementation period was successfully completed on time by June 2005. The main tasks accomplished were:
Literature survey
Survey/analysis of trends and patterns of process food exports from developing countries with emphasis on the experiences of India and Thailand
Survey/analysis of trade-related regulation in the global food system and WTO mechanism for monitoring food safety standards
Documentation/analysis of institutional mechanisms and procedures for meeting food safety standards in India and Thailand;
Case studies of the selected food industries and firm-level surveys in India and Thailand, and draft country reports
A workshop was held at the Australian National University on 29 June 2005 to elicit comments/suggestions on the research output for the preparation of the final report. The participants included the two ACIAR reviewers (David Orden, IFPRI and Anna Heaney, ABARE) and a number of prominent economists in this subject area. Two dissemination workshops were held in New Delhi and Bangkok in September 2005.
The reviewers assessed the project very favourable noting that it had 'substantially contributed to the research area and largely achieved the key objectives outlined in the project proposal'. Based on reviewers' recommendation, one-year extension was approved (with additional funding of $75,744) by ACIAR for dissemination activities.
During the period under review, the research team has made good progress towards producing a major book (research monograph) by expanding/revising the draft peppers presented at the ANU workshop based on the recommendations made in the Review of Review, and feedback received from the participants of Canberra, Delhi and Bangkok workshops. The book manuscript is to be completed by the end of December 2007. A short policy manual (based on the book) targeted to the public-sector and private-sector audiences engaged in addressing food safety standards and export performance in India and Thailand is to be prepared by February 2008.
Year 5:
Implementation of the project commenced on 1 April 2002. Implementation of the project commenced on 1 April 2002. The proposed work program for the three-year implementation period was successfully completed on time by June 2005. The main tasks accomplished were:
Literature survey
Survey/analysis of trends and patterns of process food exports from developing countries with emphasis on the experiences of India and Thailand
Survey/analysis of trade-related regulation in the global food system and WTO mechanism for monitoring food safety standards
Documentation/analysis of institutional mechanisms and procedures for meeting food safety standards in India and Thailand;
Case studies of the selected food industries and firm-level surveys in India and Thailand, and draft country reports
A workshop was held at the Australian National University on 29 June 2005 to elicit comments/suggestions on the research output for the preparation of the final report. The participants included the two ACIAR reviewers (David Orden, IFPRI and Anna Heaney, ABARE) and a number of prominent economists in this subject area. Two dissemination workshops were held in New Delhi and Bangkok in September 2005.
The reviewers assessed the project very favourable noting that it had 'substantially contributed to the research area and largely achieved the key objectives outlined in the project proposal'. Based on reviewers' recommendation, one-year extension was approved (with additional funding of $75,744) by ACIAR for dissemination activities.
During the period under review, the research team has made good progress towards producing a major book (research monograph) by expanding/revising the draft peppers presented at the ANU workshop based on the recommendations made in the Review of Review, and feedback received from the participants of Canberra, Delhi and Bangkok workshops. The book manuscript is to be completed by the end of December 2007. A short policy manual (based on the book) targeted to the public-sector and private-sector audiences engaged in addressing food safety standards and export performance in India and Thailand is to be prepared by February 2008.
Project Outcomes
The main tasks accomplished by the project were:
a literature survey
a survey/analysis of trends and patterns of process food exports from developing countries with emphasis on the experiences of India and Thailand
a survey/analysis of trade-related regulation in the global food system and WTO mechanism for monitoring food safety standards
documentation/analysis of institutional mechanisms and procedures for meeting food safety standards in India and Thailand
preparation of case studies of the selected food industries and firm-level surveys in India and Thailand, and draft country reports.
A workshop was held at the Australian National University in June 2005 elicited comments/suggestions on the research output for the preparation of the final report. The participants included the ACIAR reviewers from IFPRI and ABARE and a number of prominent economists in this subject area. Two dissemination workshops were held in New Delhi and Bangkok in September 2005.
The reviewers assessed the project favourably, noting that it had 'substantially contributed to the research area and largely achieved the key objectives outlined in the project proposal'. Based on reviewers' recommendation, a one-year extension was approved for dissemination activities.
The research team made good progress towards producing a major book (research monograph) by expanding/revising the draft papers presented at the ANU workshop. A short policy manual (based on the book) targeted the public-sector and private-sector audiences engaged in addressing food safety standards and export performance in India and Thailand.
Location
There are no project locations defined for this project.
