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Organic Certification Schemes: Managerial Skills and Associated Costs

Synthesis report from case studies in the rice and vegetable sectors

Year of publication 2007

Pages 87

Author Santacoloma, P.;Rural Infrastructure and Agro-Industries Division

Product type Book (stand-alone)

Category Technical study

Series title Agricultural management, marketing and finance occasional paper

Edition 1

Synopsis (short abstract) This paper studies alternative certification schemes for organic products in order to draw conclusions regarding the institutional support and technological development required for compliance with organic standards. It discusses third party certification, for both individuals and farmer groups, as well as participatory certification. Case studies from developing countries and countries in transition engaged in organic rice and organic fruit and vegetable production are examined. Issues analysed include the organizational structure and marketing strategies in the organic supply chain. The paper also discusses the institutional development that is needed to provide business and technical services and establish the quality assurance system. Organizational, managerial and business skills required by the lead stakeholders in the organic chain are analysed as well as the costs that they incur for effectively managing organic projects. Similarly, the manageria l skills required at the farm level are considered as is the use of cost-benefit analysis. The paper also reviews the legal and institutional framework that facilitates organic production and certification. The paper is aimed at staff of government, private and non-government organizations working at the policy level and in the field, and at donors’ organizations that support organic production and certification.

Language English

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    Certification provides consumer confidence that organic production ensures food integrity from seed through sell. Certification also guarantees that production and processing are managed under a holistic system that enhances ecosystem health. Smallholders in developing countries face institutional and economic constraints in obtaining the status of certified organic producers. Despite the outstanding growth of organic markets over the last decade, certification costs and standards from the devel oped world prevent many smallholders in developing countries from entering these markets. Farmers seeking to sell organic products usually have to hire an organic certification agency to inspect farms annually and confirm that they adhere to the standards established by trading partners.
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    Certification is critical in organic markets because it gives buyers the confidence that a product meets the quality and process standards of organic production. The achievement of internationally recognized certification standards and procedures — mostly established by institutions in the more developed countries — can require institutional capacity and financial means which are often beyond the reach of many small scale farmers in the developing world. Alternative certification schemes offer p ossibilities for small scale producers to overcome such constraints. This paper reports a comparative analysis of costbenefit and the managerial learning needs required at the farm and farmers’ organization levels of different types of organic certification schemes in Asia and Latin America.
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