Summary
Despite initial setbacks linked to Avian Influenza outbreaks and Covid-19 linked demand effects, EU poultry meat production is projected to increase in 2021, with this growth continuing through to 2031 (though be it at almost half the annual rate of the preceding decade). Despite average EU poultry meat prices being substantially above Brazilian prices, the EU continues to increase exports of frozen and fresh meat and offal from Gallus poultry to sub-Saharan Africa. This increase has continued despite a major slump in EU exports to other non-sub-Saharan African markets. While overall EU poultry meat exports are projected to stabilise up to 2031, the likely further collapse in exports to the UK will increase export pressures on sub-Saharan African markets. If African governments wish to boost local poultry production in response to growing consumer demand and Covid-19 supply chain disruptions, greater use will need to be made of non-tariff measures in regulating imports, including a more precautionary approach in response to AI outbreaks. This could then provide the market space for expanded local production if this forms part of comprehensive poultry sector development strategies. Read more “The Halting of the Decline in EU Poultry Production and Open Sub-Sharan African Markets, Fuels Continued Growth in EU Poultry Meat Exports to SSA”
Category: West African EPA
What Are the Implications of New EU Mandatory Forestry Due Diligence Requirements for ACP Agricultural Commodity Exporters?
Summary
The EC’s proposed forestry due diligence regulation seeks to ensure only commodities from land not subject to deforestation and produced in line with national legal frameworks are placed for sale on the EU market. This will involve the progressive establishment of full traceability of all of the affected commodities (beef, wood, palm oil, soya, coffee, and cocoa) placed for sale on the EU market. Obligations placed on businesses will vary based on country and region-specific assessments of the risk of deforestation or forest degradation. A process of benchmarking will be undertaken to establish these risk assessments (high, standard, and low risk). The EC favours a collaborative approach involving all concerned stakeholders in building Forestry Partnerships to promote the transition to active protection of global forestry resources. A €1 billion EC managed facility is to be established to support these Forestry Partnerships. The value of exports to the EU27 from the main ACP exporting countries potentially affected by the new due diligence requirements amounted to nearly €7 billion in 2020. In the ACP the most important affected sector is the cocoa sector, which accounts for 75% of the value of ACP exports of the affected commodities. Important questions arise related to the distribution of the costs of new traceability systems and mitigation measures along supply chains and whether forestry due diligence will be closely linked to decent living income objectives. Addressing living income issues, particularly in the cocoa sector, is seen as essential to ensuring active farmer ‘buy-in’ to the necessary farm level production process transition required to better protect global forestry resources. Read more “What Are the Implications of New EU Mandatory Forestry Due Diligence Requirements for ACP Agricultural Commodity Exporters?”
Can the Tesco Commitment Provide a Basis for a Wider Pan European Retailer Programme of Action Ensuring a ‘Living Wage +’ Outcome for Banana Workers?
Summary
Tesco’s latest commitment on ensuring banana plantation workers are paid, at a minimum, a living wage includes two important innovations: independent determination of the living wage requirement and the establishment of a clearly defined timeline for attaining living wage objectives. This approach is indicative of the kind of ‘best practice’ which the EC ‘Code of Conduct on Responsible Food Business and Marketing Practices’ would like to see generally adopted (including in other sector such as the cocoa sector). By concentrating responsibility for establishing living wage levels at the level of the stakeholder with the greatest power within the supply chain, the Tesco initiative offers a real prospect of progress on living wage issues. This would be particularly the case, if it was generalised across products and throughout the corporate family of which Tesco forms a part (ABF). Read more “Can the Tesco Commitment Provide a Basis for a Wider Pan European Retailer Programme of Action Ensuring a ‘Living Wage +’ Outcome for Banana Workers?”
EU Frozen Chicken Exports to Ghana and Wider West African Region Continue to Rise
Summary
In the face of AI related import restrictions for other major destinations for EU frozen chicken and general poultry meat exports, EU exports to Ghana and other major West African markets have grown strongly. West Africa has now become a key market for exports of frozen chicken meat, particularly when difficulties are faced on other markets. This raises critical issues over the role of poultry sector trade policy in West Africa in supporting efforts to expand domestic poultry production, as part of wider poultry sector development initiatives. Read more “EU Frozen Chicken Exports to Ghana and Wider West African Region Continue to Rise”
Some Implications of the EU Code of Conduct on Responsible Food Business and Marketing Practices for ACP Producers
Summary
The EU’s ‘Code of Conduct on Responsible Food Business and Marketing Practices’ can only be welcomed. However, its limitations, in terms of delivering on objectives which ACP governments, producers and exporters share, need to be recognised. The focus on increased collaboration along the whole of the supply chain, means commitments entered into by EU companies will carry real implications for production practices adopted by ACP suppliers. These implications need to be recognised and addressed, in the context of the Codes commitment to ensuring the social and commercial sustainability of the required changes. In regard to each of the aspirational objectives identified, in operationalising the code of conduct there will be a need for meaningful dialogues with ACP stakeholders and governments, if the burden of necessary adjustments is not to be largely shifted on to the shoulders of ACP primary producers. This will require the identification of appropriate institutional frameworks for the conduct of these meaningful dialogues in each of the major areas of concern. Read more “Some Implications of the EU Code of Conduct on Responsible Food Business and Marketing Practices for ACP Producers”
West African Banana Producers Call for a Fairer Distribution of Commercial Benefits Along Banana Supply Chains
Summary
Afruibana has sought to raise the importance of addressing the issue of burden sharing along banana supply chains in the context of the dramatic Covid-19 linked freight and input cost escalation now being faced. Afruibana argues addressing burden sharing and equitable pricing issues is essential to support the necessary ‘ecological and energy transition’ in the banana sector. It would appear important to ensure pricing requirements based on Costs of Sustainable Production (COSP) calculations, form an integral part of EU due diligence requirements aimed at getting to grips with climate and livelihood challenges in the developing world. As the Afruibana letter points out this will require everyone in the supply chain to play their part, through international traders, wholesalers, retailers to end consumers. Equally, in the current context, it is important policy choices made in the EU and UK around the Brexit process do not add to costs along already stressed supply chains. Read more “West African Banana Producers Call for a Fairer Distribution of Commercial Benefits Along Banana Supply Chains”
UK Announces a Further Deferment of Full Border Controls on Goods Crossing Over from the EU
Summary
The UK government has announced the deferment of the implementation of a range of controls on goods entering the UK from the EU. While this is nominally in response to Covid-related disruptions, shortcomings in UK government Brexit planning and investment appears equally important. The response of UK businesses to the deferment announcement has been mixed. Concerns have been expressed the problem has simply been ‘kicked down the road’ to avoid a pre-Christmas crisis, while extending the uncertainties over the conditions under which trading operations will take place in the future. There are concerns ongoing uncertainty is having particularly adverse effects on the ‘re-export’ trade along ACP fresh and chilled produce supply chains, with such business operations simply being placed in the ‘too hard’ basket. Against this background there is a need for political initiatives around the issues facing the ACP re-export trade along triangular supply chains, so as to remove uncertainty and restore business confidence in the future of such trading arrangements. Read more “UK Announces a Further Deferment of Full Border Controls on Goods Crossing Over from the EU”
UK HGV Driver Shortage Raises Contractual Issues for ACP Exporters
Summary
The shortage of HGV drivers in the UK is particularly acute and is intensifying. Food and drink supply chains particularly for shirt life products being severely impacted. This raises the issue of burden sharing along ACP export supply chains serving UK markets. Escalating road haulage costs and the value losses resulting from delays need to be taken up and addressed in Incoterms covering ACP exports to the UK, if ACP exporters are not to bear the full burden of escalating costs and value losses. Read more “UK HGV Driver Shortage Raises Contractual Issues for ACP Exporters”
Irish Trade Data on Differential Impact of Border Controls Raises Concerns for Future ACP-EU Triangular Supply Chains
Summary
Recent Irish data highlight the impact of new border controls on trade flows with the UK, with ACP ‘re-exports’ from the UK to Ireland likely to be seriously affected. This is not only a result of general cross-border trade complications generated by the Brexit process, but also due to two specific challenges arising for ‘re-exported’ products: notably the rules of origin/MFN tariff complications for re-exported fresh produce and simple processed products (e.g., from raw to refined sugar) and the additional phytosanitary import documentation requirements, namely the need for ‘phytosanitary re-export certificates’. The delays this can generate pose particular problems of value losses for short shelf-life products. While currently these problems are only faced along ACP-to-UK-to-EU supply chains, from October 2021 onwards, similar problems will be faced along ACP-to-EU-to-UK supply chains, with this potentially posing some serious challenges to current triangular supply chain operations. Read more “Irish Trade Data on Differential Impact of Border Controls Raises Concerns for Future ACP-EU Triangular Supply Chains”
Concerns Expressed Over Lack of Preparedness for October 2021 UK Controls on Goods Crossing from the EU
Summary
There are mounting industry concerns the UK authorities are not ready for implementing controls on goods crossing over from the EU scheduled to be introduced in October 2021. The de facto extension of the ‘Operation Brock’ emergency powers to regulate traffic flows along the main cross channel routes is seen as an implicit recognition of the dangers of road traffic disruptions. The serious air and sea freight disruptions and freight rate increases over the last year is complicating ACP efforts to restructure triangular supply chains, so as to deliver directly to the UK. This makes getting to grips with the sources of cost increases for ACP re-exports shipped to the UK via the EU a matter of considerable urgency. There is considerable scope for unilateral UK government action to reduce costs increases along triangular supply chains, without this impacting on broader UK/EU negotiations on trade related issues. Equally, on the EU side there is also scope for unilateral actions to reduce cost increases and delays along triangular supply chains. Read more “Concerns Expressed Over Lack of Preparedness for October 2021 UK Controls on Goods Crossing from the EU”