Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010specified management systems. The QMS usually consists of a HACCP, a prerequisite programme up to thefarm gate in the form of GAPs and an exit programme after the farm gate in the form of Good ManufacturingPractices (GMPs). The QMS covers a range of issues, including product hygiene, reduction of foreign bodycontamination, minimizing pesticide residues, environmental pollution, and traceability.D. Farm-level Accreditation Schemes as ModelsNo such scheme operates formally in Nepal other than the tea Code of Conduct (CoC). GLOBALGAP is a privatestandard for GAP that is increasingly being recognized by many retailers in Europe and beyond. While GAPcertification is generally not a requirement of Nepalese smallholder customers, this is likely to be a futurerequirement. However, in the short term, credible GAP certification will likely reduce or even eliminate theneed for pesticide testing of produce entering Nepal’s trading partners. In view of the high requirements ofGLOBALGAP, the cost of implementation and the current status of smallholder farms in Nepal, priority shouldbe given to establishing a system similar to GLOBALGAP that is credible to Nepal’s trading partners. However,this standard should be adopted on a needs basis and should be targeted at export sectors of Nepal’s agrofoodexports.There is a form of simplified GAPs system operating in Malaysia (Skim Amalam Ladang Baik Malaysia [SALM]).SALM is a simplified form of GLOBALGAP and it would be worthwhile investigating to see if it might be adaptedfor introduction into Nepal (Appendix 5). Given the difficulties in certifying large numbers of smallholdersindividually, it is important to note that the GLOBALGAP standard, though not SALM, also has a specificstandard for smallholders that are aggregated into formal producer groups (summarized in Appendix 6).If a version of SALM is adopted in Nepal, it should incorporate the GLOBALGAP procedure for certification offarmer groups. This option requires a farmer group to comply with certain extra requirements, including aQMS for running the group (outlined in Appendix 6). In the future, if Nepal adopts an equivalent of SALM,then, given the nature of farming in the country, it would be necessary to incorporate a form of farmergroup certification. However, experience from Kenya has shown that this option is difficult to implement inpractice.D. Proposed ApproachThe approach proposed in the context of Nepal is to prioritize the application of key elements of GAPs. Atenterprise level it should be recognized that prioritization might differ. In purely trade terms the followingpriorities are suggested (Table 1).Table A4.1:Prioritization of Food Hazard Compliance for Trade Facilitation in NepalPriority Risk Justifi cation1 Pesticide2 Microbiology3Gross contaminationby foreign bodiesThe potential for pesticide residues is the most signifi cant issue currently affectingNepal’s agro-food exports. There are signifi cant current investments in thissector in terms of laboratory testing capability. However, there needs to be moresignifi cant moves towards demonstrated compliance.All agro-food exports under review (excepting honey) involve a ‘kill step’ beforeconsumption. Therefore, the potential for transmission of human pathogens is low.However, there are signifi cant public health issues in production and processingthat need to be addressed. Mycotoxins are a potential future issue.With the exception of soil on ginger roots exported to India, there have beenno trade issues involving gross contamination. This is relatively easily solved.However, in the future, the issue of gross contamination will need to be addressed.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT303