Investor Presentaiton
MVO
NEDERLAND
Alternatively, growers can apply for an FSA-certification. This entails the
certification linked to the SAI Platform, and is accepted by most of the larger
food & beverage companies. The SAI Platform work with self-assessments and
an ICS-model as well, but requires a smaller data sample size for verification.
Organisations that can assist in this process are Peterson and Control Union.
The process for obtaining the Global GAP is regarded by many smallholders as
either too expensive or too complicated. This presents a challenge for
smallholders in Brazil, as there are no certification schemes allowing small
farmers to apply for Global GAP as a group to make the process easier. There
are three main difficulties:
1. The system of day workers
Government regulations dictate that day workers should register and sign a
contract with employers (exact policies differ between estates). However, this
also means that income taxation and mandatory insurance premiums will be
levied, which may lead to a situation in which both employers and employees
prefer to stay out of this system. For both, this saves administration and money.
However, Global GAP also requires employers to provide contracts for their day
workers.
2. Environmental requirements
Another example of a threshold for Global Gap are environmental provisions.
For example, local legislation and Global GAP require isolated storage facilities
with secondary containments for the storage and management of
agrochemicals. These facilities should be installed at least 60 meters outside a
family residence. Although this seems like a very positive provision from an
environmental point of view, in practice this impedes smallholders to
implement Global GAP. Often, lots are not large enough, or the installation of
such confinement facilities is far too expensive for smallholders. Another
example is the requirement to take periodically water and waste samples to test
for contamination. Again, in theory this is a logical and necessary step, but in
practice this is often too much of a financial burden for smallholders.
3. Administration
The use of agrochemicals need to be administrated; but many smallholders read
and write poorly or lack knowledge. This also makes it difficult for many to set
up an Internal Management system (IMS). Sometimes buyers do help with
setting up an IMS, although this is often not coordinated; the financial
investment is therefore often the most difficult part in practice.
Water pump station Jaiba
Another challenge is the contract administration. For example, day workers
often work for several producers during a week. If a day worker needs to sign a
contract with all those different producers, this will generate a significant
administrative burden.
WATER USE AND IRRIGATION SYSTEMS
An important issue in considering the relative sustainability of producing fruit
and vegetables in Jaiba Project are the benefits and disbenefits of the use of
groundwater as is done in areas without extensive irrigation - and surface
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