Standards and Quality as a Vehicle for integrating Value Chains

1. Standards and Quality as a Vehicle for integrating Value Chains Mr. Bernardo Calzadilla-Sarmiento Director, Trade Capacity Building 6 May 2014

2. Integration into Global TradeUNIDO’s 3 C-Approach Markets COMPETE Develop competitive manufacturing capability CONFORM Prove conformity with market requirements CONNECT Connect to the market Products Develop Productive Capacity Enhance capacity to meet standards Upgrade conformity assessment capacities Strengthen export promotion activities Promote business partnership and trade agreements Streamline custom procedures and mechanisms

3. Introducing Trade Capacity Building BUILDING QUALITY INFRASTRUCTURE FOR COMPETITIVENESS The West Africa success story SAFE FOOD for BETTER BUSINESS Partnering with GFSI and the China case story STANDARDS and CONFORMITY ASSESSMENT along the VALUE CHAIN Quality for Coffee in Burundi ENHANCING TRADE OPPORTUNITIES THROUGH PARTNERSHIPS South-South Centers for Excellence

4. Standardization Process – UNIDO’s approach Launching a Standardization Process Stakeholder Engagement Implementation of Standards Bringing SMEs’ needs to the standardization process • Collect and disseminate information • Organize Expert Group Meetings (EGMs) • Organize background documents Helping SMEs to engage in standardization • Provide substantive inputs in the standardization process • Facilitate and promote SME participation • Make sure that SMEs views are represented in the standardization process Making standards work for SMEs • Promote and provide technical assistance in the implementation of standards • Organize awareness raising work shops • Support dissemination of standards Assessing Conformity to Standards • Certification • Testing • Inspection Awareness Advocacy Implementation Conformity Assessment

5. Sectoral Approach Standards along the Coffee Value Chain Energy Management Standards Development Food Safety – UNIDO partnering with the GFSI Enhancing sustainable Tourism in Lao The Aeronautic Industry in Morocco Telecommunication – UNIDO partnering with the ITU

6. Standards along the Value Chain – Coffee in Burundi Cultivation Processing Pulping/ Washing Drying Roasting Export In any value chain, actors must always consider end-market requirements in terms of the process, product, quality and safety (TBT and SPS measures). UNIDO Approach TCB provides support for the development of a sustainable and targeted quality infrastructure that ensures competent institutions and guarantees that all processes and products along the value chain conform to international standards and regulations. UNIDO’s quality value chain approach ensures that all stakeholders benefit from value chain development at each stage of the chain. The best examples of successful programmes addressing the issue of quality and standards in value chains are the cases of Burundi, Ghana and Côte d'Ivoire.

7. Coffee Value Chain – Challenges Cultivation Processing Pulping/ Washing Drying Roasting Export • Access to inputs (high cost) • Failure of plants (seeds) • Not suitable fertilizers • Soil analysis • Pollination of coffee • Technical waste management • Using contaminated water • Incorrect sorting cherries • Lack of equipment • Water treatment • Chemistry analysis OTA • Physics analysis • Sensory analysis • Packaging • Lack of knowledge on international standards • Lack of marketing knowledge • Too many intermediaries • Local and international marketing • Quality certifications • Low production and cyclical • Low productivity • Cramped storage warehouses • Lack of appropriate knowledge • Access to finance • Clear policy on cooperatives • Traceability • Insufficient drying • Inappropriate hulling equipment • Unsuitable packaging-transportation • High machining costs

8. Coffee Value Chain – Standards Cultivation Processing Pulping/ Washing Drying Roasting Export

9. Safe Food for Better Business – Partnering with the GFSI • GFSIwas launched as a non-profit making foundation in 2000, to achieve harmonisation of food safety standards that would drive reduce audit duplication throughout the supply chain. GFSI therefore chose to go down the route of benchmarking, developing a model that determines equivalency between existing food safety scheme. • In 2008, the GFSI recognised that small and/or less developed businesses would benefit significantly from a programme that would assist them through a continuous improvement process to develop to the point where the implementation of a GFSI recognised food safety management scheme could be considered. • Global Market Programme was designed as a non-certification assessment process to assist less developed businesses.

10. Safe Food for Better Business – Partnering with the GFSI • UNIDO membership at the GFSI Advisory Board • UNIDO membership at GFSI Technical committee (AB) Institutional Level • Egypt, India and Russia (with METRO Group) • Collaboration with the IFC in Ukraine Pilot Trails (3-6 months) • AEON project in Malaysia • CGCSA in Africa Capacity Building Projects

11. Energy Management Standards • Increased competitiveness for industry • Policy-driven market based tool • Voluntary nature • Facilitates international trade • Improves market access Relevance Flagship Example ISO 50001 as a tool for policymakers promoting EE measures • Market tool: ISO 50001 expected to achieve long-term increases in energy efficiency > 20% or more in industrial, commercial, and institutional facilities • Competitiveness: US Superior Energy Performance experience in industrial facilities achieved energy performance improvements between 6.5 - 17 % percent over a period 2-3 years • Voluntary: The Dutch Long-Term Agreements observed energy savings, which was a 50% increase over historical autonomous energy efficiency rates in the Netherlands prior to the agreements

12. Enhancing sustainable tourism in Lao PDR Establishment of the “Luang Prabang Safe and Green Tourism” Scheme • Promote sustainable tourism principles and maintain a conformity system • Food Safety, Tourist Health and Safety and Environmental Safety requirements have been developed following international standards and best practices. • Local hotels and restaurants will be assessed against these requirements. Localization of a scheme developed by the Chartered Institute of Environmental Health (CIEH) to comply with food standards requirements Local partner: National Institute for Tourism and Hospitality (LANITH)

13. The Aerospace Industry in Morocco In Morocco, the Aerospace sector consists of true centers of excellence for production, services, maintenance and engineering. • 60 enterprises (nearly 70% under 5 years of existence) • 7000 employees • € 580 million revenue UNIDO’s support: • Support SMEs to integrate into the global value chains • Connect SMEs to large enterprises by developing supplier networks and clusters • Strengthening the interface between business, academia and industry support institutions • Training on productivity, quality enhancement and lean manufacturing techniques • Training in resource efficiency and cleaner production techniques • Help SMEs overcome challenges in relation to compliance with international standards

14. Telecommunication - UNIDO partnering with the ITU ITU (International Telecommunication Union) is the United Nations specialized agency for information and communication technologies. • Member of the Network on Metrology, Accreditation and Standardization for Developing Countries (DCMAS) • UNIDO/ITU cooperation in Conformity & Interoperability World Standards Cooperation (WSC) The World Standards Cooperation (WSC) was established in 2001 by the International Electrotechnical Commission (IEC), the International Organization for Standardization (ISO) and the International Telecommunication Union (ITU) in order to strengthen and advance the voluntary consensus-based international standards systems of IEC, ISO and ITU. The role of SMEs in standardization • Integrate into the standardization process • Represent views of SMEs in standardization • SME participation through techno parks

15. Thank you. Mr. Bernardo Calzadilla-Sarmiento Director, Trade Capacity Building United Nations Industrial Development Organization B.Calzadilla@unido.org

16. Trading through Quality Chains July 2013: UNIDO supported the 4th Global Review of Aid for Trade “Connecting to Value Chains”, which took place in Geneva. UNIDO has supported the initiative since its early days, and is now one of the major implementing agencies of AFT-related trade capacity-building activities. Trading through Quality Chains From Compliance to shared Value The publication presents UNIDO’s value chain approach and highlights several trade capacity building projects: • 7 global projects • 15 national projects

17. Value of Conformity Assessment • Posters