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THE DYNAMIC REGULATORY ENVIRONMENT. BY AGRICULTURE AND FOOD AUTHORITY ATC 2019. Contents. INTRODUCTION DEVELOPMENT OF KENYA TEA INDUSTRY. GLOBAL TEA SITUATION ROLES AND LEVELS OF REGULATION. CHALLENGES IN SELF AND LEGISLATIVE REGULATION KEY OBSERVATIONS AND CONCLUSION.
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THE DYNAMIC REGULATORY ENVIRONMENT BY AGRICULTURE AND FOOD AUTHORITY ATC 2019
Contents • INTRODUCTION • DEVELOPMENT OF KENYA TEA INDUSTRY. • GLOBAL TEA SITUATION • ROLES AND LEVELS OF REGULATION. • CHALLENGES IN SELF AND LEGISLATIVE REGULATION • KEY OBSERVATIONS AND CONCLUSION
AGRICULTURE AND FOOD AUTHORITY • The Agriculture, and Food Authority (AFA) was established through an Act of Parliament, the Agriculture, and Food Authority Act of 2013. • The Act consolidates the laws on the regulation and promotion of agriculture and makes provision for the respective roles of the national and county governments in agriculture and related matters, in line with the provisions of the Fourth Schedule of the Constitution of Kenya.
Administer the Crops Act, and the AFA Act in accordance with the provisions of these Acts; • Promote best practices in, and regulate, the production, processing, marketing, grading, storage, collection, transportation and warehousing of agricultural and aquatic products excluding livestock products as may be provided for under the Crops Act, and the Fisheries Act. MANDATE
GLOBAL CTC PRODUCTION – MILLION KG + 264 m kg (14.10%)
GLOBAL CTC PRODUCTION TRENDS – MILLION KG + 121 m kg (6.01%) + 9 m kg (0.45%) + 158 m kg (8.55%) - 24 m kg (- 1.29%)
GLOBAL CTC CONSUMPTION – MILLION KG + 252 m kg (14.03%)
GLOBAL CTC CONSUMPTION TRENDS – MILLION KG + 94 m kg (+ 4.81%) - 9 m kg (- 0.46%) + 142 m kg (+ 7.80%) + 25 m kg (+ 1.40%)
Growth in world black CTC tea consumption increased. • BUT Production growth (6.01%) outpacing growth in demand (4.8%). • Comparing 2017 and 2018 Calendar Years.
ROLES AND LEVELS OF REGULATION “rules and administrative codes issued by governmental agencies at all levels….. Although they are not laws, regulations have the force of law, since they are adopted under authority granted by statutes, and often include penalties for violations.” ( LEGISLATIVE REGULATION)
ROLES AND LEVELS OF REGULATION “Self regulation occurs when an organization or industry regulates itself without external influence or intervention from external influences.
ADVANTAGE OF SELF REGULATION • knowledge and expertise of all parties used more effectively; • flexible and adaptable; • lower regulatory burden on business; • more commitment, pride and loyalty within a profession or industry; • lower costs to the state; • the market can work better.
WHY GOVERNMENTS USE REGULATIONS FOR KEY ECONOMIC SECTORS • To define common trading language for all actors in the supply chain. • To facilitate fair international Trade. • To avoid bad quality products in the markets. • To guide producers to meet market requirements.
WHY GOVERNMENTS USE REGULATIONS FOR KEY ECONOMIC SECTORS…… • To build trust and market opportunities. • To encourage High Quality production. • Improve profitability. • Protect consumer interests. • Remove Technical Barriers to Trade
CHALLENGES ( SELF REGULATION) ….. • Most Voluntary Standards Certifications will concentrate on the sections on the value chain where there interests are • Can be consumer driven and not producer driven or vise versa. • May not wholistically or objectively look into the interest of other sections of the value chain • Additional cost to the producers and consumers.
CHALLENGES ( LEGISLATIVE REGULATION) ….. • Is viewed as beaurocratic and a barrier to conducting business. • Difficult to harmonize across the varied interests of different stakeholders including Government.
KEY OBSERVATIONS • The Regulatory space in the Tea Industry will continue to expand both at self regulatory and Legislative Regulation. • This is considering the expansion in both production, markets, number of players attracted into the industry, emphasis on diversification, changing consumer lifestyles and segments.
KEY OBSERVATIONS • Self regulation helps get access to the consumer. • Legislative regulation helps you access the market. • The consumers are becoming more aware about quality and safety.
CONCLUSION • Regulations both at Industry ( Self regulatory) and Legislative level should adopt a bottom up approach by encompassing the stakeholder views. This will enable both levels to assess whether the same is causing a facilitative role to Trading or introducing an NTBs that may also increase cost to segments in the value chain.
