International food safety regulation and processed food exports from developing countries: A comparative study of India and Thailand

ADP/2000/004: International food safety regulation and processed food exports from developing countries: A comparative study of India and Thailand

India, Thailand

Australian National University, Australia

Professor Prema-Chandra Athukorala
Phone: 02 6125 8259
Fax: 02 6125 3700
Email: prema-chandra.athukorala@anu.edu.au

http://rspas.anu.edu.au/economics/aciar/

• Research Information Systems for the Non-aligned and Other Developing Countries, India
• University of Melbourne, Australia
• International Food Policy Research Institute, USA
• Thammasat University, Thailand

$621,895

01/01/2002 - 31/12/2004

01/01/2006 - 31/12/2007

Dr Simon Hearn

India and Thailand, like a number of other agricultural resource rich developing nations, have experienced significant expansion of processed food exports. In recent years Thailand has exported over US$10 billion worth of processed food (4 per cent of GDP) and India over US$3 billion worth (2 per cent of GDP). However, both India and Thailand, and other developing countries, have experienced significant problems in exporting processed food to lucrative markets in developed countries. These trade conflicts often relate to food safety standards and their inability to meet the WTO Sanitary and Phytosanitary (SPS) Agreement. For example in 1999-2000 there were 860 shipments of fishery, vegetables and fruit products from India placed in detention in the US and 684 cases of products from Thailand.

SPS issues have become a significant source of international trade friction and dispute. While the development of food processing export industries offers enormous potential for rural development and economic growth in developing countries, problems with meeting these standards are considered a major constraint to achieving this growth. There is a lack of adequate information on the problems that constrain firms' ability to meet international standards.

This study aims to examine the policy, institutional and technical problems faced by processed food exporters in developing countries in meeting SPS requirements, and to identify appropriate policy measures minimise their negative impacts on exports and enhance their capacity to meet SPS standards while recognising the legitimate concerns in importing countries about safety and quality.

The core of the study is an in-depth comparative study of the export-orientated processed food industries in India and Thailand, including detailed case studies of the food-supply chain of their processed fish, canned fruit and meat industries.

In the first stage, a quantitative and qualitative database will be developed to obtain a detailed national overview of the constraints relating to meeting SPS standards. Interviews will be conducted with government representatives, scientific personnel, administrators of export quality control and industry representatives.

The second component of the study will involve a detailed supply-chain study of selected industries, which will involve a firm-level survey. A sample of about 200 firms in each country will be selected, with a view to obtaining complete data on at least 50 firms.

The following regions and products will be covered in the study.

India:
Andhra Pradesh (shrimp, tuna, poultry, mango)
Maharashtra (poultry, shrimp, tuna, mango)
Kerala (shrimp, tuna)

Thailand:
Bangkok and surrounds (shrimp, pig meat and tuna)
Eastern Thailand (tuna, pigmeat, pineapple)
Southern Thailand (shrimp, pineapple, mango)

Outcomes for this project are currently being prepared