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Global Food Security 4 (2015) 24–29

Contents lists available at ScienceDirect

Global Food Security


journal homepage: www.elsevier.com/locate/gfs

Food safety in developing countries: Moving beyond exports


Laurian Unnevehr n
Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, United States

art ic l e i nf o a b s t r a c t

Article history: Food safety is linked to food security through health and livelihoods, and improving food safety is
Received 14 September 2014 necessary to address food security. An international consensus has emerged that the best way to address
Received in revised form food safety is through a risk-based, farm-to-table approach that focuses on cost-effective prevention.
1 December 2014
In developing countries, this approach has been implemented in supply chains for high-value markets,
Accepted 8 December 2014
particularly exports. Evidence shows that improvements are possible where market incentives exist, and
where market institutions can ensure that risk reduction practices are followed. To address food safety
Keywords: for food insecure consumers in developing countries, public efforts should focus on the most important
Food safety risks and cost-effective controls, provide support for capacity building and supply chain coordination,
Supply chain
and improve incentives for food safety management.
Risk analysis
& 2014 Elsevier B.V. All rights reserved.
Market development

1. Introduction but these achievements have yet to be fully realized for domestic
food supplies in developing countries. This article reviews what is
Food safety is recognized as an integral part of food security. known about best practices for addressing food safety in order to see
As stated in the 1996 World Food Summit declaration, “Food how they may be utilized to address food safety for food insecure
security exists when all people, at all times, have physical, social populations.
and economic access to sufficient, safe and nutritious food to meet
their dietary needs and food preferences for an active and healthy 1.1. Food safety has received growing international attention during
life” (UN/FAO, 1996). Food safety is recognized as part of the the past two decades
enabling environment for reducing hunger and malnutrition in the
2014 Framework for Action adopted at the Second International Food safety has received increased international attention in
Conference on Nutrition (WHO/FAO, 2014). public regulation, private supply chain coordination, and interna-
The inclusion of food safety as one supporting element in tional trade for the past two decades. The emergence of new
addressing food security and nutrition results from the complex and more stringent food safety standards in most industrialized
relationship between food and health. Unsafe food causes both countries is the result of several factors, including the growth in
acute and chronic illness, and reduces the bioavailability of trade of perishable and high value products; advances in hazard
nutrients, particularly for vulnerable consumers (Chan, 2014). detection and epidemiology; high profile health scares; scientific
The presence of food hazards can also lead to food losses and and regulatory consensus on best approaches to risk management;
reduced food availability for food insecure populations. In addi- and the recognition of global standards and approaches under the
tion, food safety also increasingly plays a role in producer liveli- WTO. More stringent regulatory standards have emerged in high
hoods, as smallholders seek to meet requirements in high value income countries alongside more rigorous private requirements
markets. In recognition of food safety's importance to sustainable for food suppliers to high income retail markets. Growth in high
development, WHO has dedicated the 2015 Global Health Day to value exports from developing countries has been accompanied by
food safety (Chan, 2014). increased attention to food safety standards in high income
Given the recognized importance of improved food safety for food markets (Maertens et al., 2009).
security, it is relevant to understand how it can be addressed for food At the same time, food safety has received increased attention
insecure populations. The last two decades have seen remarkable as an important public health issue in developing countries. Food
progress in the application of science and management to this issue, safety risks contribute to the burden of illness in developing
countries. For example, foodborne pathogens are an important
cause of diarrheal disease, which is estimated to cause 2.2 million
n
Correspondence address: 680 Deer Park Ct, Grand Junction, CO 81507, United
deaths every year (WHO, 2014). While the understanding of
States. Tel.: þ 1 217 390 7887. foodborne risk exposure and incidence of illness is still limited,
E-mail address: lunnevehr.professional@gmail.com various studies suggest that microbial hazards are important in

http://dx.doi.org/10.1016/j.gfs.2014.12.001
2211-9124/& 2014 Elsevier B.V. All rights reserved.
L. Unnevehr / Global Food Security 4 (2015) 24–29 25

a wide range of foods, eg. kale in Kenya (Kuto et al., 2012) and milk Control measures may also have consequences that vary by
in East Africa (Grace et al., 2008a). Another important food hazard firm size, and which policy makers must consider. Such variance
is mycotoxins, the naturally occurring toxins associated with fungi occurs because the fixed costs of establishing food safety manage-
on many important food staples. For example, aflatoxin exposure ment can be substantial (Unnevehr and Jensen, 2005). Fixed costs
through food consumption, which is more prevalent in many may include the costs of setting up a management or quality
tropical countries, is associated with liver cancer, immune sup- control system, training staff in new procedures, and investments
pression and higher rates of illness, as well as child stunting in new equipment for reducing risks or monitoring outcomes.
(Unnevehr and Grace, 2013). WHO is engaged in a multi-year A high initial fixed investment can be a heavier burden on small
process to estimate the global burden of illness from foodborne firms or farms, as they will have higher per-unit costs of adoption
disease, with results expected in 2015 (Chan, 2014). than larger firms or farms. Thus, smaller producers or processors
The remainder of this article explores how to address food may find costs prohibitive, and may be at a disadvantage relative
safety in developing country food supply chains through three to larger producers. Thus, the introduction of food safety controls
perspectives. First, the internationally accepted frameworks that may influence market structure (ie., the market share of different
inform food safety policy design are reviewed, as these provide the size firms).
foundation for any actions in developing countries. Second, the Enforcing standards may not be feasible without improvements
evidence regarding developing country food safety management in identifying food safety hazards and providing incentives for
for high value markets is reviewed for the lessons it provides improved management (or penalties for lack of compliance)
regarding expansion of food safety improvements. Third, the (Hennessy et al., 2001). Given the nature of many hazards, which
prospects for food safety improvement that addresses domestic may originate at the farm level or first handler, and may multiply
public health in developing countries are considered. Concluding or spread as products are mingled and moved downstream
comments consider research needs. towards the consumer, improved supply chain coordination is also
frequently required. That is, it will be necessary for buyers or
regulators to verify that risk reduction practices are followed
2. Food safety policy design throughout the supply chain. Such verification may require new
market institutions such as cost-sharing between buyers and
Unsafe food contains hazards that can make people sick, either producers, third-party auditing and certification, and improved
immediately or by increasing the likelihood of chronic disease. testing for hazards and diversion of hazardous products to lower
Some hazards that have been addressed by public policies include: risk uses. These kinds of market changes support a risk-based,
microbial pathogens; zoonotic diseases; parasites; adulterants; farm to table approach, which is discussed next.
mycotoxins; antibiotic drug residues; pesticide residues; and
heavy metals. Each of these potential hazards has different 2.2. There is international consensus that food safety risks are best
sources, poses different kinds health risks, and carries different approached through a risk analysis framework
challenges for identification and control. Yet there are common
paradigms used to design policy interventions and management Although food safety regulation in high income countries
systems. dates back to the early twentieth century, reforms since the
1990s reflect better scientific understanding of foodborne risks
2.1. An economic perspective can inform food safety policy design and approaches to risk management. In the 1980s and early 1990s,
the U.S. National Academies issued a series of reports outlining a
The economic perspective on food safety provides an important risk-based approach to food safety management and regulation,
foundation for policy design. The justification for government beginning with one on meat inspection in 1985 (National Research
intervention to address food safety is the market failure arising Council, 1985). Advances in foodborne illness epidemiology along
from imperfect information. For most food safety hazards, con- with a better understanding of risk assessment informed this new
sumers have no information about their presence in specific food approach.
products, and thus cannot reward producers for supplying safer Although the approach is now well-known, it is useful to give
food. For naturally occurring hazards, producers may also have a brief review here. Risk analysis includes risk assessment, risk
little idea of what hazards are in their products, and thus may not management and risk communication (FAO/WHO, 2006). Risk
be able to respond to demand for improved safety. This informa- assessment includes hazard identification and exposure character-
tion problem leads to a market failure in the provision of food ization which results in a quantitative estimate of the adverse
safety. In the absence of effective market incentives for the effects that are likely to occur in a given population. Comparative
provision of safe food, public intervention may be warranted to risk assessment identifies the most important risks, so as to better
protect public health. Such intervention may take the form of focus policy efforts. Risk assessment provides the basis for risk
minimum safety standards enforced through monitoring and management, which involves making decisions about where to
penalties for non-compliance. reduce risks. Identification of where and how risks are likely to
Market failure alone does not justify public intervention, as occur shows what kind of intervention might reduce risk most
these must also pass a cost-benefit test. The economic benefits of effectively. Risk management also involves making decisions about
improved food safety are reduction in lost productivity and life acceptable levels of risk, which will depend on social norms,
from foodborne illness. For example, recent estimates suggest that public perceptions, and economic costs. The final step is risk
foodborne illness results in between $14 and $152 billion in lost communication, which involves public education regarding what
productivity and life in the U.S. (Hoffmann and Anekwe, 2013). is known about hazards and their risks, uncertainties, and the
These can be compared to the industry costs of meeting food rationale for interventions to reduce risk.
safety regulatory requirements. For example, Crutchfield et al. This general risk analysis approach as applied to food safety has
(1997) showed that U.S. industry costs of controlling microbial evolved to address the unique aspects of food hazards. In parti-
pathogens in meat were much smaller than the value of improved cular, food safety policy has embraced the need for a farm to table
human health resulting from these mandated controls. Thus, preventative approach, often characterized as application of the
public intervention to improve food safety can result in net Hazard Analysis Critical Control Points framework to evaluating
economic benefits. and controlling risks. The HACCP system was first developed by
26 L. Unnevehr / Global Food Security 4 (2015) 24–29

the food processing industry in the 1960s. The approach has been address a perceived vacuum in public regulation following high
adapted for more general application and widely adopted as a profile food safety incidents, (eg., “mad cow” disease). Market
regulatory tool (Unnevehr and Jensen, 1999). It implies a focus is power exercised by multinational retailers allowed them to use
on determining where risks enter the food supply chain, where such standards to establish brand identity and reputation, and to
they are likely to reach unacceptable levels, and what specific make the standards de facto mandatory requirements for market
control measures will prevent risk. Focusing on “critical control access.
points” provides a scientific basis for food safety management, and These private standards are also based on a farm to table
improves economic efficiency by focusing control efforts where preventative approach. As such, they increase the need for supply
they will be most effective. chain coordination in markets where such standards are a require-
ment for access. As part of the development of private standards,
2.3. The risk analysis paradigm has had a profound impact on the articulation of “Good Agricultural Practices” or GAPs has
regulation and global governance of food trade evolved to address practices that include pesticide application
and the control of microbial pathogens at the farm level. Other
The risk analysis paradigm was reflected in the 1990s reform of standards have evolved to address food processing, all based on
U.S. meat and seafood regulation. Similar regulatory developments the HACCP paradigm. In high income countries, several studies
took place in other high income countries, with major reforms of have examined the increased vertical coordination as well as how
food safety regulation in Australia, France, and the United King- third party certification supports compliance (eg., Hobbs et al.,
dom, among others (Hoffmann and Harder, 2010). In most coun- 2001; Henson and Hooker, 2001).
tries, the adoption of a risk analysis approach was accompanied by Several observers have noted the shift in “governance” of the
institutional reform to consolidate authority for food safety in one supply chain from public to private with the growth in use of
agency, so as to better focus efforts towards public health. In the private standards. Benchmarking organizations have emerged to
European Union, the new approach includes traceability as an harmonize private standards, such as the GlobalGAP and the
important aspect of risk management, so as to better identify and Global Food Safey Initiative (GFSI). Henson (2008) notes that the
address the sources of risk in the supply chain. The most recent proliferation of private standards initially increased transactions
regulatory developments in the U.S. under the 2010 Food Safety costs, leading to efforts to harmonize private standards, eg.
Modernization Act also emphasize increased traceability and GlobalGAP. Henson et al. (2005, p. 376) explain: “GlobalGAP is a
responsibility throughout the supply chain from farm to table. collective private standard for the implementation of generally
The risk analysis paradigm has also informed the global agreed principle of GAP [Good Agricultural Practices] in primary
governance of international agricultural trade (Josling et al., production, initially in fruit and vegetables and now in a wide
2004). The 1995 SPS agreement (Agreement on the Application range of plant and animal products.” As a result, there are now
of Sanitary and Phytosanitary Measures) under World Trade substantial private incentives for food safety management in
Organization (WTO) utilizes a risk assessment framework to markets where products are branded, certified, and production is
establish rules for trade that allow countries to manage risk with vertically coordinated.
minimal disruption or barriers to trade. These include the provi- These global developments in private markets and in regulation
sions that countries can chose their own acceptable levels of risk, provide a strong foundation for food safety improvement. Next,
but they must justify food safety standards through risk assess- this article considers whether these new approaches are feasible
ment. The risk assessment framework also provides a conceptual for developing countries.
foundation for determining equivalence of food safety standards
among countries, to enable mutual recognition. The SPS agree-
ment recognizes the Codex Alimentarius as the global standard
setting agency, where standards are developed through an inter-
national consensus process, in order to foster greater harmoniza- 3. Food safety compliance for high value markets provides
tion of standards among countries. All of these elements of the SPS lessons for future efforts in developing countries
agreement have contributed to greater transparency and reduced
barriers to trade. As new food safety regulations were implemented in the 1990s
As the international consensus on this approach to food safety in high income countries, concerns emerged about the impact of
emerged, the risk-based approach to food safety regulation was these standards on developing country exporters. In concert with
codified under the Codex Alimentarius (WHO/FAO, 2007) as the new regulations, the growth areas for high value exports were in
best practice for food safety regulation. As Hoffmann and Harder perishable products that posed more challenges for food safety
(2010, p. 6–7) state: “at the heart of this new generation of food management (Unnevehr, 2000). In developing countries, efforts to
safety reform is a growing international consensus on the need for improve food safety have been focused on market access require-
risk-based, scientifically supported policies that prevent food ments associated with high value products, particularly exports.
contamination and foodborne illness through integrated risk Most policy concerns as well as the economics literature have
management from farm-to-table.” addressed these market access issues for exports to high income
countries.
2.4. Private standards are of growing importance to food safety The experiences in these markets illustrate how improved food
management and are based on the same risk paradigm safety can be achieved, and how this supports improved liveli-
hoods. Compliance with food safety standards in high-income
Alongside the renewed regulatory efforts to address food countries demonstrates the costs and feasibility of such improve-
safety, consumer awareness of food hazards and demand for safer ments in developing countries. It also demonstrates how and
products led to growth in private standards in food markets. whether such compliance leads to higher incomes for developing
Several factors have led to the increased importance of private country smallholders, and thus supports improved food security
standards for food safety during the past decade. Henson (2008), such farm households.1
Henson and Humphrey (2010), and Fulponi (2006) discuss how
private standards emerged from European retail chains as a 1
The discussion in this section draws on a recent review of studies of food
response to concerns from consumers and civil society, and to safety compliance (Unnevehr and Ronchi, 2014).
L. Unnevehr / Global Food Security 4 (2015) 24–29 27

3.1. The economic literature provides evidence that improved food institutions to overcome these costs have evolved, including
safety is feasible in developing countries, and can result in improved highly monitored, controlled contract production; buyer subsidies
incomes for smallholders for input or certification costs; use of farmer groups to enforce
compliance, or public–private partnerships to support initial costs
It is clear that higher public standards have posed challenges of training. Intensive farmer monitoring, training, and pre-planting
for developing countries. Studies of trade flows consistently find contracts with inputs provided on credit were all found to
that when importing countries have higher standards than expor- facilitate compliance in Zimbabwe (Henson et al., 2005), Kenya
ters, it tends to reduce traded quantities, and also diverts trade to (Okello and Swinton, 2007), Peru (Lemeilleur 2013) and for the
other import markets with lower standards (eg., Ferro et al., 2013; smallholders still operating in Senegal (Maertens and Swinnen,
Wilson, 2007; Beghin and Orden, 2012). Higher standards imposed 2009). In Kenya and India, farmer groups play an important role in
by importers had serious economic consequences for some facilitating compliance, through extension efforts and group mon-
developing country industries. Examples include the EU bans on itoring (Roy and Thorat, 2008; Okello and Swinton, 2007). Cost-
imports of fishery products from Bangadesh in 1997; from Kenya sharing by exporters or public agencies facilitates farmer compli-
in 1997–2000; from Malaysia in 1998; and the U.S. ban on ance in several countries (Kersting and Wollni, 2012; Handschuch
raspberry imports from Guatemala in 1997–1998. These bans et al., 2013; Leimeilleur, 2013; Subervie and Vagneron, 2013;
resulted in substantial losses for the industries involved (Cato Henson et al., 2011). For example, in Thailand exporters and
and Subasinge, 2003; Henson and Mitullah, 2004; Calvin et al., donors pay for over 90% of all costs of GlobalGAP certification
2002). New U.S. seafood regulations in the 1990s imposed sig- (Kersting and Wollni, 2012).
nificant costs on exporting firms and limited market participation
in two major exporting countries, the Philippines (Ragasa et al., 3.3. Market experiences in meeting food safety standards provide
2011) and Brazil (Donovan et al., 2001). three useful lessons
Given the growing importance of private standards, far more
studies have considered their impact on developing country The literature regarding developing country compliance with
producers. As private markets tend to reward compliance, findings high-income country food standards provides three useful lessons.
are more positive regarding income impacts. Compliance with First, costs of compliance are significant, as would be expected.
private food safety standards is found to lead to higher export This means that improvements in food safety will not occur
sales or prices, revenues, and incomes in 10 studies of high value without significant market incentives (or significant capacity to
horticultural exports in at least 10 different countries in a review enforce penalties). Second, compliance requires coordination
by Unnevehr and Ronchi (2014). In many cases there are other along the supply chain, to ensure that risk-reducing practices are
benefits, such as adoption of improved technology with spillover followed. In some cases, new market institutions (eg., farmer
benefits for staple crops (Minten et al., 2009), higher or more groups) have evolved to facilitate coordination. Such institutions
stable labor income (Maertens and Swinnen, 2009; Minten et al., may also serve other purposes, such as smallholder inclusion or
2009), or improved health through reduced on-farm exposure to improved technology diffusion, which may motivate their crea-
pesticides (Kersting and Wollni, 2012; Asfaw et al., 2009; Okello tion, aside from food safety demands. Third, there are now many
and Swinton, 2009). cases of successful compliance with food safety standards in
Whether smallholders can participate in high-value markets is different countries and contexts, including cases where small-
a persistent policy question that extends beyond compliance holders or poor households participated and benefited. Such
issues for food safety standards (eg. Barrett et al., 2012; Reardon experiences provide a foundation for addressing food safety to
et al., 2009). In terms of food safety standards, a number of studies benefit domestic consumers.
have examined directly whether smallholders were excluded. In
Peru, stringent standards in export supply chains led to greater
vertical integration and exclusion of smallholders over the long 4. Improving food safety to address public health in
run of 19 years (Shuster and Maertens, 2013), although the authors developing countries faces significant challenges
note that this might not be expected in other country contexts.
Restrictions due to export quotas in Madagascar limited the It is clear that the most important linkage between food safety
benefits of certification to farmers with size and location advan- and food security will be through the reduction of hazards and
tages (Subervie and Vagneron, 2013). In contrast, studies in foodborne illness. While the livelihood impacts from high value
Zimbabwe, Chile, Thailand, and India found that smallholders markets are positive, ultimately these will only accrue to a
were able to successfully adapt, scale effects were modest, and relatively small number of households. And, the public health
transactions costs in supply chains declined over time (Henson et spillovers for the domestic food supply can be expected to be
al., 2005; Handschuch et al., 2013; Kersting and Wollni, 2012; Roy limited (eg., Donovan et al., 2001), at least in the short run.
and Thorat, 2008). In Senegal, a shift to estate production excluded Meeting high-income country pesticide standards has been found
smallholders, but these households then benefited from wage to have a positive impact on farmer heath (Okello and Swinton,
labor opportunities that led to higher incomes (Maertens and 2009), but food safety improvements in high-value markets
Swinnen, 2009). Low income workers in exporting firms also cannot be relied upon to address the most pressing food safety
benefited in Senegal from higher wages and longer employment concerns for domestic consumers.
periods (Colen et al., 2012). Taken together, these results show that In many developing countries, there is a perceived need to
livelihood impacts of food safety compliance tend to be positive. adopt Codex Alimentarius standards as an important step towards
full participation in the global economic community. Adoption of
3.2. There are different models for achieving improved supply chain such standards has the advantage of precluding “dumping” of sub-
coordination to facilitate food safety management standard products into the local market. However, while develop-
ing country participation in Codex standard setting has improved
The literature also provides evidence regarding what kind of (Clarke and Fattori, 2013), it is still the case that Codex standards
market changes are necessary to facilitate improved food safety. may not reflect local risk conditions or risk management capabil-
Large numbers of smallholders increase transactions costs of ities in many poor countries. In other words, they may not pass a
monitoring and certifying compliance for buyers. Various market cost-benefit analysis. Furthermore, adoption of such standards can
28 L. Unnevehr / Global Food Security 4 (2015) 24–29

be counter-productive if enforcement is infeasible (Grace and 5. Concluding comments


Unnevehr, 2013). Most developing countries cannot move imme-
diately to the same standards and outcomes as high-income Successful food safety improvements will strengthen food
countries, due to limited public capacity, as well as limited security through improving the health and nutrient uptake of
effective consumer demand. food insecure populations, as well as supporting improved pro-
The question is how can developing country food systems ductivity and livelihoods. Developing countries should be able to
evolve more quickly and more efficiently towards improved food utilize the international framework for designing food safety
safety? In other words, how can the process of market moderniza- policy. And, in doing so, they can build on successful experiences
tion, which includes improved food safety management, be in meeting high-income country standards. The risk analysis
supported and encouraged? This article suggests three take-away paradigm provides a framework for identifying priorities and
from the above review of the literature. These are necessarily focusing public policy efforts. But this paradigm must also be
speculative, and thus also imply areas for future research. combined with a realistic market-based approach. The elements
First, there is a need to develop public capacity for risk for success include effective consumer demand, mechanisms to
prioritization to inform any public interventions. Risk assessment identify and reward quality, and supply chain coordination. Public
can be resource intensive, but application of risk assessment support needs to be targeted to supporting these elements and
principles can help to focus public attention on the key issues encouraging market development in partnership with the private
and objective evaluation of risk management options (Cahill and sector.
Jouve, 2004). Building capacity, which is currently supported by While these international developments provide encourage-
the FAO, can assist countries to better utilize their own existing ment regarding the feasibility of addressing food safety, there
resources or to adapt assessments from other countries (Cahill and are still very few examples of viable models for addressing per-
Jouve, 2004). Methods to adapt the risk assessment approach to vasive risks where costs of compliance are high and enforcement
informal markets have also been explored, through the use of capacity is weak. Thus, critical research needs remain in two broad
participatory risk assessment (Grace et al., 2008b), as another way areas. First, risk analysis is needed at the regional or country level
to identify the most important hazards. Furthermore, for some of in order to fully understand risk exposure, and to determine the
the most pervasive hazards, simple guidelines exist (eg., see WHO most important public health targets for policy intervention.
guidance for street foods: WHO, 2010). Identifying how to improve Second, research is needed to find the best models for intervention
food safety does not always require a sophisticated risk that can leverage market incentives. Refocusing research on these
assessment. needs, rather than on export supply chains, can support improved
The second take-away is that effective market rewards (or food safety, and ultimately improved food security.
penalties) will be important for improved food safety. This is
especially true where public capacity for enforcement is limited.
The emergence of market rewards will depend on both consumer Acknowledgments
knowledge as well as ability to pay. There is also the potential for
fraud where private certification systems arise that are not Portions of this work were supported by the International Food
effective. But consumer demand for food safety is growing with Policy Research Institute, Washington DC.
urbanization, rising incomes, and greater awareness spilling over
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