Excess supply, long-term price fluctuations or the price collapse of many agricultural products, and global competition for markets pose a threat to the existence and livelihood of millions of small farmers in developing countries.
Challenges of the global market
High expectations in terms of food safety and environmental and social requirements present major challenges for producers in developing countries, especially in areas that depend on just a few agricultural products (e.g. coffee, cocoa, cotton, etc.).
Consumers also demand reasonable prices, sustainable farming practices and high quality, all of which adds to the pressure on farmers. Lowering production costs, however, often means that sustainability suffers. To put an end to this vicious circle, joint commitment to economic, social and environmental sustainability is required from everyone involved in the production chain. Codes of conduct and standards are excellent examples of this sort of cooperation.
Common standards provide a reference framework
In the course of initiatives to develop standards, a common understanding of sustainability evolves among producers, the private sector and civil society in both producer and consumer countries. They draft codes of conduct on a voluntary basis and assume responsibility for implementing them. This brings about economic, social and environmental improvements in production and processing that ultimately benefit everyone involved.
GTZ’s function and role
GTZ provides liaison and support for cooperation among agricultural sector stakeholders (e.g. representatives of producers, industry and trade, civil society) and ensures that agreements are implemented. In addition, GTZ assists producers to represent their interests. Accompanying measures include lobbying and awareness-raising work. By making information available and collating empirical knowledge, we stimulate transparency in the development of codes and standards. For example, GTZ is involved in developing standards in organic farming and fair trade, social standards in agriculture, and sustainable coffee production.
Tangible success: The 4C initiative
The Common Code for the Coffee Community (4C) initiative is a code of conduct for a sustainable coffee sector agreed by representatives of the industry and trade, producers and civil society in producer and consumer countries. The code is currently being tested in a large number of projects. Anticipated effects of the initiative include improved access to market information for producers, protection of natural resources, and promotion of health and safety in the workplace. The 4C standards thus address the environmental, social and economic dimensions of sustainability.
