MCDA Final Report Malawi - Standards and Trade Development ...

Table A3.14. Compliance with SPS requirements for chilli sauce exports
Decision Criterion Value Details Confidence
Cost
US$10,000 This includes the cost of developing a procurement system including full
traceability. The exporter has an established HACCP system, although
Medium
Up-front investment
the certification of this has elapsed. There are existing suppliers of
quality chillies that export to demanding markets in terms of food safety
requirements. Thus, the main cost is associated with linking these to the
chilli processor.
On-going cost -5%
It is likely that, if growers implement GAPs, yields will increase and unit
costs of production with increase.
Medium
Ease of implementation 1
Not difficult if the exporter has retained the main elements of their
HACCP system.
High
Trade impacts
Change in absolute value of exports
US$60,000 Equates to peak exports for chilli sauce from Malawi in 2002. The chilli
sauce market is very competitive with a significant number of African
Medium
products in major export markets.
Trade diversification
+1 Exporter could diversify its product range once their HACCP status is
reinstated, although volume of exports projected is minimal.
High
Domestic agri-food impacts
Agricultural/fisheries productivity
+1 Opportunities are presented by GAPs to intensify production.
Medium
Domestic public health
Environmental protection
0 No impact.
+1 Some impact through developing GAPs with suppliers
Social impacts
Poverty impact
+1 Increased marketing opportunities for small-scale growers of chillies, but
volumes of product limited.
Impact on vulnerable groups +1 Benefits to smallholders, a significant number of which are women.
Production is some more marginal areas.
High
Medium
Medium
Medium
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