UNIVERSITEITGENT

FACULTEITPOLITIEKEENSOCIALEWETENSCHAPPEN

Wetenschappelijkeverhandeling

KimioLEEMANS

MASTERPROEFMANAMACONFLICTANDDEVELOPMENT

PROMOTOR:ProfDR.PatrickVanDamme

COMMISSARIS:DR.PascalDebruyne

ACADEMIEJAAR2015–2016

Exploringtheroleofatechnicalsupportagencyinhorticulture:casestudyoftheCentreTechnique

HorticoledeTamatave(Madagascar)

aantalwoorden:15837

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TableofcontentsListofabbreviations 3Abstract 4Samenvatting 4Introduction 5Developmentsintheglobalagrifoodbusiness............................................................................5Theglobalhorticulturesector............................................................................................................6Publicandprivatestandards...............................................................................................................8Certification&standards–thirdpartycertification.................................................................9AgriculturalpolicyinMadagascar..................................................................................................11MainconstraintstoagriculturalsectordevelopmentinMadagascar.............................13CTHT............................................................................................................................................................17KeyagriculturalexportproductsfromMadagascar...............................................................17

Methodology 19Scopeandprocedure............................................................................................................................19Studyarea..................................................................................................................................................19Agriculturalsectorproblemanalysis.............................................................................................21Dataanalysis.............................................................................................................................................23Questionnaire...........................................................................................................................................27

Results 27SummaryoftheinterviewswithmanagerialstaffoftheCentreTechniqueHorticoledeTamatave..............................................................................................................................................28Summaryoftheinterviewswithmanagerialstaffofexportcompanies.......................29Summaryoftheinterviewswithgovernmentinstitutions..................................................31

Discussion 35CTHT’spositioninhorticulturalvaluechain..............................................................................35CTHT’simpactonsmallfarmers......................................................................................................35CTHTasfacilitatorforexportcompanies....................................................................................35Governanceinthehorticulturalexportchain............................................................................36Obstaclesforexportcompanies.......................................................................................................36Impactofcertificationonquality....................................................................................................37

Conclusion 37Acknowledgements 38References 39

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ListofabbreviationsASTF-AfricaSolidarityTrustFundBRC-BritishRetailConsortiumCIA–CentralIntelligenceAgencyCNRE-CentreNationaldeRecherchessurl’EnvironnementCOMESA-CommonMarketforEasternandSouthernAfricaCSA-CentredeServicesAgricolesCTCP–CentredeTransformationetConservationdeProduitsCTHT–CentreTechniqueHorticoledeTamataveDPV–DirectiondeProtectiondesVégétauxEU–EuropeanUnionFAO–FoodandAgriculturalOrganisationoftheUnitedNationsFDI–ForeigndirectinvestmentFLO–FairtradeInternationalGDP–GrossDomesticProductGIZ–GesellschaftfürInternationaleZusammenarbeitGlobalGAP-EuropeanRetailerProduceWorkingGroupforGoodAgriculturalPractices,formerlyEurepGAPIFAD–InternationalFundforAgriculturalDevelopmentINSTAT–InstitutNationaldeStatistiqueMadagascarINSTN-InstitutNationaldesSciencesetTechniquesNucléaireIPPC-InternationalPlantProtectionConventionISO–InternationalOrganisationforStandardizationLPAEP–LettredelaPolitiqueSectorielleAgriculture,Elevage,PêcheMPA–MarineProtectedAreaMPAE–MinistèreauprèsdelaPrésidenceenchargedel’Agricultureetl’ElevageMSC–MarineStewardshipCouncilNGO–non-governmentalorganisationPNIAEP-ProgrammeNationald'InvestissementdanslesecteurAgriculture,Elevage,PêcheSME–SmallandmediumenterprisesSNAT–SchémaNationald’AménagementTerritorialeSPS–AgreementonSanitaryandPhytosanitaryMeasureSRAT-SchémaRégionald’AménagementTerritorialeTBT-AgreementonTechnicalBarrierstoTradeUCQDA-UnitédeContrôledeQualitédesDenréesAlimentairesWTO–WorldTradeOrganisation

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AbstractThe global horticultural sector has increasedmarkedly in export size and in terms ofdiversificationoforiginsandproductsover the lastdecades.Horticulturalexportsareincreasinginvalueandinvolumeandinvestingandcompetinginthissectorisseenasadevelopmentstrategyfor low-incomecountries.Agricultureplaysanimportantrole inMadagascar. The agricultural sector accounts for around a quarter of the total GDP.Around eighty per cent of the total workforce participates in agricultural activities:subsistence or commercial agriculture. The increasing prevalence of internationalstandards in food production are argued by some authors to act as a catalyst fordevelopment, while others argue that increasing standards may exclude smallholderfarmersinthefuture.Theaimofthisstudyistoseewhatroleanindependenttechnicalcentre(CTHT)playsin the horticultural supply chain inMadagascar andwhat interactions it haswith thevarious operators in the chain. Elements of a value chainmodel, based on interviewswith different operators and government services are discussed in this study.International demand for horticultural products is stringently regulated by public buteven more so private standards. CTHT provides services that help horticulturalcompanies to fulfilnationaland internationalexportstandards.Presently,CTHTbeingtheonlyorganisationinMadagascardoingso,itindeedplaysacriticalroleinthechainas a facilitator for companies operating nationally and at export level. Companiesconsidertheinternationalstandardsettingasaconditiontostayinbusinessandnotasanopportunitytoaccessnewmarkets.Keywords:CTHT,horticulture,Madagascar,valuechain,standards,certification

SamenvattingDe horticulturele sector is in de afgelopen jaren sterk gegroeid in termen vanverhandelde hoeveelheden alsook in de diversiteit aan producten. Horticultureleexportsnementoeinwaardeeninvolume,dusinvesterenindezesectorwordtgezienalseenontwikkelingsstrategievoorarmelanden.Sommigeauteurswijzenerechteropdatdetoenamevanreguleringviainternationalestandaardenzoukunnenleidentotdeexclusievankleineboereninontwikkelingslanden.Andereauteursdaarentegenstellendatdenoodaanvoldoenmetinternationalenormenzoukunnendienenalskatalysatoromdehorticulturelesectorteontwikkelen.In deze studie was het de bedoeling om te achterhalen welke rol een onafhankelijktechnischcentrumkanspelen indeontwikkelingvandehorticultureleexportketen inMadagaskar. Verder werd er ook gekeken naar de impact van certificatie envoedselveiligheid en kwaliteitsnormen op de ontwikkeling van horticultuur. Hetonderzoekbestonduiteenreeksinterviewsmetverschillendeactoren:CTHT,overheiden exportbedrijven. Deze informatie werd dan gebruikt om een schematischevoorstellingvandeketentemakend.m.v.eenvaluechainmodel.HetCTHTspeelteenbelangrijkerolinhorticultuursector.Zebiedendienstenaanverschillendeactorenindeketen aan. Exportbedrijven zeiden dat ze zonder CTHT niet de mogelijkheid zoudenhebben om te certifiëren,wat hun positie op de internationalemarkt in gedrang zoubrengen.Het voldoen aan internationale normen en het behalen van certificatie heeftgeensignificanteinvloedgehadopdeproductiviteitendekwaliteitvandeproductenin

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Madagaskar. Certificatie leidt ook niet tot nieuwe commerciële opportuniteiten,maarverzekerteerderhetbehoudvandemarktpositie.Trefwoorden:CTHT,Madagaskar,horticultuur,certificatie,voedselnormen

Introduction

DevelopmentsintheglobalagrifoodbusinessIn the1980s-2000s, theglobalagrifood industry indevelopingcountriesunderwentamajor restructuring. This happened in two broad stages, as defined byReardon etal.(2009): ‘‘pre-liberalization/pre-globalization” (1960s–mid 1980s) and‘‘liberalization/globalization”(mid1980stonow).Therewasashift from(1)publictoprivatequalitystandardsindevelopingcountries,becausepublicstandardsweremostlylacking,(2)fromspot-markettransactionstoverticalcoordinationofthesupplychain,and (3) a shift from procurement through local sources to sourcing via national,regional,andglobalnetworks(Reardonetal.,2009).Severalotherchangesoccurredinthefoodandagriculturalsectors,namelyashiftfromlow-valuetohigh-valueproducts,large investments in retail and domination of the market by large multinationalenterprises, increasingly stringent standards, and changes in supply chaingovernanceand level of vertical coordination (Maertens & Swinnen, 2009; Maertens, Swinnen &Minten; 2009, 2012). Thismodernization has allowed companies to reduce costs andincreasequalitytobeabletostrategicallypositiontheminahighlycompetitivemarket.Governmentpolicyalsoplayedarole inthespeedandnatureofthetransformationoftheagrifoodindustryandtheinclusionofsmallfarmerstherein(Reardonetal,2009).Large food companies andmultinational firms are dominating the global food supplychain, which is becoming increasingly concentrated around a few supermarket andhypermarket chains. Rural households are affected by product markets throughparticipating intheproductionandmarketingofproduceforhigh-valueexportsupplychains.Effectscouldincludeanimpactonproductivity,income,andpovertyreduction.It could also include managerial or technological spill-over effects. They can also beaffectedbychanges in the labourmarket if theemergenceofmodernsupplychains isassociated with an increase in demand for rural employment, for example as wagelabourers on the fields or in post-harvest services (Maertens & Swinnen, 2006;Maertens,Swinnen&Minten,2012;VandenBroeck&Maertens,2016).The increase inwelfare fromparticipation inmodern,high-valuemarketsdependsonthe gains derived in terms of increased productivity, higher incomes, increased foodsecurity and reduced poverty (Maertens, Swinnen & Minten, 2012). Participation inthese globalized markets tends to lead to positive effects on small farmers throughinclusion in modern channels (i.e. domestic retail chains such as supermarkets orexportstodevelopedcountries).Thepositiveeffectsincludeanincreaseinincomeandassets of farmers, and effects on demand in the rural labour market (Reardon et al,2009).Smallholders can benefit from participation in high-value contract farming throughincreasedaccess to inputs, improvedtechnologyandproductivity,andhigher incomes(Chemnitz, Grethe & Kleinwechter, 2007; Maertens, Swinnen & Minten, 2012).

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Development of export supply chains can lead to a feminisation of the rural labourmarketandreductioningenderinequalities(Maertens,Swinnen&Minten2012).High-valueexportagricultureisapredominantlyfemaleindustryinLatinAmerica,Africa,andAsia,withwomendominatingmostaspectsofproductionandprocessing(Weinberger&Lumpkin,2007).InastudybyMinten&Barrett(2008),thelatterauthorsconcludedthataneffectivewayofimprovingagriculturalproductivityisbydisseminatingagriculturaltechnology.Otherfactorsalsoplaya role, suchas improvedrural transport infrastructureand irrigationsystems, access to extension services, improved physical security, secure land tenure,increasedliteracyrates,andmaintenanceoflivestockherds.However,theystate,thesefactorsarenoteasy to influenceandrequirea long-termcommitment foragriculturaland rural development in general (Minten & Barrett, 2008). Farmers in transition ordeveloping countries might lack inputs that are crucial for the development of high-valueagriculture.Forhigh-valueproductsspecifically,producersmaylackhigh-qualityinputs such as improved seeds and the expertise needed to grow these seeds. Otherobstaclesarefinancialconstraints,difficulties in inputmarkets,andlackofmanagerialcapacity.Onewayofensuringproducershaveaccesstothenecessaryinputscouldbetoengagetradersandprocessorsinverticalcoordinationtoguaranteeconsistentflowsofgood-qualitysupplies.Thelackofefficientinstitutionsandinfrastructureindevelopingcountries further demonstrates the importance of vertical coordination in developingcountries to ensure quality, timely, consistent supplies through spot-markettransactions(Swinnen,2007).Farmerscanreducecosts forpurchasing inputsbyorganizing themselves incollectiveactiongroups (Chemnitz,Grethe&Kleinwechter,2007;Narrodetal., 2009).Theycanachieve this reduction by purchasing inputs in bulk or collectively hiring technicalexpertsor clerks tohelp complywith regulations. Smallholders are also able tomakejoint investments, for example investing in gradingor storage facilities. Public-privatepartnershipshavesupplementedcollectiveactiontoprovide informationandfinancialsupport, capacity building in areas of auditing and certification. This can helpsmallholderscomplywithstringent foodsafetystandardsover time. Collectiveactionandpublic-privatepartnershipcanplayanimportantroleinensuringsmallholdersarenotexcludedfromthecertificationprocess(Narrodetal,2009).

TheglobalhorticulturesectorThe largest part of the horticultural production produced in developing countries isexported to high-income countries. The trade in horticultural products betweendeveloping countries and high-income countries has been associated with increasedforeign direct investment (FDI) in horticultural sectors in the developing country,increasedconsolidationandverticalcoordinationinthehorticulturalexportchain,andan increase in public food safety standards and spread of private standards.Horticultural export chains usually have a high degree of vertical coordination. Arm’slength market relations and spot-market transactions hardly exist; the market isdominatedbyafewexportcompanies,whichworkwithcontractedsmallholderfarmersorverticallyintegratedestateproduction(VandenBroeck&Maertens,2016).

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Rural households are affected in several ways by this change. Positive income andpoverty-reducing effects through participation in contract farming for horticulturalexportproductionhavebeendocumentedbyempiricalstudiesinvariouscountriesandsectors. Adoption of private standards could also lead to increased benefits forsmallholder farmers (VandenBroeck&Maertens, 2016). Spill-over effects exist fromincreased tradeopportunities fromparticipating in contract farming. Farmers learnedthe use of compost on their plots through contract farming and then applied thisknowledge tonon-contractplots. This increased their overall yieldof rice on all plots(Mintenetal.,2009).An increase inhorticulturalproductionmay lead toahigherdemand for rural labour,becauseitrequiresmorelabourthanproductionofcerealcrops,oftentwiceasmuch.Itoffersapossibilityforpovertyalleviation,becausemorepeoplewouldbeengagedintheproductionofhorticulturalproductsthanwouldbethecaseforcerealcrops.Additionallabour requirements are often met through hiring wage labourers, benefiting smallfarmers and landless peasants (Weinberger & Lumpkin, 2007). Participation inhorticultural export production throughwage employment could also lead to benefitssuch as higher income, reduced poverty, reduced food insecurity, and increasedpurchasingpower(VandenBroeck&Maertens,2016).

ContractfarmingContractfarmingcanbeseenasanagreementbetweenfarmersandprocessingand/ormarketing firms for production and supply of agricultural products. Contract farminginvolvessupplyofinputsortechnicaladviceorboth,providedbythebuyer.Thebasisofthecontractisacommitmentbythefarmerstoprovideaspecificproductinquantitiesandatqualitystandardsdeterminedbythebuyer.Thecompanyhasthecommitmenttosupportthefarmers’productionandpurchasetheproduct.The specifications of the contract vary according to the depth and complexity ofprovisionsinthreeareas:

• Market provision: the grower and buyer agree terms and conditions for thefuturesaleandpurchaseofplantproducts;

• Resource provision: next to marketing arrangement the buyer agrees tosupplyinginputstothegrower(includingtechnicaladviceorlandpreparation)

• Management specifications: the grower agrees to follow a specific productionmethod,cultivatingandharvestingspecifications,andinputregimes.

Contractfarming,ifmanagedeffectively,canbeawaytodevelopmarketsandpromotethe transferof technicalskills inawaythat isprofitable forbothbuyersandgrowers.Contract farming entails a partnership between agribusiness and farmers. It requireslong-term commitment from both parties to be successful. Exploitative arrangementsarenot likely tobe successful, and farmersneed to consider thathonouringcontractscanbetotheirlong-termbenefit.Theimportanceofcontractfarminginagribusinessisincreasing, whether the buyers are multinationals, SMEs, government agencies, orfarmercooperatives.Contract farming is characterized by an enormous diversity in terms of cultivatedproductsandthedifferentwaysitiscarriedout.Contractfarmingiswidelyusedfortree

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andcashcrops,andincreasinglyforfruit,vegetables,livestock,dairy,andaquaculture.Contractfarminghasconsiderablepotential indevelopingcountries,wheresmall-scaleagriculture is widespread. Inmany cases small farmers can no longer be competitivewithout access to servicesprovidedby contract farming companies. The report of theFAOoncontractfarmingstressesthatthedecisiontoengageincontractfarmingmustbefor commercial reasons. It should not be tried as a development model when otherapproacheswerenotsuccessful.Theyarguethatprojectsthataremotivatedbypoliticalorsocialreasons,ratherthaneconomicorcommercialoneswillfail(Eaton&Shepherd,2001).

PreconditionsforcontractfarmingThe FAO report (Eaton & Shepherd, 2001) on contract farming lists a number ofpreconditionsthathavetobemetinorderforcontractfarmingtobesuccessful, i.e.tothe benefit of both the company and the small producers. These conditions can dedivided into three sectors: a profitable market, physical and social environment, andgovernmentsupport.

Theconditionsforaprofitablemarketarethefollowing.Sponsorsmusthaveidentifiedamarket for the planned production and must be sure the market can be suppliedprofitably on a long-term basis. Farmers must find potential returns more attractivethaninotheractivitiesandfindtheassociatedlevelofriskacceptable.Theymusthavepotentialreturnsbasedonarealisticyieldestimate.

Thephysicalenvironmentandsocialenvironmentmustbesuitablefortheproducttobeproduced.Theavailableinfrastructuremustbesuitableforbothfarmingandprocessing.Contract farmers require access to sufficient areas of arable land. The availability ofnecessary inputs must be ensured. Contracts should not conflict with growers’ localcultural practices and attitudes, andmanagers should have an understanding of localfarming practices. Farmers’ negotiating capacity and access to legal support shouldmatchthecompanies’.Thisisoftennotthecase.Theprovisionofspecialisedtechnicalsupport by government services or by development cooperation actors should bepromoted.

Governmenthasanenablingandregulatoryroleinthedevelopmentofcontractfarming.Suitable legislation and an efficient legal system are required. However governmentsneed to be aware of potential negative effects of regulations and should avoidoverregulation.The government shouldprovide services such as researchor, in somecases, technical assistance. They should also take the necessary steps to bringagribusinessesandfarmerstogether.

PublicandprivatestandardsThere exist 4 possible combinations for public/private and voluntary/mandatorystandards. These are, as defined by Henson & Humphrey (2010): public, mandatorystandards (regulations), public voluntary standards -standards created by publicinstitutions but whose adoption is voluntary-, legally-mandated private standards:

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standards developed by private institutions whose adoption is made mandatory bypublicinstitutions,andvoluntaryprivatestandards-standardsdevelopedandadoptedby private bodies. Some private standards go beyond public regulations by requiringmorestringentstandardsorbyincludingparametersnotincludedinpublicregulationssuchaslabourpracticesorenvironmentalimpacts.Private standards appear to be a substitute for inadequate public regulation and gobeyondpublicregulationtoprovideacrediblebaseforproductdifferentiation(Henson&Humphrey,2010).Theriseofprivatestandardscanbelinkedtoseveralfactors,suchasincreasingconsumerandgovernmentconcernsaboutfoodsafety,broadersocialanddemographictrendsdemandingmorestringentfoodsafetyrequirements,globalizationof the food chain, and a shift from public to private responsibility for food safety(Maertens&Swinnen,2006;Henson&Humphrey, 2010). Positiveopportunitieshavearisen through the adoption of private standards such as product differentiation andadding value, mainly through the development of credence goods. Government isseekingpromotionofprivatestandards,because it isseenasanefficientandeffectivewayofpursuingpublicsafetystandards(Henson&Humphrey,2010).Finally, the increasing importance of private standards undermines the legitimacy ofpublic standards set by WTO and specifically the Agreement on Sanitary andPhytosanitaryMeasures(SPS)andAgreementonTechnicalBarrierstoTrade(TBT)andsubstitutesdemocratic andopenprocessesof governanceby standards set byprivatecompanies,accordingtoastudybyHenson&Humphrey(2010).

Certification&standards–thirdpartycertificationTraditionally food safety and quality standards were monitored by governmentagencies.Globalizationoftheagrifoodsystem,consolidationoffoodmarketsandriseofprivate retail standards have induced a shift in responsibility to third-party certifiers(TPC).Third-partycertifiersarepublicorprivateorganizationstaskedwithevaluatingand certifying claims based on compliance with standards or regulations. They areindependent suppliers or retailers of foodor agricultural production. Private agrifoodstandardsareincreasinglyusedasastrategytogainaccesstonewmarkets,toprovidequalityandsafetyassurancetocustomersortocreatenicheproducts(Hatanaka,Bain&Busch2005).TPCisemergingasakeyinstitutioninthemonitoringandcertificationofpublicaswellasprivatestandards.It is independentfrombothretailersandgovernmentsalike.TPCoften includes an accreditation mechanism from both public and private standardsettinginstitutions.TPCisdistinguishedbyitsindependencefromretailersorsuppliersin contrast to first- (audited by suppliers) or second-party certification (audited byretailers). Retailers see TPC as amonitoringmechanism that provides themwith theflexibility to differentiate agrifood products, ensures consistent implementation ofstandardsregardlessoforiginofaproduct,andreducingtransactioncostsandfinancialliability.TPCalsoprovidesseveralbenefitstoretailers,suchasminimizedresponsibilityof ensuring quality and safety requirements, as this is transferred to third-party

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certifiers(Hatanaka,Bain&Busch,2005).Liabilityisshiftedfromretailerstocertifiers,thecostsofmonitoringsafetyandqualityis transferred to certifiers, and transaction costs are reduced. TPC provides supplierswithnewopportunitiessuchasaccesstonew,moreprofitablemarkets,particularlyindeveloping countries. However as requirements for access to markets in developedcountries become increasingly stringent, TPCmay not provide new opportunities butratherensureremaininginthemarket(Hatanaka,Bain&Busch2005).Hatanaka,Bain,and Busch (2005) believe that government policy and international developmentcooperation couldplay an important role in enhancing capacity of small producers tocomplywithTPC.Investments necessary to implement TPC may squeeze out small producers intoalternative,less-profitablemarkets.NGOsandconsumeractivistgroupsareusingTPCtopromoteworkerrightsandenvironmentalprotection.TheyuseTPCasatooltopromotealternative production and consumption systems and as away to incorporate ethicalpracticesinexistingproductionsystems(e.g.MSC,FLO,RainforestAlliance).(Hatanaka,Bain&Busch,2005).

GlobalGapMany of the private quality and safety standards in the European Union have beenharmonized. The most prominent ones are British Retail Consortium and EuropeanRetailer Produce Working Group for Good Agricultural Practices (EurepGAP, nowGlobalGAP). GlobalGAP is a model of on-farm assurance that is being promoted asmandatorywithproducersoffreshhorticulturalproduceandisregardedasaconditionforentry to theEuropeanmarkets. It isunlikely toprovideapricepremiumhowever.GlobalGAP is seen as a harmonization of existing safety, quality, and environmentalguidelines of theEuropean retailers. Itsmain focus is food safety, but it also includesseveral environmental standards (soil, water use, and biodiversity conservation) andaddresses issues with occupational health and safety, internal audits and complaintprocedures(Asfawetal.,2010).The costs of compliancewith theGlobalGAP standardsprovide a significant challengefor small-scale producers. These costs consist of both necessary infrastructuralupgrades as pre-condition for certification and recurring costs of complyingwith thestandard (protective clothing, administrative costs). Certification does however bringalong certain benefits such as assured access tomarkets and timely payments.Manyproducersalsoperceivedincreasesinproductqualityandreducedrejectionbybuyersas a benefit of compliance with GlobalGAP. They stated a perceived increase inbargaining power with buyers. Growers felt their health is better protected due toregulations regarding the storage and handling of agrochemicals by trainedprofessionals(Asfawetal.,2010).Access to information, capital, services and availability of labour are major factorsinfluencing the decision to adopt GlobalGAP certification. In a study by Asfaw et al.

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(2010) farmers who adopted GlobalGAP certificationwere statistically different fromnon-adoptersintermsofassetsandhouseholdwealth(qualityofland,farmmachinery),access to services (use of irrigation, access to credit) and household characteristics(educational level and training). Results from this study indicated that farmers whoadoptedGlobalGAPreceivedahighernet-incomefortheirexportvegetableproductionthan non-adopters (Asfaw et al 2010). Certification can improve profitability throughreduction of costs, higher quality of produced goods and higher efficiency in theproductionprocess.Otherbenefitsatmarketlevelmayincludelowertransactioncosts,price premiums, ability to attract new customers and an increase in market share.CompliancewithGlobalGAPisnotonlyseenasanecessaryinvestmenttogainaccesstohigh-export markets but are also likely to lead to substantial profits from exports(Henson,Masakure&Cranfield2011).A case study fromMadagascar reported that compliancewith GlobalGAP certificationhasleadtohigherincomesforlycheeproducers.Certificationdidhaveapositiveimpactontheproductionoflychees,higherquantitieswereproducedandtheywerebeingsoldat higher prices. Subervie and Vagneron (2013) reported that compliance withGlobalGAP standards for lychees affected production process and the producedquantities only very little. The standards rather focus on post-harvest procedures forexporters (Subervie & Vagneron 2013). Positive effects of compliance included anevolution of the exporters procurement system with stabilization of the relationshipwith producers and enhanced traceability, an improvement of private marketinginfrastructure, and an improvement in management discipline (Bignebat & Vagneron2011).Althoughtherewasanimportantgrowthinnumberofcertifiedproducers,thisnumberhasdwindledovertheyears(Subervie&Vagneron,2013).InternationalpublicdonorinterventionhasbeendecisiveintheGlobalGAPcertificationoflycheeproducersinMadagascar.Financewasprovidedtocoordinateoperatorsalongthechain,removefinancialconstraintsforsmallproducersandintermediaryfirms,andprovideaccesstoadditional fundingrelatedtotradepromotion.Theconclusionof thestudybyBignebatandVagneron(2011)wasthatGlobalGAPhadlittleeffectonmarketaccess,buthadsomepositiveeffects forsmallproducers.Exportquotas for lychees inMadagascarmayhavecontributedtotheartificialityofGlobalGAPcertificationandthiswas reported as a negative effect of compliance with GlobalGAP. Certification ratheractedasanentry-way intoEuropeanmarkets thanasanon-tariffbarrier,bysecuringboatspace forexport toEurope.Once theentry-waywasestablished itwasno longernecessary for export companies to only provide certified lychees, uncertified lycheeproducerswere included in the export chain through informal, backdoor channels. Inconclusion the impact on the Malagasy lychee sector in total was quite limited,benefitingmostlyfarmerswhoalreadyhadmoreassetsthantheaveragefarmerpriortocertification. The producers who were first to certify received the most benefits(Subervie&Vagneron2013).

AgriculturalpolicyinMadagascarThepolicyforagriculturaldevelopmentinMadagascarconsistsofadjustingproductionto market requirements. Obtaining an increase in revenue by adjusting to market

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requirementswill enhance the sustainability of producer activities andhence supporteconomicgrowth.

• Thesubsistenceapproachwillbereinforcedbyademand-orientedapproach,tofavour the development of leading subsectors, different forms of setting upcontracts between farmer households and/or farmers’ organisations, marketoperatorsandagri-businesses.

• Agricultural production will be repositioned through new leading subsectors,allowingMadagascar tobecompetitive inchangingregional,orglobalmarkets.Themaintoolwillbethenewinvestmentopportunitiescreatedbyanewformofcontracting(LPAEP,20151).

Government policy regarding agricultural development is outlined in the NationalProgrammeforInvestmentintheAgricultural,Livestock,andFisheriesSector2,andwaspresented in2015by theMinistries concerned (MinistryofAgriculture andLivestockand Ministry of Fisheries). The programme is the result of a long process ofconsultations and integrating proposals from the different parties and subsectorsinvolved.Thegoaloftheprogrammeistoachieveagrowthrateof6%byallocating10%ofthenationalbudgettoagriculture,whichisinlinewiththeMaputocommitment3.Thegovernmentwishestoreduceruralpovertyfrom82%to50%toattaintheobjectivesfor2025. However the programme lacks clearly defined priorities and the managementstructure lacks coordination with the institutions tasked with implementing it (EU2015a4).The public administration is currently weakened (lack of qualified staff indeconcentrated (regionalised ministerial offices) and decentralised services (atcommune level), reduction in available financial and human resources, incompleteservice provision by non-state actors (private sector, professional organisations, civilsociety organisations), negative perception of the government and erosion of thegovernment’sauthority insectorswhereits interventioniskey(security,conservationof common goods and resources, accessibility to production areas, etc.). Theseweaknesses affect the public administration in general and the Ministries directly orindirectly involved in rural development (Agriculture & Livestock, Environment andEcology, Fisheries, Water, Land management, Decentralisation, Health). Thedisengagementof thegovernment from theagricultural sector in the1990’shasbeeninsufficientlymanaged.Thishasleadtopersistingproblems(1)inensuringprovisionofkey services in agricultural production (technical advice, training programmes, inputprovision, market access, resilience to shock effects), (2) develop and implementpolicies at different levels, and (3) ensure coordination, support, and monitoring ofpolicyimplementation(EU2015a).

Theobjectivesof thedecentralisationof institutionshaveonlybeenpartiallyachieved(thegoalwastohave80%offieldagentsactiveatregionallevel).Asaresultadeclineinpublicserviceswasobserved,whichinturnaffectstheperceptionofthegovernment’sauthorityinkeysectors(EU2015a).

1LettreDePolitiqueSectorielleAgriculture,ElevageEtPêche,Avril20152ProgrammeNationald'InvestissementdanslesecteurAgriculture,Elevage,Pêche(PNIAEP)3CAADP(CommonAfricanAgricultureDevelopmentPolicy),Nepad/AfricanUnion4ProgrammeIndicatifNationalCoopérationUEMadagascar2016-2020

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SupportmechanismsforagriculturaldevelopmentSeveral support mechanisms will need to be set up to ensure the successfulimplementationoftheagriculturaldevelopmentpolicy.

• Makinglandavailableforagriculturalproduction

Land reform and support for regional institutions such as the Communal LandOffices(BIF5)willcontinue.Tosupportagriculturalgrowth2millionhaof landshould be available for investment in theNational Outline for Spatial Planning(SNAT6) and Regional Outline for Spatial Planning (SRAT7). The specific zoneswillbedecidedbyconsensuswiththeregionalstructuresandlocalpopulation.

To facilitate the inclusion of young people, part of the arable lands will bedistributed in a transparentmanner to limit further division of inherited landsintoeversmallerparcels.

• Respectfortheenvironmenttoensuresustainablegrowth

InaccordancewiththeRio+20convention,developmentactionswillincorporatethe challenges of climate change, especially with the implementation of PANA(Programme d’Action National d’Adaptation). The development principles willalso include sustainable development and will integrate policy choices onprotected areas, such as Marine Protected Zones (MPAs), sensitive zones, andwatershedbasins.

• Providingenergyinruralareas

Providing energy in rural areas is essential to reduce poverty, improve livingstandards, education and health and agricultural value addition. The goal is toprovide accessible energy to all rural areas, while paying attention to theenvironmentandclimatechange.

• IncreasingtrustbyimprovinggovernanceinthesectorSustainable management of production will be achieved by improvinggovernance: to align private companies’ and producer organisations’ policies,manage investment opportunities, improve resource access, transparent andevendistributionofpublicresources(LPAEP,2015).

MainconstraintstoagriculturalsectordevelopmentinMadagascarThe primary sector (agriculture, livestock, and fisheries) is characterised by a weakperformance,withastagnatingcontributiontotheGDParound26%andagrowthrateof around 1,5%, which is below the population growth rate. This has a variety ofreasons:lowproductivity,lowcoordinationbetween,insecurity,andoverexploitationofresources.

5BiraoIfotonyamin’nyFananan-tany(BureauFoncier)6SchémaNationald’AménagementTerritoriale7SchémaRégionald’AménagementTerritoriale

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Oneoftheissuesinagricultureistraditionalexploitationofland.Generallysmallareasof land are not intensively cultivated, yielding small harvests that are consumed byfarmers themselves. Another issue is the extreme partition of lands (average of 0.67ha/farmer), low availability of inputs, no evolution of export products in the last 60years.Themainissuesactorsintheagriculturalsectorareconfrontedwithare:

• for theprivatesector: insufficient financialmeans,agloomybusinessclimate,alack of public-private partnerships and mistrust between both sectors,parcelization of agricultural production that leads to a decline incompetitiveness,uncertaintyaboutthewaythesubsector isdeveloping, limitedinternal markets, increasing corruption, difficulties in professionalising thesectorbecauseofopportunists,weakimplementationofgovernanceinthesectorandinsecurityinruralareas;

• forfarmers:weakproductioncapacity,traditionalagriculturaltechniques,lackofaccesstomarketsandtofinancialcapitalviafinancialinstitutions,lackofrespectfor norms and standards, inaccessibility of services, weak organisation andstructuringofthesector,andlittleparticipationinpoliticaldialogue

• for theapproximately300,000ruralyouths thatenter the jobmarketannually:theyhavealackofknowledgeandprofessionaltraining

• foradministration: theyareconfrontedwith theirweakcapacityandstructure,anagingpopulation,andunbalanceddivisionofhumanresources.Thepossibilityfor a better division of human, financial, and material resources should bestudied, to ensure the sustainability of all activities at a decentralised level(LPAEP,2015).

Agriculturalsectoractors

MinistryofAgricultureandLivestockThemissionoftheministryofAgricultureandlivestockistodevelop,toimplementandtocoordinatethenationalpolicyfordevelopmentofagriculture,livestockbreeding,andagricultural research. The research priorities are food and nutritional security in thecontextofclimatechange.Theministryhassetoutanumberofspecificobjectives:

• achievesustainablegrowthofagriculturalproductivity,• develop competitiveproduction systems to fulfil demandondomestic, regional

andinternationalmarkets,• enlargeandsustainproductionareas,andstandardiseproductioninfrastructure,• increaseagriculturalrevenueandcreatejobsforruralhouseholds,• increase foodandnutritional securityandreducerisks for themostvulnerable

households,• andfinallythatMadagascarbecomesthefoodbasketfortheIndianOceanregion.

TheMinistryismadeupofseveraldepartments,eachwiththeirobjectivesandpolicies.The Directorate of Partnerships and Investment Promotion is charged with thedevelopment of partnerships, promotion of agricultural investments, and maintainrelations with international institutions. The Directorate for Development ofProfessionalRuralOrganizationsischargedwithsupportingfarmers’organisationsandsupportinstitutions.TheDirectorateofRuralandAgriculturalTrainingischargedwith

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coordination and implementation of the national strategy for rural and agriculturaltraining.TheDirectorateofSupportfortheDevelopmentofPlantProductionischargedwith the development of sustainable agriculture and increasing revenues for ruralhouseholds by diversifying and intensifying agricultural productivity. The DirectorateforPlantProtectionischargedwiththecoordinationandsupportfortechnicalactivitiesinthecontextofimplementingthepolicyoftheMinistryofAgricultureregardingplantprotectionandphytosanitarystandards(MinistryofAgricultureandLivestock8).

Agri-businessesandproducersorganisationsThe private sector and producer organisations play a key role in the countries’agriculturaldevelopment.Agribusinessestypicallyhavebettermarketknowledgeandapotential to invest in improving and modernising production processes. Producerorganisationsareimportantactorsincertainexportsectors(lychee,cloves,vanilla)andplayanadvocacyandbargaining role.Despite their influence theyoften lack financialand technical means to structure and develop their subsectors in accordance withinternational standards andmay represent only aminority of producers. Theyworkalongside public actors. The private sector directly contracts both small farmers andproducerorganisations.

• Producerorganisations

Theproducerorganisationsareestablishedtoprovideservicestofarmers:

8www.agriculture.gov.mg/

Roleoftheprivatesector GovernmentauthoritiesObligationtocomplywithinternationalstandardsandregulations,whilestilladheringtorulesandregulationsatthenationallevel

-TransposePhytosanitaryandSanitarystandardsofimportcountriesintonationallaw-SupportcompetentauthoritiestocomplywithSPSstandardsofimportingcountries(human,financialandmaterialresources)

Participateinformulatingmeasurestoimplementandprotecttheirinvestments

-Developandalignfoodsafetypolicies-updatelegislation-ensureeffectiveenforcementofnationallawsandSPSregulations-creatingaplatformfordialogue

Participationintheoperationalizationofthemonitoringandevaluationsystem(Systèmedesuivi-évaluation,SSE)

ImplementamonitoringandevaluationsystemoftheevolutionofimportsandexportsinMadagascar:setupadatabaseincollaborationwiththeCustomsServiceandINSTAT

-Developcompetitiveinvestmentprojects,whilerespectingqualityandenvironmentalstandards-BringinowncapitalandfacilitatingForeignDirectInvestment(FDI)

-Establishabusiness-friendlyenvironment-Ensuretransparency-Guaranteeanevendistributionofprofits

Createemploymentopportunities,whileadheringtothelabourregulations

Supportindividualproducersthroughdecentralisedmeans(financing,services,research)

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- provide farmers with counsel about best practices in terms of production,commercialisation,andadoptingapolicyofprofessionalization

- defendproducers’interestsatthepoliticallevel- promoteinvestmentopportunitiesincollaborationwithmarketactors- offertechnicalservicesandvarioustypesoftraining- organisetradefairsandothermarketingevents

Intimethesepayingservicesofferedbytheseinstitutionswillallowthemtobefinanciallyautonomous(LPAEP,2015).

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CTHTTheCentreTechniqueHorticoledeTamataveisactivesince1997inassistingexportsoftropical fruits from Madagascar and structuring the horticultural export sector. TheCentrewasofficiallycreatedin2001asaregionalinterprofessionalorganisationunderthe Projet d’Appui aux Exportations Agricoles (PSFH). The aim of this projectwas torelaunchtheexportofMalagasyhorticulturalproducts.TheCTHThasreceivedfinancialaidfromtheEuropeanUnion(EU)forseveralyearstoimplementanumberofprojectssuchastheProgrammed’AppuiàlaFilièreLitchi.Thetechnicalassistanceprovidedbythecentrehasmadeitpossibletoimproveperformancesandtoreduceproductioncostsinthesubsector.Thecentrehasalso intervenedindevelopingandpromotinghithertolessknownsubsectors.CTHTdidthisbysettingupnewplantations(pinkpeppercorn,peach-palm),providingtechnicalassistance,qualitycontrol,andassistinginthetreatingandpackagingofproduce.TheseinterventionshaveeffectivelyledtoadiversificationofMadagascar’s horticultural export basket. This diversification of export products hascontributed to reduce small producers’ dependency on lychees by diversifying theirsourcesofincome.The CTHT has awide range of activities to support local horticultural producers andexporters. Itsactivities includerestoringplantationsbyproviding technicalassistance,and improving and distributing high-quality plantmaterial. The centre also organisesresearch opportunities and technical trainings for producers and other private sectoroperators.CTHTcompilesinformationonthedifferenttropical,horticulturalsubsectorsandfinallytheyassistproducersincontractnegotiationswithexporters(CTHT9).

KeyagriculturalexportproductsfromMadagascarThecompanies,whichacceptedtoparticipateinthepresentstudy,exportsomeofthespicesandfruitsMadagascaris internationallyfamousfor.Thesearebrieflypresentedinthefollowingparagraphs.LycheeLycheetrees(Litchichinensis)growinregionswithheavyrainfall(2500-3000mm),hightemperatures(25°-35°C)andanaltitudeoflessthan500m.ThemainproductionzoneisalongtheeastcoastofMadagascar,betweenToamasinaandTolagnaro(FortDauphin).Mostof theplantations located in theproductionzoneareoldandplantationsarenotwellmaintained.Theydohoweverstillhavehighyields.A lycheeplantationcanreachover 100 years. The harvesting season is decided annually in each farintany(autonomous province) by a committee composed of producers, export companies,MinistryofAgriculture, ProvincialQuality Inspection andpublic security officials. Thestartdateisfixedbyaprovincialdecree.Priortoexportlycheesmustreceiveasulphurtreatment to be export to the EU, after treatment sulphur residuesmust be analysed.Exporthasincreasedfromapproximately15,000tonnesin2012(Jahieletal.,2014)tobetween20,000-22,000tonnesin2015(AgenceEcofin,25/11/2015).Lycheesareused

9www.ctht.org

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foravarietyofproducts:juices,sorbets,jams,lycheewine,driedfruits,andtraditionalChinesemedicine(MPAE,200410).ClovesClove trees (Syzygiumaromaticum) grow in areaswith a lowaltitude (<500m), heavyrainfall(>3000mm),hightemperatures(26°-30°C),andtwodistinctseasons(rainyanddryseason).Themainproductionzone isallalongtheeastcoast fromnorthtosouth.Yieldsfromclovetreesareveryirregular.Onecanexpectonlyonegoodharvestevery3to 4 years. CTHT estimates a total production of 19,000 tonnes per year. In 2011Madagascar exported approximately 22,000 tonnes of cloves, with a total value ofapproximately $172,6million (FAOSTAT11). For the 2014-2015 season therewere 81registered export companies for the export of cloves. Essential oils are distilled fromclovesandaremainlyusedinaromatherapy(CTHT).VanillaVanilla vines (Vanilla planifolia) grow in areas with a low altitude (<600m), highhumidityandheavyrainfall(1800-2500mm),temperaturesbetween20°-30°Candlowlightconditions(75%shade).ThemainproductionzonesaretheislandNosyBeandtheSAVAregion(CTHT).Annualproductionwasaround900-1200tonnesin2001.In2011Madagascarexportedapproximately2000tonnesofvanilla,withatotalvalueof$38,9million(FAOSTAT).PepperPepperplants(Pipernigrum)growinareaswithannualtemperaturesbetween23°and26°C, rainfall between 2000-3000mm, and distinct rainy and dry seasons. The mainproduction zones are along the east coast and the north and northeast regions ofMadagascar. Total annual production of 2,200 tonnes is estimated by CTHT. Essentialoils are distilled from pepper and used in the perfume, aroma, and pharmaceuticalindustry(CTHT).In2011Madagascarexported1800tonnes,withatotalvalueof$7,7million(FAOSTAT).The aim of this study is to explore how the horticultural value chain is structured inMadagascar,whichoperatorsareinvolved,whatrolethegovernmentplaysinthechainandviawhichmethodsitoperates,andwhatrolecertificationplays.Thehypothesisisthat a semi-public institution like the CTHT can help structure the value chain andcoordinatebetweendifferentoperatorsandthiswillhaveaneffectonthequalityoftheproducedgoods.

10Lettredelafilièrelitchi107,MinistèreauprèsdelaPrésidenceenchargedel’Agricultureetdel’Elevage,200411http://faostat.fao.org/site/342/default.aspx

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Methodology

ScopeandprocedureFieldworkwascarriedoutinMadagascarfrom6thJulyto1stAugust2016.Itconsistedofinterviewswithseveralgroupsofrespondents:stafffromCTHT,stafffromhorticulturalexportcompanies,stafffromMinistryofAgriculture,DirectorateofPlantProtectionandMinistryofTrade.InterviewswereconductedinbothAntananarivoandinToamasina.SixinterviewswithCTHTandthreeinterviewswithexportcompanieswereconductedinToamasinafrom5thJulyto15thJuly2016.InterviewswiththeMinistryofAgricultureandLivestock,DirectorateforPlantProtection(DPV),MinistryofTradeandtwoexportcompanieswereconductedbetween20thand30thJuly2016.Interviewslastedbetween30and60minutes,excludingpreparatorytime,greetings,andoutros. Interviewswithsmallholderproducerswerenotcarriedout,becauseofexpectedculturalandlinguisticdifficulties. Due to the limited time frame in which the study took place, it was notpossible tosetupanetworkofrespondents. Informationabouteffectsonsmallholderfarmersisnotvalidatedbyfarmersthroughinterviews.Thereforenoconclusionscanbemadeaboutthepreciseeffectsforsmallholders,onlyestimationscanbemadebasedontheinformationgeneratedintheotherinterviews.ExportcompanieswereselectedonrecommendationbyCTHTstafforbecausetheyareamember of the CTHT. Despite the relatively small sized sample the selected exportcompanies are considered representative for the export sector, because of their size(turnoverandemployment)andtheirimportanceinthemarketplace.The Ministry of Agriculture was selected because CTHT is under the tutelage of theministry of Agriculture. The Ministry is also responsible for quality control of plantproducts. TheMinistry of Tradewas selected to gain insight in the importance of theagricultural sector in terms of trade and the role CTHT plays therein. It is alsoresponsible for export policies concerning horticultural products. Interviews werecarriedoutindividually;therewerenogroupinterviewsorfocusgroupdiscussions.Finally,therelativelylownumberofrespondentscanbeexplainedbythefactthatthestudy was carried out during the holiday season in Madagascar and manyrepresentativeswereunavailableduringthisperiod.Anotherreasonisthatnopreviouscontact network existed and some respondents did not respond to the invitation forconductinganinterview.

Studyarea

Madagascar-overviewTheRepublicofMadagascarisacountryintheIndianOcean,offthesoutheastcoastofAfrica.Thetotalsurfaceareais587.041km2.OfthetotallandareainMadagascar71,7%is used for agricultural purposes, of which 6% is arable land, 64,1% are permanentpasturesand1%ispermanentlycropped.Agriculture,includingfisheriesandforestry,isthe most important sector of the Malagasy economy. Around three quarters of thepopulationinMadagascardependdirectlyorindirectlyonagriculturalproduction.Thissector accounts for 85% of available employment and for around 60% of youthemployment.Theproportionofhouseholdsforwhichagricultureistheprimaryactivity

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is72,7%ofthetotalpopulation,and53,8%ofthepopulationagedunder20.Despitetheimportanceintermsoflabourcreation,itonlyaccountsforaround26%oftheGDP,andithasstagnatedaroundthislevelforthelast30years.Asaresulttheagriculturalsectoris not able to produce enough food to meet the dietary requirements of a growingpopulation (growth rate of around 2,9% per year). It has not been able to increaserevenueandperpetuatesmalnutrition(WorldBank,CIAWorldFactbook).Madagascar has a population of 23.811.681 (UN, July 2015 estimate). The populationstructure is the following (table 1): 40,45% aged between 0-14 years, 20,53% agedbetween 15-24, 31,56% aged between 25-54, 4,24% aged between 55-64 and 3,22%aged65andover(INSTATMadagascar).MostofthepopulationinMadagascarlivesinruralareas,only35,1%ofthetotalpopulationlivesinurbanareas.In2010theeffectiverural population of Madagascar was 16.103.315, of which 14.874.338 are active inagricultural production. In total therewere2.428.492 exploitations, 350.184ofwhichcanbefoundintheregionaroundToamasina,wheretheCTHTis located.ThemedianageinMadagascaris19,4years(CIAWorldFactbook).There are several different ethnic groups inMadagascar ofwhich themost importantarethoseofMalayo-Indonesianancestry,Cotiers(mixedAfrican,Malayo-IndonesianandArab ancestry), French, Indian, Creole and Comorian. French and Malagasy are theofficial languages inMadagascar. The average literacy rate is 64,7%,which is dividedinto66,7%formenand62,6%forwomen.Schoollifeexpectancyis10yearsonaverage(CIAWorldFactbook).Table1:populationstructureinMadagascar.Source:InstitutdeStatistiquedeMadagascar(INSTAT)

Age 0-14 15-24 25-54 54-65 65+

Percentage oftotalpopulation

40,45% 20,53% 31,56% 4,24% 3,22%

The totalGDP forMadagascarwas$35,49billion in2015andtherealgrowthrate fortheGDPwas3,2%.Theunemployment ratewas3,4% in2014. Thereare threemainsectorsthatcontributetotheGDP:industry(16,9%),agriculture(26,5%),andservices(56,6%).Themost importantagriculturalproductsare: rice, coffee,vanilla, sugarcane,cloves,cocoa,rice,cassava(manioc,tapioca),beans,bananas,andpeanuts.Theproductswith the largest production area are rice (1,307,043 ha),manioc (405,816 ha),maize(264,429ha),sweetpotato(128,627ha),andcoffee(117,950ha).Theproductswiththehighestproduction in termsofquantityarerice(4,737,965tonne),manioc(3,008,895tonne),sweetpotato(919,130tonne),sugarcane(447,780tonne),andmaize(443,474tonne). In 2010 the highest valued export products were cloves and essential oilextracted fromcloveswithavalueof62millionand44millionAriary (€1=+-3410Ar,16/08/201612)respectively.Themostimportantimportedproductsarewhitericeandwheatflour(INSTATMadagascar).Themain industries inMadagascar aremeat processing, seafood, soap, beer, leather,

12http://www.banque-centrale.mg

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sugar,textiles,glassware,cement,automobileassembly,paper,petroleum,tourism,andmining.Madagascar’smain export products are coffee, vanilla, shellfish, sugar, cottoncloth,clothing,chromite,andpetroleumproducts.In2014themainexportpartnersofMadagascar were European countries (France 17,7%, Belgium 6,8%, and Germany4,5%), the United States of America (8,8%) and Asian countries (Japan 5,4%, SouthKorea 5%, and China 4,8%). Only one African country is named in the top importingcountriesofMalagasyproducts:SouthAfrica(5,7%).Madagascarmainlyimportscapitalgoods,petroleum,consumergoods,andfood.ItmainlyimportsthesegoodsfromChina(20,6%)andFrance(10,6%)(CIAWorldFactbook).Accordingtoa2010estimate75,3%oftheMalagasyhouseholdslivebelowthepovertylineand52%livesinabsolutepoverty.Madagascarhasascoreof0,498fortheHumanDevelopmentIndex(HDI)andisranked155thintheworld.TheaverageforcountriesinSub-SaharanAfricaisascoreof0,502(CIAWorldFactbook,EU2015a).

Madagascar-politicalThepoliticalcrisisinMadagascar,whichstartedin2009andwhichhaslastedforalmost5years, endedon18thApril2014with the inaugurationof anelectedgovernment. Italsomarkedthereturnoftheruleoflawtothecountry(EU2015a).Madagascar is a weak state: economical, social and environmental indicatorsdeteriorated during the crisis from 2009 until 2014. The weakness is linked toimportantlimitationsintermsofgovernanceandtheruleoflaw,andcyclesofpoliticalinstabilityandhighlevelsofpoverty.Madagascarhasamajoreconomicpotentialandithas comparative agricultural, fisheries andmining advantages in comparison to othercountriesintheIndianOceanregion.Madagascarisoneoftheleastdevelopedcountriesintheworld(EU2015a).

DescriptionofSAVA,Analanjirofo,andAtsinananaregionsSeveral of Madagascar’s horticultural export products originate in the SAVA,AnalanjirofoandAtsinananaregionsonthenortheastcoastofthecountry.The prevalence of rural poverty in Madagascar has increased markedly in the lastdecade. Around 30% of households are food insecure in Analanjirofo and Atsinananaregions,intheSAVAregiontheproportionoffoodinsecurehouseholdsinbetween40to50%.Theproportionofchronicmalnutritioninchildrenyoungerthen5isabove40%inthe SAVA and Analanjirofo regions. In the three regions around 80% of the 50,000youths that enter the job market annually, do not hold any qualifications. Agro-ecologicalconditionsintheseregionsaresuitableforagriculturalproduction,butagro-industrialfirmsarenotwelldeveloped(StratégieNationaldeNutrition,Madagascar).

Agriculturalsectorproblemanalysis

Commonproblemsintheagricultural/horticulturalsector:• Lack of financial means and human capital available to the competent

authorities,leadingto(1)surveillancesystemsfordiseasesandpestsarenot operational, (2) border controls are ineffective, natural resources in

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Madagascar are under constant threat of new diseases introduced fromabroadfollowingtheintensificationofagriculturalproduction

• Weakimplementationofsanitarycontrolmeasurestocontaindiseases,• Weak analytical capacity to support disease monitoring activities and

controlofsanitarymeasuresforfoodproducts• Low level of participation of producers in the surveillance of plant and

animaldiseases

LackofstrategicdataThere exists a large gap in the data collected by the administration, the data that iscollected is sometimes unreliable, and the data is not shared between differentinstitutions. The ministry of Agriculture and Livestock does not posses complete,reliableandregulardataonthescopeoftheiractivities.Thishampersthedevelopmentofadaptedpolicies,toevaluateexistingpoliciesandbudgetallocations(EU2015b13).

ThefunctioningofsanitarycontrolsystemsDiseases and pests strongly affect plant productivity. The means for detection andinformation are non-existent (lack of a laboratory that analyses micro pollutants).DespitetheinterestofneighbouringcountriesinMalagasyvegetables,alackofcontrolsatproductionlevelmeanstheriskforforeignimportcompaniesistoohigh(EU2015b).

SupportforappliedresearchSupport forapplied research isoneof thepriorities tohelpdevelop thesector.Fundsallocated to research institutions have declined since the Programme to SupportAgriculturalDevelopment14stoppedin2012.Nationalagriculturalresearchinstitutionssuch as FOFIFA 15 or FIFAMANOR 16 manage to obtain piecemeal financing frominternationaldonorsandpartlyfromthestatebuttheneedsarefarbiggerthanwhatiscurrently financed. There is a need for fundingdue to thediversity of agro-ecologicalzonesinMadagascarandtohelpMadagascartorespondtochallengesposedbyclimatechange, changing internationalmarkets and international competition and to improvefood security. Apart from several collaborationswith CIRAD, national institutions areisolated from the scientific community. There is a lack of high-quality genetic plantmaterialandthequalityoflocalvarietiesisprogressivelydeclining.Apartfromseveralisolatedcases,fertilisationmethodsandplantfertilizersareadaptedtolocalcontextsdonotexist(EU2015b).

DevelopmentofagriculturaltrainingcapacityThereisanenormousneedforprofessionalagriculturalandruraltrainingprogrammes.The actual training level of small producers is very low and has not shown anyimprovement over the years. Rural agricultural training colleges exist but areinsufficient innumber torespondadequately to thedemandand thecountries’needs.14ProgrammedeSoutienauDéveloppementRural(PSDR)15Foibem-pirenenamombanyFikarohanaampiharinaamin'nyFampandrosoananyenyAmbanivohitra(FOFIFA),CentreNationaldelaRechercheAppliquéeauDéveloppementRural(CENRADERU)16FiompianaFambolenaMalagasyNorvéziana(FIFAMANOR),Centrederechercheetdedéveloppementruralenagricultureetenélevage

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These conditions hinder the evolution of new practices and the implementation ofinnovative techniques.Professional training foryoungpeople ismainlydonebyNGOsand care organisations and the current offer for higher education does notmeet thedemandsofyoungpeopleandproducers(EU2015b).

InvolvementofprivateinvestmentTheinvolvementandsupportforprivateinvestmentsinagriculturalisfundamentalforitsdevelopment.ThebusinessenvironmentinMadagascarhasdeclinedinrecentyears(in2015Madagascardroppedsixplacesfrom163rdto189thplaceintheDoingBusinessrankings).Thesectorencountersspecificchallenges,suchasdifficulties in landaccess,high risk levels associated with natural disasters, individualisation of householdproduction,hightransportcostsandlackoforganisationatproducerlevelandgenerallyweak governance. Besides investment in production and transformation of foodproducts, significant investments also have to be made in service providers (inputs,materials,andadvice)(EU2015b).

PrivatesectorinMadagascarThe private agricultural sector in Madagascar consists of a large number of smallproducers (farmers, breeders, fishermen – 90%), who own small parcels of land(averagesize0.67ha).Theyusuallyproducefortheirownconsumption(around50%ofproduction) or for the local market. A second group of producers consist of farmingestatesemployingwagelabourersandSMEswhoproducemainlyforthelocalmarket.Aminorityofagriculturalproducersproducesforbothnationalandinternationalmarkets.They engage in contract farming under different forms. Some agro-businesses importbasicplantproductsandprocessedfoodsinfluencethenationalmarket(EU2015b).

Dataanalysis

PositionofCTHTinthevaluechainToanalysetheroleofCTHTwithinthehorticulturalvaluechainabasicmappingofthevaluechainwillbemadeusingtheValueLinksmodule,developedbyGIZ.Itwillfocusonthe certification and transformation services offered by CTHT and their governanceimplications. Value chain mapping is the first step within the process of value chainanalysis.Thisconsistsofmakingavisual representationofall theactorsactivewithinthe chain, their business operations, the chain supporters, and the linkages betweenthese elements. An overview map of the value chain should be focused and easilyunderstandable. It should contain a visualisation of the sequence of production andmarketingfunctionsperformed,thevaluechainoperatorsundertakingtheseoperations,andtheverticalbusinesslinksbetweenoperators.Theseelementsrepresentthemicrolevel, inwhichaddedvalue iscreated.Serviceprovidersandmeso-leveloperatorsarealso included in thismap. Meso-level operators can also be added to themicro-levelvaluechainmap.Thisincludesagenciesandbusinessorganisationsthatprovidesupportservices.Governmentandpublicinstitutionsmakeupthemacrolevelofthechain.Itcanbeanalysedinaseparateanalysisandisusuallynotpartofanoverviewmap.Promotingenvironmental and social standards has become a development strategy in itself. Theimplementation of standards can represent a powerful tool in achieving pro-poorgrowth that is both environmentally and socially acceptable (GIZ, ValueLinksmodulemanual).

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Valuechain:asupplychaininwhichvalueisaddedtotheproductateachstepinthechain. It isdescribedbytheseriesofactivitiesandactorsalongthesupplychain,howandwherevalueisaddedinthechainbyandfortheseoperatorsInavaluechainthereare3coreelements:policy&businessenvironment,actors,andtheserviceproviders.

Policy&businessenvironmentThis takes into account the external factors that enable the development of the valuechain. These factors are political, legal, economical, socio-cultural, physical, andenvironmental.Thepoliticaldimensionreferstoawiderangeofactions:sectorpolicy,poverty reduction strategies, fiscal policy, regulations (tariffs, standards, customssurveillance), trade agreements, business climate, justice, law enforcement, and socialpolicy(labour,accesstoresources,customarylaw).The public sector provides basic public goods, improves market access, enables aregulatorybusiness framework,allowssubsidies,assurescompliancewithqualityandsafety standards, improves service delivery, and supports innovation and researchdissemination.Theavailabilityofinfrastructureisageneralconditiontoimprovedevelopmentofvaluechains.Thisincludesimprovingroads,telecommunication,ruralinfrastructure(storagefacilities,processingunits,transportfacilities,watermanagement,energy),andmarkets.Environmental factors take into account all factors that can have an impact on valuechain development: water, soil, biodiversity, air, and land use. Promotion anddisseminationof goodagriculturalpracticesneeds tobe addressedprioritising locallydeveloped practices, applying agro-ecological principles, integrating climate changeadaptation(improvingsoilfertility,managingwaterresources,maintainingbiodiversityandlocalresources,ensuringproductivecapacityandsustainingagro-ecology).

ValuechainactorsValuechains involveacomplex interactionbetweendifferentoperators(Table2).Thenatureofthelinkagesbetweentheseactorsdefinesvaluecreationalongthechain.Valuechain governancemust provide a framework to establishmutual trust, creating linksleadingtomutualgains.

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Table2:overviewofthedifferentactorsinthevaluechain

Actor ActivitiesFarmers,agriculturallabourers,commoditysuppliers

Foodproduction,foodsupplier

Farmer’sorganisations,cooperatives

Representingfarmersatlocalandnationalpolicylevel,promotinginclusionofsmallholdersinrelatedpolicydialogues,participatingtofarmerorganisationplatformsandnetworkingatdifferentlevels,assuringacloserlinkagetoserviceproviders,providingservicestothefarmingcommunity(e.g.extensionservices,accounting,businessmanagement,financialservices,training,qualitycontrol),participatinginfinancingschemes(e.g.inputcredit,warehousingreceiptsystems,capitalrisk,contractfarming)orasintermediarywithfinancialinstitutions.Participatinginthevaluechainasanaggregator(inclusivebusinessmodels,agri-businessmodels,contractfarmingschemas,PPPartnerships,etc.)

SMEs(smallandmediumscalefarmers)

Responsibleofaggregation,storage,post-harvesthandling(storageandconditioning,qualitycontrol),foodprocessing,packaging,logistics,distribution,marketing,labelling.

Agribusinessesandotherdownstreamoperators(localandforeign),businesspartnerships

Domesticorforeignagrifoodcompaniesestablishingbusinesspartnership(e.g.agrifoodcompanies–smallholder’ssuppliers)amongactorsinordertoachievecommongoals.Thenatureoftherelationshipsrelaysonhowactorsareinvolvedintheexchangeofknowledge,technology,trust,capacitiesandhowrisksandprofitsarebeingshared.Responsibleoffoodagri-processing,storage,packaging,qualitycontrol;conditioning,marketinformationsystems,complyingtoSPSstandardsandindustrialstandards,involvedinfinancialschemas,insuranceproducts.

Distributors(instoresandsupermarkets),wholesalersexporters

Fooddistribution,foodretailing,transport,trade

Consumers(Publicandindividualhouseholds)andconsumergroups

Consumersdeterminewhatattributesneedtobevaluedinordertogainaccesstomarket.

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ServiceprovidersServiceproviders(Table3) includeavarietyofbusinessesprovidingservices tochainactors (smallholdersand farmerscooperatives)aswellas tosecondaryactors (exportcompanies, processing firms, import companies), to add value to the final product. Italsoincludesinputproviders.

Table3:overviewofthedifferentserviceprovidersinvaluechains

ValuechaingovernanceValuechainactorsarelinkedtoeachotherthroughavarietyofformaland/orinformalrelationships.Thesedynamic relationshipsare importantas theydetermine toa largeextent the overall performance of the value chain and the individual returns for eachactor. These in turn determine the interest andmotivation each actor will punt intocontributing to the functioning of the chain.Working on the governance in the chainwouldmeantoencouragedialoguebetweenactorstobuildtrustbetweenstakeholders,creating linkages and strengthening contacts between actors, to develop long-lastingagreements,includingcontracts,whichoffermoreguarantees,amoreeffectiveinclusion

Actor ActivitiesInputproviders Supportingextensionservices,inputs(seeds,seedlings,fertilizer,

chemicals),equipmentTechnicalproviders

Responsiblefortechnicalassistance(production,processing,post-harvesthandling,packaging,handling,marketing,labelling,qualitycontrol),accesstonewtechnologies,servicedelivery,facilitatingmarketlinkages,etc.Providingcapacitybuildingservicesinvaluechaindevelopment(accounting,businessmanagement,financialservices)businessservicesandthecreationofanenablingenvironment.

InternationalFinancialInstitutions&Donors

Providingfinancingschemes:leasing,micro-leasing,tradecredit(creditbyinputsuppliersorbuyerssuchastradersorprocessors),pre-exportcredit,insurancebasedcredit,Riskcapital,subsidies,credit,guarantees,(re)insurance,PPPs,others.

Domesticfinancialsector:Formalprivate/publicbanksandinsurers,CentralBank,microfinance

CentralBankhasaroleasregulatorandisoneoftheinterlocutorsoninnovativefinancingfortheagriculturalsectorDomesticfinancialsectorparticipatesinfinancingmechanismsforfarmers,farmers’cooperatives,andSMEs(e.g.warehousereceiptsystems,smallbusinessfinancingschemesadaptedtoagriculture,supporting“newgeneration”cooperatives,commercialpartners…)Microfinancesupportscredit,savings,insurance,andpayments;offersotherfinancialservicesinruralareasandencouragesfarmerstousemodernICT(e.g.,mobilebanking).

Civilsocietyorganisations,NGOs

Civilsocietyorganisationshaveafacilitatingrole,supportingsmallholdersparticipationinthevaluechainby:• strengtheningcommunity-levelorganizations,identifyingnew

mechanismsofsocialsolidarity;• promotingtheexpansionanddeepeningofarangeoffinancial

servicestopoorruralpeople;• linkingsmallholderstomarket• bringingtogetheractorstonegotiatefairconditionsandimproving

servicedelivery

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ofsmallholdersandabetterdistributionofwealthandpower.LocalSMEscanaddvaluebybeingpartofprocessing,byaccedingdirectlytomarkets,byaccedingto innovativefinancial schemes, bymoving up in the value chain. This jump requiresworkingwithintermediary organisations (e.g. farmers cooperatives, local business organisations).Theseintermediaryorganisationsmayneedinstitutionalorcapacitybuilding.Fosteringthiscapacitycanhavefarreachingeffectsbyenablingfarmersandbusinessestobettercaptureopportunitiesofferedbythemarket(access to inputs,betterprices for tradedproducts,organisingcollectingpoints,storage,packaging,transport)andasameansofempowermentwhere farmers’ demand for quality services is increased and providesareheldaccountable.

QuestionnaireAdifferentquestionnairewassetupforeachcategoryofrespondents.ThesewereCTHTstaff,export/importcompanies,andministryanddevelopmentagencyrepresentatives.The questionnaire for export/import companies was structured into several parts: apartabouttheir interactionwithCTHT,oneaboutcertificationandstandards,andoneaboutcooperationwithsuppliers/producers.ThequestionnaireforthestaffoftheCTHTwasmainlyfocusedonunderstandingwhatservices they offer, who their clients are, how they function within the institutionalframework inMadagascar, andwhat their relationship iswith smallholderproducers.The interviews were conducted with the persons responsible for a specific serviceoffered by the CTHT: production and transformation, laboratory, plant production,training programme, certification and Centre de Transformation et Conservation desProduits(CTCP),andtechnicalassistance.ThequestionnairefortheministryfortheministryofAgricultureaimedtoexploreifanypolicies are in place concerning the development of horticulture. Questions regardingcertification and its effect on horticulture were also included in the questionnaire. Amore in-depth interview with the Direction de Protection des Végétaux (DPV) wasorganisedtogodeeperintothespecificitiesofcertificationinMadagascar.Thereason forusingaquestionnaireasmethodology for this study is that itprovidesqualitativeinformationanditcanbedoneinarelativelyshortperiodoftime.Itisalsousefulasanexploratorytool,whennopreviousnetworkofcontactshasbeensetupanditrequiresnotechnicaltrainingfromtherespondents,anyonecanparticipate.Thegoalof the questionnaire was to gain insightful information in the value chain: how it isstructured,which services are being used/offered and bywhich operators,what rolegovernanceplays.Thedetailedquestionnairescanbefoundintheappendix(Annex1,2,3).

ResultsThis section summarises the answers received to the questions recorded during thevarious questionnaire-based interviews (Annex 1,2,3). The results do not follow theorderofthequestions;relatedanswersaregroupedtogether.AninterviewwasconductedwiththeMinistryofTrade,buttheinterviewdidnotresultin any new insights. The interview merely confirmed what had been said in other

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interviews. Therefore the results will not be presented, but instead have beenincorporatedintheothersections.

SummaryoftheinterviewswithmanagerialstaffoftheCentreTechniqueHorticoledeTamataveCTHTisaninter-professionalassociationoperatingundertheauspicesoftheMinistryofAgriculture. Itoffersseveral typesofservices toavarietyofprivatesectoractors.Themost demanded services are quality control and laboratory analyses. CTHT alsoproduceshighperformingplantmaterial,whichisavailableforsale,aservicethatisnotprovidedbythegovernmentdespitethegenerallypoorqualityofplantmaterialusedbyfarmers.SincethecreationoftheCTHTnurseryitsproductionofperformingseedlingssatisfies thedemandofproducers in the region.Mostof thecompaniesandoperatorsusing thehighperformingplantmaterials areMalagasy. CTHTalsoorganises trainingfor farmers on setting up plant nurseries. Similar training programmes have beenorganisedbyCTHTinothercountries(e.g.SaoTomééPrincipe,NewCaledonia)aspartof projects financed by international donor agencies and NGOs. In the past CTHTengaged in contract farming with nursery farms in the region, providing them withtraining and technical assistance. This activity came to a halt when donor fundingstopped, as it proved too costly for CTHT to continue supporting nurseries andinsufficientlyprofitableforsmallproducerstomanagenurseries.CTHTofferstechnical trainingandfollow-upservices for farmers.This trainingcanbeorganisedindividuallyorcollectively.Trainingprogrammeshavefixedprices.Thepriceis irrespectiveof thenumberofparticipants.Participantsarealsoexpected topay fortransportandlodging.CTHTencouragesfarmerstoorganisethemselvesingroupsofupto20peoplebeforeorganisingthetrainingprogrammesoastoreducecostperperson.The training covers awide rangeof subjects: e.g. theuseof compost forhorticulturalproduction, post-harvest services, transformation and value adding services (e.g.productionoffruitjam).CTHT provides other services such as conditioning of the product (e.g. drying,packaging, sorting), and ensuring compliance with quality and safety norms. CTHThelped setting up cooperatives for farmers in the cashew subsector in the region ofAmbilobe, focusingoncommercialisationandmarketstructuring,andproductquality.Mostofthecompaniesthatmakeuseoftheproduction,transformationandlaboratoryservicesareforeign.Thecostsforproductionandtransformationservicesareverylowincomparisontotheaddedvaluethatiscreated.CTHT has a little shop in which they showcase several products (e.g. fruit jam, fruitjuice) they produce at the Centre de Transformation et Conservation des Produits(CTCP).Theydothistoinformfarmerswhatpossibleproductsthatcanbemadeusingacertain plant or to show that lesser known plants can also be valorised. They havecontractswithsmallproducersforthesupplyofplantproductsfortheproductionoftheshowcased goods. The farmers do not receive a price premium fromCTHT. They selltheirgoodsatmarketprices.ThemainbenefittheyreceivefromworkingwithCTHTisbettertechnicalassistanceandcounselling.

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CTHThasdifferentsourcesoffinancing:paidservices(suchastrainingprogrammesorlaboratory analyses), revenue from the sale of CTHT products, and the treatment ofwoodenpalletsusedforexports(thermaltreatmentandassembly).Before2009CTHTreceivedfundingfrominternationaldonoragencies,suchastheEuropeanUnionandtheFrench Embassy. CTHT has several bilateral research agreements running, for whichtheyreceivefundingfromthepartnerinstitutions(privatecompaniesorpublicresearchinstitutions).Since the political instability in Madagascar following the coup d’état in 2009, CTHTstopped receiving funding from international donors. Prior to 2009 CTHT receivedfunding from international donors to support the development of agriculture in ruralareas. Presently (2016) CTHT receives funding mainly from the private sector. Thislimits their scope in terms of development of particular subsectors of horticulture inMadagascar. It mainly focuses on subsectors that have a high economical value andmuchlessonruraldevelopmentingeneralandonoutreachtosmallfarmers.Thegovernment isnot seenascontributing toan improvedbusinessenvironment forCTHT. Rather it acts as an obstacle to the development of their activities because ofinstitutional instability (e.g. changesofministers) andbecauseofpolicy inconsistencyover time.FurthermoreCTHTclaims it lacksgovernment supporton institutionalandlogistical issues. Water and energy costs are considered too high and poor qualityelectricity service represents a constant headache as it hampers daily operations andexpensivemachinesneedtobeprotectedagainstextremevoltagefluctuations.

SummaryoftheinterviewswithmanagerialstaffofexportcompaniesIntotal5internationalexportcompaniesacceptedtobeinterviewed.Thecompaniesareactiveinthefollowingsubsectors:wildpepper,blackpepper,greenpepper,vanillaandits essential oils, cinnamon, cloves and its essential oils, lychee, pineapple, pinkpeppercorn,curcuma,coffee,cacao.Companynamesandnamesof therepresentativesarekeptconfidentialonrequestoftheinterviewees.AllexportcompaniesstatedmakinguseofCTHT’s laboratoryservices.Otherservicesusedby thecompaniesare technicalexpertise about different plants and production methods, training programmes,transformation and conditioning services, and thermal treatment of pallets. Only onecompany mentioned making use of CTHT’s scientific expertise on subsectordevelopment.ThemainreasonthesecompaniesuseCTHT’sservicesisthatitistheonlyinstitutioninMadagascarwithboththenecessaryequipmentandtechnicalexpertisetocarryouttherequired analyses. Other reasons for choosing CTHT include the organisation’srecognisedscientificandtechnicalexpertiseonvaluechains,itstrustworthiness,anditsgood reputation of professionalism. CTHT is recommended by SGS, a multinationalcompanyspecialisedintesting,verification,inspectionandcertification.Most of the companies stated that demands from overseas clients rather thangovernment regulations or policies influence their interaction with CTHT. Only onecompanystatedthatgovernmentregulationsrequireittocarryoutlaboratoryanalysesfor quality and technical controls (humidity level or eugenol content in cloves forexample) before export. Certain products (cloves, vanilla, coffee, and cacao) require aqualitycontrolcertificateforexports.

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Most companies stated that certification (GlobalGAP, BIO, Equitable) has not creatednewcommercialopportunitiesorincreasedrevenue,butrepresentsamandatorystepinresponsetotheirclients’demandortoretainmarketaccess.ThecompaniesthathaveGlobalGAP certification stated that there isno addedvalue createdby certifying.Onlycompanieswitha“BIO”(organic)certificationstatedthattheyreceiveapricepremiumfortheircertifiedgoods,becausetheysell inanichemarketandbuyersacceptpayinghigherprices.Certificationservicesarenotalwaysneededforexports.This isthecaseforcompaniessellingnicheproductsorcompaniessellingaspecificingredientthatdoesnotrequireaqualitycertificate.Thecostsforcertificationarehighandcanhaveaninfluenceonthedecisionwhetherornottocertify.Severalcompaniesstatedthattheycomplywiththenecessarystandardssetbythecertificates,butthattheyarenotwillingtopaythecostbecauseitistoohigh.ISO certification is stated to be costly, but it can help to structure and simplify themanagementprocess.Most companies reported thatnotonly thecost forcertificationitself is high. It also requires substantial investments in upgrading their facilities andhiringtrainedpersonneltomonitorcompliancewiththeregulations.Tobeabletocomplywithcertainregulationsimposedbycertificationexportcompaniespassalongrequirements to theirsuppliers.Howevermostof themstatedthat theydonot require their suppliers to be certified. This is only the case for organic products(BIO) or when specifically asked for by a client. Only one company reported payingcertificationcosts for their suppliers (forBIO-label).AnotherreportedworkingwithaBIOcertifiedfarmerscooperative,butcertificationhadbeenpaidforbyanNGO.Companies typically work with fixed contracts with their suppliers in which quality,quantity, delivery date, and price are set. These fixed supplier companies are said toensure reliability of supply.The specific conditions that are fixed in the contract varybetween companies. Some reported that quantities and prices are decided at themomentofdeliverybasedonmarketpricesorqualityoftheproduct.Somecompaniesuselong-termcontracts,othersfixcontractsseasonallyorannually.Mostcompaniesstatedworkingwithfarmercooperativesormiddlemen,becausetheyareabletosupplylargerquantities,reducingtransactioncostsfortheexportcompany.Some companies work with smallholder producers because they have the necessarycertification (GlobalGAPorBIO).One company reported it is companypolicy toworkdirectly with producers to assist them in improving their production process. Mostcompaniesreportedtheydonot imposespecificrequirementsonsuppliersotherthanproduct quality. One company offers long-term contracts only to suppliers havingsuccessfully completed a trial period. Another company organises an informationmeetingwithitssupplierspriortothenewagriculturalseasontospecifyandexplaintheconditions for the upcoming season. This global meeting is followed by individualmeetingswiththeoperatorsintheregion.Allcompaniesreportedprovidingservicestotheir suppliers. The most common ones were technical assistance and trainingprogrammes.Onecompanyoffersadvancepaymentstosuppliersandanotherprovidesinfrastructureupgrades(waterpumps).Onecompanyreportedthatitsdecisiontocertifyhashadpositiveresultsupstreamasitresulted in its suppliers achieving higher productivity and producing better quality

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products. Another company, however, reported that production levels have notincreasedovertheyearsandthatproducedquantitiesremainlow.Companies source their products from all over the island. Most goods (cloves, greenpepper,lychee)comefromtheeastcoast,theregionaroundToamasinaandtheregionofAnalanjirofo.Onecompanyobtains itsvanilla from thenortheast region (Sava)andonecompanygetsitsproducts(curcuma,pinkpeppercorn,cinnamon,andotherspices)fromalloverMadagascar,thesupplyregionvaryingbyproduct.All of the companies sell exclusively on the export market. One company sells clovewaste products (powder and low quality buds) on the domestic market, but thisrepresents less than 2% of their total sales. Some companies have partnershipswithimportcompaniesorretailers inEurope.Contractsarenot fixedona long-termbasis.The certified companies stated that certification and auditing is carried out by anindependent third party (CTHT or ECOCERT for example). One company uses aninternalauditstructuretoensurecompliancewithISOstandards.Oneofthecompany’sclients(retailer)organisesauditingfortheRainforestAlliance(2ndpartycertification).

SummaryoftheinterviewswithgovernmentinstitutionsTwo interviewswere conductedwith representatives of government institutions.OnewasconductedwitharepresentativeoftheMinistryforAgricultureandLivestock17andthe otherwith a representative of the Plant Protection Directorate18. TheMinistry ofAgriculturestatedthatthereexistsnospecificpolicyforthedevelopmentofhorticulturein Madagascar. This subsector is included in the general policy for agriculture. Thegovernment, however, does provide support for the development of the horticulturalsubsector for export. This is in usually organised with funding from internationaldonors,suchastheEuropeanUnion,WorldBank,theInternationalFundforAgriculturalDevelopment(IFAD),etc.Certification for sanitaryandphytosanitarynorms isobligatory forplantproducts forexports. These norms are based on the norms established by the IPPC (InternationalPlantProtectionConvention)andtheSPSagreementbytheWorldTradeOrganization(WTO).Thesenormsaretransposedintonationallegislationandareappliedtoallplantproducts.Nodifference ismadebetweendifferent types of operators.Goodsdestinedfor the exportmarket requirepre-export inspectionand certification. ImportedgoodsneedapermitissuedbytheMalagasyauthoritiesandacertificateforphytosanitaryandsanitarynormsfromthecountryoforigin.Certificatescanbeofpublicorprivateorigin.Currently,thereisnodomesticlegislationfororganicproducts.SeveralcertificationorganisationshaveapermanentofficeinMadagascar.Oneexampleis ECOCERT, which carries out audits for organic products annually, for which thereexistsaproceduremanual.Otherorganisationssendteamsonanadhocbasistoauditcompliance with the standards. Auditing is sometimes performed by certifiedindividualsona freelancebasis.Therearecurrently3 laboratories in thecountry thatreceived accreditation from the government to carry out analyses of sanitary norms(residue of pesticides and heavy metals). Each carries out a specific analysis: Centre

17MinistèreauprèsdelaPrésidenceenchargedel’Agricultureetdel’Elevage(MPAE)18DirectiondeProtectiondesVégétaux(DPV)

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National de Recherches sur l’Environnement (CNRE) (pesticide residue), InstitutPasteur(heavymetalsresidue),andtheCTHT(sulphurresidue).Certificates for export products are provided by the Direction de la Protection desVégétaux (DPV). It has 3 departments involved in monitoring. The department forquarantineandbordercontrolcarriesoutthephytosanitarycontrols.Thedepartmentofphytopharmaceuticals monitors phytopharmaceutical products from entry in thecountry until consumption. The department of sanitary and phytosanitary plantprotection,whichmonitorsplantproductionandexportcompanies’infrastructure,andcarries out entomological and phytopathological analyses. Sometimes they cooperatewith a national research institute, FOFIFA19, to conduct additional research if theysuspectthepresenceofanovelpestordisease.Monitoringsanitaryandphytosanitarynormsstartsfromthemomenttheseedsaresown.Phytosanitary certificates are not yet being issued on the basis of these analyses,because the system to monitor compliance is not yet operational. Compliancemonitoringisexpectedtostartduringthesecondhalfof2016.TheDPVreceivesfundingfrom international donors to help set up this system. It also received financing andcapacity-strengtheningsupportfromtheAfricaSolidarityTrustFund(ASTF)andASTFalso provided capacity strengthening in terms of personnel and technology. OtherdonorsincludetheFoodandAgriculturalOrganizationoftheUnitedNations(FAO)andthe Common Market for Eastern and Southern Africa (COMESA). The DPV has alsoorganised training programmes for farmers about sanitary norms with funding frominternationaldonors.Certificates and standards for the domestic differ from those for the internationalmarket.Forthedomesticmarketasetofguidelinesandbestpracticesexists,butisnotalways adhered to by the farmers. Non-processed plant products are not required tohaveaphytosanitaryorsanitarycertificatebeforebeingsoldon thedomesticmarket.Onlyplantseedsandothergeneticmaterialhavetobecertified.Processedfoodshavetohaveacertificatestatingtheyarefitforconsumption,issuedbytheUnitédeContrôledeQualité des Denrées Alimentaires (UCQDA), and a certificate issued by the InstitutNationaldesSciencesetTechniquesNucléaire(INSTN)regardingresiduesofradioactivematerial. Imported goods require the same certificates to be sold on the domesticmarket. Quality control used to be carried out by the Ministry of Trade, but this iscurrently suspended. The mandate for carrying out quality control is expected to betransferredtotheMinistryofAgriculture.AccordingtotheMinistryCTHTstartedoutasaprojectorganisedbytheministrywithsupportfromtheEUandtheCoopérationFrançaise.Nowadaysitactsasanindependentassociation under the tutelage of the Ministry. Cooperation between both parties isactive. Any financing the CTHT receivesmust first be approved by the Ministry. TheMinistry has designated the CTHT laboratory as an official laboratory to carry outquality control and issue certificates forexport companies.TheCTHTreceivedofficialaccreditationbytheMinistryofTradetobecomeacertifiedlaboratory.Thereexistsnocompetition between the CTHT and the Ministry for offering certain services. ArepresentativeoftheMinistrystatedthatitintentionallydelegatedtheseservicestotheCTHT. The CTHT does not request the government to put in place certain standards.19CentreNationaldelaRechercheAppliquéeauDéveloppementRural

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CTHT has been invited by the Bureau des Normes (which is part of the Ministry ofTrade)fortheirtechnicalexpertiseaspartofacommitteecounsellingtheBureau.The Ministry of Agriculture says it does not provide extension services or subsidiesdirectlytofarmers.TheCentredeServicesAgricoles(CSA),whichreceivesfundingfromtheEU,ratherputs farmers incontactwithoperatorswhocouldprovidefarmerswiththenecessaryinputs,technicalassistance,economicalinformationanddiffusionofnewtechniques. The Ministry is aiming to put in place a policy that encourages exportcompanies to work with smallholder farmer and setting up contracts in whichmoretechnicalassistanceandextensionservicesareofferedtosmallholderfarmers.Thegovernmentreceives funds from internationaldonors, suchas theEU,which theyusetoprovideoperatorssuchasNGOsorprofessionalassociations20withsubsidiestoorganisedevelopmentprojectsinsupportofsmallfarmers,tosetupnurseriesforhighquality plant material, quality improving and productivity increasing actions,intensificationofagriculture.Theministry’sinterlocutorgavetheexampleofanurserybeing set up inVatomandry to produce high quality plantmaterial. TheMinistry alsoworkswithNGOstopromoteorganicagriculture.Finally,landaccessforagriculturalproductionisamajorpreoccupationoftheMinistry.Onewaytoobtainatitledeedoralandownershipcertificateissuedatcommunelevelby the “Guichet foncier” is for farmers to add value by cultivating state-held land forinstancebysettingupanursery,aplantationorbyplantingtrees.Thepreciserulestoacquiresuchalandtitlearestillsubjecttodebate.TheinformationobtainedduringtheinterviewswasthenusedtomakeabasicmappingofthehorticulturalvaluechaininMadagascar.Themap(fig.1.)containsavisualisationof the sequence of production and marketing functions performed, the value chainoperators undertaking these operations, and the vertical business links betweenoperators. This represents themicro-level, inwhich the added value is created alongeach step in the chain. This includes the operators (producers, middlemen, exportcompanies, import companies, and retailers) and the actions they perform to createaddedvalue.TheCTHT,asaserviceprovider,isalsoincludedinthemapasameso-leveloperator. The different services CTHT provides are linkedwith the operatorsmakinguseoftheseservices.

20e.g.AgriculteursFrançaisetDéveloppementInternational(AFDI),AssociationIntercooperationMadagascar(AIM)withsupportoftheSwissAgencyforDevelopmentandCooperation(SDC),ComitéNationalepourleCommercialisationdeCafé(CNCC)

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Figure1:visualrepresentationofthehorticulturalvaluechaininMadagascar.Theblueboxrepresentsallactionswherevalueiscreated.Orangeboxrepresentstheactorsinthevaluechain.Greenboxrepresentstheservicesprovidedtoactorsinthechain.Greyboxrepresentsserviceproviders(CTHT).Fulllinesrepresentactionscreatingaddedvalue,dashedlinesrepresentservices.

CentreTechniqueHorticoleTamatave

Exportcompanies

Producers

Importcompanies

Private

individuals

Retailers

Middlem

en

(collectors)

Consum

ers

production

Sale

Export/import

collection

transformation

consum

ption

Production

Technicalassistance

Researchabouteach

subsector

Multiplicationofhigh-

performingplantm

aterial

certificatio

n

Qualitycontrol:

physicochemicalanalyses,

specificproductanalyses

-conditioningandensuring

productcom

pliancewith

internationalstandards

Trainingprogram

mes

Informationabout

newnormsand

standards

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Discussion

CTHT’spositioninhorticulturalvaluechainCTHTplays an important role in thedevelopment of thehorticultural export chain inMadagascar.CTHTistheonlyinstitutionofitskindinMadagascar,thismeansithasadefactomonopolyposition.Theyarethesoleproviderofmanyoftheservicestheyoffer,and the only one to offer this combination of services. Other laboratories exist, butclients prefer the CTHTbecause they have a better reputation, both domestically andabroad,andsomecompaniesdon’ttrustthegovernmentlaboratories.OnecanassumethatwithoutCTHT(orasimilar institution)exportcompanieswouldencountermajorobstaclesinaccessinginternationalmarkets.

CTHT’simpactonsmallfarmersAs argued by Minten & Barrett (2008) the dissemination of agricultural technologycouldhelpimproveproductivityforsmallholderfarmers.CTHTstatedthatitsoutreachto small farmers has declined since 2009. Now there activities are limited to thesubsectorsthatarecommerciallyimportant,forwhichtheyreceivefundingfromprivatecompanies.Theystatedthattheywouldprefertofocusmoreonruraldevelopmentforsmall farmers, but they currently do not have the financial means to develop suchactivities.CTHTwouldliketoconductresearchaboutotherlocalplants,forwhichtherecurrently exist few commercial opportunities. They would like to develop thesesubsectorstodiversifyfarmers’activities.ApossibilitytoincreaseCTHT’soutreachwouldbetoreceivefundingfrominternationaldonor agencies or NGOs. They received a request from theWorld Bank to develop acentreonthewestcoastofMadagascar,buttheydonotpossessthefinancialmeanstoinvest in building a 2nd centre, and the possibility to receive subsidies from thegovernmentdoesnotexist.

CTHTasfacilitatorforexportcompaniesPrivate and public food safety standards are becoming increasingly important fordeveloping countries’ exports (Maertens, Minten & Swinnen, 2009). The interviewedexportcompaniesconfirmedthis,thatnon-compliancewithfoodsafetystandardscouldrestrictaccesstotheinternationalmarket.MaertensandSwinnen(2006)reportedthatnon-compliancewithstandardscouldbecostlyboth in theshortrun, through forgoneexportearnings,andinthelongrun,bydamagingacountry’sreputationanddecreasingexport competitiveness. The export companies furthermore stated that throughacquiringcertificationtheyhavenotgainedaccesstonewmarkets,butitensuredtheirpresenceinthemarket.ThisisinaccordancewithresultsobtainedbyHatanaka,Bain&Busch (2005). Clients of export companies expect them to have certification or theyspecifically demand them to obtain it. Thus far the impact on small farmers has beenrelatively low, because most companies do not expect their suppliers to havecertification (except forGlobalGAPorBIO). Small farmers inMadagascar generallydonot have the financial means to afford certification or to carry out the necessaryinvestments associated with obtaining certification. Therefore export companies arelimited toworkingwith non-certified producers. Producers selling their goods on thedomesticmarketarenotconfrontedwiththesamerequirementsforcertification.

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Therequirementforcertificationbyexportcompanies’clientsexplainsthehighnumberof laboratory analyses carried out at CTHT.Most companies prefer CTHT to nationallaboratories, because it has a better reputation and companies have a higher trust inCTHTthantheydo inthenational laboratories.Therequirementforcertificationisanexampleofverticalcoordination:retailersarepassingspecificationsupstreamto theirsuppliers. Another explanation for the high number of requested analyses is thetechnicalknowledgeaboutvarioussubsectorsthatCTHThasbuiltupovertheyears.CTHTsometimesworksdirectlywithexportcompaniesinthecontextofprojects.CTHTwasofferedtheopportunitybytheUniversityofWageningen,Netherlandstocooperateinaresearchprojectontheproductionofvanillaundergreenhouseconditions.Underthe terms of the project, the university would cover all costs of construction andmaintenance of the facility, and CTHT had to provide a suitable building site. CTHTrecruited aprivate actor to theproject,whichwas able toprovide a suitablebuildingsite. The project is now jointly run by CTHT, Wageningen University, SOPRAL andVanilleb.v.(personalcommunication,www.vanille.eu/vanirana-sarl-madagascar).

GovernanceinthehorticulturalexportchainCTHT does not receive any financial support from the government and it is notspecificallyincludedinanyexistingagriculturalpolicies.Thegovernmentcouldplayanimportantrole,byprovidingsubsidiestoimproveorextendinfrastructureforexample.CTHTreporteditcouldbeabletoexpandorimproveitsservicesoritsreachiftherewasabeneficialfiscalpolicydevelopedbythegovernment,whichgivesCTHTtaxexemptionon import ofmaterials or on investments for example. Currently no such fiscal policyexists.Export companies reported that government policy did not influence or require thecooperationwithCTHT,althoughthereexistsanationalpolicy for thedevelopmentoftheexportsubsectors.CTHTcouldbevitalinimprovingthequalitythroughthetrainingprogrammestheyofferorviathetransformationorvalorisationofprimaryproducts.Thegovernmentdoesnotdirectlyprovidefarmerswithextensionservices.RathertheCentre de Services Agricoles (CSA) only puts farmers in contact with associations orcompanies thatprovideservices.CTHThas thepotential tobemoreefficient than theCSA because they work directly with farmers or cooperatives to provide them withtrainingandtechnicalassistance.ThisrolecouldbetakenupbytheCTHT,whoalreadyhavetechnicalandscientificexpertiseaboutthedifferentsubsectorsinMadagascar.thegovernmentcouldmakecertificationmandatoryforallexportproducts.Thiscouldhaveapositiveeffectonproductquality.ItcouldleadtoincreasedrevenueforCTHTbecauseoftheadditionalopportunitiesforqualitycontrol,whichinturncouldenhanceCTHT’soutreach.

ObstaclesforexportcompaniesThere is vertical coordination in the horticultural export chain in Madagascar. Spot-market transactions still exist, but most companies use modern supply chains. Thecompaniesuse fixed, long-termcontracts to ensure a reliable supplyof quality goods.Some of them reported passing on certification requirements to their suppliers orproviding them with extension services, such as technical assistance, trainingprogrammes,oradvancepayments.Usuallytheonlyconditionthatbuyerssetisthatthe

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productisofsufficientlyhighquality.Contractsrarelyincludespecificationsonspecificonprocessattributesortraceabilityoftheproduct.Anexplanationforthiscouldbethattherearealargeamountofsellersforarelativelysmallamountofbuyers.Ifonebuyerrejectsalot,thesellercansimplymoveontoabuyerthathaslessstringentconditions.Most companies stated theyprefer toworkwithmiddlemen insteadof small farmers,becausemiddlemenareabletoprovidelargerquantities.Thiscouldexcludesmallholderfarmers from the supply chain, many authors argue that this is the case (Maertens,Minten&Swinnen,2009).Onlya fewcompanieshavefixedcontractswithretailersorimport companies, demonstrating that coordination existsmainly between producersandexportcompanies.

ImpactofcertificationonqualityMost respondents stated that they did not notice an improvement in quality over theyears.Thereasonstheypositedwerehighproductprices,whichencouragepeoplewhohave no former experience in the production of horticultural products to engage inhorticulture. This leads to a drop in overall quality due to the lack of technicalknowledge and experience of these “novel farmers” have. The phenomenon of sellinghorticulturalproductsthat(willinglyornot)includewastematerialorforeignmaterialssuchasironscrapings(incloves)ortreebark(incinnamon)alsoleadstoadecreaseinquality.ThisleadstoadeclineinthereputationofMalagasyhorticulturalgoods,whichare usually sold as a high-quality product in niche markets in developed countries(mostlyEU).Mostoperatorsactiveintheclovevaluechainstatedthattheynoticedanimprovementinclovequalitysincethemandatoryqualitycontrolwasputinplace.

ConclusionThe Centre TechniqueHorticole de Tamatave plays a vital role in quality control andcertification for horticultural export companies in Madagascar. Without CTHT exportcompanies’ opportunities to access international markets, which have increasinglystringent safety and quality standards, would be limited. Furthermore it plays animportant role in the horticultural sector in general. It provides both producers andexportcompanieswithtrainingprogrammesandtechnicalassistance.CurrentlyCTHTislimited in their outreach due to limitations in their financial means. CTHT has thepotentialtohaveanevenlargerimpactforsmallholderproducersintheregioniftheywere to receive additional financial support from the government or internationaldevelopmentactors.Accordingto the interviewedcompanies themorestringentcertificationrequirementsand increased safety and quality standards for international trade in agriculturalproducts has contributed only marginally to improve product quality in Madagascar.Obtainingcertificationdidnotresultinbetterpricesorinincreasedrevenuesforexportcompanies.OnlyBIO-certifiedcompaniesreportedanincreaseinrevenue,becausetheyare able to sell BIO-certified products at higher prices than non-certified products.Certificationcostsarehighandarethereforeoneoftheparameterscompaniestakeintoaccountwhendecidingtopursuecertification.Companiesobtaincertificationtoretainmarket access. Certification has not necessarily created new market opportunities,rathernon-complianceactsanentrybarriertomarketsindevelopedcountries.

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Most of the export companies use contract farming as ameans of ensuring a reliablesupply of horticultural products. They do this because there are no producers thatproduceatanindustrialscaleandthusthecompaniesarerequiredtoworkwithsmallerproducers. The contracting companies provide growerswith technical assistance andother inputs, which can have a positive impact on productivity of subsistence goods(Minten,Randrianason&Swinnen,2009).Suggestions for future research include a more in-depth analysis of the horticulturalchainbyincludinghouseholdsurveyswithsmallproducerstoanalysetheeffectoftheinteractionsontheproducerlevel.Anin-depthanalysisoftheeffectsoftheagriculturaldevelopmentpolicyinMadagascaronthehorticulturalexportsectorcouldalsoprovideusefulinformationaboutthehorticulturalvaluechain.

AcknowledgementsJe voudrais remercierMichel Jahiel dem’avoir accompagné, conseillé et logé pendantmonséjouràTamatave.JevoudraisaussiremerciertouslesexpertsduCTHTpourlesinformations que j’ai reçues et pour l’accueil chaleureux qui m’a été réservé. Mesremerciementsvontégalementauxreprésentantsdesentreprisesexportatricesavecquij’ai eu l’occasiondem’entretenir. Je tiens également à remercier les représentants duMinistèrede l’Agricultureetde l’Élevage, leMinistèredeCommerce,et leDirectiondeProtectiondesVégétauxdem’avoir aider àmieux comprendre les rôles et les actionsrespectifs desministères. Enfin, je souhaite remercierBernadette, Georgine etRolandd’avoirrendumonséjouràMadagascarleplusfacileetagréablepossible.IwouldalsoliketothankmydadforsupportingmeduringmystayinMadagascarandforreviewingthefirstdrafts.Iwouldalsoliketothankmymumandmysisterfortheirsupport.IwouldalsoliketothankUtahforsupportingmeduringmythesisandforherbeliefinmywork,evenwhenIhaddoubtsaboutit.

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2. Bignebat,C.,&Vagneron,I.(2011).Cross-bordercoordinationintheMadagascar-EUlycheechain:theroleofGlobalGAP(No.201106).UMRMOISA:Marchés,Organisations,InstitutionsetStratégiesd'Acteurs:CIHEAM-IAMM,CIRAD,INRA,MontpellierSupAgro,IRD-Montpellier,France.

3. Chemnitz,C.,Grethe,H.,&Kleinwechter,U.(2007,October).QualityStandardsforFoodProducts-AParticularBurdenforSmallProducersinDevelopingCountries?.InEuropeanAssociationofAgriculturalEconomistsConference,Montpellier,France.

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7. Henson,S.,Masakure,O.,&Cranfield,J.(2011).Dofreshproduceexportersinsub-SaharanAfricabenefitfromGlobalGAPcertification?.WorldDevelopment,39(3),375-386.

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11. Maertens,M.,Minten,B.,&Swinnen,J.F.(2009).Growthinhigh-valueexportmarketsinSub-SaharanAfricaanditsdevelopmentimplications.

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16. Subervie,J.,&Vagneron,I.(2013).AdropofwaterintheIndianOcean?TheimpactofGlobalGapcertificationonlycheefarmersinMadagascar.WorldDevelopment,50,57-73.

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17. Swinnen,J.F.(Ed.).(2007).Globalsupplychains,standardsandthepoor:howtheglobalizationoffoodsystemsandstandardsaffectsruraldevelopmentandpoverty.Cabi.

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AppendixAnnex1:questionnaireforCTHT

1. QuelestlestatutjuridiqueduCTHT?2. QuelssontlesservicesoffertsparCTHT?3. QuisontlesclientsduCTHT?4. Est-cequeleCTHTtravailleseulementavecdesentreprisesmalgaches?5. QuellessontlessourcesdefinancementduCTHT?6. Est-cequeleCTHToffrecertificationauxproducteursindividuelsouseulement

auxentreprisesouauxassociationsprofessionnelles/coopératives?7. Est-cequelesservicesdecertificationoffertsparCTHTsontaccessiblesen

termesdecoûtsauxpetitsproducteurs?Ya-t-ilunedemandedelapartdespetitsproducteurs?

8. Est-cequelavaleurajoutéegénéréeparlesservicesdetransformationdeproduitsalimentairesestsuffisantepourcouvrirlecoûtdeceservice?Est-cequeçadépendduproduit?Avez-vousdesexemplesconcrets?

9. Avez-vousunmandatd’organismedecertificationdugouvernement?10. Est-cequeleCTHTremplacelegouvernemententermedeprovisiondes

services?11. Est-cequeleCTHTinfluencelegouvernementàmettreenplacecertains

règlements?(normesdequalitéoudesécuritéalimentaire)12. Est-cequ’ilyaunecoopérationformelleentreleCTHTetleministèredu

Commerce,del’agricultureoudel‘industrie?(PrivatePublicPartnership,ouprotocoledecollaboration,rédactiondesnouvellesnormes/standards)

13. Est-cequ’ilexistedesrèglementations/procéduresnationalesquicréentdesopportunitéspourCTHTdanssesopérations?parexempleobligationdecertificationpourpouvoirvendreauxmarchéslocaux

14. CommentCTHTprocède-t-ilpourresteraucourantdespublicationsdenouvellesnormes(nationalesetinternationales)?ParquelscanauxCTHTeninformesesclientsenlesentreprisesconcernéesetcommentCTHTlesintègre-t-ildanssonoffredeservicesauxentreprises?

15. Est-cequelacertificationdequalitéouvrel’accèsàd’autresmarchés,lesquels?(locaux,exportation,paysdedestination)

16. Ya-t-iluneinstabilitéinstitutionnelleoupolitiquequiimpactelesopérationsetlefonctionnementduCTHT:quelssontlesobstaclesrencontréparCTHTdanssesopérationsetsonrôled’organismedecertification,decontrôledequalitéoud’accompagnementd’entreprises?

17. Est-cequ’ilyaunedifférencedanslademandedescertificats?Quelssontlesplusdemandésetpourquoi?

Annex2:questionnaireforexportcompaniesGénéral

1. Est-cequevousfaitesd’autresformesd’agriculturequel’horticulture?2. Est-cequevotreentrepriseestactivedansd’autresdomainesquel’horticulture?

CTHT3. Est-cequevousavezdéjàtravailléavecleCTHT?

42

4. Sinon,est-cequevousavezdéjàtravailléavecuneinstitutionsimilairepourlacertificationdevosproduits?

5. QuellesétaientvosprincipalesraisonspourtravailleravecleCTHT?6. QuelsservicesduCTHTavezvousutilisés?7. Est-cequevotreexpérienceavecleCTHTainfluencélapolitiquedel’entreprise

danscesautresdomaines?8. Est-ceavantageuxd’utiliserlesservicesdetransformationpost-récolteduCTHT?9. Est-cequevousavezutilisélesformationsoffertesparleCTHT?10. Est-cequelapolitiquedugouvernementimpactevotreinteractionavecleCTHT?

Certification11. Est-cequelamiseenplacedelacertificationaaméliorévosopportunités

commerciales?12. Est-cequel’absencedecertificationentravel’entréesurlesmarchés

internationaux?13. Quelsproduitsavez-vousfaitcertifier?14. Est-cequelesavantagesdelacertificationl’emportentsurlescoûts?15. Est-cequelacertificationestuncoûtimportant?Est-cequeçaainfluencéla

décisiondecertifier?16. Existe-t-ilunecertificationpourdesgroupementsdeproducteurs

(coopératives)?Certifiez-vouslesproduitsd’agriculteurssous-traitants?17. Est-cequevousdemandezauxagriculteursavecquivoustravaillezd’avoirune

certification?18. Est-cequevousfournissezdescertificationspourdesgrandsagriculteursoudes

grosindustriels?19. Est-cequel’utilisationdelacertificationestpousséeparlademandeouest-ce

quec’estvucommeuneopportunitécommerciale?20. Est-cequelegouvernementimposel’utilisationdecertificats?21. Est-cequelacertificationapermisl’entréesurdenouveauxmarchésenlevant

desbarrièresnon-tarifaires?22. Est-cequelesprixdeventessontplusélevéspourdesproduitscertifiésquepour

desproduitsnon-certifiés?Est-cequ’ilsgénèrentunrevenuplusélevé?23. Est-cevousavezdûfairedegrosinvestissementdansl’infrastructurepour

pouvoirrespecterlesrèglementationsimposéesparlacertification?Coopérationavecproducteurs/vendeurs

24. Est-cequevosdécisionsaffectentdesopérateursenamontdanslachaîneàvaleur?

25. Avezvousdescontratsavecdespetitsproducteurs,oubienavecdesplantationsàéchelleindustrielle,ouunmélangedesdeux?

26. Pourquoiest-cequevousavezchoisicettestratégie?27. Est-cequevousfournissezdesservicesagricolesannexespourlespetits

producteurscontractants?28. Est-cequevousimposezdesconditionsauxpetitsproducteursavantdetravailler

avecvous?29. Quelestvotresecteurgéographiquedesélectiondesproduits?30. Surquelsmarchésvendezvous:lemarchélocaltraditionnel,lemarchéurbain

moderne,oulemarchéd’exportation?31. Est-cequevousavezdescontratsfixesavecdesimportateurs(enEuropepar

exemple)oudesdétaillantsquiobligentàavoirunecertification?

43

Normesdomestiques32. Est-cequ’ilyadesexigencesdequalitéoudesécuritédomestique?33. Est-cequ’ilyaunedifférenceentermesd’exigenceenfonctiondesproduits?34. Est-cequ’ilyaeuuneévolutiondelacertificationdepremière,secondeettierce

partie?

QuestionnairefortheMinistryofAgricultureandLivestock

1) Est-cequelacertificationestobligatoirepourpouvoirexporter?Pourquelsproduits?Pourquelstypesd'entreprises(toutes,PME,certainsproduits,etc.)

2) Est-cequecesontdescertificatsémispardesinstancespubliquesouprivées?3) Est-cequecesontdescertificatsMalagasyouinternationaux?4) Commentcescertificatssont-ilsémis,surbasedequeltype

d'analyse/procédure?Quisontlesorganisationsimpliquées?5) Est-cequ’ilyaunepolitiquemiseenplacepourledéveloppementd’horticulture

àMadagascar?6) QuelssontlesliensentreleministèreetleCTHT?Y-a-t-ilunecoopérationactive,

desréunionsdetravail,uneformalisationdecettecoopérationparuncontrat?7) Est-cequeleCTHTestmandatéparlegouvernementàoffrircertainsservices?8) Est-cequ’ilyunecompétitionentrelegouvernementetleCTHTpources

services?9) Est-cequeleCTHTpeutetadéjàproposédemettreenplacecertainesnormes?

Quiestresponsableetcommentsefaitlacoordinationentrelesministèresimpliqués?

10) Est-cequ'ilyaunecertificationpourlemarchénational?Est-cequec'estdemandéparlesecteurprivéetlesconsommateurs?Sioui,est-cequ'elleestdifférentedecellepourlemarchéinternational?

11) Quelsservicespublicsfournissentdesservicesagricolesauxpetitsproducteurs/exportateurs?(Ministèredel'agriculture,quellesdivisions;ministèredel'industrie;ministèreducommerce;institutionsderechercheFOFIFA,etc.)

12) Est-cequelegouvernementdisposedesubventionsouautresaidesouservicesauxproducteurspourencouragerledéveloppementdel’horticulture?

13) Est-cequelegouvernementpourraitmettreàdispositiondesterrainsdeculturespourlaproductiondesplantsperformants?

14) Quellessontlesconditionssanitairesetdequalitéauxquelleslespetitsproducteursdoiventseconformerpourlemarchélocaletpourl'exportation?Quelssontlesorganismesdecontrôle?Sont-ilsréellementopérationnels?

15) Est-cequevoustravaillezavecdesbailleursdefondsoudesONGdanslecadredudéveloppementrurale/agricole?

16) Est-cequ’ilyaunepolitiquegouvernementalequiencouragelesexportateursdetravailleraveclespetitsproducteurs?