Exports to the EU from India and Thailand have come under the microscope of late. Thailand is at risk of losing access for key vegetable categories if it cannot stamp out persistent pest and residue breaches. Meanwhile, Indian grape exports are facing an unprecedented level of testing in the wake of last year’s Chlormequat Chloride (CCC) residue issue. These tougher controls have combined with other factors to cause a dramatic drop in Indian grape exports to the EU this year. And questions hang over the future of exports to the EU for both countries as more hassle-free and hungry markets emerge closer to home.
In India’s case, the EU’s stance in sticking to a default maximum residue limit (MRL) for CCC that is many times lower than what the European Food Safety Authority deems a health risk has drawn fire from some Indian suppliers who argue such MRLs are unscientific and unfair. Suppliers’ frustration with tough EU standards also stems from the amount of testing they are faced with this year, and the inflated cost of that, when the returns from this market have been falling. But such costs should come down next year as the initial outlay on the requisite systems has been made and the testing will become more risk-based. One of the key lessons of the CCC incident for farmers has been that they don’t actually need to use the growth hormone, which also highlights the need for better advice on, and selection of, inputs at farm level. In Thailand’s case, the government is tightening controls on exporters, but the potential ban has also led it to look more closely at farm practices, an area overdue for attention.
EU authorities are not immune from scrutiny. They need to defend their legislation, as some MRLs appear to be set out of proportion with food safety risks. EU retailers are also pressuring suppliers to eradicate residues amid consumer paranoia over food safety, but they and their governments must do more to educate consumers and counter the negative publicity from NGOs that has an unhealthy grip on the media. Placing unrealistic demands on suppliers will only raise the threat of EU markets losing out on product to emerging markets elsewhere in the world.
But there is a word of caution too for those suppliers looking to Asian markets largely as ‘soft options’. These countries’ standards are also set to become more stringent over the next few years as governments and retailers step up their focus on food safety, so any gains may be short-term.
