An expanding array of compliance regulations is emerging in global markets. As these measures become enforceable for buying organisations in those markets, they are likely to cascade through the supply chain to South African producers, packhouses, and suppliers, delegates heard at the Sustainability Initiative of South Africa (SIZA) Conference in Paarl, Western Cape, on 19 August.
“What you may not appreciate is the sheer volume of regulations that are emerging in the EU, UK, and US that are putting pressure on your end customer to demonstrate compliance,” Ian Spaulding, CEO of LRQA, told delegates.
“What may start out as applicable to very large companies eventually rolls out to smaller companies. Big retailers are often the first, and mid-sized and smaller retailers and brands follow later with some of those requirements.”
Spaulding identified responsible sourcing, environmental traceability, food safety assurance, and due diligence as key issues. These are reflected in measures such as the EU Corporate Sustainability Due Diligence Directive, the EU Deforestation Regulation, the German Supply Chain Due Diligence Act, and the French Duty of Vigilance Law.
He added that regulations addressing forced labour and modern slavery were also gaining momentum in these regions and Australia, and they included the EU Forced Labour Regulation and the US Uyghur Forced Labor Prevention Act. US Customs and Border Protection could also issue Withhold Release Orders to hold goods suspected of being linked to forced labour.
Mariette Kotzé, Hortgro’s general manager for industry support services, said the South African fruit industry was well placed to respond to the changing regulatory environment.
“The vast amount of new regulations that are coming, especially from the EU and UK, is quite daunting,” she told Farmer’s Weekly.
“However, the South African fruit industry generally has a very high level of social and environmental compliance. The industry is already shifting towards continuous improvement and embedding policy in everyday behaviour.”
Kotzé explained that many of the requirements being introduced globally had already been addressed through elements of SIZA’s Social and Environmental Standards, including initiatives covering workers’ rights and due diligence.
“What is important is that compliance is no longer viewed as a burden but as a competitive advantage within the South African fruit industry. Demonstrating compliance and continuous improvement through a globally recognised standard such as SIZA can help producers secure market access while contributing to transformation goals in South Africa,” she said.
SIZA also helps avoid the cost of multiple audits by providing one social and one environmental standard that are accepted by a variety of buyers around the world.
“This carries a cost implication for farmers, with the aim of lowering risks for all involved in the value chain,” Kotzé concluded.
