Growth in standards uptake depends on delivering more value to producers and looking at ways to practically reduce the costs of certification.
The business case for joining a standards programme or becoming certified is not always clear especially if you are a small farmer or enterprise. The costs of certification can be high – there is the direct cost of the audit as well as the investments in infrastructure, training and management systems to become certified.
These costs need to be weighed up against the financial benefits that standards offer. Premiums, improved market access and reduced production costs are some of the benefits listed. However, for many producers these benefits are not always fully realised causing them to question whether standards and certification make sense for their business.
This challenge is recognised by standards systems and a number of ISEAL members and partners are critically looking at how they can deliver more value to producers either through reducing the cost of becoming certified or increasing the market value of certification. Innovations include:
- Customising their offer and services to better meet producer needs;
- Strengthening the benefits of standards and certification through creating additional value streams ranging from payment for environmental services to the packaging of data;
- Building partnerships with traders and financial service providers to improve access to credit;
- Strengthening standards requirements around living income and wage;
- Experiment with sector alignment that promotes interoperability across sustainability tools