Code of Conducts

TAS Department

Marketing Department

Partners & Collaboration

Regulations

Code of Conduct

Code of Conduct Establishment Establishment Objectives Objectives Strategies Strategies Handling Facilities Handling Facilities Org. Structure Org. Structure H.C.D.A Policy H.C.D.A Policy Stakeholders' Role Stakeholders' Role Code of Conduct Code of Conduct Annual Reports Annual Reports Market Information Market Information Publications Publications Bills & Acts Bills & Acts Other Documents Other Documents.

Introduction

The Code of Conduct is an agreement between the "Buyer" of fresh horticultural produce and the "Seller" or grower of the produce. Buyers will typically be exporters and/or processors of fresh horticultural produce; sellers, for the purpose of this agreement, are individual growers, or schemes which have been developed to benefit groups of small landholders in the horticultural production business.

Aims and Objectives

To act as a memorandum of understanding between the buyer and the seller of fresh horticultural produce.
To serve as a guideline for the buyer and the seller in order to conduct good business practices which will be mutually beneficial and help promote the well being of the horticultural industry in Kenya
To act as a guideline or framework to development of a legally binding contract to be executed by the buyer and the seller

Obligations

Seller's Obligations

Farmers should be organized into well managed groups and be registered with the Ministry of Culture and Social Services or any other authority.

Farmers should be organized into well managed groups and be registered with the Ministry of Culture and Social Services or any other authority.

Specific outgrower groups should relate to specific buyers under a contract. (Appendix 4: Legal Notice No. 231 Cap 318 Par. 6 (1).a)
Farmers to request for training on any aspect that deals with quality control as need arises; examples are outlined below:

Training on safe and effective use of pesticides (G.I.F.A.P, M.O.A, H.C.D.A,P,C.A.K, individual chemical companies)
Proper record keeping and analysis of production costs regular soil testing and the awareness of other testing centres apart from KARI (e.g. Mea Ltd, Del Monte and other private companies)
Leadership, group management and administrative training
Procurement and use of appropriate certified inputs
Training in production technology
Awareness of need for cold-chain from collection point to export market
Employees welfare

Buyer's Obligations

Specific exporters/processors to relate to specific outgrower groups under a contract (Appendix 4: Legal Notice No. 231 Cap 318 Par. 6(1)a).

Buyer's Obligations

Specific exporters/processors to relate to specific outgrower groups under a contract (Appendix 4: Legal Notice No. 231 Cap 318 Par. 6(1)a)

Provide reasonable extension services
Exporters/processors/others should try and relate directly to their outgrowers (and not allow their workers to appear like they are the owners of the company).
Exporters/processors/others should respect each other and not try tand poach from areas that other exporters/processors have developed schemes (Business Ethics). [see Appendix 4: Legal Notice No. 231 Cap. 318 Par. 9.i]
Exporters/processors/others should endeavour to establish means and ways of financing their groups e.g. through existing programmes-KREP, EDF etc and also try and encourage groups' self financing.

Dual Obligations

Both parties should be loyal to each other in the spirit and terms of the contract.
Both parties should have mutual co-existence.
Both parties should involve when drawing up contracts.
Both parties should have knowledge effective use of pesticides.

MOA, H.C.D.A & Other NGO's Obligations

MOA as a witness will ensure. that all parties abide to the contract regulations and provide sufficient support to both parties.
H.C.D.A as a witness will monitor the activities of both parties under the Legal Notice Number 231 cited as the
H.C.D.A (Export) Order 1995 (see Appendix 4).
Other NGOs working directly or indirectly with horticultural farmers will collaborate with MOA,
H.C.D.A, and the local administration in guiding both sellers and buyers.

CONTRACT GUIDELINE

Exporters and Outgrower groups shall engage in the execution of a contract before conducting business. A contract must include specific terms and conditions of payment, responsibilities for production, handling and collection of produce, and any other essential elements which will create a clear understanding of obligations of both the buyer and the seller.

ESSENTIAL ELEMENTS OF THE CONTRACT SHOULD INCLUDE

Quantity and quality of produce to be supplied.
The contract should specify the quantity in either boxes/cartons /crates or kilos over a period of time, supplied from a certain production area. A schedule of prices shall be identified for differentials in quality. Contract shall specify a minimum quantity of produce to be provided by seller (i.e. quantity below which no collection will be effected). Seller and buyer agree to produce and market high quality levels of produce and further specify levels of quality for produce that must be delivered by groups. The KBS standards, NRI manual for horticultural export quality assurance, ancr-any other requirement by specific importers should be used as referral guidelines for acceptable quality levels.

Seed and Other Inputs.

Buyer and seller agree upon who is responsible for supplying high quality certified seeds/planting materials to the grower. ( Appendix 4 : Legal Notice No. 231 Cap 318 Par. 6b) .If buyer requires the use of certified
seeds/planting materials by the seller, it must be specified in the contract. (Unauthorized reproduction of seeds/planting materials is prohibited.) Contract must address which party will be responsible for supplying and
applying other inputs such as fertilizer and pesticides. Terms and conditions for purchase, sale of inputs must be included within the contract. Individual growers, groups, organizations and/or their members will be responsible to cover all obligations to buyers who supply inputs.

Generally Accepted Production Practices.

Sellers shall agree to undertake production practices and procedures which are necessary and conducive to producing highest quality produce whether for fresh export markets, processed markets (canned, frozen, etc.) or local markets. Such practices include use of approved pesticides [see
Appendix 1 and Appendix 4: Legal Notice No.231 Cap 318 Par.6(1)], proper application of pesticides according to the labels of the manufacturers, (see Appendix 2) and the use and proper application of fertilizers which are recommended for the type of produce to be grown. Where applicable, buyers and sellers agree to co-operate in random testing of produce for the purpose of detection of pesticide residues. (Appendix 3)

Record Keeping.

In order to ensure product safety, highest quality levels, full traceability and accountability, buyer and seller shall agree on a complete record keeping system for production and handling of produce.
Minimum requirements for record keeping should include:

Identification of previous crop
Type of seed used, treatment of seed
Date of planting
Herbicide applications: date and rate
Pesticide applications: product, date, rate, weather

Conditions.

Irrigation dates and quantities
Harvesting: dates and weather conditions
Field Support and Training.

Sellers should be provided with sufficient training on group administration, proper production, handling and grading techniques on a periodic basis. Where appropriate, the buyer shall work in conjunction with M.O.A, K.A.RI., H.C.D.A, and any other relevant agencies, in order to ensure achievement of highest quality levels and contract
performance.

Harvesting and post-Harvest Practices.

Seller should agree to undertake acceptable management practices for harvesting and handling of produce which will ensure high quality levels. Use of clean (plastic) containers, protection of produce from heat and direct sunlight, maintenance of hygienic conditions, use of clean water for washing of produce, are among practices to be followed.

Inspection and Grading.

Buyer and seller shall agree and specify responsibilities for inspection and grading of produce; when and where these activities will occur (e.g. upon collection); type of documents to be executed upon collection/ delivery;
determination of when title and responsibility of goods pass from the seller to the buyer.

Packaging Supply and Procedures.

Contract should specify which party is obligated to supply packaging materials and the acceptable conditions of the package on collection. Packing procedures such as condition and quantity of produce, grade and type of produce, placement and orientation within a container, should also
be made clear.

Conditions of collection and/or delivery.

The contract should indicate specific collection periods of produce (time and year); conditions should be specified for events of non-collection. If buyer fails to collect at specified time, he will be obligated to purchase produce. However, seller should be obligated to hold produce for maximum period (i.e. 24 hours) beyond the collection deadline at the expense of the buyer. This will enable the buyer to salvage any marketable produce and prevent "poaching". In case of shortages and excesses in production under a quantity contract buyer and seller should agree upon a tolerance level (+/-10%)that is acceptable to both parties.

Middlemen and Other Intermediaries.

Both parties agree not to engage in any. transactions with any other individuals or intermediaries which involve the produce under contract. [Appendix 4: Legal Notice No. 231 Cap 318 par. 6 (1) d)]

Multiple Contracts.

Multiple contracts are discouraged with more than one processor/ exporter. However, in the event a grower or group is contracted with more than one exporter/processor as signatories to this Code, growers and exporters/processors agree to refrain from unscrupulous business practices which could disadvantage any of the parties. [Appendix Legal Notice No. 231 Cap 318 Par. 9(1)]

Rejected Produce.

Point of rejection of produce should be agreed upon in the contract. If the produce is rejected by the buyer, conditions for the return of the produce to the seller should be specified in the contract. Any agreeable means of.
disposal should be specified However produce for which a delivery has been accepted by the buyer cannot be returned to the growers. [Appendix: 4 Legal Notice No. 231 Cap 318 Par. 6 (l)e]

Payment Terms and Mechanism.

Contracting parties agree to establish payment terms which are acceptable to buyer and seller, ,.and to establish a mechanism of payment to sellers which' will allow for safe and timely transfer of funds.

Penalties.

This should be specified in the contract .e.g compensation should be applied to either party as a result of failure to abide with the laid down regulations of the contract.

Duration of Contract.

Duration and maturity of contract should be specified by indicating number of months from contract execution or a specific time interval.

Termination Clause.

Conditions for termination must be indicated i.e., a written notice of termination within a reasonable period which should be equivalent to a full production and marketing cycle of the produce.

Natural Calamities and Non-Commercial Risks.

In the event of natural calamities (such as floods, hail, earthquakes etc.) and non-commercial risks (such as war, insurrection, national labour strikes) the affected party(s) should be held harmless for non-performance.

APPENDIX 1
LIST OF BANNED/RESTRICTED PESTICIDES
KENYA.

Dibromochloroproprane.
Ethylene Dibromide
Chlordimiform
Lindane (pure gamma) insecticide restricted to seed dressing only
Chlordane
Heptachlor
Endrin
Aldrin for termite control in building industry
Dieldrin
Toxaphene(Camphechlor)
D.D.T used for public health for mosquito control
2,4,5,-T
Mixture of isomers of Hexachlorocyclohexane(HCH)

The above 1-13 were banned in 1986.

Captafol banned in 1989
Parathion(Methyl and Parathion Ethyl) banned in 1988
Daminozide (Alar)plant growth regulator for use in fruits withdrawn.
Cyhexatin(Plictran) acaricide-withdrawn

Noted below are those banned in Europe,in addition to the Kenya banned substances

Alkoxyalkyl and aryl mercury compounds
Mercuric oxide
Mercurous chloride
Other inorganic mercury compounds
Alkyl mercury compounds
Hexachlorobenzene
Ethylene oxide
Nitrofen
1,2-dibromeohthene
1,2-dichloroethane
Dinoseb
Binapacryl
Dicofol containing less than 78% of pp-dicofol or more than 1g/kg DDT and DDT related compounds.
Maleic hydrazide and its salts other than its chlorine, potassium or sodium salts.
Chlorine/potassium and sodium salts of maleic hydrazide containing more than 1mg/kg.
Free hydrazine expressed on the basis of the acid equivalent.
Quintozene containing more than 19/kg of HCB or more than I kg pentachlorobenzene.

APPENDIX 2

CROP PROTECTION STRATEGY
Pest control is vital in any farming system, if yield, quality and profit are to be maintained. Reduction of chemical

Pest control is vital in any farming system, if yield, quality and profit are to be maintained.
Reduction of chemical inputs is usually possible by evaluation of all available options and use of
appropriate measures. However, it is the nature and size of the problem that dictate the solution.

Identification of problem

Management strategies to keep pest levels below economically damaging thresholds should be devised using the most appropriate combination of biological,cultural,mechanical and chemical methods. They would be based on a thorough evaluation of the situation, taking into account;

Previous experience of pest incidence and crop susceptibility
Weather
Regular crop inspection to identify and assess pest levels.
Use of established pest thresholds.
Trapping of pests where appropriate.
Employment of field scouts competent in such duties by training or experience.
Where necessary, laboratory diagnosis.

Implementing a control strategy

The presence of pests is inevitable and control should be achieved by an integrated strategy. Consequently as part of possible approach, a longer term strategy for pest control
should be drawn up for each crop including:-

Past history of pest infestation.
Identification of main pest threats.
Understanding and implementation where possible of non-chemical options, encompassing rotations, crop hygiene,
resistant varieties cultural control and biological control.
Understanding that establishment of healthy crops reduces the need for spray and over application of nitrogen can
render crops more susceptible to disease.
Where a chemical option is chosen:-
No banned products should be used. (Appendix I).
Only products approved for the job are used.
Pesticides are used in accordance with manufacturers instructions.
Pesticides are chosen to avoid reliance and continued use of any one single chemical. where a choice exists, choose a product which will be safer to handle, and have least environmental impact.
The application of the chemical should be as efficient as possible, both in timeliness and in targeting.

Approved harvest intervals must be adhered to for this purpose. The safety precautions recommended by the manufacturer for the handling of the product must be' observed during re-packing. The containers must be securely closed and properly labelled, ideally with the original product label, but' failing that, with an accurate copy. The product should be used up as soon as possible.

APPLICATION AND DISPOSAL OF PESTICIDES
Preparing for spraying

Spray operators must be suitably instructed, trained and supplied with appropriate equipment to carry out the application. He must be provided with personal protective equipment (PPE) that will adequately control exposure. Further, operators must know what action to take in the event of a failure or breakdown of the equipment in his charge.

Operational Controls

The work should be organized to minimize exposure to both concentrates and diluted spray liquids. Spray application machinery and implements should be well maintained and serviced to avoid the need for repairs during actual spraying operations. Regular calibration of spray shipment is the simplest and most immediate method to highlight nozzle wear and other imperfections in the spray system. This will also prevent uneven application overdosing, of crops. Check quality/cleanliness of water used as most problems with sprayers can be traced to foreign materials in the water. correct calibration is essential to ensure that chemicals are
applied at recommended rates and that the appropriate quantities spray solution are made up for any given area. This reduces
need to dispose of waste and is more economical. the case of static/fixed spraying systems where the pumping unit is remote from spray line risers, these should be marked clearly as not suitable for drinking/poison.