The cost of compliance has always been a sensitive and uncomfortable subject. The aim of compliance is not to create financial strain on the business but a requirement to ensure a third-party certification body has evaluated specific requirements of a standard required by the farm’s clients/buyers. The essence of compliance is woven throughout various industries, such as mining, construction, food manufacturing, retail, textiles, and agriculture. For example, the Italian pasta you buy in South Africa is imported and must provide evidence of compliance against standards before entering the retail space.

SIZA does not determine the cost of an audit and, therefore, provides a choice of seven audit firms to producers to ensure a business can obtain quotes and find an audit provider suitable to its business and needs. Producers are urged to contact all seven approved audit firms to attain quotes for their audits before they take place.

Each audit’s cost will depend on various factors, including the number of employees, the number of farms/facilities, and where the site is located. It is also important to remember that various interviews must be conducted with the employees during social audits, as determined by the SIZA Social Audit Process and Methodology under section 4.2.2 on page 11.  These requirements have new and stronger emphases now with the requirements included as part of the EU Due Diligence drive toward worker’s voice. The sample size and the number of interviews is determined by the audit process and methodology requirements, which results in social audits taking longer to complete and adds to the cost of the audit.

SIZA provides a variety of audit firms for producers to choose from to ensure they pay a market-related price. All of SIZA’s recognised audit firms have auditors available throughout South Africa, and sometimes, an auditor may already be in your area, which can reduce travel and accommodation costs. For these reasons, it is important that producers contact the firms to determine which option will work best for them. Here are all the details: Recognised Third-party Audit Firms.

When considering social auditors, which holds true for other fields like environmental auditing, the journey from starting out to becoming a lead auditor is another factor influencing audit costs. It’s not just about ticking boxes and starting auditing when one feels like it. Auditors undergo rigorous training, assessments, and an international recognition process before they can step into the lead auditor role. Imagine this: hours of training, assessments from global regulatory bodies like APSCA, and shadow audits, all at the auditor’s expense. It’s a long road but a necessary one to ensure the highest standards of competence and credibility.

But it doesn’t end there. Once they’ve earned their stripes, so to speak, an auditor must continue to train and write examinations to maintain their recognition. Continuous professional development is a minimum requirement that includes regular courses, calibration sessions, and annual training in order to remain an auditor. On average, it takes at least 1 year to train an auditor if the auditor commits full-time to conduct the shadow audits. Generally, it takes a few years for auditors to become qualified as Lead Auditors. It takes, on average, approximately +/- R210 000 per year to train a social auditor. This does not include the auditor’s travel and accommodation expenses when travelling for their shadow audits.

What does SIZA save the producer when it comes to third-party audit costs?

When it comes to the combined GLOBALG.A.P. and SIZA Environmental combined audit, there is a significant saving for producers.  Below is a very conservative graph calculated over a three-year period on 148 farms that obtained platinum status.  There is a 36% reduced audit cost, which can be calculated as R36 000 savings per single entity and, in a broader context R5 328 000 savings towards the South African fruit Industry (calculated on the 4 major fruit groups).

If we look further towards the latest agreement with LEAF Marque, which now can be done as a bolt-on to the SIZA Environmental audit, which is already done in combination with a GLOBALG.A.P. IFA audit, the savings and cost estimate is much more.

If we look over a three-year period at single sites and estimate that they will have a platinum outcome, there could be a 19% reduced cost, estimated at a potential industry saving of R115 097 760. This calculation is based on all registered SIZA Environmental members.

The figures and graphs are supplied by Victor Mouton – SIZA Sustainability Officer and Agricultural Economist.

For more information, please contact SIZA at Tel 021 852 8184 or email retha@siza.co.za.