When it comes to Voluntary Sustainability Standards (VSS), the most common reaction from agri-exporting businesses is: “It’s too expensive, too complicated, and the benefits aren’t immediately visible.” In the implementation of the GEVA project, we have witnessed many businesses reconsider or even abandon their plans to comply with VSS after calculating the costs. However, the real question is: should VSS be viewed merely as a burden, or can it be considered a strategic investment?
Why are VSS costs seen as the biggest barrier?
The cost of VSS certification goes far beyond the fee paid to auditing organizations. It includes the costs of changing practices, upgrading management systems, and maintaining ongoing monitoring. According to Rainforest Alliance (2024), certification costs can be grouped into three main categories:
- Preparation costs (training, process adjustments),
- Audit and monitoring costs, and
- Post-certification maintenance costs.
Combined, these make VSS a significant investment, especially for small and medium-sized enterprises (SMEs).
In addition, there are intangible but substantial costs associated with behavior change. Many cooperatives and farmers are used to chemical fertilizers, manual drying, or even mixing lots of products. When required to change, companies often face resistance from farmers within their supply chains, prolonging timelines and increasing supervision costs.
Moreover, shifting to VSS-compliant production can cause short-term yield reductions due to the exclusion of non-compliant farmers or the adjustment period under new farming practices. This translates into lost revenue while expenses rise — no wonder many firms see VSS as a “burden.”
Long-term benefits: Turning costs into investment
If we only look at direct expenses, few businesses would be motivated to pursue VSS. But from a long-term perspective, the benefits are clear in three main areas:
1. Market access and premium positioning
VSS opens doors to high-value, stable markets. The State of Sustainable Markets report (ITC/FAO/IISD, 2023) shows that the area and production under major VSS such as Fairtrade, Rainforest Alliance, and Organic continue to expand. As a result, importers and global brands increasingly prioritize certified sources. VSS-compliant firms can access demanding customers, sign long-term contracts, and reduce market loss risks.
2. Improved internal management
VSS not only addresses environmental performance but also requires data transparency, product traceability, labor compliance, food safety, and clear governance mechanisms. When properly implemented, these systems help companies reduce legal risks, enhance brand credibility, and improve operational efficiency (EdenSeven, 2023).
3. Better access to finance
Investors and financial institutions increasingly prefer companies with clear ESG reporting or VSS certification, seeing them as lower-risk and better-managed (CRIF Digital, 2024). In certain sectors, a “sustainability differential” — price premiums for certified products — is also emerging, improving profit margins per certified batch.
The economic equation: When does VSS become a smart investment?
The issue isn’t that VSS is too expensive — it’s how businesses approach it. If certification is treated as a short-term goal, costs will outweigh benefits. But if viewed as a step-by-step investment process, the returns can be significant.
A practical approach is the “micro-lot” strategy. Instead of converting entire farms or factories, businesses can apply VSS to just 5–10% of their production. This allows them to:
- Reduce upfront investment costs,
- Gather real data to demonstrate capacity to buyers,
- Test price differentials and market readiness.
Once a company proves added value from this small batch, it has a solid basis to scale up. This approach has worked well in coffee and cocoa sectors, producing premium, high-priced specialty products.
Suggested actions for businesses
To transform VSS from burden to investment, companies can follow these steps:
- Within 6 months: Review mandatory technical requirements (e.g., MRLs, food safety), and build a basic data system (farming logs, field maps, lot codes).
- Within 12 months: Pilot one micro-lot that meets VSS standards, prepare pre-certification documentation, and assess cost–benefit outcomes.
- Within 24–36 months: Expand certified production if benefits are proven, and integrate ESG principles into the business model to attract long-term capital and customers.
VSS is not a short-term, low-cost investment, but the question is not “Should we invest?” — it’s “How can we invest smartly?”
If viewed only through the lens of short-term cost, VSS is indeed a burden. But as a foundation for market expansion, management improvement, and brand credibility, it becomes a strategic investment — one that helps businesses escape the “fast export–low price” trap. Ultimately, it’s a matter of perspective: VSS can be either a cost or an opportunity, depending on a company’s long-term vision.
References
- ITC/FAO/IISD (2023). State of Sustainable Markets.
- Rainforest Alliance (2024). Certification costs and assurance system.
- EdenSeven (2023). ESG as a bolt-on vs. strategic integration.
- CRIF Digital (2024). Integrating ESG for sustainable business growth.
© Copyright by KisStartup. Content developed under the GEVA Project – Green Export Acceleration through Voluntary Sustainability Standards (VSS). Any form of reproduction, citation, or reuse must credit KisStartup/GEVA.
