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MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT

MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT. By Pitak Supanantakarn, Regional Director, Food Services Asia Pacific Intertek Testing Services. HOW TO MANAGE THE PRODUCTS TO EXPORT PROMOTION, PHNOM PENH, CAMBODIA 17 th December, 2009 . THE FOOD SAFETY CHALLENGES.

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MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT

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  1. MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT By Pitak Supanantakarn, Regional Director, Food Services Asia Pacific Intertek Testing Services HOW TO MANAGE THE PRODUCTS TO EXPORT PROMOTION, PHNOM PENH, CAMBODIA 17th December, 2009

  2. THE FOOD SAFETY CHALLENGES • Complexity of agri-food supply chain – no. of suppliers, processes, ingredients, etc. • Food trade globally – global sourcing & geographical coverage. • Rapid globalization of food production increased potential likelihood of food contamination • Gaps in product safety implementation • Additional and more specific laws and regulations • Product liability – Brand Protection….. • Consumers are better educated and well informed about food & food related issues. • Customer demands and preferences constantly changing….

  3. GLOBAL FOOD CRISIS HYGIENE, DISEASE AND CONTAMINATION To date, the world has faced with food crisis of variable nature, for example: Mad Cow disease Sudan Red Dioxin Melamine Causes have been traced to various possibilities such as negligence in causing contaminated animal feed and chemical residue but also to the extent of deliberate adulteration • ANIMAL WELFARE • Compromised welfare of animals and livestock

  4. GLOBAL FOOD CRISIS FRAUD Other deliberate attempts affecting global food supply include product counterfeit, illegal sourcing and mislabeling of products. Cases have involved : Fish products African coffee Belgian chocolate • ENVIRONMENTAL • Pollution • Over-harvesting • Ecological imbalance

  5. 21st Century FOOD ISSUES Private Label Foods flood the Marketplace Health & nutrition greatly influencing Product Development Global Financial Crunch, Cheaper Price  Production Costs, Cuts on food spending Decreasing Consumer Confidence Clamor for Foods that meet Health, Safety & Environmental Needs Changes in Preferences and Sourcing Patterns Problems on Traceability - Supplier Food Safety Controls Product Mislabeling & Misinformation (Allergens, GMO’s, etc) Risk & Recall Communication Migration of Hazardous Substances Concerns on Food Bio-security Consequences of Climate Change Environmental Degradation World population 6.7B (2010)  9B (2040)

  6. Doing nothing is no defense! WHY MANAGE FOR FOOD SAFETY • Failure to manage risk: - • Always costs money…! • Always damages a reputation.. ! • Public recalls..! • Customer demand it • It’s good for business • Potential product liability • Regulators requirement • Nothing remains the same.. Your past experiences guarantee nothing..!!! • Playing the media

  7. MANAGING FUTURE RISKS.. THE NEED Why Managing Risk? • Change in technology • Change in the law # • Change in consumer attitude toward risk • Change in customer requirement & expectations • Change in business environment….. • …..never be the same..!!

  8. THE BUSINESS PROCESS Increasing Monetary Investment Increasing Emotional Investment Increasing Time Investment

  9. Seed, Soya / Maize Primary Agriculture Primary Agriculture Pesticides Animal Feed Production Animal Feed Production Ingredients & Ingredients & Animal Feed Medicines Medicines Live Animal Animal Production Animal Production Breeding Stock Breeding Stock Animal Slaughter & Processing Animal Slaughter & Processing Raw Meat Further Processing & Cooking Further Processing & Cooking Cooked Meat Ingredients & Ingredients & Packaging Packaging Storage & Distribution Example: AGRI-FOOD SUPPLY CHAIN

  10. Complexity & Multiplication of Impact Ingredients Raw materials Packaging Storage Man. Process Storage & Transport Retail Reduction of Risk (Risk = Hazard x Exposure) CHAIN TRACEABILITY

  11. Processors/ Packers/ Manufacturers Growers/ Farmers Collector/ Primary producer Distributors/ Wholesales/ Retailers Consumer Agri-food Supply Chain – Integrated Quality Program To Fork From Farm GlobalGAP, Organic, Non-GMO BRC-Packaging Halal, GMP/ HACCP BRC-Packaging BRC-Food IFS, Halal GMP/ HACCP “one brand” Certification “one brand” certification Supply chain inspections From Farm Management standards: ISO 9001, 14001, 22000, OHAS 18001, SA 8000, HACCP, To Fork Product standards: Organic, non-GMO, Halal, Q&S, etc. Traceability and Testing Product liability insurance, Training, Risk management, Consulting, etc

  12. Testing ISO 9000 NON-GMO ORGANIC HALAL IFS GlobalGAP HACCP BRC ISO 22000 ”One stop shop” • Security • Social Accountability • Environmental Program Management What Should the Industry Expect? Inspection

  13. Efficiency Integrated Food Quality and Safety Systems Profitable ENHANCING FOOD QUALITY & SAFETY Market and Legal compliance

  14. CIES TOP MIND SURVEY Source: CIES France

  15. GLOBAL FOOD SAFETY INITIATIVE GFSI launched at the CIES Annual Congress in 2000, following a directive from the food business CEOs. Food Safety was then, and is still, top of mind with consumers. Consumer trust needs to be strengthened and maintained, while making the supply chain safer. Managed by CIES – The Food Business Forum GFSI Mission: “Continuous improvement in food safety management systems to ensure confidence in the delivery of safe food to consumers” Source: CIES France

  16. GFSI TECHNICAL WORKING GROUPS Source: CIES France

  17. FOUNDATION IN SCIENCE Supplementary Codes Schemes Standards Principles Requirements Source: CIES France

  18. BENCHMARKING – WHAT DOES IT MEAN? « Once certified, accepted everywhere Source: CIES France

  19. SOME COMPANIES NOW ACCEPTING GFSI RECOGNISED SCHEMES Source: CIES France

  20. MAIN CHALLENGES IDENTIFIED BY SUPPLIERS • No management systems in place at the production unit • Limited information of expectations and needs • Reduced support of implementation stage from some buyers • Short term relation or view • Very competitive market • Reduction in prices and margin • Increase of global production • Standards developed in buyer markets for implementation at sourcing markets

  21. HOW AND WHAT TO IMPLEMENT BY SUPPLIERS? • Management systems programs • Systematic and proactive approach, rather than reactive with costly actions • Consult your clients, understand their needs • Identify best fitting alternative of recognized programs • Ensure top management endorsement • Develop reasonable, timely and cost-effective action plan • Monitor program implementation and efficiency periodically • Select qualified and experienced service provider for consultancy or external verification

  22. INDEPENDENT VERIFICATION – WHY USE IT? • Increasing consumer demand for product differentiation in global markets • Buyers are increasingly using Assurance Schemes to verify quality • Excellent tool for the operator to: • Validate their quality and/or traceability system against international standards • To communicate to customers and suppliers the quality standard they have achieved • Increases producer’s credibility • Verify label claims – Halal, Non-GMO, organic, Kosher, fair trade, etc • Certification an increasingly valuable “ticket to trade”

  23. CHALLENGE TO THE SUPPLY CHAIN MANAGEMENT • Customer requirement is constantly changing.. Endless.! • Language • Culture • Local legislation • Time and distance • Individual interpretation • International legislation • Lack of resource and support • Using quality system in the wrong reason..

  24. OUR FOCUS Intertek • Food service industry: • Testing (all levels) • Inspection (all levels) • Certification (3rd party) • ISO 9000 • ISO 22000 • Food Safety • (BRC, IFS, SQF, etc.) • Consulting • Training • Preassessment Asia EAME America Quality assurance Food Services? Certification Fire wall Advisory System Process Product Food Services

  25. INTERTEK INTELIGENCE Intertek do assess, identify and predict any potential hazards and quality promises from concept to distribution. This is carried out with out with combined testing and auditing services by our global network of laboratories and industry experts. ─ Countries 110 • ─ Laboratories 440 ─ Offices 630 ─ Employees 24.000 • Floated May 2002 • FTSE 100, Support Services Sector • Market capitalization £1.6bn ASIA 1/3 Turnover, People AMERICA 1/3 Turnover, People EAME 1/3 Turnover, People

  26. Thank you for your attention For more information: www.intertek.com • Pitak Supanantakarn • Regional Director – Food Services Asia Pacific • Mobile: +66 81 841 5314 • E-mail: pitak.sup@intertek.com

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