Source Locally and Sell Nationally 16 th May 2007 Kevin Swoffer SALSA Scheme Consultant

1. Source Locally and Sell Nationally 16th May 2007 Kevin Swoffer SALSA Scheme Consultant

2. Background • Benefits • How it works Agenda

3. Partners

4. Sponsorship

5. Background • self regulatory Standards have been successfully introduced into the food industry for over ten years • meetings were held in July 2004 and July 2005 with a number of interested parties following requests from companies such as Asda and Selfridges to develop a standard for small suppliers • series of meetings in late 2005 lead to a joint venturebetween the British Hospitality Association (BHA), British Retail Consortium (BRC), Food and Drink Federation (FDF) and National Farmers Union (NFU) • DEFRA, SBS and FSA support • meeting with Jon Bell Chief Executive FSA Jan 2006 • ‘The work of the incidents taskforce and its quick wins subgroup has identified the importance of having standards that cover the whole food chain. We all recognise the need for further work on the storage and distribution sector and the importance of bringing small businesses into the fold. I would be delighted to support the development of initiatives in these areas.’

6. Fundamentals • product safety • product legality • supplier’s and buyer’s due diligence

7. Retailers Food Service Food Manufacturers Farmers Small Business Service Food Standards Agency DEFRA Food From Britain NHS Food Technology Centres CIEH IFST Improve Forum of Private Business University of Salford Interested Parties

8. The Vision (Initial Stakeholders) • a ‘scheme’ and not a ‘standard’ • must be ‘added value’ to small business • minimal costs within a controlled framework • managed by a professional competent body • if possible, provide additional services to small business

9. The Vision • the scheme owners would ensure the means for suppliers to obtain technical advice • the scheme would provide the route to funding of SME’s for such activities as training, purchase of publications and technical support • the scheme would allow technical networking and knowledge exchange • given the need for start-up support, the scheme should become self-funding through reasonable fees, within a defined time period and a cost controlled structure

10. The Vision • the scheme would provide an assessment of a supplier’s premises, systems and procedures to evaluate if there are any critical food safety concerns • the assessment would be undertaken by recognised, locally based assessors who would have to demonstrate their competence according to agreed criteria • unlike certification scheme the assessor could provide advice and guidance to the supplier • the scheme should be recognised by key industry bodies who would be signatories to the scheme and support it through stakeholder “governance” meetings

11. Scheme Structure and Prerequisites • independently owned and governed by industry partners and managed on a ‘not for profit’ basis but must be self funding • a robust assessment accepted by national buyers from the different purchasing sectors • a professional assessment performed by a credible body of independent auditors who can provide technical guidance • a low cost and affordable assessment and approval process for small and local suppliers • continued technical support of scheme participants

12. Shetland Islands Scottish Pilot Areas Dumfries & Galloway Isle of Arran

13. Pilot Supplier Selection • Rural • Small Businesses • Quality Products • Little orno experience of Quality Assurance

14. Range of Suppliers • 3 bakeries • 1 cheese producer • 2 dairy (milk & ice cream) • 3 chocolate producers • 1 preserves manufacturer • 1 smokehouse (fish) • 1 brewery • 1 abattoir • 1 flavoured salts / mustards

15. Benefits • the scheme would be ‘owned’ by industry bodies who will utilise the Scheme, rather than commercial businesses who simply evaluate and have no interest in the development and improvement of suppliers • the scheme will allow small food product and ingredient manufacturers to provide assurance of food safety, and thus increase their access to larger customers • the scheme will assist larger companies in providing confidence to work with small, local suppliers; necessary to fulfilling the requirements of the Government’s Sustainability strategy and its Public Sector Procurement Initiative • the scheme would help fulfil the increasing demand by consumers for local and regional produce and food products

16. Benefits • the scheme will discourage the proliferation of similar Standards • the scheme could be the route to supportive funding and a means to measure the effectiveness of funded projects • possible recognition of the scheme outside the UK would provide confidence to overseas customers

18. Process Steps • application and registration • self assessment • mentoring (optional) • assessment • certification • continued membership

19. Scheme operation • IFST appointed as scheme operator • fixed pricing policy • 100% web based • register of trained SALSA auditors and mentors • central allocation of audits • must meet different stakeholder needs

20. Pricing Policy for Suppliers • £450 plus VAT • inclusive of local travel expenses • includes access to web based information and resources • includes cost of one audit, report, publication of certificate and entry into approved suppliers directory

21. Supplier Application • supplier application completed on-line • application checked by SALSA operations • SALSA operations allocate most local auditor with correct scope • auditor accepts within 48-hours or re-allocated to next suitable auditor • supplier notified of appointed auditor and to expect direct contact

22. Following Application • Supplier provided with user name, password and initial advice on • how to confirm readiness • access to guidance • self-assessment • use of mentors • possible funding sources • Auditor provided with unique job reference and suppliers application • assesses readiness and arranges audit date or • advises on support resources available

23. Support resources • Following application review, the supplier may be advised by the auditor to • perform a self-assessment • refer to on-line resources • seek support from a SALSA approved mentor • refer to possible funding sources • Auditor will arrange the audit to suit supplier after advice on the above has been given • Auditors will be kept informed of various buyer policies and conditions

24. Audit Performance • Standard duration on-site audit will be one half day • Auditor records findings on checklist and assesses level of performance prior to exit meeting • Auditor raises and discusses items for action or improvement and prepares an action plan with supplier • Auditor and supplier sign action plan as an agreement

25. Supplier Approval • SALSA operations make approval decision based on auditor’s recommendation and returned action plan • if approved, certificate of approval is issued to supplier • Supplier information entered into ‘approved’ directory with details of audit date and downloadable certificate • if not approved, no certificate is issued and no entry in the ‘approved’ directory • Suppliers not approved at the initial audit must re-apply • Supplier is given further advice by SALSA operations regarding further support and resources available

26. Audit Standard • developed from the existing standards e.g. Safer Food Better Business, CookSafe, EU Food Hygiene Regulations Guidance and the BRC Food Standard • evolved throughout the trial process • positive feedback from suppliers on ‘language’ and understanding • associated detailed guidance is thought to be beneficial by suppliers

27. Audit Standard • controls • HACCP and management system • documentation • premises Detailed Guidance supporting the Standard

28. Governance • Contractual Joint Venture between BHA, BRC, FDF and NFU • Governance Council chaired by Lady Sylvia Jay

29. Members Chair – Lady Jay BHA BRC FDF NFU Observers FSA DEFRA SBS/DTI IMPROVE Ad Hoc IFST SFQC Experts Governance Council

30. Current Status • Governance Council and constitutional agreements- in place • the formation of the Institute of Food Science and Technology (IFST) Panel for the registration of Professional Food Auditors and Mentors- in place • the recognition and management of auditors and mentors – in place • the development and trial of a common audit standard - in place • the development of a common assessment protocol- in place • public launch at IFE in March 2007 (19-21 March) • SALSA website in operation • promotion of the scheme • formation of the Technical Advisory Committee

32. www.salsafood.co.uk Help Line – 01295 724 248