Contents. National Feedlot Accreditation Scheme - Annual Report

Transcription

1 2016 0

2 Contents 1. Reporting Period Background NFAS Participants Changes in Accreditation Status New Accreditations Withdrawals from NFAS FLIAC Approved Arrangements Audit Program Compliance Findings Critical Incidents Non-Compliance Trends Program outcomes in Glossary of Terms

3 1. Reporting Period This Annual Report of the National Feedlot Accreditation Scheme (NFAS) is for the calendar year The scope of the report covers the administration and audit processes of the program, it does not include the financial status of the NFAS. 2. Background The National Feedlot Accreditation Scheme (NFAS) is the Quality Assurance Scheme for the Australian cattle feedlot industry. The NFAS was initiated by the Australian Lot Feeders Association (ALFA) and ensures that accredited feedlots are audited annually to verify compliance to food safety, product integrity, environmental and animal welfare industry and legislative requirements. Commencing in August 1994 the NFAS was the first agriculturally based quality assurance program to be introduced in Australia and has provided a frame work for subsequent on farm systems. The NFAS Program is the cornerstone of the Australian grain fed beef industry, with NFAS Accreditation the prerequisite for meat described as being Grain Fed (GF or GFYG) for both the export and domestic markets. The scheme has also been established as a conduit for continual improvement in animal production, animal welfare and environmental management within the feedlot industry by endorsing the relevant National Codes of Practice (COPs) and embedding elements of these COPs within the NFAS Rules and Standards. NFAS is owned and operated by AUS-MEAT Limited (AUS-MEAT) on behalf of the Australian Feedlot Industry. AUS-MEAT administers the Scheme through the Feedlot Industry Accreditation Committee (FLIAC). As an AUS-MEAT convened Committee, FLIAC serves as an Advisory Committee to the AUS- MEAT Board. Current membership of FLIAC includes: Two nominees from ALFA (including Chair); and One nominee from each of the following organisations: AUS-MEAT QLD - Department of Agriculture and Fisheries NSW - Department of Primary Industries VIC - Department of Economic Development, Jobs, Transport and Resources WA - Department of Agriculture & Food The NFAS Program Manager serves as the Secretariat for FLIAC. 2

4 3. NFAS Participants NFAS participants are located in each State of Australia. As at 31 December 2016 a total of 388 feedlots held accreditation in NFAS, including six (6) feedlots that are provisionally accredited. A further 52 are currently in Voluntary Suspension. The total approved capacity of NFAS Accredited Feedlots is 1,506,970 head/scu An overview of the location of NFAS Feedlots throughout Australia is shown in Figure 1 below. Figure 1: Location of NFAS Accredited Feedlots December 2016 Legend Client GPS Town & Postcode GPS A breakdown of the accreditation status of Feedlots by State and their approved capacity and constructed capacity is shown in Tables 1 and 2 below. 3

5 Table 1: NFAS Accredited Feedlots by State and Category as at December 2016 Capacity is presented as the Approved Capacity Total Category A Category P Category S State No Capacity No Capacity No Capacity No Capacity NSW , , ,330 QLD , , , ,520 SA 22 42, , ,330 TAS 1 16, , VIC 18 82, , ,000 WA 42 73, , , ,200 Total 440 1,507, ,443, , ,380 Table 2: NFAS Accredited Feedlots by State and Category as at December 2016 Capacity is the as the Constructed Capacity Total Category A Category P Category S State No Capacity No Capacity 1 No Capacity No Capacity NSW , , ,080 QLD , , , ,867 SA 22 41, , ,410 TAS 1 12, , VIC 18 77, , ,500 WA 42 67, , Total 440 1,272, ,246, , ,857 Legend: A Accredited P Provisionally Accredited S Voluntary Suspension 3.1 Changes in Accreditation Status Changes in the accreditation status of individual feedlots are recorded in the NFAS database. Only feedlots that have a status of Accredited (A) or Provisional (P) are approved to sell cattle as Accredited Grain Fed cattle. Changes in the accreditation status of a feedlot occur when a feedlot: achieves initial accreditation; moves from Provisional (P) accreditation to Accredited (A); is placed into Voluntary Suspension (S); returns from Voluntary Suspension or is withdrawn from the program. The NFAS Rules prescribed that a feedlot may make a formal request to be placed into Voluntary Suspension for a period of 24 months. Whilst in Voluntary Suspension a feedlot is not required to undergo the annual audit. At the end of the 24 month period the feedlot must either undergo an audit or withdraw from the program. Feedlots returning to the program after being withdrawn are required to go through the initial accreditation process again. 4

6 During 2016, a total of eighteen (18) feedlots had their accreditation status upgraded to A or P. Of these two (2) feedlots received their initial accreditation, the remaining sixteen (16) were returning from voluntary suspension or were renewing their accreditation due to a change in ownership. In addition to the accreditations eleven (11) feedlots were placed into Voluntary Suspension S and ten (10) feedlots voluntarily withdrew from the program. 3.2 New Accreditations AUS-MEAT processed two (2) new NFAS Accreditations in 2016, with combined capacity of approximately 1,149 head/scu. The number of new NFAS accreditations in 2016 decreased to the 2012 level. Figure 2 below shows the trend with new accreditations over the past six (6) years. These feedlots are generally small family owned businesses. Figure 2: New NFAS Accreditations 2011 to Withdrawals from NFAS Ten (10) feedlots withdrew from NFAS in This is consistent with recent trends showing the number of small feedlots withdrawing from the industry (and NFAS) is greater than the number of new accreditations. It should be noted the number of feedlots that withdrew from NFAS in 2016 was less than previous years. Figure 3 shows the number of feedlots cancelling their accreditation from 2011 to

7 Figure 3: Cancelled Accreditation FLIAC The Feedlot Industry Accreditation Committee (FLIAC) meets face to face every six (6) months. These meetings have a set agenda and also address any new or ongoing issues relevant to NFAS. The Committee arranges teleconferences to address urgent issues when and as required. In 2016, FLIAC held ordinary meetings on 20 April and 14 October. teleconferences were required during the year. No additional A FLIAC milestone was reached this year with the meeting in April marking the 100 th time members of the Committee have come together to discuss the progress, required changes and current issues associated with NFAS. Of note, Ian King CEO of AUS-MEAT Limited has attended each of the meetings over the past 23 years. This is not only an indication of Ian s commitment to the program but the depth of industry knowledge within this Committee. 5. Approved Arrangements As the operator of NFAS, AUS-MEAT is involved in approved arrangements with the Queensland and Victorian State Governments. While these agreements are recognised as coregulatory all breaches of legislative requirements are ultimately the responsibility of the relevant authority. A Memorandum of Understating (MoU) established with the Queensland Government in 2013 enables Queensland based NFAS accredited feedlots to receive a discount in their environmental licence fee. This agreement is based on the recognition of the annual NFAS 6

8 audit as an environmental audit. Under the MoU, AUS-MEAT is responsible for ensuring feedlots are audited annually, providing quarterly reports outlining environmental nonconformances identified during NFAS audits and immediate notification to DAF of potential or actual environmental harm observed during an NFAS audit. As part of the ongoing commitment to the MoU, DAF and AUS-MEAT staff conduct joint audits of selected feedlots. This process ensures both organisations are inspecting the same environmental elements and addressing any adverse findings in a similar manner. The Victorian Government also recognises that NFAS auditors and inspectors for the Environmental Protection Authority (EPA) are addressing similar issues and generally accepts the annual NFAS audit, unless a specific environmental issue is identified. The Victorian Government has also approved NFAS in a Compliance Arrangement under section 11 of the Livestock Management Act with AUS-MEAT Limited as the Controlling Authority. Under this arrangement, feedlots must comply with specific animal welfare and transport requirements (as outline in the current NFAS Standards). AUS-MEAT is also required to provide an annual report to the Victorian Department of Economic Development, Jobs, Transport and Resources detailing the number of audits conducted, any non-conformances and the outcome of these non-conformances. This report was provided in August No significant non-conformance were identified in the period covered by the report.. 6. Audit Program Unless otherwise specified NFAS audits are conducted annually. In 2016, 394 on-site audits were completed. This accounts for all the currently active NFAS accredited feedlots. At the end of 2016 AUS-MEAT had 18 accredited Auditors across all states conducting on-site compliance audits for NFAS. Auditors must have current registration as Food Safety Auditors with Exemplar Global, be current LPA Auditors and have an understanding of livestock production systems before they are considered to audit the NFAS program. AUS-MEAT provides NFAS Auditor training through a system of buddy audits prior to sign off. Focus group training is also provided for all of the Livestock Programs delivered by AUS-MEAT. As part of the ongoing auditor calibration activities, Witness Audits are conducted. These audits are carried out by senior NFAS Auditors and are designed to ensure all Auditors continue to comply with the auditing requirements of the NFAS Standard. In 2016 three (3) Auditors participated in witness audits on NFAS accredited feedlots. 7. Compliance Findings Non-conformances identified at audit are graded in accordance with severity in accordance with the NFAS Rules - namely Critical, Major and Minor. A definition of the various nonconformances is provides in Table 3. 7

9 Table 3: Non-Conformance Assessment Scores Non-Conformance Documented by Definition Critical Non-conformance Documented on a Critical Incident Report (CIR) without a Corrective Action Request (CAR). Accreditation would not be recommended. Decisions on action to be taken are ultimately the responsibility of AUS-MEAT. Would cause loss of integrity of the Australian Meat and Livestock Industry and NFAS. There would be clear evidence that Standards had been compromised. All incidents relating to breaches of mandatory animal welfare, environment, food safety and AUSMEAT Minimum Standards for Grain Fed Beef should be treated in this category. Major Non-conformance Documented on CAR s Has the clear potential to impinge on the integrity of the Australian Meat and Livestock Industry and NFAS. If not addressed there would be potential for the non-conformity to further compromise the Standards. Minor Non-conformance Documented as an observation in the audit report. Does not directly impinge on the integrity of the Australian Meat and Livestock Industry and NFAS. A breakdown of the number of non-conformances by element is provided in Table 4 below. Table 4: Breakdown of non-conformances in by NFAS Elements Element Major Non Conformance % Critical Non Conformance % % % % % Calendar Year % % % % % % % % Total % Legend 1 Quality Management System 2 Food Safety Management 3 Livestock Management 4 Environmental Management 5 Product Integrity 6 General Observations 8

10 As detailed in Table 4, a total of 116 major non-conformances were identified in 2016 equating to an average of 0.29 non-conformances per audit which is a reduction from the average of 0.49 non-conformances per audit in In order of frequency, the main issues identified in 2016 are: Element 5 Product Integrity was identified as the major area of non-conformance. The main reason is the failure to provide a current Ration Analysis. It should be noted that the two Critical non-conformances were identified under this element. Element 1 Quality Management Systems: Auditors identified the lack of completed Internal and Animal Welfare Audits. Other areas identified were related to Stocktakes of chemicals and not maintaining Training Records and Job Descriptions. Element 3 Livestock Management. In 2016 the major area of non-conformance under livestock management was for feedlots not documenting and implementing a Pregnancy and Calving Management Plan. Other issues identified in this element were: failure to have a visual management tag in addition to the NLIS device and the failure to conduct an annual Excessive Heat Load (EHL) Risk Assessment. Element 2 Food Safety Management. In this element four areas have been identified. These include, the annual reconciliation of the NLIS database, risk assessments for physical and chemical contaminants, failure to obtain Commodity Vendor Declarations (CVD) with purchased commodities and failing to obtain correctly completed LPA National Vender Declarations for cattle entering the feedlot from a separate PIC. Element 6 General Observations. The requirement to have a copy of the Development Approval and /or an Environment Licence on site at the time of the audit continues to be difficult for some feedlots to comply with. Audits are also identifying QA manuals that require upgrading to include the current NFAS requirements. Element 4 Environmental Management. Issues identified are related structures (i.e. drains and embankments) for the control of runoff from the controlled drainage areas. Some feedlots have been unable to provide documented risk assessments that address the environmental risks on the site. Feedlots are required to implement actions to address Major non-conformances within 30 days unless another arrangement is agreed to with the Auditor. The majority of nonconformances are closed within the 30 day period. Feedlots identified as taking longer to address the non-conformances are contacted by the Auditor to ensure the issue is closed. AUS-MEAT is also planning to use its automated mail merger system to generate overdue non-conformance letters as a reminder for feedlots that have not addressed issues raised at audit within the specified time. 7.1 Critical Incidents When a Critical Incident is identified by an Auditor, the Auditor must immediately inform the Program Manager who contacts the FLIAC Chair and the Committee members. 9

11 Two (2) Critical non-conformances were identified during Both cases were reported on the eve of a Committee meeting and in both instances the NFAS Delivery Docket had been incorrectly used. Following a review of the incidents by the Committee, feedlot management and staff involved were required to show cause as to why their NFAS accreditation and individual Statements of Authority should not be withdrawn. These feedlots have since demonstrated that they have systems in place that will prevent the non-conformance from occurring in the future. 7.2 Non-Compliance Trends The graph below (Figure 4) provides a pictorial history of non-conformances trends from 1997 to Figure 4: NFAS Non-conformances from 1997 to 2016 Points of interests include: In 2002 the NFAS Rules and Standards underwent revision. In 2007 the requirements for Excessive Heat Load and Biosecurity were implemented. These elements of the standard required a major change in many feedlot operations. As a result many of the feedlot operators waited until their annual audit when the auditor identified the issue, but was able to explain the requirements to the operators. In 2012 a further review of the NFAS Standards completed. A key change being the update to an Outcomes based format, with the revised Standards incorporating the food safety related aspects of the previous Standards under a single Food Safety Module. In 2014 the NFAS audit report was updated to follow the format of the new Standard which resulted in a more robust audit that identified a greater number of nonconformances in the Quality Management and Food Safety elements. 10

12 In 2015 the a new requirement for a Pregnancy and Calving Plan resulted in the increase in non-conformances related to Livestock Management while the nonconformances identified in the other elements remained the same, apart from Environmental Management which showed a slight reduction. In 2016 there were no changes to the NFAS Standards or the audit report which enabled feedlots to strengthen existing systems. It is worth noting the trend in non-conformances related to Product Integrity has remained the same for the past 10 years. Non-conformances in this element are generally related to ration testing by smaller feedlots. 8. Program outcomes in 2016 Key outcomes by FLIAC in 2016 are: An update to the NFAS Delivery Docket to easily identify cattle being transferred to another NFAS accredited feedlot for on-feeding. The release of a specific EU GF HQB Delivery Docket. Meetings with senior representatives from the Queensland, New South Wales and Western Australian Governments to confirm continued support for FLIAC and the participation of individual State representatives on the Committee. The inaugural NFAS Annual Report was released and put on the AUS-MEAT Limited website for public viewing. Key projects commenced in 2016: As part of the recommendations from NFAS review sections of the NFAS Rules and Standards have been updated and are expected to be released in 2017 after final approval by FLIAC. The NFAS Communication Strategy was developed during the year and will continue to be implemented in

13 Glossary of Terms Accredited A feedlot that has undergone the NFAS Accreditation process and is actively operating. ALFA Australian Lot Feeder s Association. Auditor a person approved by AUS-MEAT to conduct Audits on its behalf. COP Code of Practice. Corrective Action Action taken to correct a non-conformance with the process or product. FLIAC Feedlot Industry Accreditation Committee. NFAS National Feedlot Accreditation Scheme. MoU Memorandum of Understanding between AUS-MEAT Limited and a relevant Government authority. Provisional Accreditation A feedlot that has undergone the NFAS Accreditation process and is operating but may need to close a Corrective Action. Voluntary Suspension A feedlot may formally request AUS-MEAT to place it in Voluntary Suspension for a period of 24 months. Witness Audit an audit observed by a senior Auditor or external client to verify compliance to the audit process and Standard by the Auditor conducting the audit. END 12