Food Safety in the Supply Chain Managing Risk in Global Trade

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1 Food Safety in the Supply Chain Managing Risk in Global Trade 7th National Food Safety & Quality Summit October 11, 2012 New Delhi, India Tom Chestnut Vice President, Global Food Division NSF International Ann Arbor, MI

2 U.S.A. India Before coming to India I expected big differences between America and India..

3 U.S.A. India But we have a lot more in common that I thought.

4 U.S.A. India As well as our passion for sport both our countries are leaders in the movie industry

5 U.S.A. India And both the U.S.A and India have recently passed new Food Safety Laws..

6 NSF International Background & Expertise on Topic NSF an independent, not-for-profit organization with a mission to protect and improve human health Over the last 60 years, NSF has developed over 70 public health standards, including the standards for certification of food equipment NSF has collaborated with the FDA, USDA, CDC and other government organizations on HACCP and other public health programs over the last 25 years Stakeholder: globally, over 28,000 food facilities and farms are audited by NSF annually under just the Global Food Safety Initiative programs (BRC, SQF, IFS, FSSC 22000, GLOBALGAP

7 Agenda 1. What are the risks in a global supply chain? 2. What drives food safety around the globe? 3. Evolution of food safety requirements for global sourcing in the North America and UK/EU 4. Status of food safety in global trade today 5. Suggested actions for developing exporters

8 What Are the Food Safety Risks in the Supply Chain? Everywhere in the World - whether it s primary or secondary production in the meat, poultry, seafood, or agriculture sectors, we are trying to control: Filth (physical contaminants) and decomposition Chemical contaminants (pesticides, antibiotics, growth hormones) Microbiological contaminants Isn t this HACCP?

9 Global Food Safety Drivers Food Industry, primarily importers Regulatory, particularly event driven change

10 Industry Drivers for Food Safety UK/EU Specifiers Had issues like Mad Cow Disease many years ago that drove a more collective response Strong Retailer influence to arrive at one best way - leading to GLOBALGAP (previously EUROGAP) and the Global Food Safety Initiative (GFSI) Industry also responds to emerging issues like the widespread use of growth hormones, particularly Clenbuterol, in the primary production of livestock

11 Livestock Industry Issues: Clenbuterol A Major Concern for Athletes Alberto Contador tests positive for clenbuterol By: Cycling News Published: September 30, 2010, 00:19, Updated: September 30, 2010, 10:06 Edition: First Edition Cycling News, Thursday, September 30, 2010 Race: Tour de France Do you like this? Tour de France test carried out on July 21, Spaniard blames food contamination Alberto Contador has revealed he has failed an anti-doping test for the banned substance clenbuterol during this year s

12 China Blames Poor Results On Diet 2012 London Olympics BY Ryan Villarreal July :02 PM The Chinese Sports Ministry instituted a ban on most beef, lamb and pork in January with the aim of preventing athletes from consuming meat tainted with clenbuterol, which is classified as a performance-enhancing drug by the International Olympic Committee

13 U.S. Industry - Historical Approach to Global Food Safety U.S. auditing companies (NSF, Silliker, AIB, RQA) multiple independent standards Restaurants and Supermarkets internal auditing teams Restaurants and Supermarkets proprietary programs utilizing U.S. auditing companies Minimal use of formal certification programs such as SQF, BRC, and GLOBALGAP

14 2007 Global Audit Harmonization Initiative (GAHI) Led by McDonalds, Wal-Mart, U.S. Foodservice, Cargill, and other leaders in the Industry Mission Have consensus on a common framework (in public domain) that serves as the reference requirement for (A) Food Safety, (B) Regulatory Compliance, and (C) Management Systems Build a coalition to gain consensus and support on the common framework Use common framework to facilitate the reduction of audit redundancy

15 GAHI Option 1 Develop New Standards Build new standards (food safety, regulatory compliance, and quality management systems) based upon GFSI Guidance Document and have it recognized by GFSI How to accomplish the above? ANSI process (consensus development process administered by NSF)

16 GAHI Model (drafted for discussion Nashville, Nov 2007) Government Consumer NRA NSF FMI GMA AMI GFSI ISO Other associations

17 GAHI Option 2 Work with Existing Standard to Gain Acceptance To work with existing GFSI recognized standard owners to modify their processes and contents if necessary to achieve a certification program that will elevate food safety practices How to accomplish the above? Work with SQF or other GFSI recognized standard owners through technical committees to improve content and delivery in North America

18 GAHI Nov, 2007 Nashville Meeting Outcomes Need a global initiative vs. U.S. initiative Need a now solution Let s work to improve existing GFSI Standards if necessary vs. new Standards Time for the U.S. to move to food safety certification schemes under the Global Food Safety Initiative

19 U.S. - Status of Industry Programs Today Momentum behind certification schemes continues Great response from large U.S. based producers Not working as well with medium size suppliers lack of technical resources driving costs up and timelines for compliance down Not working well at all for small supplier in the U.S. and global sourcing from small farms or small food producers

20 U.S. - Status of Industry Programs Today A wide gap exists today between the high levels of formal certifications and the reality of food production for over 90% of the other food producers Creating major sourcing issues for importers to the UK/EU and N. America, as well as international food companies that continue to expand to other areas of the world Can regulatory programs help to bridge the gap?

21 Global Food Safety Drivers Food Industry, primarily importers Regulatory, particularly event driven change

22 Evolving Regulatory Food Safety Requirements EU - very aggressive testing regimen for imported food products United States - for many years, overall minimal requirements to meet the CFR (food must be safe) 1995 Seafood HACCP, and later applications to juice manufacturing and low acid, canned products Minimal risk based testing at port of entry

23 Antibiotics in Seafood - China

24 China Answers Issue with Mandatory Testing

25 U.S. Regulatory Response

26 Drivers of U.S. Regulatory Change 9/11 Lead in toys Melamine in foods Primarily driven by foodborne illness outbreaks from both imported and domestic food products

27 U.S. A series of outbreaks damaged confidence Salmonella in peanuts Listeria in cantaloupes Salmonella in cantaloupes E.coli in ground beef E.coli in strawberry Salmonella in ground turkey Salmonella in papaya Salmonella in cookie dough Salmonella in salsa

28 2009 Peanut Corporation of America Salmonella Crisis Resulted in hundreds of product recalls over many months FDA investigation uncovered evidence that PCA management knew of contamination Congressional Hearings a major motivating factor in getting the U.S. legislature to move on the stalled Food Safety Modernization Act Millions of products destroyed due to potential contamination

29 PCA Consumer Feed Contaminated Products to Pets Significant Increase in Canine Salmonella Infections

30 U.S Food Safety Modernization Action (FSMA) The Act signals the greatest expansion in food safety requirements and FDA authority since 1938 It grants FDA a number of new powers, including mandatory recall authority, which the agency has sought for many years FDA is required to create more than a dozen rules and issue at least 10 guidance documents Key rule-making (specific requirements) expected in January, 2012 but delayed for political reasons

31 More Accountability for Food Importers Voluntary Qualified Importer Program Foreign Supplier Verification Program Prior Notification

32 Import Related Provisions of FSMA Foreign Supplier Verification Program Certification of high risk products as a condition of entry into the United States Accreditation of 3 rd party auditing organizations (capacity building) Laboratory accreditation (capacity building) Voluntary Importer Program

33 FSMA 3 rd Party Recognition & Role For the 1 st time, FSMA recognizes that governments do not have the capacity, and often the technical expertise, to provide training and inspections An example of how NSF as a 3 rd party is approaching this challenge. We are: Using our technical experts to develop HACCP templates for the various sectors of the food industry to easily develop HACCP plans that fit their operation Developing monitoring and documentation forms, and providing low cost training to make compliance easier Working on a less costly ANSI accredited HACCP audit that will meet requirements under FSMA

34 What Can Suppliers in India Do Now? Whether it will be called HACCP or preventive controls, the requirements under FSMA will be strongly based on HACCP principles HACCP offers a more simplified approach to food safety that with proper education and technical tools, it is achievable under today s environment If you have a well developed and verified HACCP plan, with good monitoring systems (including corrective actions) and documentation, then you should have nothing to fear in the new requirements

35 Conclusion New regulatory requirements in the U.S. and India offer a unique opportunity for the food industry to embrace systems like HACCP and ensure the safety of the food supply. Will Rogers: Even if you are on the right track, you will still get run over if you are standing still

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